SkyWest (SKYW) 30 Jan 202019 Q4 Earnings call transcript

Good afternoon and welcome to the SkyWest Incorporated Fourth Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Rob Simmons, Chief Financial Officer. Please go ahead.

us call joining for everyone on today. the Thanks

is SkyWest's Chief the operator Officer. Simmons, this indicated, As Financial Rob

On the Commercial Chief SkyWest Executive Chief call President Officer; Airlines', Officer; Childs, with Accounting Wade me Chief today Operating Steel, Mike Chief and Officer; Officer. Woodward, are Eric Thompson; Chip and

read the like to time I'd to Chip start Then Harbor. for by today Safe to comments. over I Eric some asking the will turn

and take will will us through flying results. financial Wade fleet I the discuss Then the Chip, related arrangements. Following

Following the our Wade, Q&A sell-side customary analysts. will we have session Eric? with

Today's beliefs, update uncertainties. to discussion and We regarding contains are forward-looking and events obligation no any statements that forward-looking represent our future and assume expectations statement. current subject risks to assumptions

those or of Actual a number for anticipated, estimated results vary materially will likely reasons. projected and may from vary

that factors and other and cause Commission. may Form are Securities Exchange such reports XXXX our included and the of Some in XX-K filings the with differences

turn I'll that, the to Chip. With over call

afternoon on you, everyone. Thank and for call the joining Rob you Thank today. and Eric, good us

fourth XXXX a us. strong for completes The quarter

the earnings by and with grew XXXX, more airline over fleet a per monetized footprint. as year full efficient our forward XX% initiatives we XXXX transition a share single and For moved we

together a did deliver employees, customers. once work a want adjusted solid a XX.X% in our job, Our again, great for XXXX. thank more and remarkable their than to for efforts delivering our completion product to don't I XX,XXX employees

half with new service to American into EXXXs. and contract be to XXXX. expected and a of in late XX announced are Half flying XXXX in we planes Today new Airlines operate these own placed

own under of half the agreement. delivery our of to will XXXX expect we six in EXXXs Delta take first which previously-announced for operate Additionally, and we

these and X,XXX up quality efficient together The executing -- departures agreements certainly significant These as and onboard of possible be certainly would of we to without service additional day. task to people SkyWest of product. deliver a deliveries a work reliable be have not not every aircraft will

to first fleet we led manage our In a fleet phase even EXXX the demand, This market increase last we through on XXXX new the customer in of for for maintenance represents dynamics Scope response our changing during a have of our next our we for half the stronger to beyond future. the sectors continue of fleet demand planning CRJ product. fleet invest quarter. the what start as competitive transition additional of aircraft to fleet. prepare strong year older We the CRJ and much our in to discussed limitations and are the

we're Given the approach reliability to run. first of performance drive the changing additional its in on fleet long our demand we're XXXX. seeing, in of these and changes maintenance half will impact our short-term costs The improve the overall CRJ

for will translate these and SkyWest anticipate However, long-term investments customers. we value into our for

All makes point a of this XXXX pivot for us.

Given operational our new our our this scope. quickly also earnings partners' XXXX. leveraging need. our this the convert position availability to to be positions to be to opportunity realize to to in fleet, for trajectory intend expect We but we continue in XXXX and with flat a position us investment XXXX, XXXX in We're market able of respond within pilot to the the assets into value and in market the fortunate relatively strong

year's recruiting product still is our and levels. With opportunities, hiring culture, well strong quality team pilot last running and above

current just pipeline, cadet our half XX% is hiring As about up existing last from quarter, of we years from ago. our mentioned five about

focused and model reduces remain risk long-term us business contract We the that reshaping of cash of announced opportunities today, very enterprise us drive year, overall for generation. healthy success. last and The balance our help with sustainable growth position win will our the combined on flow earnings

Rob? professionals to for great during our thank again aviation of team excellent want I XXXX. their work

income per net compared earnings in up in quarter to from per fourth is fourth the $XX $X.XX quarter last of $X.XX, reported the XX% year. share share XXXX. we million $XX Fourth fourth quarter million Today of quarter

