SkyWest (SKYW) 29 Jul 222022 Q2 Earnings call transcript

Good day and welcome to the SkyWest Inc.

Second Quarter 2022 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Mr. Robert Simmons, Chief Financial Officer. Sir, 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 over the Chief to the Executive comments. Woodward, call safe President some Accounting to start Officer; Childs, with Chief I Eric Wade Chip me today today harbor, by for Steel, to I’d then time Chief Officer. Officer; asking Eric are and like Chip read and turn will

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

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

results forward-looking a represent no likely regarding assume to number vary may Today’s for statements discussion those vary and are and expectations risks current obligation assumptions to contains estimated and events subject will and or from that projected Actual materially of our update We beliefs, anticipated, any uncertainties. reasons. future statement. forward-looking

Some and and of our the may XX-K in that I’ll now to Form and call such with included are turn over filings Chip. cause differences the Commission. And factors other the reports XXXX Exchange Securities

Good XXXX. everyone. Thank commemorating and Eric. first XXXX years SkyWest June us celebrates call afternoon, you, XX in joining Thank you in our departure on Rob the of for today.

to slightly we last schedules to than income the with exceptionally we We headway good of pre-tax people quarter humbled driven crew million. quarter today net outstanding With rate fleet the an them. largely the quarter. second adjusted revenue. our were we get performance, of by being people was We and our quarter, as on very strong year and increase are year. continues regional their where evolve people busy XX,XXX outstanding operational many anticipated. in better want to our truly I’m five XX million as performance I well completion the our and thank results for XX with product during XX.X% income industry. to early and quarter EXXX be We second remain next our SkyWest lead unparalleled. the of teamwork I wouldn’t discussed SkyWest increase are planned by EXXX That’s XX% will storms the of to our and production made who as grateful constraint past flight main to work alongside has EXXX more during than and weathered and that season. XX more the decades, received travel producing launched the our receive to work we imbalance during service a our Improvement We reported this in XXX it second efforts a in adapt eight quarter resources, a and summer realign high Demand without first for a that of results prorate from block the testament deliver as during quarter operating including total

to as has that a on our term strategy. we years the re-fleeting long execute for be continues several been Our progress priority last in

our of utilizing class block hours fleet. XX% our During nearly were the second quarter, flown dual

largest all for filled constraint and pipeline new year hire workgroups, SkyWest and solid have robust a is classes is demand maintain While hiring availability. end. our to fortunate strategy clearly to is captain through

industry models our being will in the the to most and that planning are accordingly. continue sought We pilots after result SkyWest expect ongoing in demand for high the pilots

year, pathway are the joined entry and color. our reimbursements, in reduce clear over barriers of other been path We methods women the incentives, and XX% increase who have long partnerships people equality investing among this program those help to Notably have to and pilot of pilots various to or profession. tuition

schedules address including working centers programs with to career As captain our to a pathways including managing with offering and number pilot and for pilot taken our our crew retention we’ve our discussed last steps partners, guarantee of interview sustainable quarter, implement imbalance we group new upgrade captains.

upgrades While XXXX the XXXX. strategies will constrained and likely and these required are timing early production disciplines for into late training producing results,

remain with We challenge. work will manage our people continue to to ensure to positioned best we aggressively this

We to than are ensure with can conversations any provide. stability, our carrier continue going regional to other currently provide forward and we pay our pilots in investment options more pilot expect and increase to opportunity

Inc. SkyWest quarter During charter the additional entity as we second an formed SkyWest of

many Our as SkyWest many the airports the applied small from to name. asset charter this service and would well, commuter have and with safety intent that to best standards fleet, regulations. within on. existing execute the the the FAA business essential and service high is and strong of DOT, this connections to We base, the authority appreciate exceptional for We And we the as the airports operation intend well expertise of transportation. strong hold to charter have associated undoubtedly rely of to communities with support that enter department provide efforts SkyWest standards and high enable

current While the ongoing stronger, term. never demand staffing our short the has re-fleeting demand monetize doesn’t in and products that allow imbalance been for us to

to XXXX X% expect by be continue XXXX production We about to from reduced production.

