SkyWest (SKYW) 10-Q 5 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document and Entity Information
Entity Registrant Name	SKYWEST INC
Entity Central Index Key	793,733
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
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		50,602,727
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 171,165	$ 132,275
Marketable securities	322,050	415,273
Restricted cash	11,584	11,582
Income tax receivable	1,378	2,779
Receivables, net	71,827	83,099
Inventories, net	139,671	137,452
Prepaid aircraft rents	437,193	397,850
Deferred tax assets	151,377	94,385
Other current assets	24,840	16,308
Total current assets	1,331,085	1,291,003
PROPERTY AND EQUIPMENT:
Aircraft and rotable spares	5,060,487	4,608,663
Deposits on aircraft	37,700	40,000
Buildings and ground equipment	282,606	274,900
Total property and equipment, gross	5,380,793	4,923,563
Less-accumulated depreciation and amortization	(1,975,389)	(1,902,375)
Total property and equipment, net	3,405,404	3,021,188
OTHER ASSETS
Intangible assets, net	11,623	12,748
Other assets	90,442	84,989
Total other assets	102,065	97,737
Total assets	4,838,554	4,409,928
CURRENT LIABILITIES:
Current maturities of long-term debt	263,725	211,821
Accounts payable	278,019	270,097
Accrued salaries, wages and benefits	138,302	138,902
Accrued aircraft rents	3,530	3,303
Taxes other than income taxes	20,598	17,457
Other current liabilities	40,544	42,775
Total current liabilities	744,718	684,355
OTHER LONG-TERM LIABILITIES	48,603	49,625
LONG-TERM DEBT, net of current maturities	1,800,452	1,533,990
DEFERRED INCOME TAXES PAYABLE	754,195	669,385
DEFERRED AIRCRAFT CREDITS	$ 67,373	$ 72,227
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, 5,000,000 shares authorized; none issued
Common stock, no par value, 120,000,000 shares authorized; 78,496,807 and 77,951,411 shares issued, respectively	$ 631,078	$ 626,521
Retained earnings	1,202,437	1,165,478
Treasury stock, at cost, 28,015,386 and 26,765,386 shares, respectively	(410,090)	(391,364)
Accumulated other comprehensive (loss)	(212)	(289)
Total stockholders' equity	1,423,213	1,400,346
Total liabilities and stockholders' equity	$ 4,838,554	$ 4,409,928

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
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	78,496,807	77,951,411
Treasury stock, at cost, shares	28,015,386	26,765,386

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
OPERATING REVENUES:
Passenger	$ 773,107	$ 800,548	$ 1,515,605	$ 1,556,187
Ground handling and other	15,310	16,026	33,210	32,773
Total operating revenues	788,417	816,574	1,548,815	1,588,960
OPERATING EXPENSES:
Salaries, wages and benefits	298,573	310,844	601,418	628,486
Aircraft maintenance, materials and repairs	156,319	171,722	314,576	349,984
Aircraft rentals	68,442	79,449	138,854	159,783
Depreciation and amortization	64,659	64,252	130,350	126,567
Aircraft fuel	31,192	58,018	58,492	105,243
Ground handling services	20,117	32,314	44,089	69,332
Special charges		4,713		4,713
Other operating expenses	79,183	82,018	157,028	159,382
Total operating expenses	718,485	803,330	1,444,807	1,603,490
OPERATING INCOME (LOSS)	69,932	13,244	104,008	(14,530)
OTHER INCOME (EXPENSE):
Interest income	697	511	1,336	1,060
Interest expense	(18,081)	(16,138)	(36,546)	(31,814)
Other, net		(2,618)		(2,891)
Total other expense, net	(17,384)	(18,245)	(35,210)	(33,645)
INCOME (LOSS) BEFORE INCOME TAXES	52,548	(5,001)	68,798	(48,175)
PROVISION (BENEFIT) FOR INCOME TAXES	21,073	9,736	27,703	(10,551)
NET INCOME (LOSS)	$ 31,475	$ (14,737)	$ 41,095	$ (37,624)
BASIC EARNINGS (LOSS) PER SHARE (in dollars per share)	$ 0.61	$ (0.29)	$ 0.80	$ (0.73)
DILUTED EARNINGS (LOSS) PER SHARE (in dollars per share)	$ 0.61	$ (0.29)	$ 0.79	$ (0.73)
Weighted average common shares:
Basic (in shares)	51,357	51,183	51,407	51,310
Diluted (in shares)	51,971	51,183	52,182	51,310
Dividends declared per share (in dollars per share)	$ 0.04	$ 0.04	$ 0.08	$ 0.08
COMPREHENSIVE INCOME (LOSS):
Net income (Loss)	$ 31,475	$ (14,737)	$ 41,095	$ (37,624)
Net unrealized appreciation (depreciation) on marketable securities, net of taxes	(223)	42	78	65
TOTAL COMPREHENSIVE INCOME (LOSS)	$ 31,252	$ (14,695)	$ 41,173	$ (37,559)