Pretax from of income income XXXX. million for QX in XXXX of pretax QX $XX is $XX up million

count or X.X million X.X% XX.X million last is QX Our diluted shares share down of year. from

effective was down QX tax slightly in XXXX. from Our XX% rate QX in XX.X%,

expect to We our continue to fiscal be tax for approximately XX% XXXX. rate year

sheet $XXX about Let of say XXst, things million, cash million of quarter down couple XXXX. quarter. We December me from a with balance our as the ended $XXX of last

spare fourth parts including was and cash the airframes million and and $XX for million maintenance assets. issued during in acquire spent million, CapEx engines EXXXs. million million quarter for debt Our $XXX of $XX and $XXX used $XX new was to spare five other

CapEx including our million recall billion you year, for new the heavily of in by aircraft XXXX, expect CapEx, to $X.X the we full of $XXX XXXX spent CapEx the EXXXs. we fleet. XX growth in invested spent million last new to In XX As few $XXX of in the in acquisition driven In the $XXX in be XXXX XX we've primarily for range we EXXXs. new EXXXs million. Including acquisition years,

at of orders. around billion EXXXs by slightly additional and the XXXX XX in end ended on XX Including XXXX, from more in financing $X billion end at of $X.X quarter the $X of should depending XXXX quarter. billion, approximately debt again new the up for be XXXX, last Debt and the levels effect

aircraft Just engines under of debt are is a largely fleet XXX debt. EXXXs the our the billion coterminous is and of debt our all financing financing flying contracts, related reminder our that bulk $X that with in and of

each in any aircraft before the million pursuant any to Beyond XXXX, expect via mortgage orders. debt debt this financings new of million new delever continue repayment $XXX future principal we style to through to amortization embedded term of $XXX for new year to in

years delever to our to expect opportunities. We generation respond strong over agility next to liquidity, us allow maintain quickly any couple sheet incremental of cash the maintain strong balance and that the market will

the approved repurchased this Board we last capital remaining to We program February. of share returning stock QX, shareholders via program. and to dividends of million remain under committed under $XXX by us million During This a repurchases. combination our $XX leaves in authorization million $XXX

things a fiscal without share practice, few As formal me per XXXX our per about policy earnings guidance. and say year let giving

in the As earlier, in now XXXX fleet maintenance of Chip XXXX is expect half in the to $XX our earnings start the million with on putting new which XXXX. from of a slightly ongoing XXXX of an a the cost for making expect addition first-half transition to flat costs, first million this We investment million of transition. XXXX we up next leads the mentioned fleet $X us full in be for last to $XX quarter. is year and phase transition is along estimated CRJ year to extra XXXX trajectory that million $XX our Note XXXX. us purpose of This

XXXX cash be be XXXX XXXX, orders. investment referenced quarter by nicely We to approximately per in flow from fleet half each of XXXX. slightly flow depending relatively the Free depending up over first of EBITDA XXXX levels in on aircraft earlier. be to due first likely would $XXX to similar down share in over cash XXXX the could half compared the expect million, of flat Free to the earnings CRJ XXXX in and will -- driven XXXX, CapEx of

the and to response the stronger improve over fleet we scope the investment half is further to into per half demand We reliability customer originally second ongoing our in and of XXXX nicely XXXX up earnings the than of limitations. half operational would first share in The with of second the performance would expected of growth both second XXXX. expect future CRJ and have half

opportunities the confidence gives us visibility future create to themselves. present to investments disciplined to as flows market cash value Our to make continue shareholder

As consolidate we demonstrate, when market circumstances help share. their continue to a ready sheet liquid or align we with and will balance optimize scope strong partners our to be

to healthy flow. drive growth and balance to continue strive a We earnings between cash

Wade opportunities. will initiatives, now on some commercial other and you Wade? movements give fleet fleet details

we all new Today operate anticipate delivery during late flying aircraft Thank contract. own and with contract under the EXXXs will the which a long-term those you, debt. year and half of next Rob. financing remaining XX American We first this of aircraft XX-year We of for year. a the new anticipate through XX we of XX announced

announced in be we scheduled to contract, The of Delta under of Delta multi-year year. by this As agreement August, operate six transitioning a regional last Connection. begin part sourced financed Delta an from and will have first with are a we the out aircraft to EXXXs used operator

for the SkyWest of same new seven to announcement part SkyWest seven operating year. were scheduled this purchase to As of that delivery and operate by instead and agreed for Delta CRJXXXs Delta be financed new EXXXs