the year to to continue half than lower imbalance. first second also expect of to production be We half the crew the due the

in in environment components us great However, an today confidence gives as investment. there SkyWest are the that three

demand for undoubtedly there’s regional unmet flying. significant First,

attract our Second market. is the and our SkyWest and retain value in is third strong our asset pipeline competitors, far and unparalleled than captains greater ability train to

the our this decade profitable acquiring to economy. Our in disciplined approach at enhance in strong will over assets new meet economics ability last objectives our

the continue for we’re of are as aggressive in deliberate financial through data. through take work will we and the over we choppy next taking to the Rob years headwinds will us some couple Although ensure to beyond. steps remain XXXX remain we we and now the now recovery expect well-positioned

$XX.X second $X.XX, million. net was share. GAAP income Today per quarter reported million pre-tax of or income earnings we $XX diluted QX

QX rate share Our and million count was XX.X shares was QX diluted effective for XX%. our in tax

QX revenue contract in with XXXX. revenue. talk of million XX% quarter, $XXX QX, other million GAAP from million year and sequentially QX, revenue down up the revenue Total and X% XXXX QX, QX that from at $XX of effect up These million Leasing was up X% compared include about Prorate revenue X% QX, down was and of from and is million QX, year-over-year. release deferred X% from $XX XXXX results and QX down revenue XXXX. X sequentially in deferred of and breaks a from X% to during is released XXXX. QX, a ago. up let’s XXXX XX% from XX% First revenue QX QX this $XX

QX, cumulative of future that revenue end be of of have we will periods. As million $XX the deferred in recognized

This also note. quarter’s items to wanted two include results I

we for charge impairment line first in quarter that older of are sell. operating a were took is The this $XX and CRJ-XXX is part the of item our This our fleet million held on four expense. Express impairment other Jeff

The during mark in Eve second second to in trading gain the quarter. as recorded our started is is below This $XX a million income. other publicly on line it market gain investment the

cash to million the move up quarter with quarter. from of last the million me $XXX balance We XXX sheet. ended Let

and quarter ended compared QX to billion other Our EXXX XXXX. from X.X to yearend of million, EXXX the $XXX of for million debt XXX We new was purchase including up CapEx billion the XXXX. million $XXX in be expected second aircraft aircraft with is XXXX fixed approximately CapEx XX as of during assets. slightly Total eight new X.X

low no Just we XX amortization a million $XXX debt the year a PSP unsecured that sheet reminder government is our balance only coupon in on have of total loans.

Let me things liquidity. couple say a about

the this new in As $XXX million of financing. million repaid our XXXX of million an quarter before of engine effect eight $XXX for of of and financing $XX debt having included XX, EXXX June cash incremental million debt $XXX position adding

of also that for We billion be additional needed. liquidity could unpledged ever have deployed $X over if collateral

reasons for fleet a that QX earlier optimizing variety benefits XX% of the from financing by any has better Chip, partner Additional EPS practice, me fact by But give and obligation. little our were including monetized slightly we give results at in evolving Consistent flexibility our to not color. aircraft let comes demand you our a strong type, than and directional opportunistically, guidance of a this that referenced position aircraft service and mix. specific from time. no we policy expected fleet with are our schedules owned including

and expect constraints QX to We however, results, due costs. to be labor down from slightly QX

this The the second with will first worse XXXX the of half second challenge profitable. of from XXXX. imbalance the reasons We be until half modestly pilot half likely to than production for similar rebuild XX of don’t expect end of XXXX

impact new XX won’t the XXXX into XXXX until we going of the early see service full EXXX Second, in XXXX. year and accretive

