SkyWest flies as United Express, American Eagle, and Delta Connection. They’re a large passenger airline operating regional jets and they actually made money during the first quarter. That’s because the major airlines largely pay them for capacity whether there are passengers or not.
They made $30 million, and have $578 million in liquidity. Still, there’s going to be some declines in their business this year.
- SkyWest flies 55 Bombardier CRJ-200s for Delta and the agreement on those ends throughout 2020. Obviously Delta isn’t going to renew this. The airline is returning the 19 that belong to Delta, and parking the other 36 which SkyWest owns outright and has fully depreciated.
- They also have 13 Bombardier CRJ-700s that were supposed to be leased to an airline where that hasn’t happened yet, so there’s risk in these aircraft.
Their next biggest risk may be bankruptcy on the part of one of their airline partners, that would allow the airline to reject its contracts with SkyWest.
Nonetheless despite making money SkyWest will receive $438 million in CARES Act payroll support ($337 million in direct grants) and has applied for $497 million in subsidized CARES Act loans.
They certainly do not have the growth prospects they had before the pandemic but shouldn’t an airline at least lose money before getting a government bailout?
I love that this blog aims vitriol at the airlines for taking the money rather than the govt for clearly defining requirements to take it. Unfortunately businesses aren’t run by leaders looking out for the greater good, but to blame them for taking what they’re offered is just silly.
@Robert, you don’t think that the airlines deployed lobbyists to have that language inserted? Congress didn’t come up with those provisions in a vacuum. They all deserve vitriol for their crony capitalist BS.
What the article didn’t mention is that almost half of the pilots and flight attendants at Skywest have taken voluntary time off to avoid furloughs keeping the rest working. They efficiently cut where needed early to keep smaller regional airports getting essential air service.
@J, even if it were true that the airlines lobbied to get funds whether profitable or not, which you claim without proof, that doesn’t change anything. If your 5-year-old cries and asks for candy bars all day and you feed it to him or her, are you to blame or is your child to blame?
@JackE, if you are comparing airline executives bribing politicians to a 5 year old throwing a tantrum, then yes, your point is well made. If you hold corporate executives to a somewhat higher standard than a poorly behaved 5 year old, then some (maybe even most ) responsibility should fall on them.