SkyWest operating profit falls on increased costs in Q4

Washington DC
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Utah-based SkyWest Inc saw its operating profit fall by nearly a third to $30.8 million during the fourth quarter of 2013, after it incurred increased training and maintenance expenses.

Operating revenues fell 1% to $804.4 million and operating expenses were down 1% to $773.5 million. The regional carrier attributes the increased costs due to crew training to meet the new US Federal Aviation Administration (FAA) FAR 117 regulations and for its new Embraer 175 aircraft, and from increased maintenance expenses.

Net income was $8.6 million in the quarter.

Revenue per available seat mile (RASM) fell 5.7% to 8.3 cents and costs per available seat mile (CASM) fell 4.7% to 8.1 cents.

Traffic was up 5.9% and capacity 4.9% during the quarter ending in December 2013.

For 2013, SkyWest saw operating revenue decrease 6.7% to $3.3 billion and operating expenses decrease 6.6% to $3.14 billion. Operating income fell by nearly 8% to $153.1 million.

Net income was $59 million for the year.

RASM fell 11.6% to 8.4 cents and CASM was down 10.9% to 8.2 cents.

Traffic rose 5.8% on a 5.2% increase in capacity in 2013.

SkyWest Inc owns SkyWest Airlines and ExpressJet Airlines.