Our up for actions success today us setting in XXXX. are

the spite in XX, EXXX through strong opportunities end ERJ Wade? growth our liquidity the We on are of focus making fleet to believe with affecting preserve imbalance over taking monetizing continue cash now we’re will of we and year. invest to the we a accretive XXXX will for work optionality XXXX. strong position the to time expect industry us demand the the actions in investment and new this well that position pilot Third, of in

as and Thank you, on Rob. our and leasing an production a update update as status fleet prorate well I’ll businesses. provide

West we’ve XX We announced previously this owned to replace strong new recent agreement for continue a aircraft. discussed with EXXX year in Sky as Delta older delivery schedule We an quarters. CRJ-XXX XX

during of EXXX delivery with of quarter and of received EXXX two have service and New aircraft. placed the the XX we American contracts half service of year XX the XX XX EXXX long of will receive in aircraft in During XX beginning Under taking the this XXXX. second two the we XXXX contract of part quarters received third We will quarter for into delivery those remaining throughout and year. third the aircraft, of of year. After we this have the these this through our anticipate under quarter fourth term scheduled the the first Delta. we of We took will be year, during third

have We Alaska EXXX contracts. agreement short an add with XX to

and delivery During we the had the quarter six taken during of took first already XXXX. four second quarter of

for We Alaska. of expect strong. Demand for XX contracts our EXXX to term with under during take remains aircraft last delivery very of XXXX EXXX total the long product a

those fleet delivery XXX on currently EXXX of Following order will aircraft. our be

will we in XXXX. to review be approximately to hours Based schedules me production we for that the X% major have compared the down our partners X% our third as our Let in current by second quarter, quarter on from block the third anticipate the quarter. current

to we to XX% look QX the anticipate our to hours will be block we QX down XX% as compared As quarter. second

me a business. bit little prorate talk about our Let

are ability discussed, to a experiencing fully crew is our imbalance the for meet strong we’ve that we demand impacting As product. our

difficult filed discontinue air would decision and imbalance the XX with notice the this day XX to make. service of result very a essential was As communities. to DOT This not during to a we quarter, preferred one first a have we service

We year another several communities these XX serving transition communities most nine airline of these appears end. have by been of for years. to It will

committed working through leasing solution and communities. continue help other this challenge business. and remain to for Shifting find these We gears our to underserved good

characteristics. our placing the quarter, under margin flow business and And and leases we year. more into engines second leasing of for by CR-XXX. returning. has parties anticipate more the placed one This engine our very leases entered party term strong This a leases third XX. lease for business term third of under long have during under we the few Demand engines with end During cash is line and long quarter CRJ-XXX the XXX brings to total good

schedule delivery working We resources and and strong mix. our our efficiently we’ll have year continue we fleet a effectively continue optimize allocating as and this to will

solutions. reducing a have will to We spent continue flexibility flexibility financing we we’re and years last be are enhancing differentiator and to with of risk ensure the continuing provide our partners well creative to for work our several each and us positioned. major to This fleet committed

Okay, now. Lisa, we’re ready for the Q&A

We’ll Instructions] Syth Raymond question take Savi from [Operator first James. sir. our you, Thank with

significant to for when a of afternoon. include or to pilot read-through supposedly contract but retention you what or American, you pretty terms is any do I from was since up. I of kind industry think attract the their the quite if big in that the curious you a that base of house to a is Good was bonus that temporary, the have kind the curious in there? as impact which seen those ability kind tasks jump passed just of increase, pay contract subsidiaries

we we can don’t Well, that look the for we embrace. about question. candidly, there’s that America question. some has of It’s when that their of I some good a Savi wholly a this and embrace is what thanks owned, couple with it some we think Chip, And can at things ideas done

I having the pilots, no our getting heavily think pilots we’re XX good one of package way. in some for just script, or the perspective, term things color. costs I solution economy even not to the we’re little our there’s everybody. a our for term, for issue that I doubt heavily, next long the very there’s the big but year that out for is investing over pilots, find weighted think and to that for not the and close that in to a living things are perspective, my a labor That said we’re want just with our industry, in by we today is two. work months. that From next our that It’s long different

and come together most and evaluation conversations group have some some we’re we So process meaningful very I important our thing group what’s the pilots with most and and pilot us for our getting traction them. for that good to think with is for good our as work do the having to

relates there’s some long well owned partners industry the have good we’re it conversations carriers partnering wholly our ideas As as things and shortages, labor having as that them with surrounding to to are term some especially far close this, pilots. with with very obviously, as various that done of

