SkyWest, Inc. Announces Order of 25 New Aircraft, New Flying Agreements
- Order includes 15 new Embraer E175 SC 70-seat aircraft expected to be delivered and placed into service with Delta Air Lines in 2018
- Order includes 10 new Embraer E175 76-seat aircraft expected to be delivered and placed into service with Alaska Airlines in 2018
- Terms and economics similar to prior contracts with each partner
Sep 06, 2017, 06:00 ET
ST. GEORGE, Utah, Sept. 6, 2017 /PRNewswire/ -- SkyWest, Inc. (NASDAQ: SKYW) ("SkyWest") today reported that it has entered into aircraft purchase agreements and capacity purchase agreements to acquire and fly 15 new aircraft with Delta Air Lines ("Delta") and 10 new aircraft with Alaska Airlines ("Alaska"), of which five aircraft with Alaska were previously discussed. Expected delivery dates of the 25 aircraft run from March 2018 through the end of 2018.
Of the 25 aircraft, 15 Embraer E175 SC aircraft will fly under an agreement with Delta in a 70-seat configuration. The E175 SC aircraft has an E175 airframe and can be retrofitted to 76 seats in the future. The agreement with Alaska includes 10 Embraer E175s, which will be configured with 76 seats, similar to aircraft SkyWest has previously placed into service with Alaska.
Similar structurally to SkyWest's acquisition of 104 E175s, SkyWest expects to invest approximately $90 million in cash to acquire these 25 new aircraft, and to finance the balance of the purchase price with 12-year fixed rate debt. These aircraft will be operated by SkyWest Airlines, Inc. a wholly owned subsidiary of SkyWest.
About SkyWest
SkyWest, Inc. is the holding company for two scheduled passenger airline operations and an aircraft leasing company. SkyWest's airline companies provide commercial air service in cities throughout North America with more than 2,900 daily flights carrying more than 50 million passengers annually. SkyWest Airlines operates through partnerships with United Airlines ("United"), Delta Air Lines ("Delta"), American Airlines ("American") and Alaska Airlines. ExpressJet Airlines operates through partnerships with United, Delta and American. Based in St. George, Utah, SkyWest continues to set the standard for excellence across the regional industry with unmatched value for customers, shareholders and its more than 17,000 employees. This press release 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 Private Securities 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 are not limited to, statements about SkyWest's future financial and operating results, plans, objectives, expectations, estimates, intentions and outlook, and other statements that are not historical facts. All forward-looking statements included in this release are made as of the date hereof and are based on information available to SkyWest as of such date. SkyWest assumes no obligation to update any forward-looking statement. Readers should note that many factors could affect the future operating and financial results of SkyWest, SkyWest Airlines or ExpressJet, and could cause actual results to vary materially from those expressed in forward-looking statements set forth in this release. These factors include, but are not limited to, the prospects of entering into agreements with existing or other carriers to fly new aircraft, ongoing negotiations between SkyWest, SkyWest Airlines and ExpressJet and their major partners regarding their contractual obligations, uncertainties regarding operation of new aircraft, the ability to attract and retain qualified pilots, the impact of regulatory issues such as pilot rest rules and qualification requirements, and the ability to obtain aircraft financing.
Actual operational and financial results of SkyWest, SkyWest Airlines and ExpressJet will likely also vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of other reasons, including, in addition to those identified above: the challenges and costs of integrating operations and realizing anticipated synergies and other benefits from the acquisition of ExpressJet; the challenges of competing successfully in a highly competitive and rapidly changing industry; developments associated with fluctuations in the economy and the demand for air travel; the financial stability of SkyWest's major partners and any potential impact of their financial condition on the operations of SkyWest, SkyWest Airlines, or ExpressJet; fluctuations in flight schedules, which are determined by the major partners for whom SkyWest's operating airlines conduct flight operations; variations in market and economic conditions; significant aircraft lease and debt commitments; realization of manufacturer residual value guarantees on applicable SkyWest aircraft; residual aircraft values and related impairment charges; labor relations and costs; the impact of global instability; rapidly fluctuating fuel costs, and potential fuel shortages; the impact of weather-related or other natural disasters on air travel and airline costs; aircraft deliveries; the ability to attract and retain qualified pilots and other unanticipated factors. Risk factors, cautionary statements and other conditions which could cause SkyWest's actual results to differ materially from management's current expectations are contained in SkyWest's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
SOURCE SkyWest, Inc.