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF CASH FLOWS
NET CASH PROVIDED BY OPERATING ACTIVITIES	$ 168,807	$ 32,489
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities	(337,375)	(112,664)
Sales of marketable securities	430,688	215,005
Proceeds from the sale of equipment	5,719	3
Acquisition of property and equipment:
Aircraft and rotable spare parts	(503,317)	(297,758)
Buildings and ground equipment	(16,842)	(11,644)
Return of deposits on aircraft	2,300
Increase in other assets	(8,325)	(13,563)
NET CASH USED IN INVESTING ACTIVITIES	(427,152)	(220,621)
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt	432,568	187,389
Principal payments on long-term debt	(114,202)	(88,236)
Tax deficiency from exercise of common stock options	(2,012)	(1,266)
Net proceeds from issuance of common stock	3,721	1,933
Purchase of treasury stock	(18,726)	(8,414)
Payment of cash dividends	(4,114)	(4,119)
NET CASH PROVIDED BY FINANCING ACTIVITIES	297,235	87,287
Increase (decrease) in cash and cash equivalents	38,890	(100,845)
Cash and cash equivalents at beginning of period	132,275	170,636
CASH AND CASH EQUIVALENTS AT END OF PERIOD	171,165	69,791
Cash paid during the year for:
Interest, net of capitalized amounts	37,530	33,103
Income taxes	$ 613	$ 382

Condensed Consolidated Financia

Condensed Consolidated Financial Statements	6 Months Ended
	Jun. 30, 2015
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, 2014. The results of operations for the three and six-month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. 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.

Passenger and Ground Handling R

Passenger and Ground Handling Revenue	6 Months Ended
	Jun. 30, 2015
Passenger and Ground Handling Revenues
Passenger and Ground Handling Revenue	Note B — Passenger and Ground Handling Revenue The Company recognizes passenger and ground handling revenues when the service is provided under its code-share agreements. Ground handling revenue primarily consists of customer service functions such as gate and ramp agent services at applicable airports where the Company provides such services to other airlines. Under the Company’s fixed-fee arrangements (referred to as “fixed-fee arrangements, “contract flying” or “capacity purchase agreements”) with Delta Airlines Inc. (“Delta”), United Airlines Inc. (“United”), US Airways Group, Inc. (“US Airways”), American Airlines, Inc. (“American”) and Alaska Airlines, Inc. (“Alaska”), the major airline generally pays the Company a fixed-fee for each departure, flight or block time incurred, and an amount per aircraft in service each month with additional incentives based on flight completion and on-time performance. The major airline partner also directly reimburses the Company for certain direct expenses incurred under the fixed-fee arrangement, such as fuel expense and landing fee expenses. Under the fixed-fee arrangements, revenue is earned when each flight is completed. Under the Company’s revenue-sharing arrangements (referred to as “revenue-sharing” or “pro-rate” arrangements), the major airline and the Company negotiate a passenger fare proration formula when a passenger has a connecting flight operated by both the Company and the major airline partner, pursuant to which the Company receives a percentage of the ticket revenues for those passengers traveling for the portion of their trip operated by the Company, and the major airline retains the ticket revenues for the other portion of their trip on the major airline. Revenue is recognized under the Company’s pro-rate flying agreements when each flight is completed based upon the portion of the pro-rate passenger fare the Company anticipates that it will receive for each completed flight. 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 the 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 agreements, the Company is eligible to receive incentive compensation upon the achievement of certain performance criteria. The incentives are defined in the agreements and are measured and determined on a monthly, quarterly or semi-annual basis. At the end of each period during the term of an agreement, the Company calculates the incentives achieved during that period and recognizes revenue attributable to that agreement accordingly. The following table summarizes the significant provisions of each code share agreement the Company has with each major partner: Delta Connection Agreements Agreement Number of aircraft under contract Term / Termination Dates SkyWest Airlines Delta Connection Agreement (fixed-fee arrangement)  CRJ 200—48  CRJ 700—19  CRJ 900—32  The contract expires on an individual aircraft basis with expirations commencing in 2015  The final aircraft expires in 2022  The average remaining term of the aircraft under contract is 4.3 years  Upon expiration, aircraft may be renewed or extended ExpressJet Delta Connection Agreement (fixed-fee arrangement)  CRJ 200—59  CRJ 700—41  CRJ 900—28  The contract expires on an individual aircraft basis with expirations commencing in 2015  The final aircraft expires in 2022  The average remaining term of the aircraft under contract is 3.7 years  Upon expiration, aircraft may be renewed or extended SkyWest Airlines Pro-rate Agreement (revenue-sharing arrangement)  CRJ 200—13  Terminates with 30-day notice United Express Agreements Agreement Number of aircraft under contract Term / Termination Dates SkyWest Airlines United Express Agreements (fixed-fee arrangement)  CRJ 200—49  CRJ 700—70  E175—35  The contract expires on an individual aircraft basis with expirations commencing in 2015  The final aircraft expires in 2026  The average remaining term of the aircraft under contract is 3.8 years  Upon expiration, aircraft may be renewed or extended ExpressJet United ERJ Agreement (fixed-fee arrangement)  ERJ 135—5  ERJ 145—180  The contract expires on an individual aircraft basis with expirations commencing in 2015  The final aircraft expires in 2017  The average remaining term of the aircraft under contract is 1.5 years  Upon expiration, aircraft may be renewed or extended SkyWest Airlines United Express Pro-rate Agreement (revenue-sharing arrangement)  CRJ 200—23  Terminates with 120-day notice Alaska Capacity Purchase Agreement Agreement Number of aircraft under contract Term / Termination Dates SkyWest Airlines Alaska Agreement (fixed-fee arrangement)  CRJ 700—9  E175—3  CRJ 700 Terminates 2018 E175 Terminates 2027  Upon expiration, aircraft may be renewed or extended US Airways Agreements Agreement Number of aircraft under contract Term / Termination Dates SkyWest Airlines US Airways Agreement (fixed-fee arrangement)  CRJ 200—10  CRJ 900—4  Terminates by the end of 2015  Upon expiration, aircraft may be renewed or extended SkyWest Airlines US Airways Pro-rate Agreement (revenue-sharing arrangement)  CRJ 200—1  Terminates with 120- day notice American Agreements Agreement Number of aircraft under contract Term / Termination Dates SkyWest Airlines American Agreement (fixed-fee arrangement)  CRJ 200—12  Terminates 2016  Upon expiration, aircraft may be renewed or extended SkyWest Airlines American Pro-rate Agreement (revenue-sharing arrangement)  CRJ 200—5  Terminates with 120- day notice ExpressJet American Agreement (fixed-fee arrangement)  CRJ 200—11  ERJ 145—16  Terminates 2017  Upon expiration, aircraft may be renewed or extended ExpressJet American Pro-rate Agreement (revenue-sharing arrangement)  CRJ 200—3  Terminates with 120- day notice In June 2015, SkyWest Airlines reached an agreement with Alaska to place eight additional E175 aircraft into service pursuant to the SkyWest Airlines Alaska Agreement, which would result in a total of 15 E175 aircraft under contract with Alaska. 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 code-share 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 code-share agreements and settlement of reimbursement disputes with the Company’s major partners.