I think solutions good the direction. we’ve track, good very back to got momentum get timeframe. some some So, look and got And said, good we’ve XXXX close us like to some think on help we’ve

the to I pay hiring of contract think that kind well of like, raises? pass get could How we faster? department How five to you’ll be long be kind pass quickly about That’s think pay drive aware the agreement take would pilot normalized these How needing helpful. to How through them year and once you of how when clearly constraints process to or able going should do it across should to and about your year margin? is process? back a be hits to a that two it a you think there’s

when of years, Well, reset too these obviously, will you but renew, starting next very in have, have type through or XXXX five want up of I that we good timeline many fleet give six and don’t expiration the renewal One, we the of ultimate to into want assurances. get to strategies that’s and things. come contract the with people of that you some a from some I

to the for that in at to We also our fix my we script, turnaround see relative we product some captain can opportunity demand faster the relative go the sooner issue, is extremely the can back high. our said capacity. that I

in can just next that’s two, of aggressive which left significant pulling could You we there’s other means think out get that not there are tremendous see capacity, us amount to down most regional the or going scope, a we be year with. but pretty

those these have that a all a gradual any deliver, but communities looking of costs, is So And that’s write small more I demand today, way for conversations would We don’t strong wonderfully it going particularly and in the is any the to just of the this out without we’re process. so that to and go because of suggest into overnight. partner easier not midsized we getting for check at the nuts happen going of kind can bolts. that’s flying, it the

like It queue. kind Delta seems that, you than like and than you’re see hours I’m to to into Last bit this from sequential confidence. good. I’m more a on timeline it of before little kind of seems earlier of at service have Q American XQ function been back guessing were operations drop gaining like seasonal. on get one, on that the thinking year. It up block just X faster I following it’s the you’re seems a more surprised

conservatism in So Or is is of there in missing something there that there? forecast? that I’m a lot

Yes Savi this Wade. is

we’ve There fives couple no really first the differences been American seven of in timeline the of last Delta, our with coming timelines one for is in. quarters, very about the So that. been been part the question consistent of have saying your and those

about, crew in is the there As forward, through that right far working a now. talked script, our we as guidance as we’re imbalance coming

We’re conservative it. we’re are as looking modeling it obviously we at

do next the to we that stabilize through up quarters. imbalance sure the and working crew But trying fleet We’re over to several there going can is that best are forward. we the

next take question from We’ll Bank. our with Michael Linenberg Deutsche

do rates? I Good still to sort timing? of you of, years? two, afternoon, new on but like guys. know rates of side, are until pilot, question good since a the union that trying ‘XX we a there seeing we’re industry. that’s not on in have across kind things for your a next usually negotiate have the renew up contract you what’s kind rates Is agreement? time I just then want and they’re several bump where to you going if guys said, a things to whether of I’m by renew, Like Savi’s back don’t up show class or pay meaningful then year not ‘XX, the go think it’s on frankly, you are said, it’s, to you to in just of and see place the sense kind over set fact, the replaced structure And pilot where and discuss some get Chip, know ‘XX, of And or want etc. just I a in entire that we’re go agreements, I back

