SkyWest Slips To Loss In Q1 - Quick Facts

(RTTNews) - SkyWest Inc. (SKYW) reported a first-quarter 2014 net loss of $22.9 million, or $0.44 per share, compared to net income of $3.2 million or $0.06 per share for the same period last year. Analysts polled by Thomson Reuters expected the company to report a loss of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.

Due primarily to the severe weather and its related effects during the latest-quarter, SkyWest said it experienced a significantly larger pretax loss than it previously anticipated.

Operating revenues for the quarter totaled $772.4 million, compared to $803.5 million for the same period of 2013, a decrease of $31.1 million. Wall Street expected revenues of $ 752.93 million.

The decrease in operating revenues was due primarily to three factors, a reduced amount of revenue of approximately $21.1 million from fuel expenses, certain engine overhaul amounts, landing fees and station costs which were recorded as operating revenues and are considered "pass-through amounts" under contracts with SkyWest's major partners; a reduction of approximately $20.5 million as a result of significant flight cancelations, including missed markup and margins, from weather impact; and increases of approximately $10.5 million from normal contract escalations in SkyWest's contract flying and improvements in prorate flying.

With the challenges experienced in the first quarter some outlook is provided here for the remainder of 2014. It will continue to be a year of transition for SkyWest as it is working to resolve financial and operational issues with our operating airlines and work with its major partners for mutually beneficial resolutions to these challenges, the company said.

The company noted that it will see continued reductions of its 50 seat aircraft and flying as well as take delivery of an estimated 23 Embraer E175 regional jet aircraft. The reduction of 50 seat aircraft coincides with capacity purchase agreement expirations on the 50 seat aircraft, the majority of which are aircraft financed by its major partners and will be returned to the major partner with no further obligation by SkyWest.

The certification process for the Embraer E175 regional jet aircraft continues as previously scheduled and it anticipates flying its first aircraft in scheduled operations later in May 2014. This certification process will result in additional transition costs related to the launch of a new aircraft type on the SkyWest platform, including training costs.