of five this the our QX. XX EXXX of one more and EXXXs scheduled quarter streams Delta owned To for at second the conclude our our delivery year summarize, took in delivery we to aircraft. We which delivery will fleet are for Delta delivery CRJXXX take of during stream new CRJXXX

and delivery the half six scheduled used EXXXs new are of We take to this in first year. four of

the we scheduled by XXX middle XXXX. half year, are for second delivery fleet XXXX. final to to the This During our EXXX American the scheduled with of EXXXs EXXXs will XX new for bring XX total the of take of

our CRJXXXs me Let and American partnership. talk our about

As to this into aircraft system contract. being We these XX our to agreement previously CRJXXXs placed XX American fleet under anticipate total discussed, add CRJXXXs year. we contracts. our will throughout announced bring This an long-term additional that to

of our customer flying a mentioned, and during very strong Rob that CRJ our first investing anticipate reliability half demand fleet strong experience. customer XXXX to CRJ and improve in as the remains of As for result we demand,

term As of will to to extensions. the it Chip attractive our long anticipate additional while mentioned, further the cost partners we return work this first us for with these XXXX, half contract show an drive we will major -- on short-term investment over allow as changes as

These approximately pilot the are service fleet year to $X bringing different our of We partners. incur used transitioning expenses training, to aircraft of on half the include also time, on in aircraft certificate transition million first and expense. aircraft expecting out

to shift me to gears opportunity. we where business leverage continued Let our leasing

These party under six This the of aircraft of bringing this a be the we agreement XX-year under a third count additional lease quarter are agreement year. the delivered through and XX aircraft. our with to anticipate middle delivery delivered domestic XX previously-announced CRJXXXs will remaining aircraft the we

communicated we CRJXXXs the of sourced these previously, from majority the previous XX be will As our operation. ExpressJet aircraft from

by six-year agreement. lease Additionally, five under leased all a Canada CRJXXXs we Air have delivered

the these year-end a on operating of also the the seven of CRJXXXs seven have for leasing from had a through aircraft we aircraft. At partners anticipate purchase to closed two combination We aircraft other a to third third party. aircraft utilizing and We agreed party. used

engines fourth the already CFXX-X Delta Finally, engines with under CFXX-X spare the this $XX we an to used engines during fleet million to our fund we XX the help Delta. year. addition be quarter, with in which support airframes anticipated will to This is to lease in five-year lease The used engines be used will will invested and term. eight

We late expect mid-XXXX. XX this the year begin to on through the engines deliveries

we As position, platform positioned I've anticipate we're our the enhance fleet discussed, these continue we've our help ongoing years risk. several over for XXXX beyond. profitable well will past flexible built unique to to and We agreements of and the and minimize to ensure for execution model leveraging utilize opportunities,

we're now. ready Operator, Q&A for Okay. our

the ahead. Syth will comes session The Savi [Operator question James. begin with We now question-and-answer go from Raymond Instructions] first Please

just the quick about I had duration past you've afternoon. the good Hey, contract. talked of In question. the a

many I 'XX-'XX if kind CPAs mentioned just go the through XXXX. maybe contract of like provide how XX% on your something an time going can I update periods. you you end think like through of wonder of

here. break of this Savi, kind Yes, I'll it groups into Wade. two is

aircraft, EXXX are under long-term all Our agreements. very they

just said today. the agreement we that we a announced is As XX-year agreement American

The seven to seven -- have on years eight, other years them. one eight left to still nine

partners needs of at vast in expire fleet, pockets XXXX. And that and the working for The in demand extended this CRJ the of still then just the will majority their we're CRJ our year of with major them There and recently currently those. aircraft. end we've some those of XXXX are on

basis. Got on CRJXXXs then it. the just And am are I guessing short-term

XXXX. CRJXXXs what of some some and and I this The XXXX end are expire then was is that are year some towards Those the -- in there referring Yeah. in to.

you curious just of that have kind then, prorate And on domestic. go beyond the it. Got much side, connections

the all with wondering of if news the prorate any exposure there Just on there -- some international the is side?

