SKYW - Earnings call transcript Q3 2021

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Operator

Good day and thank you for standing by. Welcome to the SkyWest, Inc.

Third Quarter 2021 Earnings Conference Call. At this time all participants lines are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. advised, conference be being Please Instructions] that is today's recorded. [Operator to I Robert conference Officer. would Instructions] hand Simmons, now Financial today, [Operator speaker like the your over Chief to ahead. go Please

Robert Simmons

on thanks, for and today. Tina Thanks, joining us the everyone, call

SkyWest's As Financial Rob Officer. Chief Tina is indicated, this Simmons,

Officer; harbor. Woodward, today call Executive safe Chief read I I'd to me start Accounting asking the to and with Commercial Eric time the Chief the comments. Chip are Chip Officer. Steel, On President will turn for Officer; by to Childs, Then today Chief Wade and Eric over like some

Following through related Wade flying then will Chip, and will I take the financial arrangements. fleet us discuss the results,

customary Wade, our session with Eric? Following the sell-side will we Q&A have analysts.

Eric Woodward

beliefs, to future and vary materially update will for reasons. expectations anticipated, and Today's and and forward-looking risks any number results estimated vary of or discussion no contains assumptions are forward-looking events current statements obligation subject likely We may our that assume uncertainties. Actual to a those statement. regarding from projected represent

the the may Exchange XXXX and over cause our are in other included and I'll XX-K Chip. Form with that of now, turn And the to Securities filings factors Commission. such and differences Some call reports

Chip Childs

joining Good everyone. Eric. and Rob you, Thank the Thank us you call afternoon, for on today.

our The for recovery bumpy this year third our what season flying be industry. typically quarter somewhat a is continues is and busiest no to exception despite

its demand key remains we've impacts, period, strong. While we for on this very fleet and is recovery the focused several continue product Throughout our situation remained navigate to COVID-XX our the to critical evolving industry priorities. and challenging

people. our care take to First, of

took quarter our Recapping partners' results our million include fleet of delivery American look concessions. in contract solid of grants operation -- provide next the will program while to quarter. first for for we $XX risk our include forward partner of million. that reported American the six income and of payroll of during placing this third quarter financial EXXXs remain income type product our and year. early liquidity. we needs. third, $XX to And to flying the our agile final them results, into new pretax a Second, deliver We net and results to revenue operate minimizing support These preserving our we are on These these

help have These which be announced, new arriving will will EXXXs agreement next previously EXXXs agreements EXXXs As along these the nine work fleet next our fleet for lead service EXXXs well additional we risk flexibility next the of total mitigating as we're the with that secured doing XX years. to transition the dual-class the combined new also effort. reflect current in XX years. fleet aircraft, over Delta Overall, be going meaningful X.X an make progress Alaska. year for of us the and couple recovery over adding help with of This as enhancing toward a by dual-class importance into

volume and reliability continue fleet. and includes remain elevated higher than duration term historically. existing they've invest for associated this Maintenance the with long maintenance prepare the much to into building and and We are of events costs investment been our

down strategically for We the to prorate and to flying expect back next up relative a settle of partner new the expect these -- plateau our prorate this We've and year. to allow year costs demand model our these costs to we also level flexibility need. will flex embedded and into

that that toward best in slightly continue are While the economic to opportunity. flexibility exercise the allocated ensure resources prorate our model is to quarter, we profitable in

