About SkyWest

SkyWest, Inc. offers scheduled passenger service to destinations in the United States, Canada and Mexico. Substantially all of the company’s flights are operated as United Express, Delta Connection, American Eagle or Alaska Airlines flights under code-share agreements with United, Delta, American or Alaska, respectively. Code-share agreement are commercial agreements between airlines that, among other things, allow one airline to use another airline’s flight designator codes on its flights. As of December 31, 2023, the company offered approximately 1,850 daily departures, of which approximately 740 were United Express flights, 580 were Delta Connection flights, 340 were American Eagle flights and 190 were Alaska Airlines flights. The company generally provides regional flying to its major airline partners under long-term, fixed-fee, code-share agreements. Under these fixed-fee agreements (commonly referred to as capacity purchase agreements), its major airline partners generally pay it fixed rates for operating the aircraft primarily based on the number of completed flights, flight time and the number of aircraft under contract. The company’s operations are conducted principally at airports that support its major airline partners’ route networks, including Chicago (O’Hare), Dallas, Denver, Detroit, Houston, Los Angeles, Minneapolis, Phoenix, Salt Lake City, San Francisco and Seattle. As of December 31, 2023, the company’s fleet consisted of aircraft manufactured by Embraer S.A. (Embraer) and MHI RJ Aviation ULC, including the E175 regional jet aircraft (E175), the Canadair CRJ900 regional jet aircraft (CRJ900), the Canadair CRJ700 regional jet aircraft (CRJ700) and the Canadair CRJ200 regional jet aircraft (CRJ200). As of December 31, 2023, the company had 603 total aircraft in its fleet, including 485 aircraft in scheduled service or under contract under its code-share agreements. Bombardier and Embraer are the primary manufacturers of regional jets operated in the United States and offer many of the amenities of larger commercial jet aircraft, including flight attendant service, a stand-up cabin, overhead and under seat storage, lavatories and in-flight snack and beverage service. The Bombardier CRJ900 and CRJ700 aircraft and the Embraer E175 aircraft the company operates are configured with a first-class seating section. The Bombardier CRJ200 aircraft the company operates are configured with single-class seating. The speed of Bombardier and Embraer regional jets is comparable to larger aircraft operated by major airlines, and they have a range of approximately 1,600 miles and 2,100 miles, respectively. The company conducts its code-share operations with its major airline partners, such as United Airlines, Inc. (United); Delta Air Lines, Inc. (Delta); American Airlines, Inc. (American); and Alaska Airlines, Inc. (Alaska). SkyWest Leasing SkyWest Leasing is a reportable segment that includes revenue associated with its financing of new aircraft with debt under the company’s capacity purchase agreements, consisting of its E175 aircraft, and the depreciation and interest expense of its E175 aircraft. The SkyWest Leasing segment additionally includes the revenue and expense from leasing aircraft and engines to third parties. The SkyWest Leasing segment’s total assets and capital expenditures include the acquired E175 aircraft, and aircraft and engines leased to third parties. As of December 31, 2023, SkyWest Leasing leased 35 CRJ700 aircraft, five CRJ900 aircraft and regional jet aircraft engines to third parties. SkyWest Charter (SWC) The company’s new subsidiary, SWC, which had its first revenue generating flight in May 2023. SWC offers on-demand charter service using CRJ200 aircraft in a 30-seat configuration. As of December 31, 2023, SWC had 16 aircraft available for on-demand charter service. Competition The company’s primary competitors include Air Wisconsin Airlines Corporation (Air Wisconsin); Endeavor Air, Inc. (Endeavor) (owned by Delta); Envoy Air Inc. (Envoy), PSA Airlines, Inc. (PSA) and Piedmont Airlines (Piedmont) (Envoy, PSA and Piedmont are owned by American); Horizon Air Industries, Inc. (Horizon) (owned by Alaska Air Group, Inc.); GoJet Airlines, LLC (GoJet); Mesa Air Group, Inc. (Mesa); and Republic Airways Holdings Inc. (Republic). Seasonality The company’s results of operations for any interim period are not necessarily indicative of those for the entire year (year ended December 31, 2023), in part because the airline industry is subject to seasonal fluctuations and changes in general economic conditions. The company’s operations are somewhat favorably affected by pleasure travel on its prorate routes, historically contributing to increased travel in the summer months, and is unfavorably affected by decreased business travel during the months from November through January and by inclement weather, principally during the winter months. Additionally, a significant portion of the company’s capacity purchase arrangements is based on completing flights and it typically has more scheduled flights during the summer months. The company generally experiences a significantly higher number of weather cancellations during the winter months, which negatively impacts its revenue during such months. Government Regulation All interstate air carriers, including the company, are subject to regulation by the U.S. Department of Transportation (the DOT), the U.S. Federal Aviation Administration (the FAA) and other governmental agencies. Regulations promulgated by the DOT primarily relate to economic aspects of air service. The company’s flight operations, maintenance programs, recordkeeping and training programs are conducted under FAA approved procedures. All air carriers operating in the United States are required to comply with federal laws and regulations pertaining to noise abatement and engine emissions. All such air carriers are also subject to certain provisions of the Federal Communications Act of 1934, as amended, because of their extensive use of radio and other communication facilities. Strategic Partnership The company has entered into a strategic partnership with Eve UAM, LLC (Eve UAM), an Embraer company, to develop a network of deployment for Eve UAM’s electric vertical takeoff and landing (eVTOL) aircraft. This partnership includes the option for SkyWest to purchase up to 100 eVTOL aircraft. Eve UAM anticipates its four-passenger eVTOL aircraft will be certified and available for service after 2026. History SkyWest, Inc. was founded in 1972. The company was incorporated in Utah in 1972.