SkyWest Inc. (SKYW - Free Report) reported a 6.2% (9,900) year-over-year decline in block hours (a measure of aircraft utilization) to 149,300 in June 2018.
The regional carrier, which remains focused on streamlining its operations, stated that the fall in the metric was in sync with its fleet transition plans. The company aims to reduce the 50-seat jets in its fleet and add new E175 aircraft.
Notably, SkyWest‘s dual class aircraft (E175, CRJ 900 and CRJ700) accounted for approximately 53% of the carrier’s total block hour production for the month. The comparable figure was approximately 51% a year ago. In terms of airlines, SkyWest Airlines and Express Jet Airlines accounted for a respective 78.6% and 21.4% of the carrier’s total block hour production for June.
Additionally, this St. George, UT-based company reported a 4.8% decrease in block hours for the first six months of the year. Load factor (percentage of seats filled with passengers) improved 100 basis points (bps) to 84% in June. The number of departures in May decreased 9.4% on a year-over-year basis. Passenger count declined 7.1% in June.
Zacks Rank &Stocks to Consider
SkyWest has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Transportation sector are GATX Corporation (GATX - Free Report) , Atlas Air Worldwide Holdings (AAWW - Free Report) and Expeditors International of Washington, Inc. (EXPD - Free Report) . While GATX and Expeditors carry a Zacks Rank #2 (Buy), Atlas Air Worldwide sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of GATX, Atlas Air Worldwide and Expeditors have rallied more than 23%, 24% and 27%, respectively, in a year.
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