United Airlines (Chicago) will end United Express Embraer EMB-120 Brasilia service to Klamath Falls, Oregon (from Portland and San Francisco) on June 3 per Airline Route. Service to Modesto, California from San Francisco will end on June 4. The routes are operated by SkyWest Airlines (St. George, Utah).

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Embraer EMB-120ER Brasilia N233SW (msn 120307) arrives in Los Angeles.

United Express-SkyWest: 

Current SkyWest (United Express) routes on the West Coast:

United Airlines (Chicago) will add additional Embraer 175 flights from the San Francisco hub in the fall. In addition to the previously-reported routes, United will add United Express service from SFO with the new E175 flights to Boise (starting on September 30), Calgary (September 21), Dallas/Fort Worth (October 26), Kansas City (October 26), St. Louis (September 20) and Salt Lake City (October 26) per Airline Route.

The SFO flights are expected to be operated by SkyWest Airlines.

SkyWest Airlines operated its E175 inaugural flight, operating as United Express, from Chicago O’Hare to Reagan National Airport in Washington, D.C. on Saturday, May 17. According to SkyWest, “the milestone represented a tremendous amount of preparation and hard work by many SkyWest employees during the last 15 months.”

Within the next two years, SkyWest will take delivery of 40 new E175s that will operate under an agreement with United Airlines.

According to the airline, “the E175 is the fifth aircraft type in SkyWest’s current fleet, and from full-sized cargo-bins to larger aisles and seats, it’s filled with enhanced features that will help ensure every passenger enjoys a comfortable, convenient flight.”

From Houston, E175 service on flights between the hub at George Bush Intercontinental Airport and Atlanta and New Orleans begins on June 15, and between Houston and Austin starting on June 16. United also launched E175 service between Chicago O’Hare and Minneapolis/St. Paul on June 5; between Chicago O’Hare and Atlanta beginning on June 15; and between Chicago O’Hare and New York LaGuardia beginning on June 23.

United Express carrier Mesa Airlines will operate the flights between Houston and Atlanta, Austin and New Orleans. United Express carrier SkyWest Airlines will operate the flights between Chicago and Atlanta, New York LaGuardia and Minneapolis/St. Paul.

Copyright Photo: United Airlines.

SkyWest, Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George, UT) reported financial and operating results for the second quarter ended June 30, 2014. Highlights are as follows:

SkyWest’s net loss was $(14.7) million, or $(0.29) per diluted share, for the quarter ended June 30, 2014. This compares to net income of $20.7 million, or $0.39 per diluted share, for the same period last year.
The significant items that impacted the financial results for the quarter ended June 30, 2014 included the following:

We achieved lower than anticipated performance incentive bonuses under our flying contracts and had unfavorable flying contract settlements that negatively impacted revenue.

We experienced a significant amount of pilot training and related costs associated with compliance with FAR117 flight and duty rules, pilot attrition and introduction of the new E175 aircraft.

We wrote-off certain asset values acquired through the ExpressJet acquisition, wrote-down the carrying value of the Saltillo paint facility and recorded a loss on the disposition of ground handling fixed assets.
A change in our estimated pre-tax results for calendar 2014 resulted in the reversal of a portion of the income tax benefit we recorded in the first quarter of 2014.

2014 and the first half of 2015 will be a significant transition period for SkyWest, and to address the challenges we have made key leadership changes and fleet changes, such as:

In May 2014, SkyWest announced Russell “Chip” Childs as President, SkyWest, Wade Steel EVP, SkyWest and Michael Thompson, COO, SkyWest Airlines

In the second half of 2014, SkyWest expects 56 of its unprofitable 50-seat aircraft contracts will naturally expire and the aircraft will be returned to lessors. SkyWest also expects an additional 101 unprofitable 50-seat aircraft contracts will naturally expire and be removed from service by December 31, 2015.

SkyWest added eight E175 regional jet aircraft as of June 30, 2014, expects delivery of 13 additional E175 aircraft by December 31, 2014 and the remaining 19 additional aircraft by August 2015. With the training and other start-up costs associated with the E175 aircraft launch, SkyWest anticipates the economic benefit of the E175 aircraft will become evident by the second quarter of 2015.

SkyWest invested approximately $26.8 million for E175 specific spare parts, engines and tooling as of June 30, 2014 and anticipates investing another $10.0-$12.0 million for similar items by the end of 2014. SkyWest also invested $33.6 million into E175 ownership equity as of June 30, 2014.

