SkyWest Stock Rises 6.4% on Q3 Earnings & Revenue Beat

Core Insights - SkyWest, Inc. (SKYW) stock increased by 6.4% following its third-quarter 2024 earnings release on October 31, 2024, driven by better-than-expected results in both earnings and revenues [1][2] Financial Performance - Quarterly earnings per share (EPS) reached $2.16, exceeding the Zacks Consensus Estimate of $1.92 and showing over 100% improvement year-over-year [1] - Revenues totaled $912.8 million, surpassing the Zacks Consensus Estimate of $887.5 million, and increased by 19.1% year-over-year due to rising flying contract rates [2][3] - Revenues from flying agreements, which accounted for 96.7% of total revenues, grew 19.1% from the previous year's figure of $883.49 million [3] Operational Metrics - The airline carried 10.3% more passengers year-over-year, with departures increasing by 11.8% [3] - The passenger load factor decreased by 1.4 points to 83.7% [3] Strategic Developments - SkyWest announced a multi-year contract with United Airlines (UAL) to place 40 CRJ550s, which includes purchasing 11 used CRJ550s and converting 29 CRJ700s to CRJ550s [4] - By the end of 2026, SkyWest plans to operate 278 E175 aircraft [4] Cost and Capital Management - Operating expenses rose to $781.35 million, an increase of 8.9% from the previous year, attributed to higher flight production [4] - As of the end of the third quarter, the company had cash and marketable securities of $836.04 million, slightly up from $834.26 million in the prior quarter [5] - Long-term debt decreased to $2.19 billion from $2.28 billion at the end of the previous quarter [5] Shareholder Returns - During the third quarter, SkyWest repurchased 217,000 shares for $16.3 million, with $53 million remaining under its current share repurchase program [6] Market Position - SkyWest holds a Zacks Rank 1 (Strong Buy), indicating a favorable outlook in the market [7]