Share-Based Compensation and St

Share-Based Compensation and Stock Repurchases	6 Months Ended
	Jun. 30, 2015
Share-Based Compensation and Stock Repurchases
Share-Based Compensation and Stock Repurchases	Note C — Share-Based Compensation and Stock Repurchases 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. The Company uses historical data to estimate option exercises and employee termination in the option pricing model. The expected term of options granted is derived from the output of the option pricing model and represents the period of time that options granted are expected to be outstanding. The expected volatilities are based on the historical volatility of the Company’s traded stock and other factors. During the six months ended June 30, 2015, the Company granted options to purchase 261,473 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 six months ended June 30, 2015. Expected annual dividend rate % Risk-free interest rate % Average expected life (years) Expected volatility of common stock Forfeiture rate % Weighted average fair value of option grants $ During the six months ended June 30, 2015, the Company granted 403,917 restricted stock units and 218,493 performance restricted stock units to employees of the Company and its subsidiaries under the 2010 Incentive Plan. Both the restricted stock and performance 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. In addition to the three-year vesting period, certain profit metrics of the Company must be met before the recipient will receive any shares of stock attributable to the performance restricted stock units. Upon vesting, a restricted stock unit and a performance restricted stock unit will be replaced with a share of common stock. Additionally, during the six months ended June 30, 2015, the Company granted 36,950 fully-vested shares of common stock to the Company’s directors. The fair value of the shares of restricted stock on the date of grant was $13.51 per share. The Company records share-based compensation expense only for those options and restricted and performance 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 June 30, 2015 and 2014, the Company recorded pre-tax share-based compensation expense of $1.3 million and $1.1 million, respectively. During the six months ended June 30, 2015 and 2014, the Company recorded pre-tax share-based compensation expense of $2.8 million and $2.8 million, respectively. The Company repurchased 1.25 million shares of its common stock for $18.7 million during the six months ended June 30, 2015. The Company repurchased 670,000 shares of its common stock for $8.4 million during the six months ended June 30, 2014.

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share	6 Months Ended
	Jun. 30, 2015
Net Income (Loss) Per Common Share
Net Income (Loss) Per Common Share	Note D — Net Income (Loss) 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 six months ended June 30, 2015, options to acquire 459,000 and 2,019,000 shares, respectively, were excluded from the computation of Diluted EPS as their impact was anti-dilutive. During the three and six months ended June 30, 2014, options to acquire 3,279,000 and 3,112,000 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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Unaudited) (Unaudited) Numerator Net Income (loss) $ $ ) $ $ ) Denominator Weighted average number of common shares outstanding Effect of outstanding share-based awards — — Weighted average number of shares for diluted net income per common share Basic earnings (loss) per share $ $ ) $ $ ) Diluted earnings (loss) per share $ $ ) $ $ )

