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SkyWest (SKYW) Q1 Earnings Miss Estimates, Increase Y/Y

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SkyWest (SKYW - Free Report) reported first-quarter 2021 earnings of 71 cents per share, missing the Zacks Consensus Estimate of 89 cents. The bottom line, however, surged 20.3% year over year owing to significant reduction in operating expenses.

Quarterly revenues of $534.6 million fell shy of the Zacks Consensus Estimate of $539 million. The top line declined 26.8% year over year due to significant cut in the number of scheduled flights as a result of the COVID-19 pandemic.

Revenues from flying agreements (contributing 95.6% to the top line) decreased 27.9% from the year-ago quarter’s figure. Total expenses (on a reported basis) dropped 31.6% year over year to $453.71 million due to lesser number of flights operated as well as $193 million received as grants from the U.S. Treasury under the payroll support program extension agreement (PSP2). In April, the company received additional funding of approximately $35 million under PSP2. Further, the carrier is set to receive approximately $250 million under the American Rescue Plan Act of 2021. Half of the amount has already been received and the remainder will be received in the second quarter.

The airline, which carried 35.6% less passengers during the first quarter, reported a 22.7% decline in block hours (a measure of aircraft utilization). Passenger load factor (percentage of seats filled by passengers) deteriorated 10.8 percentage points to 56.7% in the March quarter due to shrinkage in air-travel demand.

SkyWest, Inc. Price, Consensus and EPS Surprise

 

SkyWest, Inc. Price, Consensus and EPS Surprise

SkyWest, Inc. price-consensus-eps-surprise-chart | SkyWest, Inc. Quote

Liquidity

SkyWest, currently carrying a Zacks Rank #3 (Hold), exited the first quarter with cash and marketable securities of $836.44 million, up from $825.91 million at the end of 2020. Long-term debt (net of current maturities) was $2.75 billion compared with $2.80 billion at December 2020-end. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Airline Stocks

United Airlines (UAL - Free Report) , carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $3.21 from non-recurring items) of $7.5 per share in the first quarter of 2021, wider than the Zacks Consensus Estimate of a loss of $6.97. Operating revenues of $3,221 million also fell short of the Zacks Consensus Estimate of $3,253.1 million.

Southwest Airlines (LUV - Free Report) , carrying a Zacks Rank of 3, incurred a loss of $1.72 per share (excluding $1.91 from non-recurring items) in the first quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.82. Meanwhile, operating revenues of $2,052 million surpassed the Zacks Consensus Estimate of $2,031.7 million.

Alaska Air Group (ALK - Free Report) , carrying a Zacks Rank #3, incurred a loss (excluding $2.46 from non-recurring items) of $3.51 per share in the first quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $3.71. Moreover, revenues of $797 million surpassed the Zacks Consensus Estimate of $787.1 million.

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