Our strong and SkyWest. balance for differentiators sheet key remain cash position

with year. teamwork and from solid Despite IT by an any changing scheduled XX,XXX continually we same and to from the partners day. quarter I to in climate a us fly operational focus. remains professionals product disrupted busiest impact again our of of areas want recovery, completion are nearly to server was the of operations. dedication to achieved currents clear during flexibility, to Thursday, to responding who We affected performance demonstrate incredible need situation. third uneven Last more and last the delivering difficulties the the team what we our size with thank of a Its the our experienced [Phonetic] we're operation adapting a our and of XX.X% working for quarter associated adjusted across banks ensure an all our the that compounded continue operation one the

prevent environment are took extensive stepped way at us our to thank we and This thank a to and an customers a make outage. restored on all reoccurrence together above re-accommodate to teams some I ongoing take [Phonetic]. analysis the want system people reports of to future. Working event in this was each is and the planes the the There top in get and time place team into a back moment to of who front across going XX,XXX of Our you in priority this many was the sure After was navigate huge to event and crews care with successfully from big people to help lines of remains other. operation, SkyWest. dynamic up and who the it a remarkable restored, I crews many system beyond. our aircraft groups extend to inexcusable following sprang action SkyWest through work to reposition the and our want customers professionals

of who report been in certain implementing programs off minimize to a what have been COVID providing to incentive vaccination programs full the testing vaccination. over a of for now. for device We in several paid impacts operation of and This the employees time COVID-XX also place We've includes year areas strongly well mandate nationwide. has encourage without

the additional daily We testing. for rate assessments industry. With procuring required and approach, the are regional operation the across enjoy and vaccination also we health highest this masks kits in

customers. our their ability and well across colleagues order vaccination health on as SkyWest are to choose executive may enjoy and the people our affect professionals operation. working we support how is and as health to evaluating are fortunate the and retain attract to to us of and exceptional to protect their We with our committed

While we pipeline classes robust all XXXX. groups, and well have strategy into work hiring pilot maintain filled for we a

and pandemic year, we a staying while We proactive to role pandemic and to for fill be are continuing focused this end ahead to transition looks return the confident the travel. fleet critical our work as and are will is attract beyond. remains on best professionals to our summary, product XXXX clearly the through strong navigate In of we a and there continue demand in

focused stronger take and of preserve through care and execute us people and Rob our now take to emerge aggressive data. recovery customers as We deliberate the our as on the we financial will better, business. on remaining to a are our liquidity

Robert Simmons

the Today, pretax we Adjusted reported diluted income and for net million per income third quarter GAAP a earnings share. $XX GAAP million basis. or diluted of on quarter adjusted $XX on $XX net share. $X.XX million $X.XX million was or was $XX basis third income QX per earnings an

impairment fleet million on further of our As discuss $XX I adjusted outlined CRJXXX that in the income excludes momentarily. charge will our before tax a release, noncash

shares million QX share was was diluted XX.X tax Our XX.X%. for our rate and QX count effective in

only XX% recovery revenue Total QX of XXXX QX the talk from revenue million quarter. is X% from about XXXX up down QX is let's is $XXX last XXXX as XX% revenue. from First, up continues. QX and

XX% block QX QX QX. QX sequential compared production sequentially from XXXX XX% hour revenue. contract XX% up Our was XX% QX to breaks down and increase from from with up the in up revenue revenue

to deferred XXX% million for temporary of quarter. XXX% the in from revenue of comparative have QX, the X% up We other and sequentially. compared partner XXXX results These Leasing million $XXX concessions XX% last year-over-year million GAAP deferred QX QX purposes. QX was and deferred revenue likely this up $XX revenue of was in quarter revenue and temporary quarter $XX up release is concessions. effect QX with the in year-over-year QX, during QX impacting 'XX. last in XXXX revenue and QX $X million and and include of Prorate

have we of deferred of million $XXX in revenue cumulative periods. As that of future be will end the recognized QX,

or recovery of quarter, cadence discussed and will operating by on All expenses. shape revenue revenue deferred last of reversals amount revenue to contract periods. As the flying. the into timing future various the end deferrals our into reversed the the of our be of depends and Transitioning

in P&L. QX do million absent $XXX our in million grant income $XXX of form as We During grants This compares income was in $XXX PSP recognized QX income million the top-up QX. QX grant amounts. any in PSPX in in any and contra additional expect not expense recognized of to a

aircraft for XX under will with displaced new CRJXXX transition, in August XXXX. release, today's a this aircraft Delta. we contract. As XX These fleet long-term currently scheduled EXXX in have to operate previously SkyWest in announced Delta older highlighted Under aircraft CRJXXXs to we EXXX place and reached an replace agreement we are XX and

