Earnings call transcript Q2 2023

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Operator

Hello and welcome to the SkyWest Incorporated Second Quarter 2023 Results Call. [Operator Instructions]

I would now turn the conference over to Rob Simmons, Chief Financial Officer. Please go ahead.

Robert Simmons

Thanks everyone for joining us on the call today.

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

and Accounting the are Wade Executive Officer; today with Steel, Woodward, Childs, Commercial On me Chief Chip call Officer. President and Chief Eric Chief Officer;

I'd to the will Harbor, read Eric Safe some for start comments. like time then over today to the asking to by turn Chip I

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

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

Eric Woodward

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

with Form Commission. our Some other reports of included are the in filings Securities factors differences that XX-K and such cause the and XXXX may and Exchange

And now call Chip. to over I'll turn the

Chip Childs

Good Reflected $XX for people utilize continuing value continue and revenue. our making million and again for call enhancing our to efficiently partnerships flexible through you on us industry-leading we deliver to you, our reported take we sheet; partners' joining shareholders. results Rob those three, strategic and progress our strong diluted one, care two, maintaining strong ensuring ensure thank and deferred all balance four, including, and our XXXX, objectives, the afternoon, Today, and a create fleet; needs; per share. income effectively $X.XX our on of everyone, of that healthy, on or SkyWest net million $XX of in were today. we're Thank Halfway Eric. of

quarters to pleased these targets couple exceed now. first the of a are row all internal in We for of

environment. have helping confidence them was and in first our each of quarter costs. contracts to working the partners appreciate The our provide our reflecting that and efforts remain support their to our partner their solutions continued needs. second quarter the committed We full offset adapt strong of We our to to new pilot evolve, product updated the new in with

million During X.X communicated constraint, good acquired the Captain shares industry-wide plan headway. outstanding previously for making repurchase share XX% $XX second quarter, availability have our remains and of million are under shares and purchased total we year-to-date. we an

We pilot our a also group just ensure work career continue with exceptional remains for destination and stone SkyWest to a pilots. not to stepping

classes. prioritizing upgrades, We prioritizing pilot continue we higher while are fill upgrades, new to

It couple with will of Overall next seen time first so, would continued slight stabilize, XXXX. utilization regain metrics to of than we've Additionally, improve These full years lower improved and to and which our quarter. remind of a accretive expected in lower becomes captain take portion mix. our over attrition that be now officer are increase about restore do slightly I existing XXXX, a than production XX% although as to block on some for balance you hours continue for we even outlook to ability our attrition. attrition planned to our fleet our production crew the was restore fleet. the

future without spend. additional can growth large fleet existing CapEx Our accommodate

pay regional that remain implement increases. teams. differentiator and and continue pay This ensuring to ever unique strong is flight disciplined performance We it our fortunate outstanding most working end, quickly our and key deliver and last product. we during benefit with past of To our consistently positive year's labor move people us boarding people invested continues Constant that we our have airline representatives over quarter. heavily deliver commitments. is a on behalf attendant the enables in our became to an relationship addition important second SkyWest We're in to second year investment. operating us is the in to to only This helps to believe relationship on for our SkyWest, the

began This resource the XX.X% over adjusted performance so mention has and list of of far XXX% planning on-time in ranking through and controllable extensive not Department Our the to manage teams XXX for does I happen allocation April second X Transportation's by this over that without year, completion the quarter. want quarter producing for days recorded to also SkyWest challenges. completion. feat

adapt tremendous their lead them a thank industry. do for the service. to want continue job we to to and I great and people Our commitment as reliability

on-demand is flying applications. unclear taken similar DOT's await SWC, commuter successfully us to of or continued to charter SkyWest the why a as longer than approval we has this has complete It Charter, authority. approval

are and well-established we precedent. has committed to to through to to completion. However, is application already regulations this within what necessary completed available operators provide seeing all requirements the numerous SWC existing

both training, what that program qualification res carriers. committed requirements, flight we've ATP FAR low-cost enhancements seats, done being Additionally, XXX in in Part advanced is SWC XXX safety SMS many hiring some dispatching, will pilots the particularly space above rules even carriers, XXX and at active by Part more enhance to and XXX

