SkyWest Inc., parent company of SkyWest Airlines and ExpressJet, reported profits of $20.9 million in the third-quarter of 2012. The airline also reported a net income of $20.9 million, up appreciably higher than the $116,000 profit reported in third-quarter a year ago.
SkyWest President Bradford Rich said, “We do remain very focused both on unit revenue improvements as well as cost reduction initiatives and overall profit improvement strategy.”
SkyWest’s revenue fell 9.4% to $865.2 million, while expenses lowered 12.8% to $810.3 million. The outcome was an operating profit of $55 million, more than doubling the $26.8 million operating profit in the prior-year quarter.
SkyWest Inc. also reported that they managed to lower expenses, resulting in crew-related and non-pass through maintenance costs of approximately $7.9 million. It also gained a reduction in United Express Bombardier CRJ200 engine overhaul costs of approximately $15.1 million.
The company has recently been awarded 23 CRJ-200 aircraft by American Airlines to be flown on American routes as American Eagle in a 4 year contract. SkyWest also has a deal signed with Mitsubishi to purchase 100 MRJ aircraft. SkyWest President Rich reported that SkyWest is in advanced discussions with aircraft manufacturers Embraer and Bombardier and additionally as he is certain that his airline will need more aircraft for future expansion and for the replacement of older aircraft.
SkyWest, Inc., also reported today that passenger traffic increased 7.6 percent in October to 5,143,540 compared to 4,782,142 for the same period last year.