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2015
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 June 30, 2015 and 2014 (in thousands). Three months ended June 30, 2015 SkyWest Airlines ExpressJet Corporate / Consolidating Consolidated Operating revenues $ $ $ $ Operating expense Depreciation and amortization expense Interest expense — Segment profit (loss)(1) ) Identifiable intangible assets, other than goodwill — — Total assets — Capital expenditures (including non-cash) — Three months ended June 30, 2014 SkyWest Airlines ExpressJet Corporate / Consolidating Consolidated Operating revenues $ $ $ $ Operating expense ) Depreciation and amortization expense — Interest expense Segment profit (loss)(1) ) ) ) Identifiable intangible assets, other than goodwill — — Total assets — Capital expenditures (including non-cash) — (1) Segment profit (loss) is equal to operating income less interest expense The following represents the Company’s segment data for the six-month periods ended June 30, 2015 and 2014 (in thousands). Six months ended June 30, 2015 SkyWest Airlines ExpressJet Corporate / Consolidating Consolidated Operating revenues $ $ $ $ Operating expense Depreciation and amortization expense Interest expense — Segment profit (loss)(1) ) Identifiable intangible assets, excluding goodwill — — Total assets — Capital expenditures (including non-cash) — Six months ended June 30, 2014 SkyWest Airlines ExpressJet Corporate / Consolidating Consolidated Operating revenues $ $ $ $ Operating expense ) Depreciation and amortization expense — Interest expense Segment profit (loss)(1) ) ) ) Identifiable intangible assets, other than goodwill — — Total assets — Capital expenditures (including non-cash) — (1) Segment profit (loss) is equal to operating income less interest expense

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies
Commitments and Contingencies	Note F — Commitments and Contingencies As of June 30, 2015, the Company leased 510 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 will 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 June 30, 2015 (in thousands): July through December 2015 $ 2016 2017 2018 2019 Thereafter $ During the three months ended June 30, 2015, the Company took delivery of nine Embraer E175 dual-class jet aircraft (“E175s”) and financed the aircraft through the issuance of $204.5 million of long-term debt. During the six months ended June 30, 2015, the Company took delivery of 18 E175s and financed the aircraft through the issuance of $407.6 million of long-term debt. The debt associated with the E175 aircraft delivered during the six months ended June 30, 2015 has a twelve-year term with a fixed annual interest rate ranging from 3.4% to 3.9% and is secured by the 18 E175 aircraft. As of June 30, 2015 and December 31, 2014, the Company had accrued future lease obligations of $2.9 million and $3.8 million, respectively, associated with Embraer Brasilia EMB120 aircraft (“EMB120s”) removed from service. The lease payments for the EMB120s are scheduled to continue through June 2016. As of June 30, 2015, the Company had a firm purchase commitment for 17 Embraer E175 aircraft with scheduled delivery dates from July 2015 to October 2016. During the three months ended June 30, 2015, the Company borrowed $25 million in debt from a bank. The debt has a four year term with a fixed annual interest rate of 3.3% with monthly payments and is secured by spare engines.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
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. Some of the Company’s marketable securities primarily utilize broker quotes in a non-active market for valuation of these securities. 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 June 30, 2015 and December 31, 2014, 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 June 30, 2015 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ $ — $ $ — Asset backed securities — — — — Cash, Cash Equivalents and Restricted Cash — — Other Assets (a) — — Total Assets Measured at Fair Value $ $ $ $ Fair Value Measurements as of December 31, 2014 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ $ — $ $ — Asset backed securities — — — — Cash, Cash Equivalents and Restricted Cash — — Other Assets (a) — — Total Assets Measured at Fair Value $ $ $ $ (a) Comprised of auction rate securities which is 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 six months ended June 30, 2015. The Company’s policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period. As of June 30, 2015 and December 31, 2014, the Company classified $322.1 million and $415.3 million of marketable securities, respectively, as short-term since it had the intent to maintain a liquid portfolio and the ability to redeem the securities within one year. As of June 30, 2015 and December 31, 2014, the amortized cost in the Company’s total cash and cash equivalents and available for sale securities (excluding restricted cash and auction rate securities recorded as other assets) was $493.4 million and $548.0 million, respectively. As of June 30, 2015 and December 31, 2014, the fair value of the Company’s total cash and cash equivalents and available for sale securities (excluding restricted cash and auction rate securities recorded as other assets), was $493.2 million and $547.5 million, respectively. The following table presents the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at June 30, 2015 (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Auction Rate Securities Balance at January 1, 2015 $ Total realized and unrealized gains or (losses) Included in earnings — Included in other comprehensive income ) Transferred out — Settlements — Balance at June 30, 2015 $ 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 $2,087.1 million as of June 30, 2015, as compared to the carrying amount of $2,064.2 million as of June 30, 2015. 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 $1,813.1 million as of December 31, 2014, as compared to the carrying amount of $1,745.8 million as of December 31, 2014.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Taxes
Income Taxes	Note H — Income Taxes The Company’s estimated annual effective tax rate for the three and six months ended June 30, 2015 varied from the federal statutory rate of 35% primarily due to the provision for state income taxes and the impact of non-deductible crew per diem meal expenses.