Other notable items that occurred during the quarter, or subsequent to the quarter end, include the following:

We repurchased $5.3 million or 427,500 shares of outstanding common stock

We settled our outstanding IROP’s suit with Delta Air Lines with no immediate or additional further negative impact to our financial results.

Commenting on the results, Jerry C. Atkin, SkyWest’s Chairman and CEO, said, “Although we recovered somewhat from the severe weather and related impact we suffered during the first quarter of 2014, we faced additional issues in the second quarter of 2014 and our financial and operating results simply did not meet our expectations during the quarter.” He continued, “However, non-operating items accounted for about 50% of the lower results at ExpressJet Airlines while SkyWest Airlines financial performance was slightly better than plan. We believe we are on the right path and will continue to work with our major partners and internally to achieve the objectives for improving both financial and operational performance. On a positive note, SkyWest Airlines achieved a successful introduction of 11 of 40 firm ordered E175 regional jet aircraft under contract with United Airlines.”

Financial and Operating Results

Operating revenues totaled $816.6 million for the quarter ended June 30, 2014, compared to $839.1 million for the same period of 2013, a decrease of $22.5 million. The significant items impacting operating revenue, after excluding the impact of pass-through costs under our flying agreements, include missed contract performance incentives and unfavorable flying contract settlements that resulted, in the aggregate, in $9.8 million lower revenue compared to the quarter ended June 30, 2013.

The significant items that impacted our total airline expenses (consisting of total operating and interest expenses) after excluding the impact of pass-through costs under our flying agreements, include increased flight crew costs related to implementation of FAR117 flight and duty rules, pilot turnover and training costs for the introduction of the new E175 aircraft, that resulted in an increase of $20.6 million compared to the quarter ended June 30, 2013. We also wrote-off a foreign value added tax asset associated with our aircraft paint facility in Saltillo as well as wrote-down the carrying value of the facility due to changes in its value and recorded a loss on the disposition of ground handling equipment that resulted in a combined write-off of $6.8 million.

Liquidity

At June 30, 2014, SkyWest had $467.0 million in cash and marketable securities, compared to $670.1 million as of December 31, 2013. Cash and marketable securities decreased $203.1 million from December 31, 2013 to June 30, 2014, primarily due to SkyWest’s investment of approximately $60.0 million in E175 assets and E175 equity investment in the debt financing, timing of semi-annual aircraft lease payments resulting in an increase of prepaid aircraft rents of $48.0 million, incurring a pre-tax loss for the six months ended June 30, 2014 of $46.0 million and investment of approximately $20.0 million in engines for our CRJ200 aircraft. SkyWest also anticipates refinancing interim debt financed aircraft into long-term leases, and if it is successful in that process, SkyWest’s management anticipates the return of approximately $34.0 million in cash.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Operating 50-seat regional jets has been a drag on earnings for the company. According to the company, “In the second half of 2014, SkyWest expects 56 of its unprofitable 50-seat aircraft contracts will naturally expire and the aircraft will be returned to lessors. SkyWest also expects an additional 101 unprofitable 50-seat aircraft contracts will naturally expire and be removed from service by December 31, 2015.” Bombardier (Canadair) CRJ200 (CL-600-2B19) N652BR (msn 7429) in the house SkyWest colors departs from Los Angeles International Airport.

SkyWest Airlines: 

Combined Route Map:

SkyWest Airlines (United Express) (St. George, UT) will drop Chico, California and the Chico-San Francisco route on December 2. The route is not profitable according to KRCR News. This will end commercial air service at the airport.

Read the full article: CLICK HERE

Copyright Photo: Mark Durbin/AirlinersGallery.com. Embraer EMB-120ER Brasilia N295SW (msn 120322) taxies at the San Francisco hub.

United Express-SkyWest Airlines: 

SkyWest, Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George, Utah) today reported financial and operating results for the third quarter ended September 30, 2014. Highlights are as follows:

SkyWest’s net income was $41.3 million (inclusive of $15.3 million after-tax related to TRIP gain from below), or $0.79 per diluted share, for the quarter ended September 30, 2014. This compares to net income of $26.4 million, or $0.50 per diluted share, for the same period last year.

