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SkyWest (SKYW) Q4 Earnings & Revenues Beat Estimates, Rise Y/Y

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SkyWest (SKYW - Free Report) reported fourth-quarter 2021 earnings of 9 cents per share against the Zacks Consensus Estimate of a loss of 8 cents. In the year-ago quarter, the company reported a loss of 93 cents. The upside reflects the recovery in air-travel demand driven by increased vaccinations.

Revenues of $777.2 million also outperformed the Zacks Consensus Estimate of $720.1 million. The top line jumped 31.8% year over year, courtesy of a 30% increase in block hours (a measure of aircraft utilization) on completed flights.  

SkyWest, Inc. Price, Consensus and EPS Surprise

 

SkyWest, Inc. Price, Consensus and EPS Surprise

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

 

Revenues from flying agreements (contributing 96.7% to the top line) surged 31.9% from the year-ago quarter’s figure. Total expenses (on a reported basis) increased 20.6% year over year to $744.2 million due to a higher number of flights operated during fourth-quarter 2021 compared with year-ago period’s levels.

The airline, which carried 89.3% more passengers year over year, reported a 30.4% increase in block hours (a measure of aircraft utilization). Passenger load factor (percentage of seats filled by passengers) increased 26.4 percentage points to 81.9% in the December quarter, owing to the uptick in air-travel demand.

SKYW currently expects its block hours in 2022 might go down by 10-15% approximately from its 2021 figures due to the omicron-induced staffing challenges.  

Liquidity

SkyWest, carrying a Zacks Rank #3 (Hold), exited the fourth quarter with cash and marketable securities of $860 million, up from $826 million at the end of 2020.  Long-term debt (net of current maturities) was $2.72 billion compared with $2.80 billion at December 2020-end. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

 Sectorial Snapshot

Within the broader Transportation sector, J.B. Hunt Transport Services (JBHT - Free Report) , United Airlines (UAL - Free Report) and Delta Air Lines (DAL - Free Report) recently reported fourth-quarter 2021 results.

J.B. Hunt Transport Services, sporting a Zacks Rank #1, reported earnings of $2.28 per share. The figure surpassed the Zacks Consensus Estimate of $1.99. The bottom line surged 58.3% year over year on the back of higher revenues across all segments.

J.B. Hunt’s operating revenues of $3,497 million also outperformed the Zacks Consensus Estimate of $3,287.8 million. The top line increased 27.7% year over year. Total operating revenues, excluding fuel surcharges, rose 21.7% year over year.

United Airlines, carrying a Zacks Rank #5, incurred a loss of $1.60 per share (excluding 39 cents from non-recurring items)  in fourth-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of $2.23. The amount of loss narrowed 77.1% year over year.

United Airlines’ operating revenues of $8,192 million also outperformed the Zacks Consensus Estimate of $7,930.9 million. The top line surged more than 100% year over year, with passenger revenues contributing 84% to the top line and surging 185.4% to $6,878 million.

Delta, carrying a Zacks Rank #5, reported fourth-quarter 2021 earnings (excluding 86 cents from non-recurring items) of 22 cents per share, outpacing the Zacks Consensus Estimate of 15 cents. The bottom line increased from the year-ago quarter’s loss of $2.53 per share. Strong holiday travel demand and favorable pricing aided the December quarter’s results.

Delta’s revenues came in at $9,470 million, beating the Zacks Consensus Estimate of $9,232.1 million and soaring more than 100% year over year. The upside can be attributed to people resorting to air travel during the holidays.