SkyWest Airlines 2009 Annual Report Download - page 47

Results of Operations
2009 Compared to 2008
Operational Statistics. The following table sets forth our major operational statistics and the
associated percentages-of-change for the periods identified below.
Year Ended December 31,
2009 2008 % Change
Revenue passenger miles (000) .......................... 17,448,958 17,101,910 2.0
Available seat miles (‘‘ASMs’’) (000) ...................... 22,142,650 22,020,250 0.6
Block hours ........................................ 1,363,257 1,376,815 (1.0)
Departures ......................................... 870,761 872,288 (0.2)
Passengers carried .................................... 34,544,772 33,461,819 3.2
Passenger load factor ................................. 78.8% 77.7% 1.1pts
Revenue per available seat mile .......................... 11.8¢ 15.9¢ (25.8)
Cost per available seat mile ............................. 11.2¢ 15.2¢ (26.3)
Fuel cost per available seat mile ......................... 1.8¢ 5.5¢ (67.3)
Average passenger trip length (miles) ...................... 505 511 (1.2)
Revenues. Operating revenues decreased $882.6 million, or 25.2%, during the year ended
December 31, 2009, compared to the year ended December 31, 2008. We are reimbursed for our actual
fuel costs by our major partners under our contract flying arrangements. For financial reporting
purposes, we record these reimbursements as operating revenue. Under the SkyWest Airlines and ASA
Delta Connection Agreements, we are reimbursed for our engine overhaul expenses. We also record
those engine overhaul reimbursements as operating revenue. The following table summarizes the
amount of fuel and engine overhaul reimbursements included in our passenger revenues for the periods
indicated (dollar amounts in thousands).
Year Ended December 31,
2009 2008 $ Change % Change
Passenger revenues .......................... $2,582,238 $3,466,287 $(884,049) (25.5)%
Less: Fuel reimbursement from major partners ...... 360,309 1,185,201 (824,892) (69.6)%
Less: Engine overhaul reimbursement from major
partners ................................ 112,556 120,101 (7,545) (6.3)%
Passenger revenue excluding fuel and engine overhaul
reimbursements ........................... $2,109,373 $2,160,985 $ (51,612) (2.4)%
Passenger revenues. Passenger revenues decreased $884.0 million, or 25.5%, during the year ended
December 31, 2009, compared to the year ended December 31, 2008. The decrease in passenger
revenues was primarily due to a decrease in fuel reimbursements from our major partners. The fuel
reimbursement from our major partners decreased $824.9 million or 69.6%, during the year ended
December 31, 2009, compared to the year ended December 31, 2008. Our passenger revenues,
excluding fuel and engine overhaul reimbursements from major partners, decreased $51.6 million, or
2.4%, during the year ended December 31, 2009, compared to the year ended December 31, 2008. The
percentage decrease in passenger revenues, excluding fuel and engine overhaul reimbursements, was
more than the percentage increase in ASMs, primarily due to three factors. First, ASA experienced an
abnormally high number of flight cancellations in part due to significant weather related cancellations
in its Atlanta hub during the three months ended March 31, 2009. Additionally, on March 31, 2009, as
a result of an internal audit, ASA grounded 60 CRJ200s in order to perform engine safety inspections
in accordance with the manufacturer’s recommendations. ASA cancelled approximately 750 scheduled
flights as a result of the severe weather and aircraft grounding during the first quarter of 2009. As a
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