Legal Matters

Legal Matters	6 Months Ended
	Jun. 30, 2015
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 June 30, 2015, 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.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2015
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note J — Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (ASU No. 2015-03”). This update amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of as a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. The Company’s management is currently evaluating the impact the adoption of ASU No. 2015-03 is anticipated to have on the Company’s consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (ASU No. 2014-09”). Under ASU No. 2014-09, 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. In July 2015, the FASB deferred the effective date to January 1, 2018. The FASB also proposed permitting early adoption of the standard, but not before January 1, 2017. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. The Company’s management is currently evaluating the impact the adoption of ASU No. 2014-09 is anticipated to have on the Company’s consolidated financial statements.

Passenger and Ground Handling16

Passenger and Ground Handling Revenue (Tables)	6 Months Ended
	Jun. 30, 2015
Delta Connection Agreements
Agreements with other airlines
Schedule of details of agreements with other airlines	Agreement Number of aircraft under contract Term / Termination Dates SkyWest Airlines Delta Connection Agreement (fixed-fee arrangement)  CRJ 200—48  CRJ 700—19  CRJ 900—32  The contract expires on an individual aircraft basis with expirations commencing in 2015  The final aircraft expires in 2022  The average remaining term of the aircraft under contract is 4.3 years  Upon expiration, aircraft may be renewed or extended ExpressJet Delta Connection Agreement (fixed-fee arrangement)  CRJ 200—59  CRJ 700—41  CRJ 900—28  The contract expires on an individual aircraft basis with expirations commencing in 2015  The final aircraft expires in 2022  The average remaining term of the aircraft under contract is 3.7 years  Upon expiration, aircraft may be renewed or extended SkyWest Airlines Pro-rate Agreement (revenue-sharing arrangement)  CRJ 200—13  Terminates with 30-day notice
United Express Agreements
Agreements with other airlines
Schedule of details of agreements with other airlines	Agreement Number of aircraft under contract Term / Termination Dates SkyWest Airlines United Express Agreements (fixed-fee arrangement)  CRJ 200—49  CRJ 700—70  E175—35  The contract expires on an individual aircraft basis with expirations commencing in 2015  The final aircraft expires in 2026  The average remaining term of the aircraft under contract is 3.8 years  Upon expiration, aircraft may be renewed or extended ExpressJet United ERJ Agreement (fixed-fee arrangement)  ERJ 135—5  ERJ 145—180  The contract expires on an individual aircraft basis with expirations commencing in 2015  The final aircraft expires in 2017  The average remaining term of the aircraft under contract is 1.5 years  Upon expiration, aircraft may be renewed or extended SkyWest Airlines United Express Pro-rate Agreement (revenue-sharing arrangement)  CRJ 200—23  Terminates with 120-day notice
Alaska Capacity Purchase Agreement
Agreements with other airlines
Schedule of details of agreements with other airlines	Agreement Number of aircraft under contract Term / Termination Dates SkyWest Airlines Alaska Agreement (fixed-fee arrangement)  CRJ 700—9  E175—3  CRJ 700 Terminates 2018 E175 Terminates 2027  Upon expiration, aircraft may be renewed or extended
US Airways Express Agreement
Agreements with other airlines
Schedule of details of agreements with other airlines	Agreement Number of aircraft under contract Term / Termination Dates SkyWest Airlines US Airways Agreement (fixed-fee arrangement)  CRJ 200—10  CRJ 900—4  Terminates by the end of 2015  Upon expiration, aircraft may be renewed or extended SkyWest Airlines US Airways Pro-rate Agreement (revenue-sharing arrangement)  CRJ 200—1  Terminates with 120- day notice
American Agreements
Agreements with other airlines
Schedule of details of agreements with other airlines	Agreement Number of aircraft under contract Term / Termination Dates SkyWest Airlines American Agreement (fixed-fee arrangement)  CRJ 200—12  Terminates 2016  Upon expiration, aircraft may be renewed or extended SkyWest Airlines American Pro-rate Agreement (revenue-sharing arrangement)  CRJ 200—5  Terminates with 120- day notice ExpressJet American Agreement (fixed-fee arrangement)  CRJ 200—11  ERJ 145—16  Terminates 2017  Upon expiration, aircraft may be renewed or extended ExpressJet American Pro-rate Agreement (revenue-sharing arrangement)  CRJ 200—3  Terminates with 120- day notice

Share-Based Compensation and 17

Share-Based Compensation and Stock Repurchases (Tables)	6 Months Ended
	Jun. 30, 2015
Share-Based Compensation and Stock Repurchases
Schedule of assumptions used and weighted average fair value for stock option grants	Expected annual dividend rate % Risk-free interest rate % Average expected life (years) Expected volatility of common stock Forfeiture rate % Weighted average fair value of option grants $

Net Income (Loss) Per Common 18

Net Income (Loss) Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2015
Net Income (Loss) 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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Unaudited) (Unaudited) Numerator Net Income (loss) $ $ ) $ $ ) Denominator Weighted average number of common shares outstanding Effect of outstanding share-based awards — — Weighted average number of shares for diluted net income per common share Basic earnings (loss) per share $ $ ) $ $ ) Diluted earnings (loss) per share $ $ ) $ $ )

