SkyWest (SKYW) Q2 Earnings Surpass, Load Factor Increases

SkyWest SKYW reported second-quarter 2021 earnings of $1.22 per share, beating the Zacks Consensus Estimate of 28 cents. Quarterly earnings also came against the year ago loss of 51 cents. Revenues in the June quarter summed $657 million, not only surpassing the Zacks Consensus Estimate of $581.5 million but also increasing 87.7% year over year. Results benefited from the uptick in air-travel demand with more people taking to the skies as vaccination ramps up.

Revenues from flying agreements (contributing 96.3% to the top line) surged 88.2% from the year-ago quarter’s figure. Total expenses (on a reported basis) increased 52.9% year over year to $542 million due to higher number of flights operated during second-quarter 2021. During the quarter, SkyWest received a total of $250 million from the U.S. Treasury under the payroll support program extension agreement (PSP3). In the same period, the carrier repaid $60-million secured loan under the CARES Act.

The airline, which carried 416.1% more passengers in the quarter compared with the year-ago level, reported a 157.1% increase in block hours (a measure of aircraft utilization). Passenger load factor (percentage of seats filled by passengers) increased 42 percentage points to 76.4% in the June quarter owing to the uptick in air-travel demand.

Liquidity

SkyWest, currently sporting a Zacks Rank #1 (Strong Buy), exited the second quarter with cash and marketable securities of $955.7 million, up from $825.91 million at the end of 2020. Long-term debt (net of current maturities) was $2.65 billion compared with $2.80 billion at December 2020-end. You can see the complete list of today’s Zacks #1 Rank stocks here.

How Other Airlines Fared

Let’s take a look at some of the other recently-released earnings reports of companies from within the Zacks  Airline  industry.

United Airlines  UAL incurred a loss (excluding $2.57 from non-recurring items) of $3.91 per share in the second quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $4.17. Operating revenues of $5,471 million surpassed the Zacks Consensus Estimate of $5,306.9 million. 

American Airlines  AAL incurred a loss (excluding $1.72 from non-recurring items) of $1.69 per share, comparing favorably with the Zacks Consensus Estimate of a loss of $1.71. Quarterly loss per share was also narrower than the year-ago loss of $7.82. Operating revenues of $7,478 million skyrocketed 361.04% year over year and also surpassed the Zacks Consensus Estimate of $7,425.6 million. 

Alaska Air Group  ALK incurred a loss (excluding $3.45 from non-recurring items) of 30 cents per share, narrower than the Zacks Consensus Estimate of a loss of 31 cents. In the year-ago quarter, the company incurred a loss of $3.54 per share. Operating revenues of $1,527 million skyrocketed 262.71% year over year.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.