SkyWest, Inc. 2010 Q4 Earnings

[XPOO]

Nothing glorified about it, spooge monkey. Get back to your job of being the flight crew's biyatch.

Sir, yes, sir! 15 hour duty day? Multiple aircraft swaps? APU and pack deferrals? Your wish is my command.

 

[russtgol]

Glad there is all that metal over there. With oil heading up we sure could use some scrape for beer cans.

Why would you need scrape for beer cans nimnuts?

 

[On Your Six]

Move SkyWest INC. to the MAJORS Board....

$804 million in cash
704 Aircraft.

450 of those planes are unprofitable with high oil prices. If oil stays high, they could be parked. The cash pile would shrink.



OYS

 

[BoilerUP]

If oil stays high

It won't - oil is up on geopolitical concerns (read that as FEAR), not any actual substantive decrease in output from OPEC member countries.

As long as nobody shoots at Israel, oil will likely come back down in the 80-90/bbl trading range inside of 6 months.

 

[On Your Six]

It won't - oil is up on geopolitical concerns (read that as FEAR), not any actual substantive decrease in output from OPEC member countries.

As long as nobody shoots at Israel, oil will likely come back down in the 80-90/bbl trading range inside of 6 months.

80 is still too high for RJs. It needs to be below 50 for the 50 seaters. Think of you guys as Alamo Rental with a bunch of 1990 Ford Tauruses. Analysts and passengers hate them, and Mainline CEOs are starting to join the party too. A particular CEO just bragged during a conference call that he had parked 120 of them, and more are on they way out. Mainline scope won't get any more loose to allow you to replace all of them with larger planes too. Not good for you. Enjoy the pile of cash for now. Buying up the competition (XJT and ASA) is just temporarily delaying the inevitable.



OYS

 

[nimtz]

Why would you need scrape for beer cans nimnuts?

Hopefully it doesn't come to that. Check the uptrend through the recession professor. EM growth still has alot to run over the next 20 years. I'm all for bringing more supply to beer cans especially if it downsizes Uncle Jerry's Super Best Friends Club.

http://www.infomine.com/chartsanddata/chartbuilder.aspx?z=f&g=127675&dr=3y

 

[homerjdispatch]

Hopefully it doesn't come to that. Check the uptrend through the recession professor. EM growth still has alot to run over the next 20 years. I'm all for bringing more supply to beer cans especially if it downsizes Uncle Jerry's Super Best Friends Club.

http://www.infomine.com/chartsanddata/chartbuilder.aspx?z=f&g=127675&dr=3y

Uhhhhh...... Im pretty sure he was making fun of scrap spelled scrape....

 

[XPOO]

80 is still too high for RJs. It needs to be below 50 for the 50 seaters. Think of you guys as Alamo Rental with a bunch of 1990 Ford Tauruses. Analysts and passengers hate them, and Mainline CEOs are starting to join the party too. A particular CEO just bragged during a conference call that he had parked 120 of them, and more are on they way out. Mainline scope won't get any more loose to allow you to replace all of them with larger planes too. Not good for you. Enjoy the pile of cash for now. Buying up the competition (XJT and ASA) is just temporarily delaying the inevitable.



OYS

This is why United wants their routes back that Uncle Jerry is making loads of cash on with his at-risk flying?

 

[xjlifer]

Reading flight info= Lather Rinse Repeat....or Blaa Blaa Blaa

 

[BoilerUP]

80 is still too high for RJs. It needs to be below 50 for the 50 seaters. Think of you guys as Alamo Rental with a bunch of 1990 Ford Tauruses. Analysts and passengers hate them, and Mainline CEOs are starting to join the party too. A particular CEO just bragged during a conference call that he had parked 120 of them, and more are on they way out. Mainline scope won't get any more loose to allow you to replace all of them with larger planes too. Not good for you. Enjoy the pile of cash for now. Buying up the competition (XJT and ASA) is just temporarily delaying the inevitable.

They seemed to be doing just fine the last year when oil was in the 50-80/bbl range.

I fly corporate, so I really don't have skin in the game with regards to the price of fuel and the cost effectiveness of 50-seat regional jets.

Its kinda funny reading all the DOOM AND GLOOM here since oil has started to spike the last couple weeks, when that spike is entirely driven by fear, emotion, and speculation. True it causes the price to rise just like a reduction in supply...but it'll be temporary before coming back to earth and then later rising due to true fundamentals.

 

[pipi]

450 of those planes are unprofitable with high oil prices. If oil stays high, they could be parked. The cash pile would shrink.



OYS

Really? It seems to me both Delta and Skywest were profitable last quarter. So those 450 airplanes must not be doing that bad for both companies. Fuel is not everything. Other than fuel, operational costs are a lot lower on the Skywest side than the Delta side. If oil stays high or climbs higher, the recession will deepen again, and Delta could be parking lots of airplanes.

 

[DHPFLYN]

Unfortunately, the payroll of the employees does not reflect in an equal manner.

Therefore, we are still just a regional airline.

No wait, a SUPER REGIONAL AIRLINE!!!

Actually only Express Jet and ASA are part of the Super Regional.

SUPER REGIONAL make you want to PUKE

 

[On Your Six]

Really? It seems to me both Delta and Skywest were profitable last quarter. So those 450 airplanes must not be doing that bad for both companies. Fuel is not everything. Other than fuel, operational costs are a lot lower on the Skywest side than the Delta side. If oil stays high or climbs higher, the recession will deepen again, and Delta could be parking lots of airplanes.

Notice I said if oil stays this high. Even at $80 the economics aren't good for 50 seaters, hence Delta parking Comair planes at 80. The main reason Skywest has done better is because Tilton at UAL had to ditch 90 737s to make the merger with CAL look smoother, all the while giving away more market share out West to SWA and Virgin America. Skywest can't compete financially (number of seats per plane and lower fares) or comfort wise against VA or even SWA.

OYS

 

[Medeco]

If oil spikes too high and is sustained for any length of time it will crush the world economy and the price of oil will drop to super low.

Not only will Regionals park airplanes, but Majors, etc.. will join the party too.

 

[On Your Six]

If oil spikes too high and is sustained for any length of time it will crush the world economy and the price of oil will drop to super low.

Not only will Regionals park airplanes, but Majors, etc.. will join the party too.

The difference is when RJs are parked, they usually stay parked. Delta has recently brought back every 757 and 767 they parked back in 09. Yes, they did recently park some Dc9s, but they flew for 40 years, vs RJs who came online after 1996.


OYS