Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 29, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'SKYWEST INC | ' |
Entity Central Index Key | '0000793733 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 51,179,324 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $151,393 | $170,636 |
Marketable securities | 392,690 | 487,239 |
Restricted cash | 11,582 | 12,219 |
Income tax receivable | ' | 840 |
Receivables, net | 92,662 | 111,186 |
Inventories, net | 150,133 | 138,094 |
Prepaid aircraft rents | 381,046 | 360,781 |
Deferred tax assets | 132,789 | 156,050 |
Other current assets | 24,798 | 27,392 |
Total current assets | 1,337,093 | 1,464,437 |
PROPERTY AND EQUIPMENT: | ' | ' |
Aircraft and rotable spares | 4,504,659 | 4,080,886 |
Deposits on aircraft | 40,000 | 40,000 |
Buildings and ground equipment | 283,350 | 279,965 |
Total property and equipment, gross | 4,828,009 | 4,400,851 |
Less-accumulated depreciation and amortization | -1,869,304 | -1,749,058 |
Total property and equipment, net | 2,958,705 | 2,651,793 |
OTHER ASSETS | ' | ' |
Intangible assets, net | 13,311 | 14,998 |
Other assets | 88,523 | 101,991 |
Total other assets | 101,834 | 116,989 |
Total assets | 4,397,632 | 4,233,219 |
CURRENT LIABILITIES: | ' | ' |
Current maturities of long-term debt | 202,067 | 177,389 |
Accounts payable | 252,180 | 245,518 |
Accrued salaries, wages and benefits | 133,744 | 133,002 |
Accrued aircraft rents | 2,688 | 7,492 |
Taxes other than income taxes | 23,477 | 19,626 |
Other current liabilities | 45,755 | 37,437 |
Total current liabilities | 659,911 | 620,464 |
OTHER LONG-TERM LIABILITIES | 47,730 | 76,305 |
LONG-TERM DEBT, net of current maturities | 1,467,506 | 1,293,179 |
DEFERRED INCOME TAXES PAYABLE | 718,719 | 727,358 |
DEFERRED AIRCRAFT CREDITS | 74,696 | 80,974 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred stock, 5,000,000 shares authorized; none issued | ' | ' |
Common stock, no par value, 120,000,000 shares authorized; 78,089,208 and 77,322,304 shares issued, respectively | 624,810 | 618,511 |
Retained earnings | 1,195,351 | 1,197,819 |
Treasury stock, at cost, 26,765,386 and 26,095,636 shares, respectively | -391,364 | -382,950 |
Accumulated other comprehensive income | 273 | 1,559 |
Total stockholders' equity | 1,429,070 | 1,434,939 |
Total liabilities and stockholders' equity | $4,397,632 | $4,233,219 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
CONSOLIDATED BALANCE SHEETS | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 78,089,208 | 77,322,304 |
Treasury stock, at cost, shares | 26,765,386 | 26,095,636 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
OPERATING REVENUES: | ' | ' | ' | ' |
Passenger | $815,867 | $836,890 | $2,372,054 | $2,448,883 |
Ground handling and other | 18,766 | 13,850 | 51,538 | 44,474 |
Total operating revenues | 834,633 | 850,740 | 2,423,592 | 2,493,357 |
OPERATING EXPENSES: | ' | ' | ' | ' |
Salaries, wages and benefits | 315,766 | 306,887 | 944,253 | 904,625 |
Aircraft maintenance, materials and repairs | 159,920 | 176,822 | 509,905 | 515,506 |
Aircraft rentals | 72,899 | 80,928 | 232,682 | 245,330 |
Depreciation and amortization | 65,822 | 61,135 | 192,389 | 183,309 |
Aircraft fuel | 49,177 | 49,656 | 154,420 | 146,139 |
Ground handling services | 31,114 | 30,541 | 100,446 | 98,235 |
Station rentals and landing fees | 12,290 | 29,473 | 36,729 | 100,559 |
Special charges (see Note J) | ' | ' | 4,713 | ' |
Other operating expenses | 68,565 | 59,124 | 203,507 | 177,363 |
Total operating expenses | 775,553 | 794,566 | 2,379,044 | 2,371,066 |
OPERATING INCOME | 59,080 | 56,174 | 44,548 | 122,291 |
OTHER INCOME (EXPENSE): | ' | ' | ' | ' |
Interest income | 2,549 | 567 | 3,608 | 3,164 |
Interest expense | -16,883 | -16,999 | -48,697 | -52,490 |
Other, net | 23,598 | 4,625 | 20,709 | 10,477 |
Total other income (expense), net | 9,264 | -11,807 | -24,380 | -38,849 |
INCOME BEFORE INCOME TAXES | 68,344 | 44,367 | 20,168 | 83,442 |
PROVISION FOR INCOME TAXES | 27,006 | 17,973 | 16,455 | 33,094 |
NET INCOME | 41,338 | 26,394 | 3,713 | 50,348 |
BASIC EARNINGS PER SHARE (in dollars per share) | $0.81 | $0.51 | $0.07 | $0.97 |
DILUTED EARNINGS PER SHARE (in dollars per share) | $0.79 | $0.50 | $0.07 | $0.96 |
Weighted average common shares: | ' | ' | ' | ' |
Basic (in shares) | 51,322 | 51,881 | 51,324 | 51,841 |
Diluted (in shares) | 52,036 | 52,610 | 51,562 | 52,551 |
Dividends declared per share (in dollars per share) | $0.04 | $0.04 | $0.12 | $0.12 |
COMPREHENSIVE INCOME: | ' | ' | ' | ' |
Net income | 41,338 | 26,394 | 3,713 | 50,348 |
Proportionate share of other companies foreign currency translation adjustment, net of taxes | -1,130 | 67 | -1,130 | 67 |
Net unrealized appreciation (depreciation) on marketable securities, net of taxes | -222 | 363 | -157 | -137 |
TOTAL COMPREHENSIVE INCOME | $39,986 | $26,824 | $2,426 | $50,278 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ' | ' |
NET CASH PROVIDED BY OPERATING ACTIVITIES | $186,369 | $251,406 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of marketable securities | -198,690 | -328,442 |
Sales of marketable securities | 293,056 | 443,950 |
Proceeds from the sale of equipment | 3,468 | 270 |
Proceeds received from sale of Trip Linhas Aereas stock | 17,237 | 16,658 |
Acquisition of property and equipment: | ' | ' |
Aircraft and rotable spare parts | -479,451 | -70,246 |
Deposits on aircraft | ' | -35,629 |
Buildings and ground equipment | -16,017 | -8,847 |
Decrease (Increase) in other assets | -12,218 | -3,710 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | -392,615 | 14,004 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from issuance of long-term debt | 323,665 | ' |
Principal payments on long-term debt | -124,660 | -117,850 |
Tax benefit (deficiency) from exercise of common stock options | -1,245 | -150 |
Net proceeds from issuance of common stock | 3,831 | 4,510 |
Purchase of treasury stock | -8,414 | -11,739 |
Payment of cash dividends | -6,174 | -6,207 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 187,003 | -131,436 |
Increase in cash and cash equivalents | -19,243 | 133,974 |
Cash and cash equivalents at beginning of period | 170,636 | 133,772 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 151,393 | 267,746 |
Cash paid (received) during the year for: | ' | ' |
Interest, net of capitalized amounts | 46,757 | 50,479 |
Income taxes | $485 | $2,509 |
Condensed_Consolidated_Financi
Condensed Consolidated Financial Statements | 9 Months Ended |
Sep. 30, 2014 | |
Condensed Consolidated Financial Statements | ' |
Condensed Consolidated Financial Statements | ' |
Note A — Condensed Consolidated Financial Statements | |
Basis of Presentation | |
The condensed consolidated financial statements of SkyWest, Inc. (“SkyWest” or the “Company”) and its operating subsidiaries, SkyWest Airlines, Inc. (“SkyWest Airlines”) and ExpressJet Airlines Inc. (“ExpressJet”) included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal recurring nature, unless otherwise disclosed. The Company suggests that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The results of operations for the three and nine-months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results will likely differ, and may differ materially, from those estimates and assumptions. | |
Effective December 31, 2011, the Company’s subsidiary, ExpressJet Airlines, Inc., a Delaware corporation, was merged into the Company’s subsidiary, Atlantic Southeast Airlines, Inc., a Utah corporation, with the surviving corporation named ExpressJet Airlines, Inc. (the “ExpressJet Combination”). In these condensed consolidated financial statements, “Atlantic Southeast” refers to Atlantic Southeast Airlines, Inc. for periods prior to the ExpressJet Combination, “ExpressJet Delaware” refers to ExpressJet Airlines, Inc., a Delaware corporation, for periods prior to the ExpressJet Combination, and “ExpressJet” refers to ExpressJet Airlines, Inc., the Utah corporation resulting from the combination of Atlantic Southeast and ExpressJet Delaware, for periods subsequent to the consummation of the ExpressJet Combination. | |
Recent Accounting Pronouncements | |
