In a regulatory filing, SkyWest
SKYW announced that its board of directors has approved a new share
repurchase program worth $250 million. Also, the regional carrier raised
its quarterly dividend by 20%. Notably, this St. George, UT-based
carrier has been consistently rewarding its shareholders for quite some
time.
Twin Shareholder-Friendly Moves
This Zacks Rank #1 (Strong Buy) company hiked its quarterly dividend to 12 cents per share (annualized 48 per share), representing a 20% improvement from the previous payout of 10 cents per share (annualized 40 cents per share). The new dividend, which has been approved by the company’s board of directors, will be paid on Apr 4, 2019 to its stockholders of record as of Mar 29. The dividend yield based on the new payout and the Feb 6 closing market price is approximately 0.9%.
São José dos Campos, Brazil, January 31st, 2018 – Embraer and SkyWest, Inc. have signed a firm order for nine E175 jets, with deliveries expected to begin in 2019. The order has a value of USD 422 million, based on current list prices, and was already included in Embraer’s 2018 fourth-quarter backlog. SkyWest Airlines will operate all nine E175s, featuring a 76-seat configuration.
“Since 2013, SkyWest has purchased a total of 158 E175s, including these nine, in order to expand their large existing fleet of Embraer aircraft,” said Charlie Hillis, Vice President, Sales & Marketing, North America, Embraer Commercial Aviation. “We are extremely proud of their ongoing support for the E-Jets program and the fact that the E175 continues to outperform in North America. Without a doubt, the E175 has become the backbone of the regional aviation market in the U.S.”
“We’re pleased to continue adding new E175 aircraft under long-term contract to our increasingly efficient, agile and flexible fleet,” said SkyWest Chief Executive Officer and President Chip Childs. “We appreciate Embraer’s strong partnership and remain impressed with the Embraer product.
“Including this new contract, Embraer has sold more than 565 E175s to airlines in North America, since January 2013, earning more than 80% of all orders in this 70-76-seat jet segment.
SkyWest, Inc. is a premier regional airline company and the holding company of SkyWest Airlines. SkyWest holds a long history with Embraer as early customers for the Embraer EMB 120 Brasilia turboprop aircraft.
Since entering revenue service, the E-Jets family has received more than 1,800 orders and over 1,500 aircraft have been delivered. Today, E-Jets are flying in the fleet of 70 customers in 50 countries. The versatile 70 to 150-seat family is flying with low-cost airlines as well as with regional and mainline carriers.
ST. GEORGE, UTAH, December 18, 2018 – SkyWest, Inc. (NASDAQ: SKYW) today announced that it ishas entered into definitive agreements to sell ExpressJet Airlines, Inc. (“ExpressJet”) to United Airlines(“United”) joint venture ManaAir, LLC. The transaction is expected to close in early 2019, subject tocustomary closing conditions.
Consideration for the transaction includes approximately $70 million in cash for the majority of the assetsand the assumption of liabilities of ExpressJet, subject to a working capital adjustment. The ExpressJetassets excluded from the transaction will be utilized or liquidated by SkyWest. The expected realizablevalue to SkyWest of the remaining inventory is estimated to approximate the value of the working capitaladjustment. SkyWest will retain ownership of the CRJ aircraft currently in service at ExpressJet.
The transaction also includes certain protections around existing SkyWest Airlines flying, as well as priorityposition to add 25 new dual-cabin aircraft with United should those opportunities arise. As part of thetransaction, SkyWest has also agreed to lease 20 CRJ200s to ExpressJet for up to five years.
“Today’s announcement provides further clarity and focus for the future,” said Chip Childs, SkyWest, Inc.President and Chief Executive Officer. “We want to thank the employees of ExpressJet for their valuedcontributions and we look forward to continuing to strengthen our partnership with United.”
About SkyWest
Based in St. George, Utah, SkyWest, Inc. is the holding company for two scheduled passenger airlineoperations and an aircraft leasing company with more than 17,000 employees. SkyWest’s airlinecompanies provide commercial air service in cities throughout North America with more than 2,500 dailyflights carrying approximately 50 million passengers annually. SkyWest Airlines operates throughpartnerships with United Airlines (“United”), Delta Air Lines (“Delta”), American Airlines (“American”) andAlaska Airlines. ExpressJet Airlines operates through partnerships with United and American. This pressrelease and additional information regarding SkyWest can be accessed at inc.skywest.com.
Forward-Looking Statements
In addition to historical information, this release contains forward-looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995. Words such as “forecasts,” “expects,” “intends,” “believes,” “anticipates,”“estimates”, “should,” “likely” and similar expressions identify forward-looking statements. Such statements include, but arenot limited to, statements about the expected terms, timing and benefits related to the ExpressJet transaction, SkyWest’sfuture financial and operating results, plans, objectives, expectations, estimates, intentions and outlook, and otherstatements that are not historical facts. All forward-looking statements included in this release are made as of the datehereof and are based on information available to SkyWest as of such date. SkyWest assumes no obligation to update anyforward-looking statement. Readers should note that many factors could affect the future operating and financial results ofSkyWest, SkyWest Airlines or ExpressJet, and could cause actual results to vary materially from those expressed inforward-looking statements set forth in this release including the risk that the ExpressJet transaction may not close on theterms or timing described herein, or at all. Additional risk factors, cautionary statements and other conditions which couldcause SkyWest’s actual results to differ materially from management’s current expectations are contained in SkyWest’sfilings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and QuarterlyReports on Form 10-Q.