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting
Schedule of Company's segment data	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 June 30, 2015 and 2014 (in thousands). Three months ended June 30, 2015 SkyWest Airlines ExpressJet Corporate / Consolidating Consolidated Operating revenues $ $ $ $ Operating expense Depreciation and amortization expense Interest expense — Segment profit (loss)(1) ) Identifiable intangible assets, other than goodwill — — Total assets — Capital expenditures (including non-cash) — Three months ended June 30, 2014 SkyWest Airlines ExpressJet Corporate / Consolidating Consolidated Operating revenues $ $ $ $ Operating expense ) Depreciation and amortization expense — Interest expense Segment profit (loss)(1) ) ) ) Identifiable intangible assets, other than goodwill — — Total assets — Capital expenditures (including non-cash) — (1) Segment profit (loss) is equal to operating income less interest expense The following represents the Company’s segment data for the six-month periods ended June 30, 2015 and 2014 (in thousands). Six months ended June 30, 2015 SkyWest Airlines ExpressJet Corporate / Consolidating Consolidated Operating revenues $ $ $ $ Operating expense Depreciation and amortization expense Interest expense — Segment profit (loss)(1) ) Identifiable intangible assets, excluding goodwill — — Total assets — Capital expenditures (including non-cash) — Six months ended June 30, 2014 SkyWest Airlines ExpressJet Corporate / Consolidating Consolidated Operating revenues $ $ $ $ Operating expense ) Depreciation and amortization expense — Interest expense Segment profit (loss)(1) ) ) ) Identifiable intangible assets, other than goodwill — — Total assets — Capital expenditures (including non-cash) — (1) Segment profit (loss) is equal to operating income less interest expense

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2015
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 June 30, 2015 (in thousands): July through December 2015 $ 2016 2017 2018 2019 Thereafter $

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Measurements
Schedule of assets 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 June 30, 2015 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ $ — $ $ — Asset backed securities — — — — Cash, Cash Equivalents and Restricted Cash — — Other Assets (a) — — Total Assets Measured at Fair Value $ $ $ $ Fair Value Measurements as of December 31, 2014 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ $ — $ $ — Asset backed securities — — — — Cash, Cash Equivalents and Restricted Cash — — Other Assets (a) — — Total Assets Measured at Fair Value $ $ $ $ (a) Comprised of auction rate securities which is 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 June 30, 2015 (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Auction Rate Securities Balance at January 1, 2015 $ Total realized and unrealized gains or (losses) Included in earnings — Included in other comprehensive income ) Transferred out — Settlements — Balance at June 30, 2015 $

Passenger and Ground Handling22

Passenger and Ground Handling Revenue (Details) - Jun. 30, 2015	aircraft	item
Delta Connection Agreements | Sky West Airlines Inc
Agreements with other airlines
Term of agreement		4 years 3 months 18 days
Delta Connection Agreements | ExpressJet
Agreements with other airlines
Term of agreement		3 years 8 months 12 days
Delta Connection Agreements | CRJ 200 | Sky West Airlines Inc
Agreements with other airlines
Number of aircraft under contract		48
Delta Connection Agreements | CRJ 200 | ExpressJet
Agreements with other airlines
Number of aircraft under contract		59
Delta Connection Agreements | CRJ 700 | Sky West Airlines Inc
Agreements with other airlines
Number of aircraft under contract		19
Delta Connection Agreements | CRJ 700 | ExpressJet
Agreements with other airlines
Number of aircraft under contract		41
Delta Connection Agreements | CRJ 900 | Sky West Airlines Inc
Agreements with other airlines
Number of aircraft under contract		32
Delta Connection Agreements | CRJ 900 | ExpressJet
Agreements with other airlines
Number of aircraft under contract		28
Prorate Agreement | Sky West Airlines Inc
Agreements with other airlines
Notice period for termination of agreement		30 days
Prorate Agreement | CRJ 200 | Sky West Airlines Inc
Agreements with other airlines
Number of aircraft under contract		13
United Express Agreements | Sky West Airlines Inc
Agreements with other airlines
Term of agreement		3 years 9 months 18 days
United Express Agreements | ExpressJet
Agreements with other airlines
Term of agreement		1 year 6 months
United Express Agreements | CRJ 200 | Sky West Airlines Inc
Agreements with other airlines
Number of aircraft under contract		49
United Express Agreements | CRJ 700 | Sky West Airlines Inc
Agreements with other airlines
Number of aircraft under contract		70
United Express Agreements | E 175 | Sky West Airlines Inc
Agreements with other airlines
Number of aircraft under contract		35
United Express Agreements | ERJ 145 | ExpressJet
Agreements with other airlines
Number of aircraft under contract		180
United Express Agreements | ERJ135 | ExpressJet
Agreements with other airlines
Number of aircraft under contract		5
United Express Prorate Agreement | Sky West Airlines Inc
Agreements with other airlines
Notice period for termination of agreement		120 days
United Express Prorate Agreement | CRJ 200 | Sky West Airlines Inc
Agreements with other airlines
Number of aircraft under contract		23
Alaska Capacity Purchase Agreement | CRJ 700 | Sky West Airlines Inc
Agreements with other airlines
Number of aircraft under contract		9
Alaska Capacity Purchase Agreement | E 175
Agreements with other airlines
Number of additional aircrafts into service | aircraft	8
Number of total aircrafts into service | aircraft	15
Alaska Capacity Purchase Agreement | E 175 | Sky West Airlines Inc
Agreements with other airlines
Number of aircraft under contract		3
US Airways Express Agreement | CRJ 200 | Sky West Airlines Inc
Agreements with other airlines
Number of aircraft under contract		10
US Airways Express Agreement | CRJ 900 | Sky West Airlines Inc
Agreements with other airlines
Number of aircraft under contract		4
US Airways Express Prorate Agreement | Sky West Airlines Inc
Agreements with other airlines
Notice period for termination of agreement		120 days
US Airways Express Prorate Agreement | CRJ 200 | Sky West Airlines Inc
Agreements with other airlines
Number of aircraft under contract		1
American Capacity Purchase Agreement | CRJ 200 | Sky West Airlines Inc
Agreements with other airlines
Number of aircraft under contract		12
American Capacity Purchase Agreement | CRJ 200 | ExpressJet
Agreements with other airlines
Number of aircraft under contract		11
American Capacity Purchase Agreement | ERJ 145 | ExpressJet
Agreements with other airlines
Number of aircraft under contract		16
American Prorate Agreement | Sky West Airlines Inc
Agreements with other airlines
Notice period for termination of agreement		120 days
American Prorate Agreement | ExpressJet
Agreements with other airlines
Term of agreement		120 days
American Prorate Agreement | CRJ 200 | Sky West Airlines Inc
Agreements with other airlines
Number of aircraft under contract		5
American Prorate Agreement | CRJ 200 | ExpressJet
Agreements with other airlines
Number of aircraft under contract		3