Significant financial items related to the third quarter included:

Operating income, which excludes TRIP gain, increased $2.9 million from the same period last year, despite the negative financial impact of FAR117 flight and duty rules implemented January 2014

The completion of the Trip Linhas Aereas S.A. stock sale resulted in a pre-tax gain of $24.9 million and interest income of $2.1 million

Operating revenues, after excluding a reduction in direct contract reimbursement for pass-through cost expenses, increased 1.9% compared to the prior period, despite a 6.0% reduction in departures and 3.8% reduction in block hours from the prior period

Significant operational and commercial items include:

16 ERJ145s were removed from contract during the third quarter of 2014. SkyWest anticipates 18 ERJ145s will be removed during the fourth quarter of 2014, and 23 ERJ145s and 9 ERJ135s will be removed during the first half of 2015.

As of September 30, 2014, SkyWest had 14 E175 jet aircraft in the United Airlines contract and took delivery of one additional E175 in October 2014. SkyWest expects delivery of six additional E175 aircraft by December 31, 2014 and the remaining 19 additional aircraft by August 2015.

ExpressJet appointed Alexandria Marren as its COO effective October 1, 2014

Operational reliability at ExpressJet improved to 99.4% adjusted completion for the September 30, 2014 quarter from 99.0% from the same period last year

SkyWest invested approximately $35.7 million for E175 specific spare parts, engines and tooling as of September 30, 2014. SkyWest also invested $56.0 million into E175 ownership equity as of September 30, 2014.

Commenting on the results, Jerry C. Atkin, SkyWest’s Chairman and CEO said, “The increase in operating income from last year is positive news when factoring the significant cost impact of FAR117 we’ve experienced in 2014 and the reduction in departures and block hours since last year.” He continued, “As we pursue opportunities to remove our older 50-seat aircraft from service and add new larger dual-class aircraft, we are optimistic that our operational reliability and financial results will continue to improve. We remain committed to our major partners and our process to improve both financial and operating performance.”

Financial Performance

Total operating revenues, excluding the significant direct contract reimburses for fuel, landing fees, station rents, and engine maintenance, increased by $12.7 million during the quarter ended September 30, 2014 from the same period last year. The improvement was primarily due to certain contract renewals and modifications, operating additional E175 aircraft, and increased government subsidies for operating certain routes.

Flight crew costs and related crew hotels expenses associated with FAR117 and training costs for the introduction of the new E175 aircraft, that resulted in an increase of $13.8 million in operating costs compared to the quarter ended September 30, 2013.

Direct maintenance expense, excluding engine maintenance expense, decreased $12.2 million during the quarter ended September 30, 2014 compared to the same period last year due to a reduction in scheduled events and removal of older aircraft after June 30, 2013. Certain other operating expenses, primarily related to the E175 aircraft and pro-rate operations, increased during the three months ended September 30, 2014 compared to the same period last year.

Liquidity

At September 30, 2014, SkyWest had $555.7 million in cash and marketable securities, compared to $467.0 million as of June 30, 2014 and $670.1 million as of December 31, 2013. Cash and marketable securities decreased $114.4 million from December 31, 2013 to September 30, 2014, primarily due to SkyWest’s investment of approximately $91.7 million in E175 assets and E175 equity investment in the debt financing and timing of semi-annual aircraft lease payments resulting in an increase of prepaid aircraft rents of $20.3 million. The cash and marketable securities balance increased from June 30, 2014 primarily due to pre-tax income generated during the quarter.

Long-term debt increased $130.8 million from December 31, 2013 to September 30, 2014. During this period, $323.7 million of long-term debt was used for the 14 E175 aircraft delivered in 2014, offset by principal payments made on outstanding debt.

Copyright Photo: Mark Durbin/AirlinersGallery.com. As the Embraer ERJ 135 and ERJ 145 fleet shrinks at ExpressJet, SkyWest Airlines had 14 Embraer ERJ 175 jet aircraft in the United Airlines contract at the end of September and took delivery of one additional ERJ 175 this month. SkyWest expects delivery of six additional E175 aircraft by December 31, 2014 and the remaining 19 additional aircraft by August 2015. Embarrass ERJ 170-200LR (ERJ 175) N118SY (msn 17000420) taxies at the San Francisco hub.

United Express-SkyWest Aircraft Slide Show: 

SkyWest, Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George, Utah) has announced fleet transitions and contract updates designed to improve SkyWest’s overall efficiency and long-term profitability.