In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). The FASB issued ASU 2014-12 to provide explicit guidance for share-based awards which allow for an employee to vest in an award upon achievement of a performance condition met after completion of a requisite service period regardless of whether the employee is rendering service on the date the performance target is achieved. ASU 2014-12 provides that the performance target should not be reflected in estimating the grant-date fair value of the award but rather compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and recognized prospectively over the remaining requisite service period. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015. The Company does not believe ASU 2014-12 will have a material impact on the Company’s consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” Under the new standard, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received for that specific good or service. The standard is effective for annual reporting periods beginning after December 15, 2016, including interim reporting periods, and early adoption is not permitted. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. Our management is currently evaluating the anticipated impact, if any, the adoption of this standard will have on our Consolidated Financial Statements. | |
In April 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The standard changes the requirements for reporting discontinued operations in Subtopic 205-20. The standard is effective in the first quarter of 2015, and the impact to the consolidated financial statements is not expected to be material. | |
Passenger_and_Ground_Handling_
Passenger and Ground Handling Revenue | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Passenger and Ground Handling Revenues | ' | ||||||||||
Passenger and Ground Handling Revenues | ' | ||||||||||
Note B — Passenger and Ground Handling Revenue | |||||||||||
The Company recognizes passenger and ground handling revenues when the service is provided. Under the Company’s contract and pro-rate flying agreements with Delta Airlines, Inc. (“Delta”), United Air Lines, Inc. (“United”), US Airways Group, Inc. (“US Airways”), American Airlines, Inc. (“American”) and Alaska Airlines (“Alaska”), revenue is considered earned when the flight is completed. Revenue is recognized under the Company’s pro-rate flying agreements based upon the portion of the pro-rate passenger fare the Company anticipates that it will receive. Other ancillary revenues commonly associated with airlines such as baggage fee revenue, ticket change fee revenue and the marketing component of the sale of mileage credits are retained by the Company’s major airline partners on flights that the Company operates under its code-share agreements. | |||||||||||
In the event that the contractual rates under the Company’s flying agreements have not been finalized at quarterly or annual financial statement dates, the Company records revenues based on the lower of prior period’s approved rates, as adjusted to reflect any contract negotiations and the Company’s estimate of rates that will be implemented in accordance with revenue recognition guidelines. | |||||||||||
In the event the Company has a reimbursement dispute with a major partner, the Company evaluates the dispute under its established revenue recognition criteria and, provided the revenue recognition criteria have been met, the Company recognizes revenue based on management’s estimate of the resolution of the dispute. | |||||||||||
In several of the Company’s contractual agreements with its major partners, the Company is eligible for incentive compensation upon the achievement of certain performance criteria. The incentives are defined in those agreements and are measured and determined on a monthly, quarterly or semi-annual basis. At the end of each period covered by those agreements, the Company calculates the incentives achieved during that period and recognizes revenue accordingly. | |||||||||||
The following table summarizes the significant provisions of each flying agreement the Company has executed with its major partners: | |||||||||||
Delta Connection Agreements | |||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Performance | Payment Structure | ||||||
aircraft under | Dates | or costs paid | Incentive | ||||||||
contract | directly | Structure | |||||||||
by major partner | |||||||||||
SkyWest Airlines Delta Connection Agreement | CRJ 200 - 36 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | No financial performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||
CRJ 700 - 19 | |||||||||||
CRJ 900 – 32 | The final aircraft expires in 2022 | Engine Maintenance | |||||||||
The weighted average remaining term of the aircraft under contract is 5.3 years | Landing fees, Station Rents, De-ice | ||||||||||
Upon expiration, aircraft may be renewed or extended | Insurance | ||||||||||
ExpressJet Delta Connection Agreement | CRJ 200 – 57 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | Performance based financial incentives | Rate per block hour, per departure and per aircraft under contract | ||||||
CRJ 700 - 41 | |||||||||||
CRJ 900 – 28 | Engine Maintenance | ||||||||||
Landing fees, Station Rents, De-ice | |||||||||||
The final aircraft expires in 2022 | |||||||||||
Insurance | |||||||||||
The weighted average remaining term of the aircraft under contract is 4.1 years | |||||||||||
Upon expiration, aircraft may be renewed or extended | |||||||||||
SkyWest Airlines Prorate Agreement | EMB 120 – 7 | Terminable upon 120 days’ notice | None | None | Pro-rata sharing of the passenger fare revenue | ||||||
CRJ 200 – 10 | |||||||||||
SkyWest Airlines and ExpressJet are each parties to a Delta Connection Agreement with Delta, pursuant to which SkyWest Airlines and ExpressJet provide contract flight services for Delta. The SkyWest Airlines and ExpressJet Delta Connection Agreements contain multi-year rate reset provisions that became operative in 2010 and resets each fifth year thereafter. The Delta Connection Agreements also provide that, beginning with the fifth anniversary of the execution of the agreements (September 8, 2010), Delta has the right to require that certain contractual rates under those agreements shall not exceed the second lowest of all carriers within the Delta Connection program. SkyWest Airlines and ExpressJet have agreed with Delta on contractual rates that are effective through December 31, 2015. | |||||||||||
United Express Agreements | |||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Performance | Payment Structure | ||||||
aircraft under | Dates | or costs paid | Incentive Structure | ||||||||
contract | directly by major | ||||||||||
partner | |||||||||||
SkyWest Airlines United Express Agreement | CRJ 200 - 61 | The contract expires on an individual aircraft basis beginning in 2015 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||
CRJ 700 - 70 | |||||||||||
EMB 120 – 9 | The final aircraft expires in 2026 | Landing fees, Station Rents, De-ice | |||||||||
E175 – 14 | |||||||||||
The weighted average remaining term of the aircraft under contract is 3.2 years | Insurance | ||||||||||
Upon expiration, aircraft may be renewed or extended | |||||||||||
Atlantic Southeast United Express Agreement | CRJ 200 - 14 | Terminates 2015 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, De-ice | ||||||||||
Insurance | |||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Performance | Payment Structure | ||||||
aircraft under | Dates | or costs paid | Incentive Structure | ||||||||
contract | directly by major | ||||||||||
partner | |||||||||||
ExpressJet Delaware United Express Agreement | ERJ 135 - 9 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | Performance based incentives or penalties | Rate per block hour, per departure and per aircraft under contract | ||||||
ERJ 145 - 234 | |||||||||||
The final aircraft expires in 2020 | Engine Maintenance | ||||||||||
The weighted average remaining term of the aircraft under contract is 3.2 years | Landing fees, Station Rents, De-ice | ||||||||||
Upon expiration, aircraft may be renewed or extended | Insurance | ||||||||||