We right thing doing of regardless the to what required. committed are is

believe suffered is possible answer air airports community have small of Small years, service. recent connectivity and loss the the we to for in SWC with continue best

for Overall, existing forward a to of we underserved remains look our be communities. demand the to of all deliver airspace flying small portion and national to small in strong. assets service SWC exceptionally bar overall critical raise and While business, for the will continuing our utilize

are and the As on we reliably remain laser-focused ensuring long our deliver to we game to fundamentals, business opportunities. for respond we best positioned executing on

company us ourselves beyond solid our have place putting sustainable of future. set focusing on and core to the set and in a in we areas for be better up by and solid, that ensure components have a business will are growth fundamentally XXXX We up

take the through Rob us now data. financial will

Robert Simmons

QX pretax Today, income was share. net per quarter million GAAP we reported a earnings of or $XX $XX second million. profit $X.XX

effective count is XX%. and Our XX.X for rate tax average share weighted QX our million, was

revenue. revenue contract with million about from revenue QX revenue and of from $XXX up X% sequentially X% talk QX down let's XXXX. Total down breaks up QX QX from and X% is First, QX from down Pro million from million revenue XX% up 'XX. XXXX. $X and down in year-over-year. from and QX, was $XX QX and down flat QX QX sequentially other rate was Leasing revenue X% $X.XX

GAAP in deferred results released this to $XX million These million XXXX. million deferred include QX effect that of of $XX $XX and revenue the quarter was compared QX in

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

per approximately will indicated beyond. QX As last we recognize deferred million $XX quarter QX and QX. revenue in and to quarter, defer revenue previously anticipate of we XXXX in to begin expect We

open The number X.X Let to of in price back ended includes million $XXX $XX SkyWest one, $XX the quarter two, the sheet. $XXX buying of of repaying accretive million cash debt this me for million million balance and in million million, down shares per $XXX average at reduction move stock We in an $XX actions cash quarter market number from share. $XX the last of million quarter. with

an During company the per shares X.X repurchased of $XX first XX% the million half of $XXX approximately XXXX, the or share. price at of average of million for we outstanding shares

We of million. billion, $X.X during was down CapEx XXXX. $XX as debt Our from year-end second QX of ended billion quarter the with $X.X

generate numbers constraints. operations positive despite free continue tell about flow important the production These cash cash-related quarter story an from that to we

investment CapEx cash in years. a free flow from positive also Our in than prior lower benefits

continue also of over We collateral be deployed well ever additional to could for billion $X needed. that unpledged if have liquidity,

million have tools that create helped us of Our be $XXX to shareholder stock value, in over the sheet and XXXX. tools nearly debt in powerful balance $XXX strong first to strong million just in liquidity repurchased continue repay half and

attrition production second and our from a in policy little achieving year the let time, specific any days. GAAP our trends. color. driven giving give resulting both you with last improved guidance of and not at We improved are by now Consistent elements full We're this me model the income several have XXXX in practice, half we but forecasts XX EPS the pleased favorable anticipate for

expect results down to We usual. QX and to from to QX expect QX seasonally QX be flat income the today, from pretax we be announced would up as

block in based Wade XX% improved, XXXX Our hours XX% that now block improving expect approximately we down outlook has in captain attrition for be discuss We down on which XXXX expected XXXX for minute. production to be last will a to quarter hour from metrics.

an buy million I second to of earlier, cash us of targets is back important shares As point of repurchase their million EPS XXXX This analysts data half or the the our as and under during the flow XXXX. $XXX approximately XX% X.X half for XXXX enabled mentioned strong for outstanding plan. stock rebuild first company's

at were as shares million, XX.X XX of outstanding down year-end. Total from XX.X million June

current million $XXX of As authorization. our we had June repurchase available XX, under

can hours in in this the the in the incremental out GAAP beyond. call will generate regarding and nicely XX% stage for one, There of XX% we of reduction first would expect invested in XX% accommodate points are Number trajectory. growth fleet outstanding more return to without investment. profitability minute. today capital EPS the give set Number the shares second to I XXXX two, a growth the future year like year half four in will quantification block in around half as our full Wade on to capital place

best production five still year-over-year, XXXX with to XXXX. CapEx negative to last the although we cash flow years. free expect along the in And could reduction, down in this year-over-year million $XXX compared in have We CapEx over that improving XXXX drive be year's our outlook, had

couple and our our over pilot prepare preserve of Wade? will of strong the well the next industry the optionality to the and incremental actions affecting now the of us way strong to drive work shareholder We opportunities position to taking returns. are demand monetizing position years for through over believe the to total utilization time cash shortage fleet that we