Specifically, SkyWest announced that SkyWest Airlines, Inc., its wholly-owned subsidiary, intends to transition to an all-jet fleet by removing all remaining 30-seat Embraer EMB-120 Brasilia turboprop aircraft from service by summer 2015. The EMB-120 fleet retirement comes, in part, in response to increased costs and additional challenges associated with new FAR117 flight and duty rules, implemented in January 2014.

Separately, SkyWest announced that ExpressJet Airlines, Inc., its wholly-owned subsidiary, has executed an agreement with United Airlines, Inc. to reduce the term of the existing 50-seat ERJ 145 contract between ExpressJet and United from November 2020 to December 2017, subject to certain extension rights by United. ExpressJet Airlines anticipates the reduction in the ERJ 145 operations will improve its overall operational reliability and financial results.

As a result of the decision to remove the EMB-120 aircraft from service by June 2015 and as a result of the reduced term to operate the ERJ 145 aircraft, SkyWest, Inc. anticipates recording pre-tax special charges (primarily non-cash) ranging from $55-70 million in the fourth quarter of 2014.

It is unclear how the grounding and retirement of the Brasilia fleet will affect air service to remote communities.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. SkyWest Airlines mainly operates its Brasilias under the United Express brand however 13 EMB-120s wear the SkyWest house livery (below). Embraer EMB-120ER brasilia N294SW (msn 120321) arrives in Los Angeles.

United Express-SkyWest Airlines aircraft slide show: 

SkyWest Airlines aircraft slide show: 

Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. Embraer EMB-120ER Brasilia N217SW (msn 120286) arrives in Las Vegas.

SkyWest Airlines (United Express) (St. George, Utah) has announced it will drop its twice-daily service to St. Cloud Regional Airport in Minnesota in April 2015 due to disappointing traffic. The airline operates United Express service to United Airlines’ (Chicago) O’Hare International Airport (ORD) hub.

Read the full report from SCTimes: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. SkyWest’s Bombardier CRJ200 (CL-600-2B19) N939SW (msn 7742) arrives in Los Angeles.

United Express-SkyWest aircraft slide show:

United Airlines (Chicago) has expanded Wi-Fi to the first of its United Express regional aircraft.

The airline will outfit more than 200 Embraer ERJ 175, ERJ 170 and Bombardier CRJ700 regional jets with Gogo’s ATG-4 advanced air-to-ground Wi-Fi product. By mid-2015, United expects to complete installation on nearly all these aircraft.

Additionally, the company will begin providing Personal Device Entertainment on regional jets this year, offering customers hundreds of complimentary movies and television shows to view on their Wi-Fi-enabled iOS and Android devices using United’s mobile app, as well as on laptop computers.

United Wi-Fi and Personal Device Entertainment

United’s regional jet Wi-Fi installations begin as the airline continues to outfit its mainline fleet with Wi-Fi, which the carrier currently offers on nearly three-quarters of its domestic mainline fleet. United also operates more international aircraft with Wi-Fi than any other U.S. airline.

The company has installed Personal Device Entertainment on nearly 200 mainline aircraft, including its entire Boeing 747-400, Airbus A319 and A320 fleets and its nine Boeing 777 aircraft that fly primarily between the continental United States and Hawaii.

Regional Service Upgrades

In addition to Wi-Fi and Personal Device Entertainment, United is further investing in its customers’ regional-jet experience, including:

Adding 120 Embraer ERJ 175 aircraft to the regional fleet, each offering wider seats and aisles than other regional aircraft, large overhead bins and a power outlet at each United First seat; and

Upgrading premium-cabin meal service on United Express this spring by replacing snack boxes with freshly prepared food on flights that are more than 2 hours and 20 minutes, or 800 miles.

Copyright Photo: Ken Petersen/AirlinersGallery.com. SkyWest Airlines’ Embraer ERJ 170-200LR (ERJ 175) N105SY (msn 17000395) waits for its next assignment at the Chicago (O’Hare) hub.

United Airlines aircraft slide show (current livery): 

United Express-SkyWest Airlines aircraft slide show:

SkyWest, Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George, Utah) today reported financial and operating results for the quarter ended December 31, 2014.

Highlights are as follows:

Excluding special items, SkyWest’s pre-tax income was $33.5 million for the December 2014 quarter, an increase of $18.4 million over the December 2013 quarter. SkyWest’s net loss, including special items, was $(27.9) million, or $(0.54) per diluted share, for the December 2014 quarter, compared to net income of $8.6 million, or $0.17 per diluted share, for the December 2013 quarter.