SkyWest Airlines United Express Prorate Agreement | CRJ200 - 21 | Terminable upon 120 days’ notice | None | None | Pro-rata sharing of the passenger fare revenue | ||||||
EMB 120 - 20 | |||||||||||
Alaska Capacity Purchase Agreement | |||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Incentive Structure | Payment Structure | ||||||
aircraft under | Dates | or costs paid | |||||||||
contract | directly by major | ||||||||||
partner | |||||||||||
SkyWest Airlines Capacity Purchase Agreement | CRJ 700 - 9 | Terminates 2018 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, De-ice | ||||||||||
Insurance | |||||||||||
US Airways Express Agreement | |||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Incentive Structure | Payment Structure | ||||||
aircraft under | Dates | or costs paid | |||||||||
contract | directly by major | ||||||||||
partner | |||||||||||
SkyWest Airlines US Airways Express Agreement | CRJ 200 - 10 | Terminates 2015 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||
CRJ 900 - 4 | |||||||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, De-ice | ||||||||||
Insurance | |||||||||||
SkyWest Airlines US Airways Express Prorate Agreement | CRJ 200 - 1 | Terminable upon 120 days’ notice | None | None | Pro-rata sharing of the passenger fare revenue | ||||||
American Agreement | |||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Incentive Structure | Payment Structure | ||||||
aircraft under | Dates | or costs paid | |||||||||
contract | directly by major | ||||||||||
partner | |||||||||||
SkyWest Airlines American Capacity Purchase Agreement | CRJ 200 - 12 | Terminates 2016 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, De-ice | ||||||||||
Insurance | |||||||||||
SkyWest Airlines American Prorate Agreement | CRJ 200 - 4 | Terminable upon 120 days’ notice | None | None | Pro-rata sharing of the passenger fare revenue | ||||||
ExpressJet American Capacity Purchase Agreement | CRJ 200 - 11 | Terminates 2017 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, De-ice | ||||||||||
Insurance | |||||||||||
Other Revenue Items | |||||||||||
The Company’s passenger and ground handling revenues could be impacted by a number of factors, including changes to the Company’s flying agreements with its major partners, contract modifications resulting from contract re-negotiations, the Company’s ability to earn incentive payments contemplated under the Company’s flying agreements and settlement of reimbursement disputes with the Company’s major partners. | |||||||||||
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Share-Based Compensation | ' | ||||
Share-Based Compensation | ' | ||||
Note C — Share-Based Compensation | |||||
The fair value of stock options granted by the Company has been estimated as of the grant date using the Black-Scholes option pricing model. During the nine months ended September 30, 2014, the Company granted options to purchase 250,175 shares of common stock under the SkyWest, Inc. 2010 Long-Term Incentive Plan (the “2010 Incentive Plan”). The following table shows the assumptions used and weighted average fair value for stock option grants during the nine months ended September 30, 2014. | |||||
Expected annual dividend rate | 1.33 | % | |||
Risk-free interest rate | 1.50 | % | |||
Average expected life (years) | 5.8 | ||||
Expected volatility of common stock | 0.427 | ||||
Forfeiture rate | 0.0 | % | |||
Weighted average fair value of option grants | $ | 4.41 | |||
During the nine months ended September 30, 2014, the Company granted 306,704 restricted stock units to the Company’s employees under the 2010 Incentive Plan. The restricted stock units have a three-year vesting period, during which the recipient must remain employed with the Company or one of the Company’s subsidiaries. Upon vesting, a restricted stock unit will be replaced with a share of common stock. Additionally, during the nine months ended September 30, 2014, the Company granted 44,631 fully-vested shares of common stock to the Company’s directors. The weighted average fair value of the shares of restricted stock on the date of grant was $12.10 per share. | |||||
The Company records share-based compensation expense only for those options and restricted stock units that are expected to vest. The estimated fair value of the stock options and restricted stock units is amortized over the applicable vesting periods. During the three months ended September 30, 2014 and 2013, the Company recorded pre-tax share-based compensation expense of $0.9 million and $1.1 million, respectively. During the nine months ended September 30, 2014 and 2013, the Company recorded pre-tax share-based compensation expense of $3.7 million and $3.6 million, respectively. | |||||
Net_Income_Per_Common_Share
Net Income Per Common Share | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Net Income Per Common Share | ' | |||||||||||||
Net Income Per Common Share | ' | |||||||||||||
Note D — Net Income Per Common Share | ||||||||||||||
Basic net income per common share (“Basic EPS”) excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share. During the three and nine months ended September 30, 2014, options to acquire 2,942,000 and 3,055,000 shares, respectively, were excluded from the computation of Diluted EPS as their impact was anti-dilutive. During the three and nine months ended September 30, 2013, options to acquire 3,164,000 and 3,300,000 shares, respectively, were excluded from the computation of Diluted EPS as their impact was anti-dilutive. | ||||||||||||||
The calculation of the weighted average number of common shares outstanding for Basic EPS and Diluted EPS for the periods indicated (in thousands, except per share data) is as follows: | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(Unaudited) | (Unaudited) | |||||||||||||
Numerator | ||||||||||||||
Net Income | $ | 41,338 | $ | 26,394 | $ | 3,713 | $ | 50,348 | ||||||
Denominator | ||||||||||||||
Weighted average number of common shares outstanding | 51,322 | 51,881 | 51,324 | 51,841 | ||||||||||
Effect of outstanding share-based awards | 714 | 729 | 238 | 710 | ||||||||||
Weighted average number of shares for diluted net income per common share | 52,036 | 52,610 | 51,562 | 52,551 | ||||||||||
Basic earnings per share | $ | 0.81 | $ | 0.51 | $ | 0.07 | $ | 0.97 | ||||||
Diluted earnings per share | $ | 0.79 | $ | 0.50 | $ | 0.07 | $ | 0.96 | ||||||
Segment_Reporting
Segment Reporting | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Segment Reporting | ' | |||||||||||||
Segment Reporting | ' | |||||||||||||
Note E — Segment Reporting | ||||||||||||||
Generally accepted accounting principles require disclosures related to components of a company for which separate financial information is available to and regularly evaluated by the Company’s chief operating decision maker (“CODM”) when deciding how to allocate resources and in assessing performance. | ||||||||||||||
The Company’s two operating segments consist of the operations of its two operating subsidiaries, SkyWest Airlines and ExpressJet. The following represents the Company’s segment data for the three months ended September 30, 2014 and 2013 (in thousands). | ||||||||||||||
Three months ended September 30, 2014 | ||||||||||||||
SkyWest | ExpressJet | Other | Consolidated | |||||||||||
Airlines | ||||||||||||||
Operating revenues | $ | 493,606 | $ | 340,553 | $ | 474 | $ | 834,633 | ||||||
Operating expense | 430,024 | 345,606 | (77 | ) | 775,553 | |||||||||
Depreciation and amortization expense | 43,853 | 21,969 | — | 65,822 | ||||||||||
Interest expense | 11,492 | 4,692 | 699 | 16,883 | ||||||||||
Segment profit (loss)(1) | 52,090 | (9,745 | ) | (148 | ) | 42,197 | ||||||||
Identifiable intangible assets, other than goodwill(2) | — | 13,311 | — | 13,311 | ||||||||||
Total assets (2) | 2,825,243 | 1,572,389 | — | 4,397,632 | ||||||||||
Capital expenditures (including non-cash) | 186,678 | 6,152 | — | 192,830 | ||||||||||
Three months ended September 30, 2013 | ||||||||||||||
SkyWest | ExpressJet | Other | Consolidated | |||||||||||
Airlines | ||||||||||||||
Operating revenues | $ | 468,517 | $ | 381,749 | $ | 474 | $ | 850,740 | ||||||