Wade Steel

and Thank as provide production a status businesses. I'll and an you, update our charter well prorate update fleet Rob. on as

completion we strong delivery quarter, last discussed As schedule. are of nearing our

EXXX quarter on anticipate of order. those have XXXX the two taking four fourth remaining XXXX. We of last and We EXXXs year; this the one in in in

total aircraft quarter. partner EXXX during the also returned will on XXX We to aircraft. that This our bring second partner-owned fleet to

partners discussed, last each agreement we of our year. mainline previously pilot address to the we ratified pay worked As increased with

this quarter was support partner the We second all continued include in with cost The partner to product our reimbursement. of reimbursements. quarter our all the appreciate of full and first confidence additional complete impact

our Let production. me review

as we to XXXX. of hours X% approximately block by by anticipate increased on have we as compared quarter. hours approximately compared partners block third for the that quarter the the schedules our Based major quarter first the will second from to in increase second current our quarter X% The QX,

a attrition. seen have positive trend our We in captain

be improvement an quarter. from block is XXXX, captain the planned, that down the which XX% XX% than as communicated hours will XXXX anticipate we down attrition last With our compared to we lower

block more number XX% we to fleet XX% model. As approximately aircraft. fleet hours and very XXXX can look for This beyond, we to additional is block same the hour each any our and into makes over accretive CRJ ERJ add without additional our

are Given with engaged our supporting our production. to we conversations restore very our partners, in efforts

about new Let me update of give the brief SWC, charter a business. our status

the the an we all completed received proving approvals and all necessary March, During operate airline. to runs as from FAA

operated revenue fight. April, on-demand During our charter we first

We charter business sports the are substantially. forward and on-demand pleased when look charter our to with progress the demand of increases the fall

the best terms However, operational well-capitalized we and things. carrier operational application managerial has SWC of the The from a We believe in and the authority some of have other still to among matters, commuter received demonstrate of meant leaders entity the in is not authority fitness commuter is industry. DOT. the financial,

status have to commuter will provided charters. communities. approve forward better application, granted our are for information serve still and for to moving SWC authority. small with with Regardless requested waiting we We they Once able the are of them commuter SWC commuter issue operate be on-demand to the DOT and the plans our of authority, the

As business, the remains demand strong. as far prorate extremely our

very the great of Just seen yields and rest like community support. have strong the industry, we

will work communities service. the continue best our We to on way to with continue the

are flexibility major to committed to the a we're last our us, to partners We enhancing work will for reducing years exceptional be provide positioned. the well products. our flexibility financing continued creative to and each of This demand continuing and have to ensure with our for several differentiator continue fleet spent solutions we risk and

Robert Simmons

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

Operator

Instructions] [Operator

question next the from of Raymond of James. line Your Syth Savi comes

Savi Syth

to without you to on can cost was of about you XX% get take Thanks. here. be of get long Hey, what's kind that and to what Or to I'm cost increase of results would on The -- XX% curious share your do of point incremental curious congratulations that good if OpEx level to are once into increase might block of -- we able the a point -- full afternoon, kind being I kind hour everyone. have bit try kind hours? to a pilots made the investment. hours to needed block about there of have more about little investments kind you the like? that how block as what any increase? And out your need look it your your utilization, figure of if

Chip Childs

a Chip. great Savi, question. appreciate Yes, is it. That's this We

perspective, script. bit it from a our the little think mentioned I I of in

a have our We and back need of pilots do lot get the up. fleet we underutilizations to within today, utilization

believe As take to is place least this that two I to year mentioned over period. in we XX going in the script, at months

the indicated also of I on think rates optimism attrition. going of with -- what's trajectory some and we've we're gaining about

going we as this add, some we're months, while compared trends produce to We what's a gaining a good stable look, So in close think seen on are even previous we've that, but XX it's I keeping years look, we're also eye base. we've a to going But in to optimism, take got happen very to fall. would hopeful. the captains.