Given redeploying a for displaced the resulted of them quarter. impairment reevaluated uncertainty in XXXs, impairment the noncash of which million we $XX during these charge

the these on $X CRJXXXs Delta the debt contract The be the aircraft removed until scheduled million. from continue aggregate lease will following are expense contract. our depreciation are of expect on removal payment Delta finance the and only We aircraft remaining from obligations to

We move sheet. from me down quarter million, $XXX ended with million quarter. balance $XXX Let of to the cash the last

and EXXX other aircraft, for one third assets. fixed quarter the CapEx engines used six CRJXXX during Our million spare was aircraft, new $XXX

XXX expectation XX CapEx a total of quarter in debt EXXXs $XXX sheet is on million previously as unsecured, amortization, $XXX We $X.X contract the for down no in XXXX. of million fourth new under government year compares we Our coupon XXXX. This of American. in of our XXXX million approximately to is loans. including $XXX debt this PSP, The from with CapEx ended low in to the balance year-end total our purchase million, with have year a of announced QX billion, billion XX $X only

of me liquidity. about a things Let couple say

million included $XXX of the of our having cash for $XXX million position before this repaid XX, of debt XXXX, of $XXX debt an incremental adding the EXXXs. new As financing September effect million six of quarter

could approximately unpledged if that collateral have ever needed. additional We also of for $X.X liquidity deployed be billion

As actually debt of of million lower $XXX X/XX/XXXX, is the was cash end our XXXX. balance of it net pre-COVID at than

uncertainty financing including specific XX% any in in you this over a times with of from guidance our aircraft, service position our this owned comes in great fact But the flexibility at are we that not give partner like policy consistent color. no EPS to Especially of Additional little time. now practice, me and and has let obligation. give fleet a

to First, we grant to expected not negative. have comprised to profit concessions. QX expect from roughly of benefit, no $XX QX be to net QX adjusted pretax any million The is and earnings in is slightly earnings breakeven elements. QX reduction no several income partner PSP

a in of QX, QX in of some was production QX in results softening to expected pre-COVID production hour couple percentage in block we patterns. anticipate is to our QX. Although schedules lower XXXX from levels, points seasonality Normal similar QX

soften to Our our outage sequentially about Prorate million costing end slightly QX. prorate QX. to profitable QX week is Cancellations this from million minute. in related in to business was us Wade a to expected only also will more could $XX up $XX talk in server last QX.

maintenance the for positive a accretive Second, XXXX little of is of but that full offsets the XXXX XX operations. impact than net grants We XXXX, XXXX. revenue. expect but to normal with return XXXX. than we year. in with higher impact won't XXXX The in lower to XXXX was million the to see to impact partner new of some aircraft PSP until XXXX We're over hoping $XXX expected offset XXXX be in some concessions levels in the year production EXXX expense in

to to are excluding for As new a Wade? normal are setting result, XXXX charge. actions in future. and We the take we up similar over next impairment the now few nicely believe XXXX us look expect XXXX, the the that earnings may quarters the taking

Wade Steel

anticipate delivery announced into placed XXXX. on Thank partner, currently fleet take first will and I'll EXXXs quarter, aircraft with to These delta. a replace aircrafts, as businesses. of with contracts To aircrafts will you, by beginning prorate be older of these under through XX well during an we agreement part add an XX owned Rob. We CRJXXX status under we provide XX as we service these EXXXs. with will operating contract long-term the SkyWest update update Delta Delta. new mid-XXXX have aircraft our production update and leasing the After