Operating expense | 409,320 | 382,583 | 2,663 | 794,566 | ||||||||||
Depreciation and amortization expense | 38,845 | 22,290 | — | 61,135 | ||||||||||
Interest expense | 10,812 | 5,274 | 913 | 16,999 | ||||||||||
Segment profit (loss)(1) | 48,385 | (6,108 | ) | (3,102 | ) | 39,175 | ||||||||
Identifiable intangible assets, other than goodwill(3) | — | 15,560 | — | 15,560 | ||||||||||
Total assets(3) | 2,711,009 | 1,554,385 | — | 4,265,394 | ||||||||||
Capital expenditures (including non-cash) | 21,977 | 8,891 | — | 30,868 | ||||||||||
-1 | Segment profit (loss) is equal to operating income less interest expense | |||||||||||||
-2 | As of September 30, 2014 | |||||||||||||
-3 | As of September 30, 2013 | |||||||||||||
The following represents the Company’s segment data for the nine-month periods ended September 30, 2014 and 2013 (in thousands). | ||||||||||||||
Nine months ended September 30, 2014 | ||||||||||||||
SkyWest | ExpressJet | Other | Consolidated | |||||||||||
Airlines | ||||||||||||||
Operating revenues | $ | 1,416,149 | $ | 1,006,021 | $ | 1,422 | $ | 2,423,592 | ||||||
Operating expense | 1,289,218 | 1,089,923 | (97 | ) | 2,379,044 | |||||||||
Depreciation and amortization expense | 125,811 | 66,578 | — | 192,389 | ||||||||||
Interest expense | 32,180 | 14,309 | 2,208 | 48,697 | ||||||||||
Segment profit (loss)(1) | 94,751 | (98,211 | ) | (689 | ) | (4,149 | ) | |||||||
Identifiable intangible assets, excluding goodwill(2) | — | 13,311 | — | 13,311 | ||||||||||
Total assets(2) | 2,825,243 | 1,572,389 | — | 4,397,632 | ||||||||||
Capital expenditures (including non-cash) | 487,711 | 18,653 | — | 506,364 | ||||||||||
Nine months ended September 30, 2013 | ||||||||||||||
SkyWest | ExpressJet | Other | Consolidated | |||||||||||
Airlines | ||||||||||||||
Operating revenues | $ | 1,380,930 | $ | 1,109,085 | $ | 3,342 | $ | 2,493,357 | ||||||
Operating expense | 1,236,003 | 1,128,757 | 6,306 | 2,371,066 | ||||||||||
Depreciation and amortization expense | 116,309 | 67,000 | — | 183,309 | ||||||||||
Interest expense | 33,535 | 16,099 | 2,856 | 52,490 | ||||||||||
Segment profit (loss)(1) | 111,392 | (35,771 | ) | (5,820 | ) | 69,801 | ||||||||
Identifiable intangible assets, other than goodwill(3) | — | 15,560 | — | 15,560 | ||||||||||
Total assets(3) | 2,711,009 | 1,554,385 | — | 4,265,394 | ||||||||||
Capital expenditures (including non-cash) | 66,339 | 28,242 | — | 94,581 | ||||||||||
-1 | Segment profit (loss) is equal to operating income less interest expense | |||||||||||||
-2 | As of September 30, 2014 | |||||||||||||
-3 | As of September 30, 2013 | |||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies | ' | ||||
Commitments and Contingencies | ' | ||||
Note F — Commitments and Contingencies | |||||
As of September 30, 2014, the Company leased 544 aircraft, as well as airport facilities, office space and various other property and equipment under non-cancelable operating leases which are generally on a long-term net rent basis where the Company pays taxes, maintenance, insurance and certain other operating expenses applicable to the leased property. The Company expects that, in the normal course of business, such operating leases that expire may be renewed or replaced by other leases. The following table summarizes future minimum rental payments required under operating leases that had initial or remaining non-cancelable lease terms in excess of one year as of September 30, 2014 (in thousands): | |||||
September through December 2014 | $ | 96,439 | |||
2015 | 341,184 | ||||
2016 | 267,626 | ||||
2017 | 197,709 | ||||
2018 | 153,301 | ||||
Thereafter | 571,781 | ||||
$ | 1,628,040 | ||||
During the nine months ended September 30, 2014, the Company took delivery of fourteen Embraer E175 dual-class jet aircraft (“E175s”) and initially financed the aircraft through the issuance of $323.7 million of long-term debt. The debt associated with the E175 aircraft has a fifteen year term with a variable interest rate and is secured by the E175 aircraft. | |||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
Note G — Fair Value Measurements | ||||||||||||||
The Company holds certain assets that are required to be measured at fair value in accordance with GAAP. The Company determined fair value of these assets based on the following three levels of inputs: | ||||||||||||||
Level 1 | — | Quoted prices in active markets for identical assets or liabilities. | ||||||||||||
Level 2 | — | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company’s marketable securities primarily utilize broker quotes in a non-active market for valuation of these securities and are classified as Level 2 investments. | ||||||||||||
Level 3 | — | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, therefore requiring an entity to develop its own assumptions. | ||||||||||||
As of September 30, 2014 and December 31, 2013, the Company held certain assets that are required to be measured at fair value on a recurring basis. Assets measured at fair value on a recurring basis are summarized below (in thousands): | ||||||||||||||
Fair Value Measurements as of September 30, 2014 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Marketable Securities | ||||||||||||||
Bonds and bond funds | $ | 392,565 | $ | — | $ | 392,565 | $ | — | ||||||
Asset backed securities | 125 | — | 125 | — | ||||||||||
392,690 | — | 392,690 | — | |||||||||||
Cash, Cash Equivalents and Restricted Cash | 162,975 | 162,975 | — | — | ||||||||||
Other Assets | 2,272 | (a) | — | — | 2,272 | |||||||||
Total Assets Measured at Fair Value | $ | 557,937 | $ | 162,975 | $ | 392,690 | $ | 2,272 | ||||||
Fair Value Measurements as of December 31, 2013 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Marketable Securities | ||||||||||||||
Bonds and bond funds | $ | 487,049 | $ | — | $ | 487,049 | $ | — | ||||||
Asset backed securities | 190 | — | 190 | — | ||||||||||
487,239 | — | 487,239 | — | |||||||||||
Cash, Cash Equivalents and Restricted Cash | 182,855 | 182,855 | — | — | ||||||||||
Other Assets | 2,245 | (a) | — | — | 2,245 | |||||||||
Total Assets Measured at Fair Value | $ | 672,339 | $ | 182,855 | $ | 487,239 | $ | 2,245 | ||||||
(a)Comprised of auction rate securities which are reflected in “Other assets” in the Company’s unaudited condensed consolidated balance sheets | ||||||||||||||
Based on market conditions, the Company uses a discounted cash flow valuation methodology for auction rate securities. Accordingly, for purposes of the foregoing condensed consolidated financial statements, these securities were categorized as Level 3 securities. The Company’s “Marketable Securities” classified as Level 2 primarily utilize broker quotes in a non-active market for valuation of these securities. | ||||||||||||||
The Company did not make any significant transfers of securities between Level 1, Level 2 and Level 3 during the nine months ended September 30, 2014. The Company’s policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period. | ||||||||||||||
The following table presents the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at September 30, 2014 (in thousands): | ||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs | ||||||||||||||
(Level 3) | ||||||||||||||
Auction Rate | ||||||||||||||
Securities | ||||||||||||||
Balance at January 1, 2014 | $ | 2,245 | ||||||||||||
Total realized and unrealized gains or (losses) | ||||||||||||||
Included in earnings | — | |||||||||||||
Included in other comprehensive income | 27 | |||||||||||||
Transferred out | — | |||||||||||||
Settlements | — | |||||||||||||
Balance at September 30, 2014 | $ | 2,272 | ||||||||||||
The fair value of the Company’s long-term debt classified as Level 2 was estimated using discounted cash flow analyses, based on the Company’s current estimated incremental borrowing rates for similar types of borrowing arrangements. The fair value of the Company’s long-term debt is estimated based on current rates offered to the Company for similar debt and was estimated to be $1,706.3 million as of September 30, 2014, as compared to the carrying amount of $1,669.6 million as of September 30, 2014. The fair value of the Company’s long-term debt is estimated based on current rates offered to the Company for similar debt and approximated $1,509.2 million as of December 31, 2014, as compared to the carrying amount of $1,470.6 million as of December 31, 2013. | ||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
