SkyWest Inc. Performance and Profitability Report
SkyWest has been around since 1972 and today has grown to encompass one out of every 12 passengers in the US traveled on a SkyWest Inc. aircraft (SkyWest Incorporated, 2016). back in 1972 the airline was bought from Dixie airways and SkyWest was created. SkyWest has made a profit for most of its lifetime except for the first beginning few years. Those beginning few Years for a long change and upgrade switch decrease profits. In 1988 the tides changed and SkyWest began it's a long successful profit making quarters in years. SkyWest current “business model has generated net income and 24 of 26 years” (SkyWest Incorporated, 2016).
After 9/11
Over 9/11 SkyWest was one of the few airlines but still …show more content…
The addition of ExpressJet and ASA created a perfect storm in 2011. This perfect storm in 2011 having to deal with bad weather in the first quarter, along with increased maintenance, increase crews for new aircraft, and a late base location swap by United Airlines brought high overtime costs for personnel. Also during this time fuel costs were still increasing rapidly, increasing SkyWest Pro-Rate flying (Market Watch, …show more content…
Load factor is not how SkyWest makes a profit. SkyWest makes money by completing flights contracted out by the major or holding contractor. Load factor is classified as a non-risk item for the airline in their business model (SkyWest Incorporated, 2016). It doesn't matter if there's no one on the flight or if the flight is full, SkyWest gets paid the same amount as long as the flight is completed. Completion factors more important to SkyWest then load factor. Dealing has gone to the extent of adding its employees in the mix for trying to increase completion factor. An example, the lowest I've seen it was this last January 2016 at 97 .1% completion factor, this is normally in the 99.6% or higher
SkyWest has been around since 1972 and today has grown to encompass one out of every 12 passengers in the US traveled on a SkyWest Inc. aircraft (SkyWest Incorporated, 2016). back in 1972 the airline was bought from Dixie airways and SkyWest was created. SkyWest has made a profit for most of its lifetime except for the first beginning few years. Those beginning few Years for a long change and upgrade switch decrease profits. In 1988 the tides changed and SkyWest began it's a long successful profit making quarters in years. SkyWest current “business model has generated net income and 24 of 26 years” (SkyWest Incorporated, 2016).
After 9/11
Over 9/11 SkyWest was one of the few airlines but still …show more content…
The addition of ExpressJet and ASA created a perfect storm in 2011. This perfect storm in 2011 having to deal with bad weather in the first quarter, along with increased maintenance, increase crews for new aircraft, and a late base location swap by United Airlines brought high overtime costs for personnel. Also during this time fuel costs were still increasing rapidly, increasing SkyWest Pro-Rate flying (Market Watch, …show more content…
Load factor is not how SkyWest makes a profit. SkyWest makes money by completing flights contracted out by the major or holding contractor. Load factor is classified as a non-risk item for the airline in their business model (SkyWest Incorporated, 2016). It doesn't matter if there's no one on the flight or if the flight is full, SkyWest gets paid the same amount as long as the flight is completed. Completion factors more important to SkyWest then load factor. Dealing has gone to the extent of adding its employees in the mix for trying to increase completion factor. An example, the lowest I've seen it was this last January 2016 at 97 .1% completion factor, this is normally in the 99.6% or higher