Over the past few weeks some major US airlines have reported their first quarter results, including Alaska Airlines, American Airlines,Delta Air Lines,Southwest Airlines, andUnited Airlines.
Continue reading: How SkyWest Airlines Turned A Profit In The First Quarter
Share your questions, experiences, and thoughts below.
Hopefully, for employees, SkyWest puts the money they receive from government into savings for the time when contracts aren't renewed or renewed with much less revenue. But what am I thinking. C level executives are going get huge bonuses from the govt money for having profit and they will also give money into stock dividend leaving $0 for later bad times.
@Endre Hell ya! 2.33% dividend! The only people who hate capitalism are the people who are too dumb and lazy to take advantage of capitalism. Easy to blame "investors", even easier to become an investor.
Yes, while the majority of income for SkyWest comes from contracts with partner airlines, the company is saving millions of dollars each month because its employees have taken un-paid voluntary time off.
With regard to "having a large fleet that has no flying to do," SkyWest does not own very many of its aircraft; in fact, the number of E-175's owned by the company is very nearly zero - these are owned by the major partner airlines (they're managed by SkyWest as part of the contractual agreement).
Just a minor grammatical note, “stock” is the plural for multiple shares in the same company. So if Skywest bought back their own shares the correct use would be “They spent X buying stock”.
Great article, Ben!
I’m not sure that they even will lose contracts, because, as demand decreases, the major airlines might scale back currently mainline-operated routes to small aircraft that fit under the scope clause
Actually, SkyWest and the regional airlines, may benefit. As the airlines cut capacity, they may move flights operated by mainline airplanes to smaller regional airplanes. This has happened in past downturns.
If @Bill Carson is correct (which I have no reason to doubt), their business model is quite „Corona proof“ ... as they get CARES for the salaries of those not put on unpaid leave ...
Typically in the downturns, airlines have utilized regional aircraft more. After the 9/11 down cycle there were several days in typical week that Continental Express/ExpressJet flew more departures then Continental Airlines. However, who knows what's going to happen with this current mess. Apples to Oranges, I guess.
Well, if the big boys decide not to renew contracts with the regionals, then the regionals know what to do. Take their profits and their operations skills, and go out and buy some of them there parked up unwanted el cheapo jets and cherry pick the majors' most profitable routes, plus the regional routes that would be hard to compete with them on.
Biz guy tell me Capitalism is taking money from taxpayers and put in there pockets because the will.
The pilots and FA the are pay not to much is the reason the make money
Sure, they could be left with contract cuts, but on the other hand they are operating on behalf of the airline, so the airline does not incur the expense and risk to run the flights AND they usually operate smaller planes so if demand is less then it would make more sense to have their flights.