On February 1, 2024, SkyWest Inc (SKYW, Financial) released its 8-K filing, announcing its fourth quarter and annual 2023 financial results. The company, known for its regional flight services and aircraft leasing, reported a net income of $18 million, or $0.42 per diluted share for Q4 2023, a notable turnaround from the net loss of $47 million, or $0.93 loss per share, in the same quarter of the previous year. For the full year, SkyWest posted a net income of $34 million, or $0.77 per diluted share, although this was a decrease from the $73 million, or $1.44 per diluted share, reported for 2022.
CEO Chip Childs praised the company's performance, highlighting the record 300 days of 100% controllable completion in 2023 and improved pilot attrition rates. The company's share repurchase program also reflected confidence in its financial health, with significant buybacks contributing to shareholder value.
Revenue for the fourth quarter rose to $752 million, up from $681 million in the prior-year quarter, primarily due to increased flying contract rates and a 2% rise in production. However, SkyWest also reported $63 million of deferred revenue in Q4 2023 under its flying contracts. Operating expenses saw a marginal increase to $724 million, attributed to higher employee compensation and maintenance costs, offset by lower aircraft rent expenses from early lease buyouts in Q1 2023.
The company's liquidity position remained strong, with cash and marketable securities totaling $835 million. Total debt was reduced to $3.0 billion, down from $3.4 billion at the end of 2022. Capital expenditures for Q4 included the purchase of two E175 aircraft and other fixed assets, amounting to $86 million.
In terms of commercial agreements, SkyWest is working closely with its major airline partners to optimize the timing of upcoming fleet deliveries. By the end of 2026, the company is scheduled to operate a total of 258 E175 aircraft. Additionally, SkyWest announced a strategic move by acquiring a 25% ownership stake in Contour Airlines, further diversifying its operational capabilities.
The balance sheet remains robust, with a net increase in property and equipment, reflecting ongoing investments in the fleet. The company's operational data showed an increase in block hours, departures, and passengers carried, indicating a strong demand for its services.
In conclusion, SkyWest Inc (SKYW, Financial) has demonstrated resilience and strategic growth in the face of industry challenges. With a solid financial foundation, a growing fleet, and a focus on operational excellence, SkyWest is well-positioned for continued success in the regional airline market.
Explore the complete 8-K earnings release (here) from SkyWest Inc for further details.