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SkyWest Q4 Earnings and Revenues Top Estimates, Rise Year Over Year

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SkyWest, Inc. (SKYW - Free Report) has reported better-than-expected fourth-quarter 2024 results wherein both earnings and revenues surpassed the Zacks Consensus Estimate and improved on a year-over-year basis.

Quarterly earnings per share (EPS) of $2.34 outpaced the Zacks Consensus Estimate of $1.77 and improved more than 100% year over year.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Revenues of $944.4 million beat the Zacks Consensus Estimate of $904 million and improved 26% year over year owing to flying contract rate increases. SKYW had $20 million of deferred revenues during the reported quarter under its flying contracts.

Revenues from flying agreements (contributing 96.7% to the top line) grew 25.3% from the prior-year reported figure of $912.8 million. The airline carried 13.2% more passengers in the reported quarter on a year-over-year basis. Departures were 16.4% more on a year-over-year basis. The passenger load factor (percentage of seats filled by passengers) decreased 1.2 points to 82.2%.

SkyWest, Inc. Price, Consensus and EPS Surprise

SkyWest, Inc. Price, Consensus and EPS Surprise

SkyWest, Inc. price-consensus-eps-surprise-chart | SkyWest, Inc. Quote

Concurrent with its fourth-quarter 2024 results, SkyWest also announced that it had inked a multi-year contract extension with American Airlines, which would allow for a total of 74 CRJ700s under the agreement. SKYW took delivery of four new E175 aircraft under a previously announced agreement with United Airlines.

By 2026-end, SkyWest is scheduled to operate 278 E175 aircraft.

Operating expenses were $800 million, up 10% from the year-ago reported quarter. The upside was due to an increase in flight production year over year.

At the fourth-quarter end, the company had cash and marketable securities of $801.62 million compared with $836.04 million reported at the prior-quarter end. Long-term debt (net of current maturities) was $2.14 billion compared with $2.19 billion reported at the end of the prior quarter.

Per its previously announced share repurchase program authorized by SKYW’s board of directors in May 2023, SKYW repurchased 47,000 shares of common stock for $4.9 million during the fourth quarter. As of Dec. 31, 2024, SkyWest had $48 million available under its current share repurchase program

Capital expenditures during the reported quarter were $186 million.

SKYW’s Zacks Rank

Currently, SkyWest sports a Zacks Rank #3 (Hold).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q4 Performances of Other Transportation Companies

Delta Air Lines (DAL - Free Report) reported fourth-quarter 2024 earnings (excluding 56 cents from non-recurring items) of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.76. Earnings increased 44.5% on a year-over-year basis due to low fuel costs.

DAL’srevenues of $15.56 billion surpassed the Zacks Consensus Estimate of $14.99 billion and increased 9.4% on a year-over-year basis, driven by strong holiday travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.44 billion, up 5.7% year over year. Passenger revenues, which accounted for 82.4% of total revenues, increased 5% year over year at $12.82 billion.

J.B. Hunt Transport Services (JBHT - Free Report) reported fourth-quarter 2024 earnings per share of $1.53, which fell short of the Zacks Consensus Estimate of $1.62. However, the bottom line increased 4.1% on a year-over-year basis.  

JBHT’s total operating revenues of $3.15 billion narrowly beat the Zacks Consensus Estimate of $3.13 billion but declined 4.8% year over year. The decline was mainly due to lower fuel surcharge revenues and yield pressure in its Intermodal segment.

JBHT’s fourth-quarter 2024 operating revenues of $2.78 billion, excluding fuel surcharge revenue, decreased 2% from the year-ago reported quarter. Total operating income for the reported quarter increased 2% year over year to $207 million.

Alaska Air Group, Inc. (ALK - Free Report) reported solid fourth-quarter 2024results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of 97 cents outpaced the Zacks Consensus Estimate of 47 cents and improved more than 100% on a year-over-year basis. The reported figure exceeded the guided range of 40-50 cents.

ALK’s bottom line benefitted from solid revenue growth, cost and operational performance throughout the quarter and holiday travel periods. ALK also benefitted from a renegotiation of certain interest payments and favorability in its fourth-quarter tax rate.

ALK’s operating revenues of $3.53 billion beat the Zacks Consensus Estimate of $3.51 billion. The top line jumped 38.4% year over year, with passenger revenues accounting for 89.9% of the top line and increasing 37% owing to continued recovery in air-travel demand.

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