The December 2014 quarter includes special item expenses of $70.0 million pre-tax ($43.6 million after-tax) due to the accelerated retirement of SkyWest’s EMB-120 turboprop aircraft and a code-share agreement modification that shortened the contract term for ExpressJet’s operation of the ERJ 145 aircraft type.

SkyWest’s pre-tax income for the December 2014 quarter, excluding special items, increased 122% from the December 2013 quarter, despite a 6.6% reduction in departures and a 4.4% reduction in completed block hours, from the December 2013 quarter. Excluding the special items, the increase in pre-tax income from the December 2013 quarter was primarily due to higher unit revenue from new and renewed flying arrangements at improved rates as described in more detail below.

For the 2014 year, SkyWest’s pre-tax income, excluding special items, was $58.4 million, compared to $98.5 million for the 2013 year. SkyWest’s net loss, including special items, was $(24.2) million, or $(0.47) per diluted share, for the 2014 year, compared to net income of $59.0 million, or $1.12 per diluted share, for the 2013 year.

Significant operational and commercial items related to the December 2014 quarter include:

SkyWest Airlines took delivery of six E175 aircraft during the quarter under its flying contract with United, which resulted in a total of 20 E175 deliveries for calendar 2014.

SkyWest is scheduled to take delivery of the remaining 20 E175s under its United agreement during the first three quarters of 2015.

SkyWest Airlines reached an agreement with Alaska to operate seven new E175 aircraft with deliveries scheduled between the third quarter of 2015 and the first quarter of 2016.

SkyWest Airlines reached an agreement with Delta to operate 12 additional used CRJ200 aircraft that SkyWest Airlines intends to lease from Delta. The aircraft deliveries started in December 2014 and are scheduled to continue through the second quarter of 2015.

SkyWest Airlines started the removal of 43 EMB-120 turboprop aircraft from service and is expected to be an all-jet operator by the conclusion of the second quarter of 2015. As of December 31, 2014, SkyWest owned 18 EMB-120s and leased 25 EMB-120s.

For the second consecutive quarter, ExpressJet’s operational reliability improved year-over-year to a 99.6% adjusted completion rate for the December 2014 quarter compared to 99.1% for the December 2013 quarter.

ExpressJet reached an agreement with American to operate 15 used ERJ 145 aircraft that ExpressJet intends to lease from American. The American ERJ 145 operation is scheduled to begin during the first quarter of 2015.

Commenting on the results, Jerry C. Atkin, SkyWest’s Chairman and CEO said, “SkyWest made significant progress in executing our long-term strategy in the fourth quarter, including reducing the total number of unprofitable aircraft and flying over time. We expect these changes to continue through 2017, as we continue to work with our major airline partners to meet their needs with larger RJ opportunities during that same period. We expect that reducing our total fleet count while improving the overall fleet composition will put us on a path of continued financial and operational improvement.”

Copyright Photo: Tony Storck/AirlinersGallery.com. ExpressJet removed 10 ERJ 145s from its United flying contract during the fourth quarter of 2014 and is returning the aircraft to United. ExpressJet removed a total of 26 ERJ 145s from its United flying contract during the 2014 year. Additionally, 59 ERJ 145s and nine ERJ 135s are scheduled to be removed from service during 2015 and to be returned to United. As of December 31, 2014, ExpressJet had 216 ERJ 145s and nine ERJ 135s operating under the United ERJ contract. ExpressJet Airlines’ Embraer ERJ 145LR (EMB-145LR) N14959 (msn 145091) arrives at Baltimore/Washington.

United Express-ExpressJet Airlines aircraft slide show: 

SkyWest, Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George, Utah) reported net income of $9.6 million, reversing a previous net off of $22.9 million in the same quarter a year ago.

The company removed 15 Embraer EMB-120 Brasilias from service along with 29 50-seat aircraft previously operated for United Express. The represents a net reduction in the combined fleet of 24 aircraft. SkyWest will further reduced the fleet by another 60 aircraft by the end of this year. The company is eliminating unprofitable aircraft and contract routes.

Here is the full financial report:

SkyWest Airlines (St. George, Utah) on May 5 operated its last Embraer EMB-120 Brasilia revenue flight. Flight UA 5165 operated from Santa Maria to Los Angeles with the pictured EMB-120ER Brasilia N567SW (msn 120342).

