US regional carrier SkyWest Inc anticipates a net loss of up to $14 million in the second quarter, following poor operational performance during the quarter.
The St. George, Utah-based carrier says its net loss will be between $12 million to $14 million in the quarter that ended 30 June. This is follows a $22.9 million net loss the quarter before, which was also due to severe weather-related operational issues.
SkyWest says its revenue fell due to “missed incentives” under its capacity purchase agreements with mainline carriers. These incentives are tied to on-time performance and flight completion.
The airline’s subsidiaries ExpressJet Airlines and SkyWest Airlines operate under contracts for Alaska Airlines, American Airlines, Delta Air Lines and United Airlines.
Changes in its annual tax estimates and write-downs of certain ground handling equipment and other assets also negatively impacted SkyWest in the quarter, it says.
The carrier is scheduled to report second quarter earnings on 6 August.