new to we contract, our XXXX, have CRJXXXs next XXXX, these of and XXX with of past into third return first work extensive During the CRJXXXs have XX anticipate service scheduled still maintenance six American, storage the quarter nine receiving for quarter we Alaska CRJXXXs the with nine EXXXs during of middle Also to The for first received XXXX. during EXXXs few XX fleet CRJXXXs total service months in We of with our and fleet CRJXXX announced to put year. and have the XXX Together, more more those eight QX quarter, add American by middle next American will total to to by bring bringing XXXX two been to add majority XX XX these during XX and the Last years American. we surface. during to our in the require long-term year. contract. of of more QX XXXX. agreement to EXXXs We an and our

contracts one and a fleet of extended long-term rest expect aircraft the place the into Alaska. puts of We've total current half all aircrafts this during for of XX which XXXX contract first these XXXX during of eight aircrafts under We with under to of with EXXXs for also Alaska XX the of decade. those service

the During our temporary reductions. rate worked the second the in All results. These expired reflected quarter quarter concessions round end quarter. third all partners with of on third a concessions our which of major concessions contract at of included are we third

review production. our me Let current

third anticipate by to XXXX. were XXXX, the X% will compared the have than decrease block hours schedules for approximately of completed hours third down the our quarter less block X% During the by same compared major quarter to in our fourth partners current from Based quarter XXXX. we the quarter, of that we on our

XXXX, will be forward XXXX. block anticipate As higher we slightly we that to look our hours than

QX. to the quarter our by revenue talk in business a XXXX. Prorate me Let compared little QX prorate about million was which decreased or for approximately profitable XX% slightly $XX

anticipate higher QX yield related XX% we reductions to primarily business our This compared decrease travel several to been has as prorate to XXXX. QX, to by service of our decrease in revenue return. For prorate slower is as cities

We hours will model have these Shifting Demand hours business several placing and long-term We CRJXXXs we as of continue prorate parties. higher-margin our our continue fleet. for decrease to cash XXXs anticipate to margin reallocate our year. and returning to reallocated to gears leasing grow characteristics. leases engine long-term block our our and line currently block line contract contract business, XXXX to that during we with we with have next XX under flow good has business leasing third very This leases is and under strong anticipate characteristics. engines

contract will engines. leasing We have Delta that of are CRJXXXs Next our placed. from year, contract, XX these we aircraft come removal where out or may entity opportunities Delta after placing the not the in we pursue leasing anticipate currently and aircrafts for

ramp-up lines for our run heavy talk of is to aircraft American agreement me maintenance above briefly continue XX storage. This at settle current that We the quarter remain to during Let suppliers of recovery than continues maintenance fourth at slower over anticipate our to currently expense these next normal. expect norms. we our these to third-party historical starting year down maintenance will out the primarily about a which of at levels providers due anticipated. have We of roughly trend and the long-term and new bringing and the flying

fleet As anticipate cost a maintenance do result our not mix, returning XXXX to levels. improved we of

on and The the all placed by the maintenance of maintenance under in revenue responsible have engine a EXXXs power them reimbursed engine our also For example, agreement. on are we for our is expense EXXXs model. hour

financing risk and several last spent fleet the positioned. ensure have well and to flexibility years we're enhancing We reducing

demand towards of work solutions as to to our with We are committed creative full our major partners work each recovery. we provide continue

Robert Simmons

Okay. we're now. our for Q&A ready Operator,

Operator

first James. Syth [Operator from question is Instructions] Our with Please go Raymond ahead. Savanthi

Savanthi Syth

Hey, good afternoon, everyone.

what of seeing your kind levels. a to couple first, higher. quarter, -- issues you on in-house a kind if curious Kind they're below on moving what the we've you're of wondering -- And same opportunity of you're attrition Just I partners still seeing along of the was little I having that that historical with seeing know out curious just planning were in-house there. bit and pilot you you're regionals help on last levels. from staffing said lines, heard on there. but their

