SkyWest ends 2007 with 9.2% profit increase

[Nevets]

Seems like what you are saying is that if I negotiate and receive a 10% raise every year but don't have a guaranteed cost of living increase in a long term agreement that I'm not actually getting a raise. Seems like you have a fuzzy math problem.

What negotiation? Who's to say you get to "negotiate" every year? And where do you get the "10% raise every year" bit from? How many years did it take the Brasilia pilots to see ANY COLA? What happened to their 10% raise every year?

Anyways, there is a difference between longevity increase and cost of living increase.

 

[Ben Dover]

At the end of 2005, SkyWest Inc employed 13647 at SKyWest and ASA and had a total wage, salry, benefits expense of $31,818 per employee.

At the end of 2006, the average exmployee expense was $46,639.

That is a year over year increase of 46.6%. I doubt the average pilot saw that kind of increase. I further believe the average pilot will see a much larger than 1% increase in his W-2 due to advancement and longevity.

Andy,
While your information is interesting, I'm not sure it reveals anything other than the ratio of expenses to employees went up.

As you recall expenses include things like fuel reimbursement, and the cost of opening new stations. It would also include employee compensation & benefits. Without a little more data, it may be premature to assume how much of that money went to employees.

 

[hoover]

Their profits rose, but so did their costs. In the end they got a return on investment of about 4.7%...for both years.