SkyWest made this brief announcement on Facebook:

After more than 28 years, SkyWest’s EMB-120s completed their final flights. This plane has been a workhorse of our fleet and has played a big role in our history.

Video:

Copyright Photo Below: Michael B. Ing/AirlinersGallery.com. N567SW arrives at Los Angeles International Airport.

United Express-Skywest aircraft slide show: 

Embraer S.A. and SkyWest, Inc. (SkyWest Airlines) (St. George, Utah) have announced today at the 51st International Paris Air Show, a firm order for eight E175 jets. The aircraft will be flown by SkyWest Airlines under a Capacity Purchase Agreement (CPA) with Alaska Airlines as Alaska SkyWest. The value of the contract, which will be included in Embraer’s 2015 second-quarter backlog, is estimated at $355 million based on 2015 list prices.

Embraer issued this statement:

This is the second agreement between SkyWest and Alaska Airlines involving the E175. In November of last year, the two companies signed a CPA for seven aircraft of the same model. The first airplane in Alaska Airlines livery enters service next month.

These eight new aircraft are part of SkyWest’s previous order for 100 (40 firm and 60 reconfirmable) E175 current generation E-Jets – with an additional 100 options – placed in May 2013. This reconfirmation brings the total number of firm orders to 55 aircraft. The E175s for Alaska Airlines will be configured with 76 seats and include 12 First Class seats. Delivery for the additional eight E-Jets is scheduled for 2016.

SkyWest is the largest regional airline group in the world and is the parent company of SkyWest Airlines and ExpressJet Airlines. Both companies have long histories with Embraer and were early customers for the Embraer EMB 120 Brasilia turboprop aircraft. In a separate deal with Embraer announced in June of 2013, SkyWest became the launch customer for the E175-E2, ordering 100 aircraft with 100 additional options. Deliveries begin in 2020.

Alaska Airlines also issued this statement:

SkyWest Airlines announced today that they will purchase eight new, dual-class Embraer E175 jets to fly for Alaska Airlines. The new planes, to be delivered in 2016, will replace eight older regional jets SkyWest currently flies for the Seattle-based carrier.

The announcement comes the same month SkyWest takes ownership of the first of seven E175s purchased last fall to be flown for Alaska under a capacity purchase agreement (CPA). The regional carrier will begin flying the planes for Alaska on July 1 with the start of new service from Seattle to both Milwaukee and Oklahoma City, and between Portland, Oregon and St. Louis.

The 76-seat E175 jet will feature 12 seats in first class and 64 in coach. Onboard amenities include Alaska Beyond Entertainment featuring free short subject videos and movies and TV shows for purchase direct to customer devices. Inflight Internet access is also available, as well as Alaska Beyond Delicious which offers Pacific Northwest-inspired food and beverages. Additionally, customers seated in first class will enjoy 110 volt power in every seat.

SkyWest expects to retire its current Bombardier CRJ700 regional jets fleet flying for Alaska by the fall of 2016.

Copyright Photo: Embraer. The pictured Embraer ERJ 170-200LR (ERJ 175) PR-EMP became N170SY (msn 17000483) on delivery.

Alaska Airlines (Seattle/Tacoma) is launching daily nonstop service from its Portland, Oregon, hub to three Midwest destinations including Kansas City, Minneapolis/St. Paul and Omaha, Nebraska, starting on February 18, 2016.

The routes are in addition to new Portland – Austin, Texas service the carrier announced last month.

The daily flights will be operated by SkyWest Airlines (St. George) with 76-seat Embraer E175 jets featuring 12 seats in first class and 64 in coach, and boasting cabin dimensions on par with a 737.

Top Photo: Alaska Airlines.

Alaska Airlines aircraft slide show: 

Alaska SkyWest aircraft slide show: 

Route Map: Routes operated by SkyWest for Alaska Airlines:

SkyWest, Inc. (St. George, Utah) announced today that its wholly-owned subsidiary SkyWest Airlines, Inc. (St. George, Utah) has entered into an amendment to an existing Capacity Purchase Agreement with United Airlines, Inc. (Chicago) to operate an additional 18 new Embraer E175 dual-class regional jet aircraft.

The cabin will be a dual-class configuration of 76 seats and will be equipped with Wi-Fi. Under the agreement, it is anticipated that delivery of the aircraft will begin in late 2016, with all 18 aircraft being delivered by mid-2017.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. SkyWest Airlines’ Embraer ERJ 170-200LR (ERJ 175) N124SY (msn 17000439) in United Express colors approaches the runway at Los Angeles.

