SkyWest Inc (SKYW) Reports Q3 2023 Earnings: A Detailed Review
SkyWest Inc (NASDAQ:SKYW) reported a net income of $23 million for Q3 2023, a decrease from $48 million in Q3 2022.
The company repurchased 1.2 million shares of common stock for $50 million during Q3 2023 under its share repurchase program.
Revenue for Q3 2023 was $766 million, a 3% decrease from $789 million in Q3 2022.
SkyWest secured a new flying agreement with United Airlines for 19 new E175s under contract.
On October 26, 2023, SkyWest Inc (NASDAQ:SKYW) released its financial and operating results for Q3 2023. The company reported a net income of $23 million, or $0.55 per diluted share, compared to a net income of $48 million, or $0.96 earnings per diluted share, for Q3 2022. Despite the decrease in net income, the company expressed satisfaction with the improving trajectory of its business and the steady progress toward stabilization of its pilot hiring and retention.
Financial Performance and Share Repurchase Program
During Q3 2023, SkyWest repurchased 1.2 million shares of common stock for $50 million under its share repurchase program authorized by the SkyWest Board of Directors in May 2023. For the nine months ended September 30, 2023, SkyWest repurchased 9.6 million shares of common stock for $244 million, representing 19% of SkyWests outstanding shares as of December 31, 2022. As of September 30, 2023, SkyWest had $136 million of remaining availability under its current share repurchase program.
Revenue and Operating Expenses
Revenue was $766 million in Q3 2023, down $23 million, or 3%, from $789 million in Q3 2022. SkyWest deferred recognizing $57 million of revenue during Q3 2023 compared to recognizing previously deferred revenue of $13 million during Q3 2022. Operating expenses were $717 million in Q3 2023, up $3 million from $714 million in Q3 2022, driven by increases in employee compensation, including higher pilot pay scales.
Capital and Liquidity
SkyWest had $820 million in cash and marketable securities at September 30, 2023, down from $862 million at June 30, 2023 and $1.0 billion at December 31, 2022. Total debt at September 30, 2023 was $3.1 billion, down from $3.2 billion at June 30, 2023 and $3.4 billion at December 31, 2022.
New Flying Agreement with United Airlines
SkyWest announced that it has secured a new flying agreement with United Airlines for SkyWest to acquire and place 19 new E175s under contract. By the end of 2026, SkyWest is scheduled to operate a total of 258 E175 aircraft.
Despite the challenges faced in the current financial year, SkyWest Inc (NASDAQ:SKYW) continues to focus on its strategic goals and operational efficiency. The company's commitment to delivering an exceptional product and operating performance is evident in its Q3 2023 results.
Explore the complete 8-K earnings release (here) from SkyWest Inc for further details.
This article first appeared on GuruFocus.
