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SkyWest (SKYW) Inks Deal With Delta for 16 New E175 Jets

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In a bid to modernize its fleet, SkyWest (SKYW - Free Report) entered into an agreement with Delta Air Lines (DAL - Free Report) to purchase and operate 16 new E175 aircraft. The deal falls under a multi-year capacity purchase agreement between the partners.

The first of the 76-seater planes is scheduled to be delivered in the second quarter of next year. Per the agreement, the 16 new E175 aircraft will be put into service ratably through 2022-end. SkyWest will purchase the planes from the Brazilian aerospace company Embraer to ply under the Delta network. Currently, SkyWest operates 71 E175 jets for Delta. The deal with Delta consolidates SkyWest’s position as the largest owner/operator of the Embraer E175 jets across the globe.

SkyWest, currently sporting a Zacks Rank #1 (Strong Buy), expects the 16 new jets to replace an equal number of CRJ900s (either owned or financed by it) that are currently operating under its contract with Delta. You can see  the complete list of today’s Zacks #1 Rank stocks here.

The carrier’s president and CEO Chip Childs was highly elated following the new agreement with Delta and stated: “We are pleased to continue to strengthen our Delta agreement with these new, dual-class aircraft. The E175 continues to serve our partners and passengers well as we help our partners work toward full domestic recovery.”

Delta apart, SkyWest has partnerships with airline heavyweights like United Airlines (UAL - Free Report) and American Airlines (AAL - Free Report) .