SkyWest Q2 profit falls on higher fuel costs - SKYW News | RalliesSkyWest Q2 profit falls on higher fuel costs
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SKYW• Quarterly results and key drivers
- U.S. regional airline's Q2 revenue rose 7% yr/yr, while net income declined on higher fuel costs.
- SkyWest said Q2 block hour production rose 5% yr/yr and 9% sequentially, reflecting increased fleet utilization and demand.
- The company attributed higher operating expenses to increased direct operating costs from higher production and increased fuel costs.
- SkyWest said higher fuel cost per gallon in its prorate business negatively impacted Q2 net income.
Reported figures and analyst view
| Metric | Actual |
|---|
| Q2 operating revenue | $1.10 bln |
| Q2 EPS | $2.54 |
| Q2 net income | $100.70 mln |
- The current average analyst rating on the shares is "buy," with 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell" ratings.
- The median 12-month price target is $115.00, about 20.2% above the July 22 closing price of $95.70.
- The stock recently traded at 8 times the next 12-month earnings, versus a P/E of 8 three months ago.
Fleet plans, repurchases and outlook
- The company approved a $250 mln increase to its stock repurchase program.
- SkyWest secured an agreement to purchase and operate 11 new E175 aircraft for American Airlines, with deliveries in 2026 and 2027.
