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SkyWest issues first-quarter profit warning, expects $13-$15 million net loss

posted Apr 4, 2011, 3:00 AM by Rowan Hewitt   [ updated Apr 4, 2011, 3:03 AM ]

By Aaron Karp | April 4, 2011

CRJ700NG in the Delta Connection livery.

SkyWest Inc., the Utah-based parent of regionals SkyWest Airlines, Atlantic Southeast Airlines and ExpressJet, said Friday it is expecting to report a $13-$15 million net loss for the first quarter. It explained that it has produced approximately 15,000 fewer block hours during the quarter ended Thursday, compared to the year-ago period "primarily as a result of severe winter weather storms, mainly in January and February. As a result of the decreased block hour production, SkyWest experienced a negative impact on revenues currently estimated to be approximately $10 million pretax for the quarter."

Also, both ASA and ExpressJet "experienced additional crew costs during the quarter" and ASA "incurred expenses for unanticipated heavy checks on certain of its airframes and is incurring costs that are higher than anticipated on those heavy checks," SkyWest stated. "The additional cost associated with these maintenance events is currently estimated to be approximately $8.5 million pretax." SkyWest estimated that its first-quarter expenses will additionally rise owing to higher fuel costs