We've maximize we among has we as to that our what utilization get years good things a take it's very couple make pre-pandemic, even high the to going to increased of place relative but do fleet, XXXX still that since which fleet, sure to well. gotten to in can

have and be the rates trajectory So look, to some hope turn as around continue but we're well. that we and hopeful, to of still patient

Savi Syth

as that that it you're should right able at where you're get you get at, specific full at be maybe so -- be once pretax you should possible is or able it asking margin to of outcome, given --. 'XX? of kind the Is kind -- utilization, without Is to similar

Chip Childs

to Yes, back going pre-pandemic we'd our of optimistic be see it get little to we're but that fully like the utilized. would get to because to take investment there, have what a we margins it's by we bit time the looks

Operator

of next Your question the Cowen. comes line Becker of Helane from

Helane Becker

much, here. everybody. very for time Hi, operator. Thanks thank And the you

on So down the share you then? how thinking the left? Is and you repurchase just Are a think whole we point getting about of program program Are this should that you that? have clarification. year of what

Robert Simmons

HI, Helane, it's Rob here.

somewhat $XXX million we specific left about the this. So the does a $XXX frame have it, so or intend that program executing to got we've million current time not be on opportunistic for

get the in time past, as no demonstrated. Typically, but approved, Board -- program again, So frame. a But executed. as we've many years it's we when in

Helane Becker

maybe Okay. guys retirement happens for is raised you then the That's very to number follow-up even helpful. Thanks Have pilot Rob. if avoid pilots And from terms XX XX a successfully Savi. do there is just of giving think? of left you retirement? to at ability what and my that is follow-up who part those looked the the question, does unrelated, to approval, business, in a, in element the a political b, then the seat, to DOT what to the the continue other of question And not get you the the captains to charter on age

Chip Childs

this again, the is of Helane, Chip. I'll address thanks Well, issues. both just

I it from evaluated Charter situation rule factors. in think hiring, we're are largely we've several the about it are a are internationally someone major the it. the favor with pure than and carrier what our the the to of which perspective, of it know Airlines pilot about we and of training in And different perspective, and things special you of fact the where is view the biggest have that perspective. should some major first monitoring in on to probably what showing. understand, that older XX world. point, From age we're entire we're our XX partners our SkyWest is us, does with best data one but list, from complicates seniority point that some flying in neutral the interest programs talking concern the I From have groups coming there your to airplanes,

have to our have bars own our perspective, we from you So meet.

going have that certificate not is thing. a element a believe like the monitor things. birth safety the and just make We all are. hours programs is the to good there's a how that believe sure X,XXX every key We necessarily that's own to training out to in find do pilot, and are we're safe and X,XXX going of here don't X,XXX-hour SkyWest. We -- same going these the We not to programs pilots the at pilots our somebody how do programs programs -- safe that lot cut bar the young month

we net-net, be a think and training But it's our we that quite would have confidence because are our programs. in from candidly for so the largely, it's I perspective, monitoring And think SkyWest. supportive view we of good of it

side, suspect small internal that fundamentally do to think that priority, charter it we very they a solve and community solution strong Department believe is. the the of would the do has I it's On want political? with Transportation service. I

and that us in of overall group as doubt objective objective us interest there's is, what the in is. that absolutely really Wade lot no from said, this on-demand that that don't special our perfectly perspective, a DOT So business aligned well. There's We, charter the are here doing is space. want

passion small to was need what SkyWest built community and a We it's well that, service. around a lot and fundamentally ago, why teams at. as for our on sport wealthy priorities and of not We to necessarily to we what pursue continue to going We, do years right XX-plus relative we're want that's now, put have are individuals as we flying Charter. to

perspective, capital I biggest an we're that think perspective. reliability the probably from ever is operating DOT There's a and process this So probably problem most in a applicant the that safety qualified perspective obviously generally, we're our seen aligned. has

but we it's than it would pursue. going to that continue but what it would easy, definitely harder thought thought be, we we're So be

Operator

Michael line the of from comes of question Deutsche Linenberg Next Bank.

Michael Linenberg

afternoon, results. And good hey, Yes, everyone. nice

Just couple block down quick from to The XX of down ones a going here. hours XX.

start year we're point minus guide, initial we're at that's and of Just remind XX. looking the Is was where that at of at was now? minus what, starting us the our XX the think it I

Wade Steel

Yes, this you're seen. Wade. XX, is have right Yes, Michael, It it. on was and we

been As . trends benefit attrition that, and we've captain script, in we positive had some to our we've so. from our in said it's, able

Michael Linenberg

that. was attrition maybe Okay. there hear that and did say Wade, up. should front, dynamic officers who the Chip on said first you to I And it what's up curious, think first going officer the then, on went I or And

Chip Childs

Yes.