Savi, Yes, this again. is Wade

a is very, referring what XXX% no is Our the and internationally to is minimal. network pro to China, think is international There connectivity I very, you're domestic. very rate

might just makes question, raw it sense. I ask And the down if factor, one Yeah, completion was more year-over-year.

quarter, I'm last controllable have impact kind related. curious in weather earnings? this does is Just it of factor earnings that's that on meaningful kind completion a really drives guessing or of Curious that the a

and -- friction of factor the based completion the Yeah, flight complete and of to all weather issues. year-over-year again. are of There slightly always but ATC Wade little is is bit is completion. when on you this down a and that Savi, the our incentives don't due adjusted is type all

be it so contracts our groups, impact, has the of but lot small friction a labor an some through is and mitigated there And it can there. through

right. Makes sense. Thank you. All

Mike from is go ahead. question next with Linenberg Bank. The Deutsche Please

yeah. Hey, Oh, everyone.

to a total airport there do us presumably get When we to will is, what customer point forces start -- what out? which just a I and some maybe Just percent the Thanks. and this the as just leasing you as well, breakout there I'm revenue look materiality revenue, breaking or not in couple or pieces where will other, that. your you you can I'm a you sure not what growth guess, of that requires the here. you at in sure service and so give if maybe lines

I on got think going of I our structured, that customer look, we'll as other, mix our point, we're the airport at additional some changing I how that that But with is think, way think that happy service structured. breakouts. the consider we've is Mike, evolving. this changes and and P&L model through So And is bulk

Okay. are seaters three EXXXs guess, to And Class that I American, then the all are are going there those airplanes? with, XX

all is it. three-class aircraft, XX-seat Yeah, Mike, they're rest how industry Yeah, of is consistent Wade. the with this the doing yeah,

could represent, Thanks. perform a Okay, XXXX, just give answering profitability? the -- XXXX does the -- rough you it questions. last maybe what I me versus how percent overall and it for guess number for prorate maybe great. did And on if represented what then prorate on how my business, Thanks

Yeah, Mike, it's Rob here.

side with our been. business, So has of And our contract our very what still been of on prorate consistent the remain is XX% I will business. about and again focus think it's our

think sort And probably the of fair last in it's that range of prorate the you've couple expect at so years. in I seen to same cargo

everyone. to Thanks Thanks. good. Very Okay.

The next question Evercore. is Please from Duane ahead. Pfennigwerth go with

Hey, thanks.

more with respect the incremental can around out what you you investment what driving last to to here, have your is detail that into not year? arms go Just late you're that calling that and caused just

Yeah, thanks.

of over talking at we're about as that just incremental we what incremental last think look through, think sort that make quarter. I signaled an identified you what I as million we've is And gone $XX we've the in and for do and growth -- us us future. in think will for it I position sense help opportunities better makes profitability better to to the investments these short term

for make is away. the QX this to we're two investment And positions about story start and on I in think and a mean us really returns growth XXXX. the taking right half see year, XXXX investment the XXXX, that QX quarters we second better of obviously to of in and this a story this in then I

some There training around. bringing lot time moving the some just moving as certificate. new There to incremental some will cost we bring incremental movement a lot partners. respect of be between aircraft of there's in Wade is this With airplanes transition to of pilot out cost, mentioned, our of new parts year, on a as service costs,

just of is friction during is year. there of bit this stuff. But So all this great a

of this XXXX for exciting really look as All XXXX. is us to we and

of contribution to other back of care you then of to year, there we us next you make? investments this XXXX kind And other you'll to of you. into next be points of get kind that as obviously of year, you EXXXs. or kind Is $XX earnings have Thanks. will highlight? of would for any XX that sort growth Thank these leverage million think the points fair leverage growth that all the it into And about think incremental need

event investment investment on as largely we of is -- second return in The it's that maintenance the away a that to will -- start the in one-time for that year. the mentioned right half I half first the the investment, see

growth has of the over XXXX half of half where as show over investment. that the of XXXX, to the obviously, second just bulk the first as half, We half second expect nice well that the first

growth comment into XXXX? earnings to else drivers on anything you'd And care

think with conversations just Well, got lot our partners. of interesting we've point I on the going that a

it airplanes that in new -- you've the on think will the we'll the with of be I that in be hit American part latter bulk bringing of year. that the

the effect growth those won't as we of see after following then with year on that until a continue XXXX full-year obviously the in full-year So pushing coming we've more year. have next got to cycle we And delivery. XX effect, virtuous