SkyWest, Inc. (SKYW) delivered better-than-expected results in the third quarter of 2018. The company’s earnings of $1.57 per share, surpassed the Zacks Consensus Estimate of $1.41. Also, the bottom line improved 55.5% on a year-over-year basis. A lower effective tax rate boosted the same.
Quarterly revenues came in at $829.3 million, beating the Zacks Consensus Estimate of $826.4 million. Moreover, the top line benefited from the company’s improved fleet mix.
Embraer has released the following press announcement on its website:
São José dos Campos, Brazil, October 19th, 2018 – During the third quarter of 2018 (3Q18), Embraer (NYSE: ERJ; BM&FBOVESPA: EMBR3) delivered 15 jets to the commercial aviation market and 24 business jets, being 17 light jets and 7 large jets. On September 30, Embraer’s firm order backlog totaled USD13.6 billion.
Regarding the commercial aviation market, Embraer forecasted in its Market Outlook a demand for 10,550 new aircraft with up to 150 seats worldwide over the next 20 years,. The in-service fleet is set to increase to 16,000 aircraft, up from the 9,000 aircraft currently in operation. Market growth will drive 65% of this demand, while the remaining 35% of the projected demand will be to replace ageing aircraft.
Embraer and Helvetic Airways signed a contract for a firm order of 12 E190-E2 jets during 3Q18. The agreement was announced at the Farnborough Airshow in July as a Letter of Intent. The contract also includes purchase rights for another 12 E190-E2 aircraft, with the possibility of conversion to the E195-E2 model, raising the order potential for up to 24 aircraft. Deliveries should occur between the end of 2019 and 2021. Also in Farnborough, United Airlines made a firm order for 25 E175 jets in a 70-seat configuration. Deliveries will begin in the second quarter of 2019.
In 3Q18, Embraer also signed a contract with an undisclosed customer for up to five E195-E2s, being three firm orders and two purchase rights. This agreement was previously announced as a Letter of Intent (LoI) during the Farnborough Airshow. In addition, the Company continues to work on finalizing its recent LoI signed at the Farnborough Airshow for 100 E175 aircraft for Republic Airways, with the expectation that a significant portion of these jets should enter the Company’s backlog by the end of 2018.
A total of 134 jets were removed from Embraer’s backlog in 3Q18. The majority of these planes belong to an order placed by Skywest for 100 E175-E2s, and were removed largely due to IFRS accounting changes. Given current timing uncertainty of the scope clause changes in the U.S. market to allow the heavier E175-E2 to be flown by regional airlines under capacity purchase agreements (CPAs) for mainline airlines, Embraer has proactively adopted best practices to align with the latest IFRS principles and remove the order from backlog given its conditionality terms. Skywest remains committed with the E175-E2 order and its terms are unchanged. The other 34 jets that were removed from the Company’s backlog in 3Q18 are related to cancellations, including an order for 24 E190 jets that were cancelled by JetBlue following its recent fleet renewal decision.
In the business jets segment, Embraer first exhibited the Phenom 100EV, Phenom 300E and Legacy 650E aircraft with full interior at Labace, the largest Latin American executive aviation fair which took place in São Paulo in August. Embraer also delivered its first Phenom 300E in Asia Pacific.
Embraer Services & Support signed relevant agreements in Europe and Africa during the quarter. LOT Polish Airlines, the national carrier of Poland and leading airline in Central Europe, signed an extension of its pool agreement to support LOT’s fleet of 34 Embraer E-Jets. Kenya Airways also joined a service program whereby Embraer will take over the planning and replenishment of a sizeable portion of Kenya Airways’ spare parts stock covering the 15 Embraer E190 aircraft operated by the airline. Sahara Africa Aviation also signed a multi-year Pool Program Agreement for spare parts and support covering more than 500 components for their two recently acquired Embraer ERJ 145 jets.
PRESCOTT, AZ (July17, 2018) – In keeping with the recommendation by the City of Prescott and the Town of Prescott Valley, the U.S. Department of Transportation has selected SkyWest Airlines, operating as United Express, to provide Essential Air Service (EAS) at Prescott Municipal Airport (PRC) for a period of two years, beginning in late August, 2018.
United Express will operate 50-seat CRJ 200 jets from Prescott, with roundtrip flights daily to Denver, and six days a week to Los Angeles, every day except Saturday. Prescott Airport Director, Dr. Robin Sobotta, notes that passengers will be able to connect through Denver or LA to hundreds of destinations throughout the world.
Travelers will be gaining an additional round trip daily flight between San Luis Obispo, California and Phoenix. American Airlines has announced that it will be adding the additional route between the San Luis Obispo County Regional Airport and Phoenix Sky Harbor Airport starting on February 11. With this new flight, American Airlines will now offer 4 round trips between the 2 cities. , currently operates 7 United Express flights a day at SBP, with 4 to Los Angeles, plus 3 more to San Francisco.