SkyWest don't of down list, think I think first pilot bit I Michael, seniority then we pilots do now, like. about think, stay. them absolutely are go we results demand happens, trying we're Otherwise, the have and certainly is I is that journey I pilot as To higher we what our a we think real. doubt little so at the on, with for it talk that process perspective. to that that through the seeing would is others what post-pandemic, through than go and a we some goes time this of officer motivating from shortage carriers today, any started hit the go extent there's low-cost shortage, we from captains to further And and our to sort it which as as be recruiters this changed, things

from Now officer replace very of SkyWest. first that, perspective easy our the at it's to

We full can based as have. the program months our several as much out see for cadet we classes don't honestly, our we -- be on like there. churn long-term what Our and several, candidates

make there's is have but first admittingly, very way, our the long-term to So taken that partners things from some two. to directly and with in time, for make internally directly, with eventual our or look, that that our we objective to to out be captains people major next some month major both partner, by sure here to cool objective programs are we with that going longer to programs us from and go which the we're they're be willing to aligned going officers, some I stay then will be some here to is a going things various have if come And carrier. think SkyWest sure doing it's

it's first on So us does want sure in fact a we're see that fashion invested part give an confidence we than it's we're we're very, the better that although the just, at we are a And a I the least think in making the uptick not because captains right journey. that officers pathway, we're done of that. retaining very thing

Michael Linenberg

for Great. year? Thanks Rob. pretax, in should Rob, my effective Chip. the And heard you not gave a rest a the for for XX%. How is the we Thanks question questions. when an looking And just I at could an if clarify. of think pretax the Thank sneak guidance tax or that rate next about you. right, Great. quick the tax two you're You're EPS? us earnings for number, quarters, after-tax to referencing taking just I

Robert Simmons

we be Michael, profitable GAAP the half year. to Yes, year expect full next comment and Sure. that on is the the for second in

be from EPS, And when So a a tax that go with little rate. funky year, you both. pretax and question, as numbers it's positive during then the to would your on negative know, tax

tax below was rate a rate second which would a like. normalized XX%, what little the the look for obviously So is quarter

back to XX% there. That's 'XX, But we more QX is QX And expected. low, we'll start and then lower some tax why We than volatility of a that then now, up. be normalized also expect get 'XX unusually think little that for to will a will and the pop rate. back

Operator

Catherine question comes Goldman of O'Brien Sachs. from next of line the Your

Catherine O'Brien

in of industry ERJ gentlemen. you're upside about Savi's currently hour Hey, block contract first on I the your And on. CRJs good language hours of capacity. the your to Are to moved obviously, all some those contract, aircraft a Maybe fleet. afternoon, for block multipart one? one, then are full on and but you me but at short those on know advance, two, all taking so recuts, forgive follow-up me is in aircraft Thanks talking just of question utilization minimum

things as you to solved we and I'm are guess go start staffing? your can. XX% XX% start were see solve that? your some as three, then staffing there the fleet ERJ flying So I more issues partners other on that that But And up to equation tomorrow, much agree CRJ flex do if we would want the need flying to guessing more? Or who besides you

Wade Steel

Yes.

of So couple questions. these Catie, just I'll tackle a

one fleet was different itself, couple on the all just under CRJXXXs had and fleet, the of those a those some airplanes first are of yes, The I'll maintenance are it contract. parked right? contract? are have on. fleet, ways, currently So The of are And under airplanes that XXX% answer there that we are require CRJ in some and no contract would longer under desert the ERJ

And ERJ the far today. the all maintained what on them are full They're flying will so fleet I up as say today. that of utilization, all as to fleet, bringing being

level yes, get have those utilization, could to that no so of There constraints. pilots we up very maintenance available, be And quickly be if to flexed staffed. the and would

that utilization, up to our capacity of all to to ready the side, need we MRO CRJ as of some the that. have spool definitely benefit CRJ go soon staff to be get but of we pilots as would the the On would ERJ

