SkyWest 1Q profit meager but still exceeds predictions
SkyWest Inc. on Wednesday reported a small first-quarter profit that disappointed the Utah-based regional airline but still exceeded the expectations of securities analysts.
SkyWest earned $3.2 million, or 6 cents per diluted share, in the three months ending Dec. 31. A year ago, it lost $700,000, or 1 cent per share. Analysts were looking for 2 cents per share this quarter.
"We had planned to achieve improved financial results for the quarter just ended over the same period last year. However, our results were negatively impacted primarily by weather and other operational challenges," CEO Jerry Atkin said in a statement.
Revenue in the quarter was $803.5 million, down 13 percent from the first quarter of 2012. SkyWest pinned the decline on lower fuel reimbursements from Delta Airlines and the other carriers for which it operates flights. Fuel reimbursements are counted as revenue.
SkyWest also received smaller reimbursements for engine overhaul expenses, also counted as revenue.
SkyWest is the parent company of SkyWest Airlines and ExpressJet Airlines. SkyWest Airlines operates as Delta Connection for Delta, United Express for United Airlines, American Eagle for American Airlines and US Airways Express with US Airways. It also flies for Alaska Airlines.
ExpressJet operates flights for Delta Connection, United Express and American Eagle.
At midmorning, SkyWest shares were trading at $14.82, down 43 cents.
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