Okay, thank you.

ahead. next The from Goldman question Catherine Sachs. is go with Please O'Brien

Joyce for Hi, on good actually afternoon. Cathy. This is

partners. have with me the just over block sold And I'm minimum of every in have trying is the guys XX% guessing Just the amount your what just versus the XX% was year, minimum that? hours airline guarantee or you maybe last you minimum the wrong. than hours right of a it if question years, correct average block major on that wondering contract couple higher but I you and actually or a with typically I'm line

this is question. Joyce, very a Yeah, good Wade. That's

of most contractual minimums. have our So do contracts

and of XX% and able are utilization contract SkyWest it's the A fleets We're well typically of our excess all contractual We value minimums those in a been to above lot minimums. flown in lot in hard. aircraft of XX% has major add very to least at them. partners. to these us

that's question really another on interesting. you. Okay, just costs. Thank And then

of by force the Just your following union represented ExpressJet. of given is none that labor divestiture

we that? couple fairly typically Any think Is ratable or on in years? every about larger should thoughts that are step-ups how there of costs? Just labor raises

Yeah, the Chip. this question. Thanks for is,

to world. entire groups We that within at the aviation we've collectively in do of have SkyWest have got it at works we some best work agreements continue SkyWest. the bargained -- way have professionals So our the

the philosophy order hire our you and successful consistent very these the want that are within to And very, business model is see what to be industry for our with so we in best.

very going care has return stakeholders best the very good shareholders very, a can involved, do best does. of as take And returned turn the in the well our and to We're our all SkyWest, competition customers. employees, model the we employees that for to to what both as compared at

about the fact within are would have industry, all anybody shy the the the pretty traditional, do could. than So same, we but quite them say do I the SkyWest. not entirely it's think that professionals about would we airline to can in and best care I it, way fact else we take model within want better of We at working them our traditional we

So I think that's the summary. basically

seems cost about It pretty I strong a like all? margins that Are to areas you follow-up sale. should guess, be of that inflation next then. couple contracts thinking there pipeline potentially impact Absolutely. that over is the a the or on that we years just could of quick other that

look I paramount I maintenance -- simply fleet today as script, when we've fleet, has our think think our our is at in -- the fact this a philosophy performance the we CRJ again the that CRJ than is Chip, been. on is take more investments as just talked making in we're that philosophically, about behind it ever

although within our landscape fleet, people. for in driving scope our reliability, that competitive return fleet potentially restriction value is tremendous the we we to and our shareholders and see will the particularly relative So value that the older creep costs of a some amount have overall with

it's moving that into from are we the missed some something that long know perspective, particular something, don't we're seeing maintenance and to So are in associated that proactive return not the with and into help we're more a costs eat and I fleet more system going good term. overall the opportunity that that more that it's seeing

Got you. it. Thank

Subin question with next The Bert from Please ahead. go Stifel. is

Thanks time. guys. afternoon good for the Hey,

Bert. Hey,

low highlights the with your announcement at market American are are regional then wholly-owns? your looking to and contract independent for compete the still I the partners today's mainline independents, the guess flying. against, to end other you at spectrum positioning How So that business one cost

with the is all partners our and good good with strategy question, and to they very contact very what Thanks this of is it's in stay a Chip. is for question. what This want. of our Part close

our model of been in business developed over the last to them. five years we've And has conjunction that so all six with

a just on and I factor. answered think question, I Like is the paramount that's differentiating previous performance

previously, on a fleet. performance long-term the have to very our Like increase We CRJ performance good I want XXX. significantly we our of said

lower-cost provide or we're So perspective, Express work we wholly-owned elements and with them the to team product. ways can the partners value overall just -- from their wholly-owned I and -- with perspective which in for our we Connect on working the with we

On a with, candid, the end we other philosophy. be of completely we different to where dynamics the have compete who

that sure the model. have and We value completely that things that when exactly partners want there flexibility to focus do best and pilots, deliver mechanics, find some We on a our is. what flight different have primarily to business we attendants, very and us we performance make enables

And that that what they know that the have. that's say growth very Connection section that to carrier and them still don't we bright or about of a have they see portfolio, and and to within we worry drive to we future do, Express the to their philosophy solid is