Note H — Income Taxes | |
The income tax provision for the nine months ended September 30, 2014 included a valuation allowance of $5.5 million for previously generated state net operating loss benefits specific to ExpressJet that are scheduled to expire before the benefits are anticipated to be utilized. The Company did not record a valuation allowance for the three months ended September 30, 2014. The effective tax rate for the nine months ended September 30, 2014 is higher than the expected federal and state statutory rate due to the valuation allowance recorded during the nine months ended September 30, 2014 and a disproportionate increase in expense with limited tax deductibility relative to the Company’s pre-tax income for the nine months ended September 30, 2014. | |
Legal_Matters
Legal Matters | 9 Months Ended |
Sep. 30, 2014 | |
Legal Matters | ' |
Legal Matters | ' |
Note I — Legal Matters | |
The Company is subject to certain legal actions which it considers routine to its business activities. As of September 30, 2014, management believed, after consultation with legal counsel, that the ultimate outcome of such legal matters was not likely to have a material adverse effect on the Company’s financial position, liquidity or results of operations. During the three months ended September 30, 2014, SkyWest Airlines and ExpressJet executed a confidential settlement agreement with Delta resolving all disputed issues of a complaint filed in the Georgia State Court of Fulton County. The complaint related to the allocation of liability for certain irregular operation expenses paid by SkyWest Airlines and ExpressJet to their passengers and vendors under certain situations (“IROPs”). The financial impact of the settlement approximated the amount accrued by the Company prior to the settlement agreement. The parties also reached an agreement on the allocation of IROP liabilities for the remaining term of the Delta Connection Agreements, which the Company’s management does not believe will have a negative impact to the Company’s financial results. | |
Special_Charges
Special Charges | 9 Months Ended |
Sep. 30, 2014 | |
Special Charges | ' |
Special Charges | ' |
Note J — Special charges | |
In connection with the acquisition of ExpressJet Delaware, the Company acquired an aircraft paint facility in Saltillo, Mexico, and recorded a foreign value added tax (VAT) asset attributable to the paint facility. The realizability of the VAT asset is dependent upon the Company’s future utilization of the facility. During the nine months ended September 30, 2014, the Company wrote-off the VAT asset value of $2.5 million as the Company was no longer using the paint facility. Additionally, during the nine months ended September 30, 2014, the Company wrote down the value of the paint facility by $2.2 million. The Company did not record any special charges during the three months ended September 30, 2014. On October 1, 2014, the Company sold the paint facility to a third party for an amount that approximated the net book value of the paint facility. | |
Investment_in_Trip_Linhas_Aere
Investment in Trip Linhas Aereas ("TRIP") | 9 Months Ended |
Sep. 30, 2014 | |
Investment in Trip Linhas Aereas ("TRIP") | ' |
Investment in Trip Linhas Aereas ("TRIP") | ' |
Note K — Investment in Trip Linhas Aereas S.A. | |
On July 12, 2012, the Company sold its 20% interest in Trip Linhas Aereas S.A., a Brazilian regional airline (“TRIP”), for a price of $42 million. The purchase price was scheduled to be paid in three installments payments with the final payment due in July 2014. As part of the transaction, the Company also received an option to acquire 15.38% of the ownership in Trip Investimentos Ltda. (“Trip Investimentos”), the purchaser of the Company’s TRIP shares. The Company recorded the fair value of the option as additional consideration received in the transaction. The option has an initial exercise price per share equal to the price paid by Trip Investimentos to acquire the TRIP shares from the Company. The exercise price escalates annually at a specified rate and the Company can exercise the option, at its discretion, between the second and fourth anniversaries of the Company’s receipt of the final required installment payment from Trip Investimentos. The option has been written down to a nominal amount based on the Company’s assessment of its current fair value. Under the terms of the agreement, Trip Investimentos could not transfer the TRIP shares until the final installment payment has been made, which prevented the Company from recognizing the gain on the transaction until the final payment was received and the Trip Investimentos’ restriction to transfer the shares was removed. | |
During the three months ended September 30, 2014, the Company received the final installment payment attributable to the sale of its TRIP shares, which removed Trip Investimentos’ restriction to transfer the TRIP shares. Accordingly, during the three months ended September 30, 2014 the Company recorded a gain of $24.9 million in other income as a result of the completed transaction. Additionally, under the terms of the purchase agreement, the Company received $2.1 million of interest payments from Trip Investimentos, which the Company recorded as interest income during the three months ended September 30, 2014. | |
Passenger_and_Ground_Handling_1
Passenger and Ground Handling Revenue (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Delta Connection Agreements [Member] | ' | ||||||||||
Agreements with other airlines | ' | ||||||||||
Schedule of details of agreements with other airlines | ' | ||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Performance | Payment Structure | ||||||
aircraft under | Dates | or costs paid | Incentive | ||||||||
contract | directly | Structure | |||||||||
by major partner | |||||||||||
SkyWest Airlines Delta Connection Agreement | CRJ 200 - 36 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | No financial performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||
CRJ 700 - 19 | |||||||||||
CRJ 900 – 32 | The final aircraft expires in 2022 | Engine Maintenance | |||||||||
The weighted average remaining term of the aircraft under contract is 5.3 years | Landing fees, Station Rents, De-ice | ||||||||||
Upon expiration, aircraft may be renewed or extended | Insurance | ||||||||||
ExpressJet Delta Connection Agreement | CRJ 200 – 57 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | Performance based financial incentives | Rate per block hour, per departure and per aircraft under contract | ||||||
CRJ 700 - 41 | |||||||||||
CRJ 900 – 28 | Engine Maintenance | ||||||||||
Landing fees, Station Rents, De-ice | |||||||||||
The final aircraft expires in 2022 | |||||||||||
Insurance | |||||||||||
The weighted average remaining term of the aircraft under contract is 4.1 years | |||||||||||
Upon expiration, aircraft may be renewed or extended | |||||||||||
SkyWest Airlines Prorate Agreement | EMB 120 – 7 | Terminable upon 120 days’ notice | None | None | Pro-rata sharing of the passenger fare revenue | ||||||
CRJ 200 – 10 | |||||||||||
United Express Agreements [Member] | ' | ||||||||||
Agreements with other airlines | ' | ||||||||||
Schedule of details of agreements with other airlines | ' | ||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Performance | Payment Structure | ||||||
aircraft under | Dates | or costs paid | Incentive Structure | ||||||||
contract | directly by major | ||||||||||
partner | |||||||||||
SkyWest Airlines United Express Agreement | CRJ 200 - 61 | The contract expires on an individual aircraft basis beginning in 2015 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||
CRJ 700 - 70 | |||||||||||
EMB 120 – 9 | The final aircraft expires in 2026 | Landing fees, Station Rents, De-ice | |||||||||
E175 – 14 | |||||||||||
The weighted average remaining term of the aircraft under contract is 3.2 years | Insurance | ||||||||||
