2023-04-28 11:43:46 ET
Shares of SkyWest ( SKYW ) soared as much as 20.8% on Friday after the U.S. regional airline reported results for the first quarter of 2023.
The airline posted Q1 revenue of $692M, beating consensus estimate by $18.16M. GAAP EPS for the quarter was -$0.45.
The company said its deferred revenue rose to $63 million for the quarter, compared to $11 million last year, driven by fixed monthly cash payments under certain flying contracts, which resulted in a net loss of $22 million.
Q1 metrics: Operating expenses $697M (+2%Y/Y), Cash and marketable securities at March 31 was $936M, Total debt at March 31 was $3.3B, Capex $103M.
"We're making good headway on our captain imbalance, and while we are prioritizing upgrades, we continue to fill new hire pilot classes as we work to rebalance our crews. Additionally, captain attrition has begun showing signs of stabilization and was lower than planned for the quarter," CEO Chip Childs said during an earnings call with analysts.
Childs also highlighted that the airline was able to finalize all partner contracts to help offset new pilot costs during the quarter.
During Q1, the airline bought back 5.1M of its stock for $100M, 24 CRJ700 aircraft and eight CRJ200 aircraft via an early lease buyout for $125M.
The company expects adding two E175 aircraft to its fleet in Q4 and one E175 aircraft in 2024 under a flying contract with Delta Air Lines, and will also add one E175 aircraft in 2025 under a contract with Alaska Airlines.
The airline said it is scheduled to operate a total of 240 E175 aircraft by 2025 end.
SKYW stock is up 46.5% so far this year as of Thursday's close.
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SkyWest stock takes it to the skies after Q1 results