Yeah, that's thanks. helpful,

Just else being quick follow-up, CRJs. about there a you for lot is driven demand that as of just pent-up limitations demand there, jets? smaller talked sort or scope this something just for by Is a

a are is primarily able that's going believe but long-term XX-seaters. that we going on to both, our probably it's what of these and approach philosophy think to the is fleet. on the investments -- putting we be today. scope performance that add being fly And One We limitation. continue to lot to I sustainable CRJXXX pressure have

we relative demand, differently something look scope to does fleet that and in we professionals. at if for aviation change As have the fact

capital pivot a direction opportunities. be, of base We tap stay very and astute if different all have to those but we in on need a we of that broad into can plenty fleet of

the for time. Great, thanks

question is Cowen. Please Becker from with ahead. next The go Helane

Conor. actually It's guys. Hey

Just a couple of questions.

leased as be been are this, being under have out that but if I kind with being increased the continues to then it not you CPA or terms any be relevant in your in a idle currently. just as you answered -- aircraft business, there. And all? past, that I may pro-rate fleet there pro-rate not but the On at Curious, of Thanks. of lot utilization curious out mean, thoughts of think the on has has This or the Max movement.

Yes.

Conor, So Wade. is this

so years been So lot last of transitioning we've of the couple aircraft, in question idle a airplanes. are first the just on still There airplanes the transition.

we partners costs of about one transitioning that those facing the is into talked different we leasing business, airplanes transition As there our from some of -- still frictions are all of that.

So of there that QX we are in some that QX. are and some of and to still face still going

there As the phase. But transition -- vast, in far committed. fleet just so our of vast, we overall, vast as be will a it's It's transition. have the entire majority

was The and second Max. question pro the rate on

pro business, Max are these smaller is not Our that markets serving. rate the

we're and but will there good increased smaller that -- rate business because communities pro of these done serve the continue something a We groundings. very It's Max to market going those, to due that. is those. just and serve our different we demand, it's we Our continue niche to haven't really haven't to utilization anything

-- the million down the obviously if be can maybe a maintenance in could know curious already, what great. versus first it you actually just but about I And somewhat like if investment. just lumpy, on in can then be just curious like Okay, you there? bit second any it break thoughts quarter talked falls $XX

again be half back will little second second quarter that a prior of have we half will both is the Yeah, year as year growth first half. first second in to by down well quarter and quarter Conor, and tell growth bit compared then you as the I over over ago, come can first what

first-half for us helping we put return to have where -- largely place again a don't can a away. fleet it's on And that but exact see right investment timing our in it's we you, So it's event. a start

just just if the then or of it fleet pocket investment, aircraft, and And the how entire across is a many? it actual so, Okay. is on

and older XXXs XXXs. CRJ it's of our the fleet, Well, fleet, both about the sectors

deal. across -- of across is certain it all But is there number? a no not them, them, or If is a all it's big there of it's

Yeah, the with I by some we've would fleet, say, with accomplish we of wanted would performance. of them very I is programs it's to doing fleet, this. largely, say trying that been what that small certain bulk get summer But I pretty there that through to things to much relative time. the portion say we're various would a

one. And great. then one just Okay, quick

the American assume in financing you've past, done how financed. kind Is the is I that contract, debt cash, the of correct? XX% On XX%

correct. That's

Okay, you. great. Thank

next Schoenhaus The Scott from ahead. go is question Stephens. Please with

Hey, guys.

a just is the last on question. this So follow-up

roughly me to use $XXX through near-term and the you're the align thinking it to balance this back buy on shares? meet American you help about to CRJXXXs balance it I sheet. walk the know million acquire have needs. have with these But cash, continuing near-term is like You your the cash contract sheet. opportunities on to used for something how else? debt Is Just cash opportunities just the you you customers' -- thinking want liquidity the previous contract? with Is to it about

Thanks, Yeah. Scott.

above. good of balance all a have we really Obviously it's sheet. and important think I that it's strong liquid So very

indicated, we've be the over as cash part next couple of continue think to delever our years will bit. flow a I of to

as dropped has significantly leverage pretty of over last the Our it we couple years expected to.