Chip Childs

is I this question. Savi, Chip. the appreciate

making I we sure we've and is that pipeline. time we sure at on happened. foremost, evaluate fall that Understand and months, well the models a been about had spending past entire anticipated over make very higher we as to process the with think here we looking has what First effort strong future got into several of in thought. project that the have that the It's our been the attrition a levels out as and lot at

from script, to we've we've ever there's got But the had as classes, we our the robust the as training SkyWest. as We're pilots. hire best good strong SkyWest attractions look, said a at getting the candidates. and have perspective, think So bigger We pipeline training good in we right, full of best lot in program we probably the professional world. you're

And our part second your own question, we the into focused just so goes on are business. calculation. that to Relative certainly of our

on that We works. the of making it's on with sometimes the understand are. all they experience need love them good partners model lot give them best their to them. them on From hang And and try our our We of what how of take sure pilots. perspective, we we to to care but continue here and math to about hang a have needs to that the we'd work

can. a is but months optimistic we're best months tremendous that we watching amount time and to nine out predicting of we something spend this as So XX

Savanthi Syth

segment. prorate the on bit little a then, And

kind aircraft -- just Or trying it? need they the they I'm Just are on understand is -- are as assumption lower you reallocated trying of there. to kind And even backup getting spares outlook than of sounds prorate CPAs? because it really doesn't back come to kind XXXX the being the is like kind earnings when or used I'm of So understand reallocation in those are how of that XXXX.

can if to just that you're I'm little more, trying about you provide So business? bit on understand a how color some thinking

Wade Steel

this Hello, Savi, Wade. is

more add to that. just little bit So a to color

just lot our and last returned now, we've model a So business said to has I as my script, over in number right? seen the So it the decrease not prorate it, right a demand yet. XXX% one, flexibility has of while

So and contract models. those is reallocate what to to pilots other do we've some things able of been

the and the So and to fly just contract. as demand returns, flexibility go to. additional what in going have airplanes able the to But to fleet and support under we to they contract to block back we're business we want what hours go we're need

to we're And maintain forward. as as -- we're flexibility can we going so just going much

Savanthi Syth

And thinking -- any of the general general color -- you of earnings there the the Rob, that kind provided, what's in like provided of kind is kind there? EPS a you've of for assumed color -- or kind on prorate

Robert Simmons

Well, we this as results away. likely dollars fairly as as couple next I somewhere and the benefits to of includes of Wade similar think recapturing grant year. said, of That million a of of think goes that year hundred said, we the Savi, net it's neighborhood in

think, that prorate, are our to think expectations point next Wade's I modest year. I is for

Savanthi Syth

answers. I appreciate sense. Thanks. the Makes

Operator

Our next from Mike Bank. with question is Deutsche Linenberg

Mike Linenberg

like the consequences the that talked Good the you about release, had. the it cyberattack with I and everyone. looks afternoon, of go guess, dealing want to It you in to, being just disruption back Okay. malware. related I to

was on here. mistake imagine ongoing, a insurance when around you this trying next this through Or the as lot you do the operational one, hands of there Was And I'm the right time? this? that occurred? just sort was at the you is just know you -- seemed result a sort trying get made? to as what as then did as to migration the it outside number there during get to part was this that information, this the It blogs, that was any of get of a to and kind and maybe of it a Or of impact? not day. learn day was minimize like, follow-up, So can this happening, and story Did and was is night? it -- any your technology? it there this the maybe to you during just of right out happen Or of least way do it from like the coverage given

Robert Simmons

Yes. Thanks, Mike. This Rob. is

a malware let was clarify ago. and So entity. identified The of weeks things. not that of was trying that we remnants with It have any and a week was did hacking not operational from And was was was quickly quarantined was me a couple quarantine related impact. the today of the directly to couple The the the ago was associated quickly cyberattack that that from outage the related of malware part occurred that. it known to attack had a that but purge software

So our we that system the was of by attack. caused the It had, malware. earlier the part from repairing was server outage not what

