SkyWest 4th Quarter Profit Spikes on ExpressJet Purchase, and Other News

SkyWest Inc., which owns and operates regional flights for United Continental and Delta Air Lines, reported recently that its fourth-quarter profit nearly doubled compared to last year, attributed in large part to its purchase of ExpressJet.


SkyWest Inc. last week reported 2010 net income of $96.4 million, up 15.2% over the $83.7 million profit earned in 2009.

Brad Rich, chief financial officer of the SkyWest, Inc., said on Wednesday, “Although we don’t report specifically on segments, the ExpressJet operation was both positive cash flow and did generate operating income from Nov. 12 [when the acquisition was completed] to Dec. 31.”

SkyWest, Inc. is the parent company of SkyWest Airlines and Atlantic Southeast Airlines (ASA). It paid $136.5 million for ExpressJet, which became a subsidiary of ASA.

Other news released by SkyWest, Inc.:

• SkyWest agreed to acquire eight Bombardier CRJ700 regional jets from Horizon Air, whose sister carrier is Alaska Airlines. The jets will be operated as Delta Connection aircraft. Delivery will be completed in June.

• SkyWest signed a letter of intent to fly five CRJ700 jets for Alaska Airlines, probably beginning in May.

• SkyWest ordered four new CRJ700 jets from manufacturer Bombardier Aerospace. They will fly as Delta Connection jets upon delivery later this year.

• SkyWest invested $7 million in Mekong Aviation Joint Stock Co., giving it a 30 percent stake in Air Mekong, a regional air carrier in Vietnam. Flights began Oct. 9. Some of Air Mekong’s pilots formerly worked for ASA.