Upon expiration, aircraft may be renewed or extended | |||||||||||
Atlantic Southeast United Express Agreement | CRJ 200 - 14 | Terminates 2015 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, De-ice | ||||||||||
Insurance | |||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Performance | Payment Structure | ||||||
aircraft under | Dates | or costs paid | Incentive Structure | ||||||||
contract | directly by major | ||||||||||
partner | |||||||||||
ExpressJet Delaware United Express Agreement | ERJ 135 - 9 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | Performance based incentives or penalties | Rate per block hour, per departure and per aircraft under contract | ||||||
ERJ 145 - 234 | |||||||||||
The final aircraft expires in 2020 | Engine Maintenance | ||||||||||
The weighted average remaining term of the aircraft under contract is 3.2 years | Landing fees, Station Rents, De-ice | ||||||||||
Upon expiration, aircraft may be renewed or extended | Insurance | ||||||||||
SkyWest Airlines United Express Prorate Agreement | CRJ200 - 21 | Terminable upon 120 days’ notice | None | None | Pro-rata sharing of the passenger fare revenue | ||||||
EMB 120 - 20 | |||||||||||
Alaska Capacity Purchase Agreement [Member] | ' | ||||||||||
Agreements with other airlines | ' | ||||||||||
Schedule of details of agreements with other airlines | ' | ||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Incentive Structure | Payment Structure | ||||||
aircraft under | Dates | or costs paid | |||||||||
contract | directly by major | ||||||||||
partner | |||||||||||
SkyWest Airlines Capacity Purchase Agreement | CRJ 700 - 9 | Terminates 2018 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, De-ice | ||||||||||
Insurance | |||||||||||
US Airways Express Agreement [Member] | ' | ||||||||||
Agreements with other airlines | ' | ||||||||||
Schedule of details of agreements with other airlines | ' | ||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Incentive Structure | Payment Structure | ||||||
aircraft under | Dates | or costs paid | |||||||||
contract | directly by major | ||||||||||
partner | |||||||||||
SkyWest Airlines US Airways Express Agreement | CRJ 200 - 10 | Terminates 2015 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||
CRJ 900 - 4 | |||||||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, De-ice | ||||||||||
Insurance | |||||||||||
SkyWest Airlines US Airways Express Prorate Agreement | CRJ 200 - 1 | Terminable upon 120 days’ notice | None | None | Pro-rata sharing of the passenger fare revenue | ||||||
American Agreements [Member] | ' | ||||||||||
Agreements with other airlines | ' | ||||||||||
Schedule of details of agreements with other airlines | ' | ||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Incentive Structure | Payment Structure | ||||||
aircraft under | Dates | or costs paid | |||||||||
contract | directly by major | ||||||||||
partner | |||||||||||
SkyWest Airlines American Capacity Purchase Agreement | CRJ 200 - 12 | Terminates 2016 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, De-ice | ||||||||||
Insurance | |||||||||||
SkyWest Airlines American Prorate Agreement | CRJ 200 - 4 | Terminable upon 120 days’ notice | None | None | Pro-rata sharing of the passenger fare revenue | ||||||
ExpressJet American Capacity Purchase Agreement | CRJ 200 - 11 | Terminates 2017 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, De-ice | ||||||||||
Insurance | |||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Share-Based Compensation | ' | ||||
Schedule of assumptions used and weighted average fair value for stock option grants | ' | ||||
Expected annual dividend rate | 1.33 | % | |||
Risk-free interest rate | 1.50 | % | |||
Average expected life (years) | 5.8 | ||||
Expected volatility of common stock | 0.427 | ||||
Forfeiture rate | 0.0 | % | |||
Weighted average fair value of option grants | $ | 4.41 | |||
Net_Income_Per_Common_Share_Ta
Net Income Per Common Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Net Income Per Common Share | ' | |||||||||||||
Schedule of net income (loss) per common share | ' | |||||||||||||
The calculation of the weighted average number of common shares outstanding for Basic EPS and Diluted EPS for the periods indicated (in thousands, except per share data) is as follows: | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(Unaudited) | (Unaudited) | |||||||||||||
Numerator | ||||||||||||||
Net Income | $ | 41,338 | $ | 26,394 | $ | 3,713 | $ | 50,348 | ||||||
Denominator | ||||||||||||||
Weighted average number of common shares outstanding | 51,322 | 51,881 | 51,324 | 51,841 | ||||||||||
Effect of outstanding share-based awards | 714 | 729 | 238 | 710 | ||||||||||
Weighted average number of shares for diluted net income per common share | 52,036 | 52,610 | 51,562 | 52,551 | ||||||||||
Basic earnings per share | $ | 0.81 | $ | 0.51 | $ | 0.07 | $ | 0.97 | ||||||
Diluted earnings per share | $ | 0.79 | $ | 0.50 | $ | 0.07 | $ | 0.96 | ||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Segment Reporting | ' | |||||||||||||
Schedule of Company's segment data | ' | |||||||||||||
The following represents the Company’s segment data for the three months ended September 30, 2014 and 2013 (in thousands). | ||||||||||||||
Three months ended September 30, 2014 | ||||||||||||||
SkyWest | ExpressJet | Other | Consolidated | |||||||||||
Airlines | ||||||||||||||
Operating revenues | $ | 493,606 | $ | 340,553 | $ | 474 | $ | 834,633 | ||||||
Operating expense | 430,024 | 345,606 | (77 | ) | 775,553 | |||||||||
Depreciation and amortization expense | 43,853 | 21,969 | — | 65,822 | ||||||||||
Interest expense | 11,492 | 4,692 | 699 | 16,883 | ||||||||||
Segment profit (loss)(1) | 52,090 | (9,745 | ) | (148 | ) | 42,197 | ||||||||
Identifiable intangible assets, other than goodwill(2) | — | 13,311 | — | 13,311 | ||||||||||
Total assets (2) | 2,825,243 | 1,572,389 | — | 4,397,632 | ||||||||||
Capital expenditures (including non-cash) | 186,678 | 6,152 | — | 192,830 | ||||||||||
Three months ended September 30, 2013 | ||||||||||||||
SkyWest | ExpressJet | Other | Consolidated | |||||||||||
Airlines | ||||||||||||||
Operating revenues | $ | 468,517 | $ | 381,749 | $ | 474 | $ | 850,740 | ||||||
Operating expense | 409,320 | 382,583 | 2,663 | 794,566 | ||||||||||
Depreciation and amortization expense | 38,845 | 22,290 | — | 61,135 | ||||||||||
Interest expense | 10,812 | 5,274 | 913 | 16,999 | ||||||||||
Segment profit (loss)(1) | 48,385 | (6,108 | ) | (3,102 | ) | 39,175 | ||||||||
Identifiable intangible assets, other than goodwill(3) | — | 15,560 | — | 15,560 | ||||||||||
Total assets(3) | 2,711,009 | 1,554,385 | — | 4,265,394 | ||||||||||
Capital expenditures (including non-cash) | 21,977 | 8,891 | — | 30,868 | ||||||||||
-1 | Segment profit (loss) is equal to operating income less interest expense | |||||||||||||
-2 | As of September 30, 2014 | |||||||||||||
-3 | As of September 30, 2013 | |||||||||||||
The following represents the Company’s segment data for the nine-month periods ended September 30, 2014 and 2013 (in thousands). | ||||||||||||||
Nine months ended September 30, 2014 | ||||||||||||||
SkyWest | ExpressJet | Other | Consolidated | |||||||||||
Airlines | ||||||||||||||
Operating revenues | $ | 1,416,149 | $ | 1,006,021 | $ | 1,422 | $ | 2,423,592 | ||||||
Operating expense | 1,289,218 | 1,089,923 | (97 | ) | 2,379,044 | |||||||||
Depreciation and amortization expense | 125,811 | 66,578 | — | 192,389 | ||||||||||
Interest expense | 32,180 | 14,309 | 2,208 | 48,697 | ||||||||||
Segment profit (loss)(1) | 94,751 | (98,211 | ) | (689 | ) | (4,149 | ) | |||||||
Identifiable intangible assets, excluding goodwill(2) | — | 13,311 | — | 13,311 | ||||||||||
Total assets(2) | 2,825,243 | 1,572,389 | — | 4,397,632 | ||||||||||
Capital expenditures (including non-cash) | 487,711 | 18,653 | — | 506,364 | ||||||||||
Nine months ended September 30, 2013 | ||||||||||||||
SkyWest | ExpressJet | Other | Consolidated | |||||||||||
Airlines | ||||||||||||||
Operating revenues | $ | 1,380,930 | $ | 1,109,085 | $ | 3,342 | $ | 2,493,357 | ||||||
Operating expense | 1,236,003 | 1,128,757 | 6,306 | 2,371,066 | ||||||||||