Mike Linenberg

a Or was curious, you just I that at you was on on it big -- maybe I'm mean, done it the anything this? done clarify can blogs mean, was from this intra-day I been And Or that. impact. you have should because and night? learned this can -- just see that I

Chip Childs

certainly have us. this can see, what Chip. would that Yes, may say I is as Mike, this we've this you is, cost disclosed,

technology. not a as have I I related given to it very, But very was large add as would level our expensive I very during a add, day the it's will and that to valuable book the bank. of just also mean, things things. impact also further of of learn. fact much lesson so We the well couple complicated unfortunate happened a

probably that logs the maintenance United airline only in has have States that. We which the electronic were

partners, from that United that But the lot technologically we of make fundamentally that learned. a have did things the absolutely and systems can elements this in still redundancy, the that in of there's We of one the to a sure processes our that perspective, this go given lot of to internal this. States. expertise on confidence probably most through going assure can we strategies you I we're lot with we we But new of that have the of robust happens level timing We again. never of have a we've operations use. when deploy And collaboration

lot bad many departments good bad into news, cyberattacks. news some without these challenges news, So in there's a mostly that specifics, but very days a success That's too to have story. of we're the confident getting IT relative of

Some part which of is we how went learned -- we've unfortunate repairing about the clearly it tremendous and that. reliability maintaining the about lessons

Mike Linenberg

And I then you indicated concessions, had question, And a see then sort said, Rob, when not to in said sort you think that to respect last the going have second some of to And this that the we were were is Wade such I again door way talking we you just left -- a see of that that we we're PSP. them that true-ups pointing could also the of you fact with it them. partner just about believe the but know maybe more. the if it open didn't you

maybe would something so maybe just on much? lines lines reading along there's were a a small your you true-up bases I the between that? where or And just and maybe those there misinterpreted covering for payment be too Or

Robert Simmons

point. end with at similar of the PSPX making true-ups PSPX heard No, days -- is I PSPX, about Mike. We've was that were -- this Look, late for sort not at sort process. point of associated only the anything at anything of there and the the

amount maybe not, surprised So done could but would say we're aware we're we of true-up if be impossible that I not but additional it's by an any. just there's not

Mike Linenberg

Thanks, Okay, great. guys. Thanks, everyone.

Operator

with is Pfennigwerth question Evercore Duane next ISI. from Your

Duane Pfennigwerth

I to any put kind numbers maybe was reason over announcements maybe saw? or owned, to at environment, we're you. there is not the current is you attrition. kind wanted of the where kind where just would could some some you some six you the context if bonuses today? of months quarter question go think some of attrition and question ago out back attrition the I in would and American, to why of of sort? asking over think, came that thank The that wholly of your I that the Savi's Hey, that eye-popping by on wonder put were things those could course running agreements from announcements around the And help level we flow of impacted be and of how I

Chip Childs

Yes.

this is We're hiring the ago. of attrition. than again. numbers. it Chip is training would would plus get going for digits months I that And not suggest our specifics to Duane, also emphasize clearly six number into I it Thanks increased more question. that the I expected. as double would So say attrition was our about is and it outpacing

that announcement So you looked would we appear at impact the particular not does impact have think owned from key we are to wholly those any to now, classes I us. that. as meaningful had see from that you carriers at Like that And mentioned the least almost our variables didn't anything. look go out those or on really nine months from

detail on of couple said, outpacing this increases what years. having hiring I next that been we're increase look, And higher double-digit by can is also is. extremely the targeting focused give. much So It's as as think our but that's the over we

Duane Pfennigwerth

your And for I guess that? do time, your guess reliability it to you this better compensated be And serve historically if -- of my increases operational is period and believe for ultimately a today. is lot you'll cost if a

Chip Childs

the economy. think have look I you to the of view broader at

many we that we as shortages, there will And increases chain as raw be in I with shortages, are industry upward models too at move there's all our when renew I we material of think labor grappling that. forward, would our but fuel. that pressure just probably supply revenue encapsulate that to variables, increases, renegotiate those suggest not price industries you and on as look

and travel of needs recovering industry lot international us pause to that the internal help I think just yields, the to our some beyond cost give there's on that what's domestic pilot happening increases. in supply model. But So relative business travel obviously, recover a of factors