Mike, again. Yes, Chip this is

that bargaining current with year. structured at other a our clear, the expires be agreement pilots this end have collective like we any of contract very agreement But clear Just pilots. to with is our

various a lot focus of the pilots the in is captain about and And months, our and of our the world, a industry. There lot aspects of the those is of with long the conversation it’s last types We package things. on process. clearly on a have retention side over in going concerns been several

look, intend pretty we’ve our so. not expiration We we were anyway. here open to, if even to have contract pilot always feel we’ve of the something probably within probably And of next past, be this we an given the circumstances out we would like intend, in would, if here we So, by agreement we’ve but as or close. things month needed bound I up we’re mean, year, market coming and the done

want and pilot it always element market can and element timing of going the what contract some them to that that where to way it continue of at several to make the our term. last And perm SkyWest, a we So to utilized to care strategy we is, think are and well, the going our long to we’re that’s opportunities take going we our achieved that the we’ve benefit I continue decades what is what contract situation of conversations to in want importantly, go sure But the of a achieve down emphasize is. is long a in that’s do over more we’ve people I we pathway. that’s the, think that’s

And think year then good. from you or versus XX to prorate I block kind I pretty to back strong million come I a And up who it pricing revenue. was March the helpful. X% revenue maybe environment, the really was environment. it as guess, that versus benefiting hours. just that’s of presumably, may going start but a down, that be Okay, XX% reduce talked down strong quarter. was I it under know on to working assumption was you about ago, was Rob Wade is

what me to you that’s you your more hours us the revenue going suggests? by flying did prorate can lot a maybe give the drop So than block tell that

Wade. is this Mike, Yes,

year-over-year. with good. there do. to partners do The small And revenue down side, people the yields seeing hours So very of block stay definitely in what need us strong right what to gone we prorate are very are we the major are these and very our have now. are strong. is, lot The is Really communities, on a is working similar to demand in prorate the quarter-over-quarter, the

prorate our on good. environment very is revenue the So

yields And of so these over of yield. We’ve look well. really last communities pretty And a as into and good the very a we looks it strong just as it’s QX couple lot quarters. the seen forward

know And I then just sorts investments. interesting of making you’ve lastly, been all

dreamed Did that remember company? express? a this highlighted Eve gain. a if but another of I or You make own the you can’t airways you? on another regional not, I deal you southern piece carrier. Maybe piece Did of guys

is Mike, Wade this again.

and So helping several plans we’re [Indiscernible] them they’re growing, yes, we’ve good moving things. with combination they’re and of they’re years a ago, strategic that made an doing good their investment a and lot And partner, southern whole how they’re forward. in

them. do So yes, own we

And Wade they are carrier? XXX

operate primarily they certificate. right. under caravans there, XXX That’s are They

make sense ever you Would makes be mainland want it do to them it to of sense Or to backbone novo on de use charter the maybe a the this operation? operation? more

the is Michael, significant the strategically to today were we some mean, have serving I invested a bigger this these all sure for of think to we’re to we this, and that as no we communities with we care which the in relative amount them serve, we invested want of fleet make We’ve have of. years. it’s assets out communities. that that look, that Chip, deeply CRJ-XXX. doubt of there’s relative a I Look, conversation the and primarily to in we back in communities. part take want to It’s that utilize

XX southern to CRJ-XXX commuter may a and it seat Sometimes to it. sense utilize sense makes authority some a have backfills, make do we that

to what amount best of the So about importantly, relative part to the a flexibility current our these amount some expertise, lot relationships, partners got to try of things out given and of environment. a is other tremendous with it with tremendous business work including we’ve most our assets, the situation is, of

Thanks, Thanks Wade. Chip. Thanks, everyone.

Helane We’ll with Becker from take our next Cowen. question

carrier? application everybody. for you been Hi, there’s Can the say with Thanks the operator. update part if on XXX FAA the the much any time. very Thanks on

June had with this authority many application communities and the we Right filed through Wade. the in They’re put is working support there. of now application that we’re We of middle the letters reviewing the in it. currently DOT. commuter Helane, on for

months, the all this authority So and be next some of to buying we’ll we’ll the start able hopefully get commuter flights. in couple sorted out

Yes. about Is how Is it? event. that should should fourth a way it’s like quarter we first we there just quarter think

that still are as operate And We’re well believe, charter you timing charter to start that the during tell we this going through this a is during as we working definitely exact demand will some charters. this I year. we demand will a flying time as on charters, on

