SkyWest Airlines 2005 Annual Report Download - page 36

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Results of Operations
2005 Compared to 2004
Operating Statistics. The following table sets forth our major operational statistics and the percentage-of-change for the years
identified below.
Year ended
December 31,
2005 2004 %Change
Passengers carried 20,343,975 13,424,520 51.5
Revenue passenger miles (000) 9,538,906 5,546,069 72.0
Available seat miles (000) 12,718,973 7,546,318 68.5
Passenger load factor 75.0% 73.5% 1.5 pts
Passenger breakeven load factor 68.6% 65.5% 3.1 pts
Yield per revenue passenger mile 20.3¢ 20.5¢ (1.0)
Revenue per available seat mile 15.4¢ 15.3¢ 0.7
Cost per available seat mile 14.1¢ 13.6¢ 3.7
Fuel cost per available seat mile 4.6¢ 3.3¢ 39.4
Average passenger trip length (miles) 469 413 13.6
Our total ASMs generated during the year ended December 31, 2005 increased 68.5% from the year ended December 31,
2004. The increase in ASMs was primarily a result of increasing the size of our aircraft fleet, including our acquisition of ASA,
from 206 aircraft as of December 31, 2004, to 380 aircraft as of December 31, 2005. On the date we acquired ASA, ASA’s fleet
consisted of 149 aircraft (35 CRJ700s, 102 CRJ200s and 12 ATRs). In addition to the aircraft acquired in connection with the
acquisition of ASA, we took delivery of 30 CRJ 700s and two CRJ200s during the year ended December 31, 2005.
Net Income. Net income increased to $112.3 million, or $1.90 per diluted share, for the year ended December 31, 2005,
compared to $81.9 million, or $1.40 per diluted share, for the year ended December 31, 2004. Factors relating to the change in
net income are discussed below.
Operating revenues increased 69.9% for the year ended December 31, 2005, compared to the year ended December 31, 2004.
The increase in total operating revenues was primarily due to the acquisition of ASA. Airline operating and interest expenses,
excluding fuel charges, per ASM decreased 7.8% to 9.5¢ for the year ended December 31, 2005, from 10.3¢ for the year ended
December 31, 2004. The primary reason for the decrease was the increased capacity of our regional jet aircraft and the increase in
stage lengths flown by our regional jet aircraft.
Passenger Revenues. Passenger revenues, which represented 98.7% of consolidated operating revenues for the year ended
December 31, 2005, increased 70.1% to $1.94 billion for the year ended December 31, 2005, from $1.14 billion, or 98.6% of
consolidated operating revenues, for the year ended December 31, 2004. Our passenger revenues, excluding fuel reimbursements
from major partners, increased 51.9% for the year ended December 31, 2005. The increase in passenger revenues excluding fuel
was primarily due to a 68.5% increase in ASMs, principally as a result of our increase in operating aircraft to 380 aircraft as of
December 31, 2005, from 206 aircraft as of December 31, 2004. Revenue per ASM increased 0.7% to 15.4¢, from 15.3¢ for the
year ended December 31, 2004, primarily due to an increase in fuel reimbursements from our major partners. Passenger revenues
include an amount designed to reimburse us for aircraft ownership costs. The amount deemed to be rental income for the year
ended 2005 was $308.3 million.
Passenger Load Factor. Passenger load factor increased to 75.0% for the year ended December 31, 2005, from 73.5% for the
year ended December 31, 2004. The increase in load factor was due primarily to the further development of our relationships
with United and Delta whereby SkyWest supplements mainline service in previously established and developed markets.
Additionally, we are experiencing higher passenger acceptance of our regional jet aircraft.