active got the program. repurchase -- fleet. is the flow a we consistently where shareholders with again got five work we've we've capital returning good in find We've to cash that an dividend cash also cash accretive years. various in obviously visibility to investments it to very the have over favorite use to future share grown as to the last put But of our we ways on But are balance committed to sheet our

really intend on always our ways is favorite all fleet. to to balance that to shareholder in uses answer for our of value find the question capital but is context a the your invest to So use cash that the our We variety of the sheet accretive create of within to use above. in

great Great, market parts leasing whether for market airframes how the is engines? know you guys past. or it be for been in Rob. guys follow-up, a I a thanks And spare the it's you

will year up. a with Just you CRJXXXs CRJXXXs four the the wanted the opportunity by of get to and of eight the there, particularly pipeline have the end sense with freed

this Wade. is Yeah,

leasing it's the been has opportunistic us, a very -- been So right. thing for

As able aircraft worked very to good it's allowed new some into our parties have us buy with become aircraft to in and and available, several different homes re-fleet fleet. and we've bring being

we that good And good. that there area demand The and very very is the high platform. business we've grow opportunity that real leasing, we right. much very focusing to to got leverage continue opportunities our are The in engine to -- continue are

our with partner on OEM relationship well. that as Our

And there very demand so area that's are is area the a that in. the high that's we focusing really and that

Wade. the hop back in thanks queue. Great, I'll

question go next is Please Syth with James. The Savi a Raymond ahead. from follow-up

feels follow-ups, was I Bert was things -- way sourcing be two like on of partner you like relative mechanics just supplier asking dynamics who it -- was positioning kind at marketplace pilots, look today from a favors that. on it as and just and it, the of your just of and the is, and I it’s kind think the it Hey, kind curious to bigger

the to that might what industry you talk be is wondering about So environment? different to that be the if a conclusion Chip, say in and it little just I can helps right bigger bit in if this was current

of that. Yeah, always evaluate tell a advantages that speaking now you question we Savi, kind in of and we technically that's one big that size all how things. fly consider there we we can always get right we any the is I very good the to sorts are fleet of those the is considering we type and want want of and question, types you fleet partners other to the be, evaluate

center what five enables last do which From four I our to on that we've have always they have, would line. these and back step think to continue want Just and back credibility have us are partners. perspective fleet growth like. really six that the the is to there how look well. They the good a us over partnerships We or that, that grow with outstanding think opportunities we of asked years, culture one put tremendous do philosophically we operating that kind I and as we

is for position our where opportunities. about more are things those of All

relationships to focus do in just Sometimes but like out, that can opportunities on to what time of and future. our down years sheet more and like we that culturally all can give five these we with to are the today disciplined the the with us the gives road. going we to continue things today we balance the is And plan opportunity and us we most do

the we given first of would and Many have us. for better that it to serve somebody always capacities. But say to everything take single that's take do this be take conversation And the we That's in us with we partners don't at else go of a safely. a people them for to and take recruiting types we the certain at people opportunity look and our major we first nucleus to relative actually train look our to priority. ability strong and every our of times is how is care

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your said, are get we is So want do answer question advantages about, there that to not having perfect been that. bigger to probably to it and the

very is on four there additional meeting for organic I good some partners dialog what with we're their are SkyWest still of to a going having of four continue all is with at that with to needs we good good are partners. and to growth that organic conversations think Airlines. all provide us our we That's baseline advantages growth, our believe

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And correct? quickly transitioning to I these just correct about that today some you. get American if and sense. makes you transitioning is a some and Wade. XX of that that that I with out, XX will it CRJXXXs in Now clarification, in Thank might, with have Am assuming

we so Yeah, Wade. are is less this bit Savi, little a today. actually flying

process that partner of about. to year, talking That's you Some from some year. of have the are will But are another. the of the end one of end friction of we XX we transitioning them the the by in were by correct, the in

those that's service. transition still that work now of So transition of done being up is to some that in get right some all there expense,

you. All right, thank

conference to This turn any concludes to the I our would over Childs Chip for remarks. closing session. question-and-answer like back

for appreciate and appreciate your forward. everyone to we in Thanks will Again, us with talk you. next again our and time understand the interest to opportunities, spending have interest we which quarter. your your you going thank we model SkyWest. Yes, We

has conference for you Thank presentation. now concluded. today’s The attending

now disconnect. You may