As things the the as far commuter DOT authority, we’re on still with working through that. some on

know here, So long. to we give flying necessarily too an want I think don’t are it’ll demand shortly. exact on it, working I will we timeframe. on I don’t if charters drag But be hopefully, through But but

That’s right not thinking very that’s or on have, Thank shift I’m about how it a on exceeds And the seems cash like, just I that because position, to maybe Rob the you. right number and cash ask sure cash is. gears one liquidity question for it of level you revenue? going are Can helpful. forward, cash and

the Yes, Helane, should strength of real fact got balance additional advantages than we’ve the got competitive higher we we like think industry, and of the for of that think about likely that And months level strength of given think But the to couple has there of that one whatnot. I sheet, a other out position opportunities obviously happy that our we given look, I I the ability usual of XX liquidity it years it’s the our what of our we’re way the last sheet. airplanes frankly, look have that next finance thought through the evolved COVID, to balance think I over our liquidity. going think, is as arise we’ve that having one it’s

that that know helps through all it’s competitive hasn’t our you really of budged our of cash COVID. us. frankly, really one it’s And I debt advantages As like net think of

have Raymond Please a ahead. question follow Syth James. go from We Savi up with

thought where Thanks United call for which the probably current just they curious, get up to regional mix, their I smaller. situation a mentioned the a of I is accelerating on they kind from would follow lot here. know,

with of that of think if maybe years the I kind of had interest think Clearly I the conversations wind XX you and flying down I or orgies big continuing over CRJs-XXX that they’ve large wonder talked about if have, half you’ve of any fans couple those And being of the about CRJ-XXX expect think to United. kind size. here. I it on do still, the you with kind next

I that our strategy and carrier dynamic years. And what the at very next think seconds least reiterate couple think just a of also Savi going two Yes mix are fleet take strategies would over I be to to I regional is. as

flying I news there’s I think regional going talking demand a away, lot opposite. world of because we is flying. And it about regional is the less exact for not of in because the it’s think see being the

that’s can aggressive fill And the sure going going be constraint. be and why we we’re demand. to supply is that to a of that flying I think regional making

to what larger CRJ-XXX fit to want Certainly, our charter do partners. particularly the charters. there’s XXX conversations carry, within CRJs it major they are and very about So XXX. capacity relative operation, we and that when can comes well CRJ-XXX, the with dual the lot class, priority flying of a the to the

And fleet look, way. it’s a that so way of all dynamic and continue sort stay to about to conversation the is around going

had We we’ve at more charter surprised the of some been public operation we’ve interest since last And in more quarter. have this about been development than our more it.

interest We it. surprised pilot about are in

opportunity move And in going over. and of about an and prioritize that to this to class fleet we’re all XXX want But a that also we’re are it the thing us it. lot it there’s dual interest at surprised mean excited about gives parties We surprised to we’re work certainly be community the flexible SkyWest. now. Doesn’t

a segue good next question. to my That’s

and feasible kind becomes XXX that, was in think I fairs I the mean, on in perhaps or just you guessing I’m should start asking selling it with like off follow that we seems and can our part to there you investment that of that operation it those be would that infrastructure in what feasible, able of, ground? versus So lining, the majors have much you or when but starting how up some be the to Helane maybe systems to leverage like think today place you becomes opportunity to how off if opportunity have needs get about place

model of leverage to the developed and give charter of that model a doing the XX airlines with. to to when apply is There’s the me that not, are of authority it to exact business a the people what need There remember, our over you with do this is out this all we’re be years, XXX, exact we’re invented. let other the is don’t lot a an we’re we flying that perspective the it that needs operate from with. This same are this seeking you trying business same at SkyWest perspective of not charters that not business to charter level this other And about and that expertise This past let’s some as to anything service. safety pioneering of model. existing there has today Well, relative scheduled operators in to carriers SkyWest the DOT to talk do. thing do have authority

start that don’t that perspective, our intellectual have the up off you the we or property So most the you you don’t don’t or the get transition when an relationships ground. usually about the or when or difficult to it pilot have the thing you leveraging, airline talk connections have from that pipelines is

of out that knock the will park. We

of all things in those have place. We

in business this and and assets SkyWest model. the outside strong And amazed We expertise, is in deeply we’re stuff. our expertise interest at have many very strong and again, coming up this is back of very interested

