Bad winter spells Q1 2014 loss for SkyWest

9 May 2014

SkyWest, Inc. (NASDAQ: SKYW) said it reported a net loss of USD(22.9)m, or USD(0.44) per diluted share, for the quarter ended March 31, 2014, compared to net income of USD3.2m, or USD0.06 per diluted share, for the same period last year.

Due primarily to the severe weather and its related effects during the quarter ended March 31, 2014, SkyWest experienced a significantly larger pretax loss than it previously anticipated. Consistent with the experience reported by other airlines operating in the eastern United States, SkyWest experienced a significant number of flight cancellations related to a series of severe winter storms during the quarter ended March 31, 2014.

Specifically, SkyWest, through its operating airlines, SkyWest Airlines, Inc. and ExpressJet Airlines, Inc. cancelled a total of approximately 27,000 flights during the quarter ended March 31, 2014, of which approximately 21,000 were related to the severe weather. As a result of these flight cancellations, SkyWest not only experienced a negative effect on total operating revenues due to block hours not flown, but also experienced increased total operating costs due to its obligations to pay flight crews for cancelled flights, as well as incurring additional maintenance and other expenses from the negative effects of the severe weather.

SkyWest is the holding company for two scheduled passenger airline operations and an aircraft leasing company, and is headquartered in St. George, Utah. Its website is at www.skywest.com.

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