United Express-SkyWest Airlines aircraft slide show: 

SkyWest, Inc. (SkyWest Airlines) (St. George, Utah) today issued this statement:

SkyWest, Inc. announced today that it has entered into a Capacity Purchase Agreement (CPA) with Delta Air Lines (Atlanta) to operate 19 new Embraer E175 dual-class regional jet aircraft. SkyWest has determined that these 19 E175 aircraft will be operated by SkyWest Airlines, Inc. (St. George) a wholly-owned subsidiary of SkyWest. The CPA is under terms and conditions similar to SkyWest’s existing Delta agreements.

“SkyWest is a longtime Delta partner, and we’re pleased to advance our partnership with an additional aircraft type,” said Chip Childs, SkyWest, Inc. President. “As we continue to evolve our fleet mix, we look forward to continuing to deliver what our partners need through solid, reliable service.”

The aircraft will be flown in dual-class configuration of 76-seats, and will be equipped with Wi-Fi. Under the agreement, it is anticipated that delivery of the aircraft will begin in August 2016, with all 19 aircraft being delivered by mid-2017.

In related news, Embraer and SkyWest, Inc. have signed a firm order for an additional 19 E175s jets. The aircraft will be flown by SkyWest Airlines, Inc. a wholly-owned subsidiary of SkyWest, under a Capacity Purchase Agreement (CPA) with Delta Air Lines. The transaction will be included in Embraer’s 2015 fourth-quarter backlog. Delivery of the first aircraft is expected for the third-quarter of 2016.

SkyWest Airlines currently operates the E175 for Alaska Airlines (Alaska SkyWest) and United Airlines (United Express).

Image: Embraer.

Delta Connection-SkyWest aircraft slide show: 

SkyWest, Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George, Utah) today reported financial and operating results for the quarter ended September 30, 2015.

SkyWest generated $36 million of net income for Q3 2015, or $0.71 per diluted share. Excluding special items, SkyWest’s net income for Q3 2014 was approximately $26 million, or $0.50 per diluted share.

Operating income for Q3 2015 was $78 million, an increase of 32% from Q3 2014 of $59 million.

SkyWest reported $77 million of net income for the nine months ended September 30, 2015, or $1.49 per diluted share, a $88 million improvement from the corresponding period of 2014, which had net loss of $11 million, excluding 2014 special items.

Commenting on the results, Chip Childs, SkyWest, Inc. President said, “Our third quarter results reflect continued progress in the optimization of our fleet and flying contract mix. These improvements, along with solid operating performance, have contributed to our increasing operating margins. Additionally, we look forward to operating the E175 aircraft with three of our major partners by mid-2016, and we believe our operating performance continues to create additional opportunities to improve our fleet mix and operating margins.”

Fleet Information:

Total aircraft in service at September 30, 2015 was 656, a net decrease of 84 aircraft from September 30, 2014 of 740 aircraft. Changes in SkyWest’s fleet mix are as follows:

Added 26 new E175 aircraft with United Airlines (“United”)
Added three new E175 aircraft with Alaska Airlines (“Alaska”)
Added twelve used CRJ200 aircraft with Delta Air Lines (“Delta”)
Added 16 used ERJ145 aircraft with American Airlines (“American”)

Combined, 57 aircraft were added year-over-year

Removed 36 EMB120 30-seat turbo-prop aircraft (“EMB120s”) from multiple partners
Removed 69 ERJ145/135 aircraft from service from United
Removed 36 CRJ200 aircraft from service with multiple partners

Combined, 141 aircraft were removed year-over-year

SkyWest’s aircraft in service decreased by 20 net aircraft from June 30, 2015 to September 30, 2015, with changes in fleet mix as follows:

Added five new E175 aircraft with United
Removed eleven ERJ145 aircraft from service with United
Removed 14 CRJ200 aircraft from service from multiple major airline partners

Under its fleet transition, SkyWest generated approximately 24,800 additional block hours with its dual class aircraft (CRJ700s/900s and E175s) during Q3 2015, compared to Q3 2014.

SkyWest also had a reduction of approximately 89,000 block hours with its less profitable 50-seat and smaller aircraft (CRJ200s, ERJ145s/135s and EMB120s) during Q3 2015, compared to Q3 2014.