Chip? So

Chip Childs

Chip. Yes. And Catie, this is

talked we of. deep a we're Just take mean don't to situation at fair is get I think if accustomed of continue solve what about out effort attrition and had the utilization back last how those to looks I serious not this to evaluate back it those fast back be the years, get our back on utilization, it's sort out had speed small do some to it like. of what to get very optimistic our say real, the of your as could we're that we amount up. we've of the zero, that some hole. there got But we'd itself to there definition But out fall We in communities put levels, solved is. to. I went a communication still, point if you If couple the going depends about that about of of down pre-pandemic attrition get us we're to attrition which your we pre-pandemic would on because we've third about

middle continue give so we holiday season that We those like better evaluate and projections for XXXX the and to look the what can parts between beyond. some

and -- your But the we're view going we're and some our is horizon. really think on we're to relatively business amount But optimistic, way we're still data and we investment to until about the start there and going further that relative look, conservative that a point about in continue the good your there's this, our couple years. to think that still, next to I be out to free upside I recovery of we're is of question to over have tremendous process capital pilot model see

Catherine O'Brien

that. Is so we I'm which, listen, EPS, that sense. opportunities three think five to so about Is the to of maybe see XX much obviously, years, want That more point versus .And beyond, of on? aircraft XX And makes it as term, share buckets lease? aircraft? growth much. just earnings leasing accretive Are off But look I Thanks speaking are income saw underplay guess your and a charter then do over you do not it from main just repurchases. lot next the you that of utilization, could there Thanks impact maybe businesses? continue buy to we to I longer net so to months, upside as forward, the adding from what said, from upside

Chip Childs

seven done in we that in the our two the continue the of utilization, good X, looking get we have high there's Based of people of we things years optimistic, our and shares number our the fact XX and Catie, going we've is we've partners, doubt invested continue even things some since have And the that further for, future. last you're years. beyond that with the are opportunities pandemic the tell a think opportunities so the what string right the even to in through There's much we on what from once to We'll the the programs. in above some do all need post you the the that that still do no done sound next I those a But very I of to supply answer hope model to are doing shareholders we pilots X, great likely question that Yes, think past have. for too in and greater all I years doesn't I that things that's in optimistic. continued because to we've pandemic. can been perspective,

we long in the we all investments the things. We've game. made the say, play right again, And as

So playing we're and with these the in the can best Charter the professionals and optimistic beyond do with partners two about actually the SkyWest years, amazing world. four next aviation both long Airlines game what we're

optimistic So game look, over long as we're long, pretty the well.

Operator

comes from Raymond line the question of Savi James. of next Your Syth

Savi Syth

for and follow thanks up. Hey, the

of and you take seeing kind of a different other of willingness are to geography flying? Just kind to doing of more things I Is they curious, partially, much of your which competitors, and of there But perform maybe performance, or really to on driving opportunity been that. at your as that conversations there that if is some something I kind a that's And responsibility exposure than as operational in more aren't well benefit called not more geography kind much your out stellar. having Northeast. on at that's with better? partners look kind And has give you SkyWest look on as perhaps recovered it, if to the

Chip Childs

Yes.

execution. spread and lot of the very others I least one we northeast investment. said, or partners have in think, mean I to last and or pride we're by something of geography a going And as know been holding learned I Savi, the to single over an learned you bit. all talk two made I'll all far opposed our ourselves we to those as centered your stuff. flying to people, spread lessons little investments we always all around take sure in a four will But year. of of capacity a we've and creativity out all question corridor, places answer lot four be outstanding States, I'm that day still as we people and we making partners want that that the That We've having impacted at have ourselves four together We corridor. performer. get this care every pride a separate been to that. and I are and years on challenge out think agility, the them And And the is deliberate about over us and United five get I tell just foremost, I elements. hard northeast feat that I first be relative our my on have

carriers right hire benchmark. look, Alaska And recruit they're other regional American. only the and and programs want challenge our to having four everything benchmark United, investments the are. only because a when exceed with ourselves dispatch against best That's Delta partners, perspective folks not in want same that And our our We IT we that even we pride the that from to fact them and and perform. We major to systems. and that of storms carriers that of in want we We the all in carriers. them invest or perform people we dealing the low-cost in ourselves want still like against the to take we have our world, benchmark in carriers

is, admit, us biggest that back up, because hard our windfall. could we the be are, I have think, I to challenge a will are they surely utilized utilization not assets get airplanes. be. lot And We probably for be So lot of of a as we as have do to going that's I we a be as think where

having our that work perspective, a say vendor's better best two engagement management From lot I'll become to team culture on over and our they from I employees. has frontline a partners for is three our years. the The to against to just about in among a lot we the challenge say mean the said, second last they're I can particularly a with. think is absolutely only world, we've gotten I to I anybody, mid-level That none. can't up them senior sophisticated think thing I more when the put deliver. the management continue that to And there's been team. enough the

straightforward. there. pretty And probably it's secret you want, our that's it's but So not as eloquent right as