Depreciation and amortization expense | 116,309 | 67,000 | — | 183,309 | ||||||||||
Interest expense | 33,535 | 16,099 | 2,856 | 52,490 | ||||||||||
Segment profit (loss)(1) | 111,392 | (35,771 | ) | (5,820 | ) | 69,801 | ||||||||
Identifiable intangible assets, other than goodwill(3) | — | 15,560 | — | 15,560 | ||||||||||
Total assets(3) | 2,711,009 | 1,554,385 | — | 4,265,394 | ||||||||||
Capital expenditures (including non-cash) | 66,339 | 28,242 | — | 94,581 | ||||||||||
-1 | Segment profit (loss) is equal to operating income less interest expense | |||||||||||||
-2 | As of September 30, 2014 | |||||||||||||
-3 | As of September 30, 2013 | |||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | ||||
The following table summarizes future minimum rental payments required under operating leases that had initial or remaining non-cancelable lease terms in excess of one year as of September 30, 2014 (in thousands): | |||||
September through December 2014 | $ | 96,439 | |||
2015 | 341,184 | ||||
2016 | 267,626 | ||||
2017 | 197,709 | ||||
2018 | 153,301 | ||||
Thereafter | 571,781 | ||||
$ | 1,628,040 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Schedule of assets measured at fair value on a recurring basis | ' | |||||||||||||
As of September 30, 2014 and December 31, 2013, the Company held certain assets that are required to be measured at fair value on a recurring basis. Assets measured at fair value on a recurring basis are summarized below (in thousands): | ||||||||||||||
Fair Value Measurements as of September 30, 2014 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Marketable Securities | ||||||||||||||
Bonds and bond funds | $ | 392,565 | $ | — | $ | 392,565 | $ | — | ||||||
Asset backed securities | 125 | — | 125 | — | ||||||||||
392,690 | — | 392,690 | — | |||||||||||
Cash, Cash Equivalents and Restricted Cash | 162,975 | 162,975 | — | — | ||||||||||
Other Assets | 2,272 | (a) | — | — | 2,272 | |||||||||
Total Assets Measured at Fair Value | $ | 557,937 | $ | 162,975 | $ | 392,690 | $ | 2,272 | ||||||
Fair Value Measurements as of December 31, 2013 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Marketable Securities | ||||||||||||||
Bonds and bond funds | $ | 487,049 | $ | — | $ | 487,049 | $ | — | ||||||
Asset backed securities | 190 | — | 190 | — | ||||||||||
487,239 | — | 487,239 | — | |||||||||||
Cash, Cash Equivalents and Restricted Cash | 182,855 | 182,855 | — | — | ||||||||||
Other Assets | 2,245 | (a) | — | — | 2,245 | |||||||||
Total Assets Measured at Fair Value | $ | 672,339 | $ | 182,855 | $ | 487,239 | $ | 2,245 | ||||||
(a) Comprised of auction rate securities which are reflected in “Other assets” in the Company’s unaudited condensed consolidated balance sheets | ||||||||||||||
Schedule of fair value measurements using significant unobservable inputs | ' | |||||||||||||
The following table presents the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at September 30, 2014 (in thousands): | ||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs | ||||||||||||||
(Level 3) | ||||||||||||||
Auction Rate | ||||||||||||||
Securities | ||||||||||||||
Balance at January 1, 2014 | $ | 2,245 | ||||||||||||
Total realized and unrealized gains or (losses) | ||||||||||||||
Included in earnings | — | |||||||||||||
Included in other comprehensive income | 27 | |||||||||||||
Transferred out | — | |||||||||||||
Settlements | — | |||||||||||||
Balance at September 30, 2014 | $ | 2,272 | ||||||||||||
Passenger_and_Ground_Handling_2
Passenger and Ground Handling Revenues (Details) | 9 Months Ended |
Sep. 30, 2014 | |
E175 [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft delivered | 14 |
Delta Connection Agreements [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Term of agreement | '5 years 3 months 18 days |
Delta Connection Agreements [Member] | ExpressJet [Member] | ' |
Agreements with other airlines | ' |
Term of agreement | '4 years 1 month 6 days |
Delta Connection Agreements [Member] | CRJ 200 [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 36 |
Delta Connection Agreements [Member] | CRJ 200 [Member] | ExpressJet [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 57 |
Delta Connection Agreements [Member] | CRJ 700 [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 19 |
Delta Connection Agreements [Member] | CRJ 700 [Member] | ExpressJet [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 41 |
Delta Connection Agreements [Member] | CRJ 900 [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 32 |
Delta Connection Agreements [Member] | CRJ 900 [Member] | ExpressJet [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 28 |
United Express Agreements [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Term of agreement | '3 years 2 months 12 days |
United Express Agreements [Member] | ExpressJet [Member] | ' |
Agreements with other airlines | ' |
Term of agreement | '3 years 2 months 12 days |
United Express Agreements [Member] | CRJ 200 [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 61 |
United Express Agreements [Member] | CRJ 200 [Member] | Atlantic Southeast Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 14 |
United Express Agreements [Member] | CRJ 700 [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 70 |
United Express Agreements [Member] | EMB 120 [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 9 |
United Express Agreements [Member] | E175 [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 14 |
United Express Agreements [Member] | ERJ 145 [Member] | ExpressJet [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 234 |
United Express Agreements [Member] | ERJ135 | ExpressJet [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 9 |
Prorate Agreement [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Notice period for termination of agreement | '120 days |
Prorate Agreement [Member] | CRJ 200 [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 10 |
Prorate Agreement [Member] | EMB 120 [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 7 |
United Express Prorate Agreement [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Notice period for termination of agreement | '120 days |
United Express Prorate Agreement [Member] | CRJ 200 [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 21 |
United Express Prorate Agreement [Member] | EMB 120 [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 20 |
Alaska Capacity Purchase Agreement [Member] | CRJ 700 [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 9 |
US Airways Express Agreement [Member] | CRJ 200 [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 10 |
US Airways Express Agreement [Member] | CRJ 900 [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 4 |
US Airways Express Prorate Agreement [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Notice period for termination of agreement | '120 days |
US Airways Express Prorate Agreement [Member] | CRJ 200 [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 1 |
American Capacity Purchase Agreement [Member] | CRJ 200 [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 12 |
American Capacity Purchase Agreement [Member] | CRJ 200 [Member] | ExpressJet [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 11 |
American Prorate Agreement | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Notice period for termination of agreement | '120 days |
American Prorate Agreement | CRJ 200 [Member] | Sky West Airlines Inc [Member] | ' |
Agreements with other airlines | ' |
Number of aircraft under contract | 4 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-Based Compensation | ' | ' | ' | ' |
Stock based compensation expense | $0.90 | $1.10 | $3.70 | $3.60 |
Employee Stock Option [Member] | ' | ' | ' | ' |
Assumptions used to determine value of the shares purchased under the stock purchase plan using Black-Scholes option pricing model | ' | ' | ' | ' |
Expected annual dividend rate (as a percent) | ' | ' | 1.33% | ' |
Risk-free interest rate (as a percent) | ' | ' | 1.50% | ' |
Average expected life | ' | ' | '6 years | ' |
Expected volatility of common stock (as a percent) | ' | ' | 0.43% | ' |
Forfeiture rate (as a percent) | ' | ' | 0.00% | ' |
