SkyWest Airlines 2012 Annual Report Download - page 59

profit contain 50 days of ExpressJet Delaware operating results. Therefore, the 2010 amounts represent
Atlantic Southeast’s operating results and 50 days of ExpressJet Delaware’s operating results.
2011 2010 $ Change % Change
Amount Amount Amount Percent
Operating Revenues:
SkyWest Airlines operating revenue ............ $2,002,830 $1,904,472 $ 98,358 5.2%
ExpressJet operating revenues ................ 1,640,837 855,095 785,742 91.9%
Other operating revenues ................... 11,256 5,578 5,678 101.8%
Total Operating Revenues .................... $3,654,923 $2,765,145 $ 889,778 32.2%
Airline Expenses:
SkyWest airlines expense .................... $1,944,816 $1,813,406 $ 131,410 7.2%
ExpressJet airlines expense .................. 1,739,623 832,043 907,580 109.1%
Other airline expense ...................... 9,762 4,387 5,375 122.5%
Total Airline Expense(1) ...................... $3,694,201 $2,649,836 $1,044,365 39.4%
Segment profit (loss):
SkyWest Airlines segment profit .............. $ 58,014 $ 91,066 $ (33,052) (36.3)%
ExpressJet segment profit (loss) ............... (98,786) 23,052 (121,838) (528.5)%
Other profit ............................. 1,494 1,191 303 25.4%
Total Segment Profit (Loss) ................... $ (39,278) $ 115,309 $ (154,587) (134.1)%
Interest Income ............................ 8,236 14,376 (6,140) (42.7)%
Purchase Accounting Gain (Adjustment) .......... (5,711) 15,586 (21,297) (136.6)%
Other ................................... (13,417) 630 (14,047) (2229.7)%
Consolidated Income (Loss) Before Taxes ......... $ (50,170) $ 145,901 $ (196,071) (134.4)%
(1) Total Airline Expense includes operating expense and interest expense
SkyWest Airlines Segment Profit. SkyWest Airlines segment profit decreased $33.1 million, or
36.3%, during the year ended December 31, 2011, compared to the year ended December 31, 2010.
The decrease in SkyWest Airlines’ profit was due primarily to aircraft maintenance expense, excluding
reimbursed engine overhauls, which increased $27.6 million during the year ended December 31, 2011,
compared to the year ended December 31, 2010.
ExpressJet Segment Profit(Loss). ExpressJet segment loss was $98.8 million during the year ended
December 31, 2011, compared to a segment profit of $23.1 million for the year ended December 31,
2010. The decrease in ExpressJet’s profit was due to the following factors:
• On November 12, 2010, the Company acquired ExpressJet Delaware. ExpressJet Delaware
incurred a segment loss of $45.5 million during the year ended December 31, 2011, primarily
due to integration inefficiencies and duplicate cost structures during 2011.
• ExpressJet’s CRJ aircraft maintenance expense, excluding reimbursed engine overhauls,
increased $26.5 million, during the year ended December 31, 2011, compared to the year ended
December 31, 2010.
• ExpressJet’s CRJ non-pass through operating revenue decreased primarily due to the
implementation of the second lowest rate provision in the ExpressJet Delta Connection
Agreement that was agreed upon during the fourth quarter of 2010.
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