Under an agreement announced in Q3 2015, SkyWest Airlines is scheduled to place 18 additional new E175 aircraft into service with United, with anticipated scheduled delivery dates from Q4 2016 to Q2 2017. SkyWest Airlines is currently scheduled to have a total of 58 E175s in service with United by the end of Q2 2017.

Under a previously announced agreement, SkyWest Airlines is scheduled to take delivery of twelve new E175 aircraft for Alaska from Q4 2015 to Q4 2016. SkyWest is currently scheduled to have a total of 15 E175s in service with Alaska by the end of Q4 2016.

Under an agreement announced last week, SkyWest Airlines is scheduled to take delivery of 19 new E175 aircraft for Delta from Q3 2016 through mid-2017.

The following reflects expected E175 aircraft that SkyWest anticipates will be placed into service by period:
Airline Q4 2015  2016  2017   Cumulative Total End of 2017
United         –            7        11                        58
Delta            –         13          6                        19
Alaska         2         10          –                         15
Total            2         30        17

Copyright Photo: Tony Storck/AirlinersGallery.com. SkyWest Airlines is already operating the Embraer 175 for Alaska Airlines. Alaska Skywest-titled Embraer ERJ 170-200LR (ERJ 175) N170SY (msn 17000483) taxies at Seattle-Tacoma International Airport (SEA).

Alaska SkyWest aircraft slide show: 

SkyWest, Inc. (St. George, Utah) reported its financial and operating results for the third quarter of 2016, including net income of $41 million or $0.79 per diluted share, up from net income of $36 million or $0.71 per diluted share in Q3 2015. Excluding the $9 million non-cash impact of early lease return charges on six CRJ700s, adjusted diluted earnings per share was $0.90 in Q3 2016. Pre-tax income for the third quarter of 2016 was $67 million compared to $60 million in Q3 2015.

Commenting on the results, Chip Childs, SkyWest, Inc. Chief Executive Officer, said “Since early 2014, we have grown earnings by executing a complex fleet transition that added 67 new E175s and reduced our 50-seat fleet by over 120 aircraft. Our focus through 2017 will be on reducing the overall risk profile of the company, integrating the remaining deliveries of 37 E175s, optimizing how our assets and capital are deployed and positioning for future growth. Our employees have delivered amazingly well against challenging goals and have again provided our customers with solid operating performance, despite the significant changes to our fleet during the quarter.”

SkyWest’s total fleet in service decreased by 13 aircraft during the third quarter of 2016 as follows:

Above Copyright Photo: Alaska SkyWest (SkyWest Airlines) Bombardier CRJ700 (CL-600-2C10) N223AG (msn 10010) LGB (Michael B. Ing). Image: 924092.

SkyWest’s total fleet in service decreased by 14 aircraft from September 30, 2015 to September 30, 2016 as follows:

During Q3 2016, SkyWest redeployed six CRJ700 aircraft into service under a multi-year agreement with American and redeployed four CRJ700 aircraft into service under a multi-year agreement with Delta.

SkyWest previously operated the combined 10 CRJ700s under an agreement that expired with United. A total of 37 CRJ700 aircraft with scheduled contract expirations with United are scheduled to be redeployed with American by mid-2017, eliminating the related financing tail risk on these aircraft through 2019.

Copyright Photo: American Eagle Airlines (2nd)-SkyWest Airlines Bombardier CRJ200 (CL-600-2B19) N492SW (msn 7168) LAX (Michael B. Ing). Image: 927579.

SkyWest anticipates its CRJ200 fleet and its ERJ145 fleet (“50-Seat Aircraft”) will be reduced by approximately 16 aircraft by the end of 2016 as a result of flying agreement expirations with multiple major partners. During Q3 2016, SkyWest extended the contract term on nine CRJ200s with American from the end of 2016 to the end of Q3 2017.

Under a previously announced lease return arrangement, SkyWest is currently scheduled to return 11 additional CRJ700s over the next six months. If the aircraft are returned as scheduled, SkyWest anticipates largely non-cash termination costs of approximately $15-17 million (pre-tax), which will be recognized as the aircraft are removed from service and processed.

The following table outlines SkyWest’s anticipated delivery schedule for new E175 aircraft through the end of 2017:

Top Copyright Photo: United Express-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N108SY (msn 17000401) LAX (Michael B. Ing). Image: 930967.