SKYW - SkyWest: Why This Airline Stock Could Continue Flying
2024-06-28 08:31:14 ET
Summary
- SkyWest owns SkyWest Airlines and SkyWest Leasing, with nearly 500 aircraft connecting millions of travelers to over 200 destinations across North America.
- SkyWest emerged as the strongest American regional airline post-pandemic, with improved asset utilization leading to revenue growth and margin expansion.
- Despite being in a mature industry, SkyWest still has growth opportunities for the business. It expects 100 65-76 seat aircraft to be made available by its mainline partners and should.
- The company has been extracting value from its fleet of CRJ-200s, which are fully depreciated and unencumbered but are being monetized in several ways.
- Strong balance sheet, improving pilot staffing, and potential for margin and free cash flow growth make SkyWest a compelling investment opportunity.
Introduction
SkyWest, Inc. ( SKYW ) is the holding company that owns SkyWest Airlines and SkyWest Leasing. At SkyWest Airlines, the company owns nearly 500 aircraft that connect millions of travelers each month (over 38 million annually) to over 250 destinations across North America. The company has about 1800 daily flights. Its fleet of aircraft includes 89 CRJ200 aircraft, 105 CRJ700 aircraft, 41 CRJ900 aircraft, and 240 E175 aircraft....
SkyWest: Why This Airline Stock Could Continue Flying