Duane Pfennigwerth

Thank fair. you. Very

Operator

Sachs. Your next with question is from Catherine Goldman O'Brien

Catherine O'Brien

the for time. Thanks everyone. afternoon, good Hi,

historically, impacted higher we've So fuel XX-seater seen prices. by negatively capacity

much, much what for exposed your walk Like than the And type the just to roll When I those time, fleet XX-seaters. like aircraft environment around you off? a you're like? unexpected higher XX-seater XX-seaters Your can do are the conversations fleet? through But remaining look know extensions to on us this is is start impacting how historically. less actually seeing short-term fuel

Wade Steel

Wade. is Yes, Catherine, this

them closely. business, demand at other direction feeling being look be have -- So the with will seaters we to us. the we We're definitely we allocate side if fly hours those with XX of in XX-seaters -- very The for, for we're block all I good that will every lift. those bit ways something major a we for in opportunities. a we as fuel And are fleet. working XXX with the Today, for you in flexibility definitely you to good. headwind the in probably those in on very have us -- tell for is around those XXX a our still demand partners fill interested XX-seat our know, partners right? that to will prorate it's not going that. that There's the of both able fly and more the that is we So

with XX be XXXX XX go they now. do very we the lots with we and And fly contract XXXX. the for for term into of partners but our So to that the seaters the continues right demand fleet flexibility we have, have good seaters

Catherine O'Brien

that think type? And bump Obviously, recently. very what's quick scope then appetite have to maybe that more. few RFP Or and the think one the starting Do announcements environment I on there's like do against follow-up there's seaters you you more? on generally? XX But question we're aircraft more to for been up a quite just a

Chip Childs

all of RFPs. and We their XX fleet major historical say. demand. partners, what to working into it's now, on the opportunities just Catherine, as work probably them That's we our more much not that with like on And more creatively always fleet. with them. our always we're with Right seaters about there's reviewing plan We're getting

fleet each needs fleet to of and with Delta, to Alaska, difficult partners been can work very you've seen their times. them on we've help them how their with we we've through accommodate able proactively creative what As our and do review these and American, been with

to than to needs and And proactive we'll we've that. and they're their continue just accomplish. continue been to with our do what partners demands more so We'll trying and work their anything on

Catherine O'Brien

I I the quite in still bit more I it nothing the a years. all been year, a over just sneak next here. If time. than last it's although position several to have that's returning might appreciate of one decent amount think CapEx know would cash terms of lower to right your getting XXXX incremental for X, in your in you fleet, restrictions to Cares do balance October start a changes aircraft and [indecipherable]? around shareholders sheet be added Act you

Robert Simmons

it's Katie, here. Rob Hello,

CapEx, in year terms more CapEx. this think of a close going in do $XXX we're to little maybe I So to million,

including additional year, going effect XXXs Next on. XX the of delivery that to take we're

Our million CapEx in $XXX likely next year, the so. or range it looks

we've able liquidity our focused and our the fact again, with of had going liquidity deploy deploy really -- preserving obviously, September of going So we're happy fall remain And now, about we're your up pleased away. our against deploy With But which really Cares carefully to cash sheet while some in. for debt on been restrictions to those going than respect can when situation. at to continue great it's our we're COVID from look with question next to a we're, coming net restrictions, capital. we still got cash here. And less and Act to that we that emerge balance right we've projects

Catherine O'Brien

the Got was it. Delta. bad. looking new at XX-Q, my include which is I agreement didn't last That's the

for time. the guys thanks So,

Robert Simmons

Thanks, Okay. Katie.