Weighted average fair value of option grants | ' | ' | $4.41 | ' |
Restricted Stock Units (RSUs) [Member] | Director [Member] | ' | ' | ' | ' |
Assumptions used to determine value of the shares purchased under the stock purchase plan using Black-Scholes option pricing model | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 44,631 | ' |
Long Term Incentive Plan 2010 [Member] | Employee Stock Option [Member] | ' | ' | ' | ' |
Stock Compensation | ' | ' | ' | ' |
Options granted (in shares) | ' | ' | 250,175 | ' |
Long Term Incentive Plan 2010 [Member] | Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Assumptions used to determine value of the shares purchased under the stock purchase plan using Black-Scholes option pricing model | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 306,704 | ' |
Vesting period | ' | ' | '3 years | ' |
Granted (in dollars per share) | ' | ' | $12.10 | ' |
Net_Income_Per_Common_Share_De
Net Income Per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net Income Per Common Share | ' | ' | ' | ' |
Number of outstanding options not included in computation of Diluted EPS (in shares) | 2,942,000 | 3,164,000 | 3,055,000 | 3,300,000 |
Numerator | ' | ' | ' | ' |
Net Income | $41,338 | $26,394 | $3,713 | $50,348 |
Denominator | ' | ' | ' | ' |
Weighted average number of common shares outstanding | 51,322,000 | 51,881,000 | 51,324,000 | 51,841,000 |
Effect of outstanding share-based awards | 714,000 | 729,000 | 238,000 | 710,000 |
Weighted average number of shares for diluted net income per common share | 52,036,000 | 52,610,000 | 51,562,000 | 52,551,000 |
Basic earnings per share (in dollars per share) | $0.81 | $0.51 | $0.07 | $0.97 |
Diluted earnings per share (in dollars per share) | $0.79 | $0.50 | $0.07 | $0.96 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
segment | |||||
Segment Reporting | ' | ' | ' | ' | ' |
Operating segments number | ' | ' | 2 | ' | ' |
Number of operating subsidiaries representing operating segments | ' | ' | 2 | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' |
Operating revenues | $834,633 | $850,740 | $2,423,592 | $2,493,357 | ' |
Operating expense | 775,553 | 794,566 | 2,379,044 | 2,371,066 | ' |
Depreciation and amortization expense | 65,822 | 61,135 | 192,389 | 183,309 | ' |
Interest expense | 16,883 | 16,999 | 48,697 | 52,490 | ' |
Segment profit (loss) | 42,197 | 39,175 | -4,149 | 69,801 | ' |
Identifiable intangible assets, other than goodwill | 13,311 | 15,560 | 13,311 | 15,560 | 14,998 |
Total assets | 4,397,632 | 4,265,394 | 4,397,632 | 4,265,394 | 4,233,219 |
Capital expenditures (including non - cash) | 192,830 | 30,868 | 506,364 | 94,581 | ' |
SkyWest Airlines [Member] | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' |
Operating revenues | 493,606 | 468,517 | 1,416,149 | 1,380,930 | ' |
Operating expense | 430,024 | 409,320 | 1,289,218 | 1,236,003 | ' |
Depreciation and amortization expense | 43,853 | 38,845 | 125,811 | 116,309 | ' |
Interest expense | 11,492 | 10,812 | 32,180 | 33,535 | ' |
Segment profit (loss) | 52,090 | 48,385 | 94,751 | 111,392 | ' |
Total assets | 2,825,243 | 2,711,009 | 2,825,243 | 2,711,009 | ' |
Capital expenditures (including non - cash) | 186,678 | 21,977 | 487,711 | 66,339 | ' |
Express Jet Airlines Inc [Member] | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' |
Operating revenues | 340,553 | 381,749 | 1,006,021 | 1,109,085 | ' |
Operating expense | 345,606 | 382,583 | 1,089,923 | 1,128,757 | ' |
Depreciation and amortization expense | 21,969 | 22,290 | 66,578 | 67,000 | ' |
Interest expense | 4,692 | 5,274 | 14,309 | 16,099 | ' |
Segment profit (loss) | -9,745 | -6,108 | -98,211 | -35,771 | ' |
Identifiable intangible assets, other than goodwill | 13,311 | 15,560 | 13,311 | 15,560 | ' |
Total assets | 1,572,389 | 1,554,385 | 1,572,389 | 1,554,385 | ' |
Capital expenditures (including non - cash) | 6,152 | 8,891 | 18,653 | 28,242 | ' |
Other Segments [Member] | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' |
Operating revenues | 474 | 474 | 1,422 | 3,342 | ' |
Operating expense | -77 | 2,663 | -97 | 6,306 | ' |
Interest expense | 699 | 913 | 2,208 | 2,856 | ' |
Segment profit (loss) | ($148) | ($3,102) | ($689) | ($5,820) | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
aircraft | |
Commitments and Contingencies | ' |
Number of aircraft leased by the entity | 544 |
Future minimum rental payments required under operating leases | ' |
September through December 2014 | $96,439,000 |
2015 | 341,184,000 |
2016 | 267,626,000 |
2017 | 197,709,000 |
2018 | 153,301,000 |
Thereafter | 571,781,000 |
Total | 1,628,040,000 |
E175 [Member] | ' |
Supply Commitment [Line Items] | ' |
Number of aircraft delivered | 14 |
Interim debt amount | $323,700,000 |
Debt Instrument, Term | '15 years |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Auction Rate Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | |||
Estimate of Fair Value Measurement [Member] | Estimate of Fair Value Measurement [Member] | Estimate of Fair Value Measurement [Member] | Estimate of Fair Value Measurement [Member] | Estimate of Fair Value Measurement [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Corporate Bond Securities [Member] | Corporate Bond Securities [Member] | Asset-backed Securities [Member] | Asset-backed Securities [Member] | Corporate Bond Securities [Member] | Corporate Bond Securities [Member] | Asset-backed Securities [Member] | Asset-backed Securities [Member] | ||||||||||||
Fair Value Measurements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Marketable securities | $392,690,000 | $487,239,000 | ' | $392,690,000 | $487,239,000 | $392,565,000 | $487,049,000 | $125,000 | $190,000 | ' | ' | $392,690,000 | $487,239,000 | $392,565,000 | $487,049,000 | $125,000 | $190,000 | ' | ' |
Cash, Cash Equivalents and Restricted Cash | ' | ' | ' | 162,975,000 | 182,855,000 | ' | ' | ' | ' | 162,975,000 | 182,855,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Other Assets | ' | ' | ' | 2,272,000 | 2,245,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,272,000 | 2,245,000 |
Total Assets Measured at Fair Value | ' | ' | ' | 557,937,000 | 672,339,000 | ' | ' | ' | ' | 162,975,000 | 182,855,000 | 392,690,000 | 487,239,000 | ' | ' | ' | ' | 2,272,000 | 2,245,000 |
Changes in assets measured at fair value on a recurring basis using significant unobservable inputs (level 3) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 2,245,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total realized and unrealized gains or (losses) Included in other comprehensive income | ' | ' | 27,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period | ' | ' | 2,272,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value of Financial Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,706,300,000 | 1,509,200,000 | ' | ' | ' | ' | ' | ' |
Carrying amount of long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,669,600,000 | $1,470,600,000 | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Income Taxes | ' |
Valuation allowance changes affecting the provision for income taxes | $5.50 |
Special_Charges_Details
Special Charges (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Special Charges | ' |
Wrote-off value of the VAT asset | $2.50 |
Write down value of the paint facility | $2.20 |
Investments_in_Trip_Linhas_Aer
Investments in Trip Linhas Aereas ("TRIP") (Details) (USD $) | 9 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Jul. 12, 2012 | Jul. 13, 2012 | Sep. 30, 2014 | Jul. 13, 2012 | Sep. 30, 2014 | |
Trip Linhas Aereas [Member] | Trip Linhas Aereas [Member] | Trip Linhas Aereas [Member] | Trip Investimentos Ltd | Trip Investimentos Ltd | |||
item | |||||||
Investments in other companies | ' | ' | ' | ' | ' | ' | ' |
Percentage ownership sold | ' | ' | 20.00% | ' | ' | ' | ' |
Proceeds received from sale of Trip Linhas Aereas stock | $17,237,000 | $16,658,000 | ' | $42,000,000 | ' | ' | ' |
Number of installments | ' | ' | ' | 3 | ' | ' | ' |
Option to acquire ownership (as a percent) | ' | ' | ' | ' | ' | 15.38% | ' |
Gain (loss) on equity method investments | ' | ' | ' | ' | 24,900,000 | ' | ' |
interest income received | ' | ' | ' | ' | ' | ' | $2,100,000 |