Share-Based Compensation and 23

Share-Based Compensation and Stock Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Share-Based Compensation and Stock Repurchases
Stock based compensation expense	$ 1.3	$ 1.1	$ 2.8	$ 2.8
Common stock repurchased (in shares)			1,250,000	670,000
Common stock repurchased, value			$ 18.7	$ 8.4
Employee Stock Option
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)			1.18%
Risk-free interest rate (as a percent)			1.62%
Average expected life			5 years 8 months 12 days
Expected volatility of common stock (as a percent)			0.401%
Forfeiture rate (as a percent)			0.00%
Weighted average fair value of option grants			$ 4.75
Restricted Stock Units (RSUs) | Director
Assumptions used to determine value of the shares purchased under the stock purchase plan using Black-Scholes option pricing model
Granted (in shares)			36,950
Granted (in dollars per share)			$ 13.51
Long Term Incentive Plan 2010 | Employee Stock Option
Stock Compensation
Options granted (in shares)			261,473
Long Term Incentive Plan 2010 | Restricted Stock Units (RSUs)
Assumptions used to determine value of the shares purchased under the stock purchase plan using Black-Scholes option pricing model
Granted (in shares)			403,917
Vesting period			3 years
Long Term Incentive Plan 2010 | Performance Restricted Stock Units
Assumptions used to determine value of the shares purchased under the stock purchase plan using Black-Scholes option pricing model
Granted (in shares)			218,493
Vesting period			3 years

Net Income (Loss) Per Common 24

Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net Income (Loss) Per Common Share
Number of outstanding options not included in computation of Diluted EPS (in shares)	459,000	3,279,000	2,019,000	3,112,000
Numerator
Net Income (loss)	$ 31,475	$ (14,737)	$ 41,095	$ (37,624)
Denominator
Weighted average number of common shares outstanding	51,357,000	51,183,000	51,407,000	51,310,000
Effect of outstanding share-based awards	614,000		775,000
Weighted average number of shares for diluted net income per common share	51,971,000	51,183,000	52,182,000	51,310,000
Basic earnings (loss) per share (in dollars per share)	$ 0.61	$ (0.29)	$ 0.80	$ (0.73)
Diluted earnings (loss) per share (in dollars per share)	$ 0.61	$ (0.29)	$ 0.79	$ (0.73)