Operator

is Helane question Cowen. with from next Becker Your

Helane Becker

quarter, I'm some up about Thank mentioned maintenance. much, Last stuff on issues Operator. wondering supply time. the that's for guys, your Hi or you think, you you that chain And just stand? if I is thanks very caught now, team, where of kind how

Wade Steel

Helane, is Wade. Yes, this

heavy a and would about maintenance slower have it's what last third-party lines and And of with on I ramp-up we -- my in we Right than -- As now, our be to over about bit providers. continues anticipate. script going little the we it XX talked talked quarter.

some this. We that. some help on things very mitigate actually We've internally. lot And we've good started inspections done of had these success to have a doing internally of

flexibility to to of to we challenge able through manufacturer that, been is help a very work well. some say, coming that of I been early from are are some navigating our the We've with some it would provide third-party able So through still but airplanes very, with providers. challenges. We've kind these

So something that we're continues It navigated it. it's but to getting has extremely well. team through think be a struggle our I

Helane Becker

question. And then my question, other follow-up my

on right was day really fastest And the out like it field. if is is a city I lot than this country I Utah other fastest-growing that saw George, now. one of growing, last the bigger totally time. it's visited TV in the not of the St. our when So

you Vegas to of demand you than moving increased So just that with St. flight? maybe folks mean and would you have that air out a mainline are you think Las more aircraft for George in? do? Or are travel people the prorate up do changing patterns of your to seeing the transportation who drive is And over do catch

Chip Childs

rural And is Chip. because of the for is case in headquarters But more great we observation. our Midwestern good It's very United mostly lot a this St. cities So as St. this study where and a we a Helane, use example, happening George States. throughout what's is the are are. George

work. market where happened of St. estate the can a to cities tremendous some -- that's even smaller cities states, a coast in of reasons. same a midsized Nevada, towards just As evolution But seeing crazy for pandemic, the because just certainly we're and good you out and can that. for Colorado. imagine, the have the is in way work people people growing. lot who Georgia are people Idaho, there larger movement growing live of going smaller seeing that cities, We're outside the cities it's of what's cities other demand other home. bit they And real All little the can that amount is from things big

it lot a call, does there's the said on As we've translate our operation? prorate Now into products. of demand our for

support going our is some partners. midsized to these help cities, and flying going larger into major Some with point-to-point is small

prorate right now. And good, I there we very we're optimized demand would partners. that are suggest strong what So and providing with well our is just contract for between

Helane Becker

color. great you. Thank That's

Operator

your question from Goldman And next with is O'Brien Sachs. Catherine

Catherine O'Brien

hear to back Glad Thanks. on.

Just one quick modeling one.

going you're as how revenue But in for Or good the about guess, $XX way model of blockers? caveat on down just hitting booking the seasonally is So was a which there we depends one. booking Like a to to little You if how of do that to how that that forward? rate? quarter? we trying quarter. just block deferred I to only gets know us sounds hours partial run think now. booked -- on the right do the bit amount million think is best be were fourth that, you I like going like they're I'm

Robert Simmons

most going Yes. depend precision there going that predict I cadence recognized next about point. that we of of recovery, predict lot $XXX couple the you pattern there's on mentioned, couple bulk likely is of mean, it's revenue. that to hard with that the is to the it's going of of tell out because, again, this that Thanks, Katie. it's the over sitting $XXX to tough to pattern, million The of of be over at I as years. in a But reverse can million, of the again, to and recovery deferred years. next cumulatively The the

Catherine O'Brien

time. very for much extra it. you Got Thank the

Operator

back I'll Childs with that, the And for to now call over closing remarks. Chip turn

Chip Childs

you joining you to company. they want Thank quarter. We for believe your with fundamentally call we to are I really our still the are to that, on to great And the interest in next essential SkyWest. for industry work we people that that the doing. and our will Great. talk to Again, today. you, again thank thank We you appreciate want us Tina.

Operator

us Thank you for conclude presentation. today's This today. again joining does

now may disconnect. You

SkyWest (SKYW) 29 Oct 212021 Q3 Earnings call transcript