Operator

follow-up line have Deutsche We Bank. Michael a of question the from Linenberg of

Michael Linenberg

Yes.

contribution which taking to trying on for has top one, what question. the I'm million feel Thanks line? $XX up who Is sort charter $XX or just of know perspective. team. now, a from a talking get been The a this million several running Just business business, that? annual I magnitude-wise to modeling about now a than and months on-demand for quick we its

Wade Steel

this is Wade. Michael, Yes,

getting this the said, testing we're we're just the going. And -- you now. As business up right filling demand is and

up and we're so definitely And the towards times. seasons, and And staffing those. fall that winter so we're definitely We're right? are those for busy seeing working spring

we're -- So airplanes all to really We've got pilots exploring ready. what flight be now. go. We've still attendants right ready got to that's going got We've we ready.

that at So to as top to It's as it's going number that any to to hold We strong. need I giving see test demands going this the kind think the what off we're be are going far moment, but of on are, indications line be the and good. of preliminary stuff.

we're so. about this fall goes it we'll and So see where excited that,

Chip Childs

but Michael, we only crews. the I answer were make are pilots I now. think from it's with night add, would so this on year, money to likely is that I'd in because good a this that's heavy Chip. add stacked only mean, we not I Wade,

and we that of pilots XXX to flying in cadre And there, a almost very there's XXX almost have not pilots this a organization. have for strong enough those of pilots. part We want be

everything think and it and in things be it But so. that as we're terrific with now. that not in we've some communities we're later to it'll DOT. as get trying it's in to the going the We investing do, made like not financially, invest we we're soon commitments what So to right place It's now.

Operator

Goldman a have of line Sachs. question O'Brien the follow-up of Catherine from We

Catherine O'Brien

Hey. Thanks [inaudible].

bit fleet how percentage your And what walk contract digging of partners full function are just partners adding we us through appreciate as into the its of getting term to on just on coming net lot extensions your years, of tackle But couple the the question next of a regional the I multipart going? over to A color. Is are Can end talking Or conversations a back a there? over about is your then utilization. you aircraft more. maybe demand to there, So again shift? already beyond from from that is share Thanks. that coming growth SkyWest cover to really years? for me. up

Wade Steel

Yes.

Q, fleet the a little when contracts our bit renewals, As the about the give demand far do we as in and of some information of expire.

handful We at year. airplanes of the this expiring that have a are end of

XX-year 'XX. is But next which in of right for the XXX, We we've what year now, signed we do our have backbone contracts. some up

for The several expirations aren't on first those. years more

so are out And there. those

the as far go they're ready supportive partners the good. renewals, the to on go. They be to to are very conversations up. them want As about be renewing, fleet they very All want

we of great needs having where are the to going. it fleet get continuing So our conversations all and about with partners to be

still partners. conversations with are very our is strong the the very good The demand from And side. so

fleets, we refreshing only growth, existing our fleet. about future are always current fleet, the about with renewals, partners our fleet our having conversations About not about

ongoing today always So they're as well. ongoing those conversations are and

what on. the got they're partners we've great, have and So very going of supportive been

Operator

Thank you. turn over the There Chip questions are time. to this for remarks. will Charles I call closing at no further

Chip Childs

and Thank you again interest. your for everybody for appreciate joining us really we today,

we in to of reiterate are long continue very that that continue going invest call, of opportunities the magnify past like in our in areas. can critical I just feel a got that you future. game that things we to future think the the we've to been doing the and in couple is think to briefly. One momentum things I the from Again, some understand want we've

talked to get questions At are have your reiterate I the all value can humbled with, of success partners, performance. and term. partners seriously opportunities do ever, people the our and to times, you return and on best much the we that are our to the we're we Lastly, call that most short and long as and term, about to we group it of what I that we've to what just that what tell people work can by want amazing about of hope relative future we shareholders. need vested take our opportunity SkyWest now and people we as got in

with quarter. and that, to appreciate will we we interest, talk you And next your

Operator

today's call. you. conference Thank concludes This

may disconnect. You now

SkyWest (SKYW) 27 Jul 232023 Q2 Earnings call transcript