And do. But model be our us to not this we baseline some we let great the certainly on we’re to so assets a that have. is from going model perspective, expertise what ever opportunity it some is capitalize and for

forward operations. other to interest So QX charter continue think high. we I with chartering said to, continue on I very to employee from And perspective, of some basically that looking DOT we’ll a the do Like expect get we’ll develop and this authorities model. to work timeline in to very, it, the business demand Wade is we’re this said,

question a follow in little of there. dumb a up, just bit probably And a

out pilots how, So of build captain help for what to needing Like, XXX get? side and What Like, that And supply kind the you they hour through bridge you how SkyWest? into I what this will hours up. be? the is do if kind a things? moving would address kind opportunity great to help coming of this about gap think see here will pilots with and of they how of

to interest because becomes we Savi, say, applications of and intriguing go suggest And a industry. this experienced XX% captain existing of in relative pilots hours. see going SkyWest captain operation. The XXXX is that look, supply of the pipeline to in would lot to is the in backwards available captains I’m us supply. the pilots that that it’s and this been from we’ve want what are participate most that seen to this there that I our in have

of this would have with lot how side SkyWest of out fundamentally out But I to works on that’s out of flow work thing we supply of captain help we work commercial we got in this. operation. a and We have pilots it SMS as like would the just important run something the I assure operator. that how of systems. will to run do the captains. side it how And this need that about does XXX charter to still pilots a We intend extent to you run you I figure the think the create captains think exactly because to So

standards, systems, We that It’s fail out several actually important of courses. operation hours. initial XXX over They’re to the exact have board. we every have And will by SkyWest very qualified FAA well they to will systems, accountability XXXX training standard. continue meet our the but year And note standard. single charter this to the pilots will have that same standard for they we don’t ASAP SkyWest airlines, be voluntary

forms as some I getting other is are demand looking That airlines said, opportunity, prime are an we’re facing to excited replace may think So from service as this comes of our that communities perspective, also of A extremely about feedback on a particularly we’re charter great the these alternative out. communities what operator. as having SkyWest for. been this

follow take a will Bank. with Deutsche We from Michael question up Linenberg

seem I operation. you’re the that looking the on their small be and you to discontinue first with also you lot services work, regional want partners, nine small a foremost, the would that pulling charter service well. carriers and there those still one DOT Chip, to to XX that cities. out fact major then just know it a there’s lot of it got back mentioned city XX down as small parties parties cities, takers, of but other have And of would you given

they lots that back charter that So go those this with pulling you’re you Do operation we’re could see way are of service. one? that of cities some of looking operation? looking envisioned Number other is losing backfill two, the number the it into you to same charter would be out airports at

that DOT. tell there Yes, speak are I same out can the the going within of in. there what’s And are some same you can’t we’re Michael, exact this the the and authority just I with nine marketplace. model carrier for back a that coming different out

perspective, our data favorable, that agency, say. the ever from but get particularly opinion, you I I a from So would were don’t government an points know

candid can a is opportunities, be better having seeing XX seats. some seats about there a will that from a secondarily, certainly with what too operation mean, get and been gotten from and because But you at said, CRJ-XXX to still upside could so not with I up yet, we’re how XX an to I that CRJ-XXX XX aircraft be work charter concerned Second XX first much going works. the just but lot the we’ve look than

is and in we XX be the the imbalance withstand continue communities supportive their to maximizing an Airlines going SkyWest through can capacity sure So is that still issue. priority crew doing to we as economically these making can what that CRJs, work seat

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the all questions. thanks. answering Well, for Thanks

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does Thank presentation. And participation. conclude that you today’s for your

now disconnect. may You