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)segment	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Segment Reporting
Operating segments number | segment				2
Number of operating subsidiaries representing operating segments | segment				2
Segment Reporting
Operating revenues		$ 788,417	$ 816,574	$ 1,548,815	$ 1,588,960
Operating expense		718,485	803,330	1,444,807	1,603,490
Depreciation and amortization expense		64,659	64,252	130,350	126,567
Interest expense		18,081	16,138	36,546	31,814
Segment profit (loss)		52,548	(5,001)	68,798	(48,175)
Identifiable intangible assets, other than goodwill, net		11,623	13,873	11,623	13,873	$ 12,748
Total assets		4,838,554	4,279,841	4,838,554	4,279,841	$ 4,409,928
Capital expenditures (including non - cash)		253,800	242,360	523,070	297,508
Corporate/Consolidating
Segment Reporting
Operating revenues		5,204	74	8,975	948
Operating expense		651	(112)	1,703	(20)
Depreciation and amortization expense		262		524
Interest expense			734		1,509
SkyWest Airlines
Segment Reporting
Operating revenues		478,121	475,501	926,191	922,543
Operating expense		412,244	433,551	818,263	859,193
Depreciation and amortization expense		42,716	41,958	86,484	81,958
Interest expense		15,440	10,661	29,466	20,687
Total assets		3,406,620	2,688,143	3,406,620	2,688,143
Capital expenditures (including non - cash)		246,322	234,986	508,347	282,842
Express Jet Airlines Inc
Segment Reporting
Operating revenues		305,092	340,599	613,649	665,469
Operating expense		305,590	369,891	624,841	744,317
Depreciation and amortization expense		21,681	22,294	43,342	44,609
Interest expense		2,641	4,743	7,080	9,618
Identifiable intangible assets, other than goodwill, net		11,623	13,873	11,623	13,873
Total assets		1,431,934	1,591,698	1,431,934	1,591,698
Capital expenditures (including non - cash)		7,478	7,374	14,723	14,666
Segment [Member]
Segment Reporting
Segment profit (loss)	[1]	51,851	(2,894)	67,462	(46,344)
Segment [Member] | Corporate/Consolidating
Segment Reporting
Segment profit (loss)	[1]	4,553	(148)	7,272	(541)
Segment [Member] | SkyWest Airlines
Segment Reporting
Segment profit (loss)	[1]	50,437	31,289	78,462	42,663
Segment [Member] | Express Jet Airlines Inc
Segment Reporting
Segment profit (loss)	[1]	$ (3,139)	$ (34,035)	$ (18,272)	$ (88,466)
[1]	Segment profit (loss) is equal to operating income less interest expense

Commitments and Contingencies26

Commitments and Contingencies (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015USD ($)aircraft	Jun. 30, 2015USD ($)aircraft	Dec. 31, 2014USD ($)
Commitments and Contingencies
Number of aircraft leased by the entity | aircraft		510
Supply Commitment [Line Items]
Long-term debt amount	$ 25,000	$ 25,000
Debt Instrument, Term		4 years
Interest rate (as a percent)	3.30%	3.30%
Future minimum rental payments required under operating leases
April through December 2015	$ 131,544	$ 131,544
2,016	268,307	268,307
2,017	201,693	201,693
2,018	157,203	157,203
2,019	120,257	120,257
Thereafter	453,812	453,812
Total future lease obligations	$ 1,332,816	$ 1,332,816
E 175
Supply Commitment [Line Items]
Number of aircrafts committed to purchase | aircraft		17
Number of aircraft delivered | aircraft	9	18
Debt issued to purchase of aircraft	$ 204,500	$ 407,600
Debt Instrument, Term		12 years
E 175 | Minimum
Supply Commitment [Line Items]
Interest rate (as a percent)	3.40%	3.40%
E 175 | Maximum
Supply Commitment [Line Items]
Interest rate (as a percent)	3.90%	3.90%
EMB 120
Future minimum rental payments required under operating leases
Total future lease obligations	$ 2,900	$ 2,900	$ 3,800

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Fair Value Measurements
Marketable securities	$ 322,050	$ 415,273
Auction Rate Securities
Changes in assets measured at fair value on a recurring basis using significant unobservable inputs (level 3)
Balance at the beginning of the period	2,309
Total realized and unrealized gains or (losses) Included in other comprehensive income	(14)
Balance at the end of the period	2,295
Recurring
Fair Value Measurements
Amortized cost of cash and cash equivalents and available for sale securities	493,400	548,000
Fair value of cash and cash equivalents and available for sale securities	493,200	547,500
Recurring | Fair value
Fair Value Measurements
Marketable securities	322,050	415,273
Cash, Cash Equivalents and Restricted Cash	182,749	143,857
Other Assets	2,295	2,309
Total Assets Measured at Fair Value	507,094	561,439
Recurring | Fair value | Bonds and bond funds
Fair Value Measurements
Marketable securities	313,961	410,163
Recurring | Fair value | Asset-backed Securities
Fair Value Measurements
Marketable securities	8,089	5,110
Recurring | Level 1
Fair Value Measurements
Cash, Cash Equivalents and Restricted Cash	182,749	143,857
Total Assets Measured at Fair Value	182,749	143,857
Recurring | Level 2
Fair Value Measurements
Marketable securities	322,050	415,273
Total Assets Measured at Fair Value	322,050	415,273
Fair Value of Financial Instruments
Fair value of long-term debt	2,087,100	1,813,100
Carrying amount of long-term debt	2,064,200	1,745,800
Recurring | Level 2 | Bonds and bond funds
Fair Value Measurements
Marketable securities	313,961	410,163
Recurring | Level 2 | Asset-backed Securities
Fair Value Measurements
Marketable securities	8,089	5,110
Recurring | Level 3
Fair Value Measurements
Other Assets	2,295	2,309	[1]
Total Assets Measured at Fair Value	$ 2,295	$ 2,309
[1]	Comprised of auction rate securities which is reflected in “Other assets” in the Company’s unaudited condensed consolidated balance sheets

Income Taxes (Details)

Income Taxes (Details) - Jun. 30, 2015	Total	Total
Statutory Federal income tax rate (as a percent)	35.00%	35.00%