SkyWest, Inc. (NASDAQ:SKYW) Q2 2022 Results Conference Call July 28, 2022 4:30 PM ET

Company Participants

Rob Simmons - CFO

Chip Childs - President and CEO

Wade Steel - CCO

Eric Woodward - CAO

Conference Call Participants

Savi Syth - Raymond James

Michael Linenberg - Deutsche Bank

Helane Becker - Cowen

Operator

Good day and welcome to the SkyWest Inc. Second Quarter 2022 Earnings Call. [Operator Instructions]

I would now like to turn the conference over to Mr. Robert Simmons, Chief Financial Officer. Sir, please go ahead.

Rob Simmons

Thanks, everyone, for joining us on the call today. As the operator indicated, this is Rob Simmons, SkyWest’s Chief Financial Officer. On the call with me today are Chip Childs, President and Chief Executive Officer; Wade Steel, Chief Commercial Officer; and Eric Woodward, Chief Accounting Officer.

I’d like to start today by asking Eric to read the safe harbor, then I will turn the time over to Chip for some comments. Following Chip, I will take us through the financial results, then Wade will discuss the fleet and related flying arrangements. Following Wade, we will have the customary Q&A session with our sell-side analysts. Eric?

Eric Woodward

Today’s discussion contains forward-looking statements that represent our current beliefs, expectations and assumptions regarding future events and are subject to risks and uncertainties. We assume no obligation to update any forward-looking statement. Actual results will likely vary and may vary materially from those anticipated, estimated or projected for a number of reasons. Some of the factors that may cause such differences are included in our 2021 Form 10-K and other reports and filings with the Securities and Exchange Commission.

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

Chip Childs

Thank you, Rob and Eric. Good afternoon, everyone. Thank you for joining us on the call today.

SkyWest celebrates 50 years in 2022 commemorating our first departure in June of 1972. With the past five decades, SkyWest has weathered many storms it continues to adapt and evolve to lead the regional industry. That’s a testament to our more than 14,000 people who are truly unparalleled. We wouldn’t be where we are today without the outstanding work of our people and I’m humbled and grateful that I get to work alongside them.

Demand for SkyWest product during the second quarter remain exceptionally high with our main constraint being crew imbalance as we discussed last quarter. We made good headway during the quarter to realign our schedules and resources, producing results that were slightly better than we anticipated. We reported pre-tax income of 73 million and net income of 54 million. Improvement in our second quarter results from the first quarter was largely driven by outstanding operational performance, including a 99.9% adjusted flight completion rate during the quarter, as well as the block our production increase of 13% on our E175 fleet and an increase in prorate revenue. I want to thank our people for their teamwork and efforts to deliver strong operating performance as we launched a very busy summer travel season.