SkyWest Airlines 2013 Annual Report Download - page 53

•SkyWest Airlines’ legal expense increased by $2.8 million. The increase in legal expense was
primarily related to the settlement of our dispute with Delta regarding non-revenue positive
space flying by employees of SkyWest Airlines and ExpressJet.
• SkyWest Airlines’ aircraft maintenance expense, excluding reimbursed engine overhauls increased
by $26.7 million, or 12.5%, during the year ended December 31, 2013, compared to the year
ended December 31, 2012, which was primarily attributable to an increase in scheduled
maintenance events and the replacement and repair of aircraft parts and components.
• SkyWest Airlines’ ground handling service expense increased $9.3 million, or 12.6%, during the
year ended December 31, 2013, compared to the year ended December 31, 2012. The increase
in ground handling service expense was primarily due to SkyWest Airlines outsourcing the
customer service and ramp functions of several pro-rate stations.
ExpressJet Segment Loss. ExpressJet segment loss increased $30.5 million, or 165.5%, during the
year ended December 31, 2013, compared to the year ended December 31, 2012. The increase in
ExpressJet segment loss was due primarily to the following factors:
• ExpressJet’s aircraft maintenance expense, excluding reimbursed engine overhauls increased by
$45.7 million, or 20.6%, during the year ended December 31, 2013, compared to the year ended
December 31, 2012, which was primarily attributable to an increase in scheduled maintenance
events and the replacement and repair of aircraft parts and components.
• ExpressJet’s salaries, wages and employee benefits increased $19.4 million, or 3.1%, during the
year ended December 31, 2013, compared to the year ended December 31, 2012, primarily due
to increased block hour production.
• ExpressJet’s depreciation and amortization expense decreased $8.7 million, or 8.9%, during the
year ended December 31, 2013, compared to the year ended December 31, 2012, primarily due
to certain rotable assets being fully depreciated during the year ended 2013 and a lower volume
of capital expenditures.
• ExpressJet’s non-pass-through operating revenue increased by $25.3 million, or 2.4%, during the
year ended December 31, 2013, compared to the year ended December 31, 2012. The increase
in non-pass through operating revenue was primarily due to an increase in block hour
production offset by a reduction in contract performance incentives.
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,
2013 2012 % Change
Revenue passenger miles (000) .......................... 31,834,735 30,088,278 5.8%
Available seat miles (‘‘ASMs’’) (000) ...................... 39,207,910 37,278,554 5.2%
Block hours ........................................ 2,380,118 2,297,014 3.6%
Departures ......................................... 1,453,601 1,435,512 1.3%
Passengers carried .................................... 60,581,948 58,803,690 3.0%
Passenger load factor ................................. 81.2% 80.7% 0.5 pts
Revenue per available seat mile .......................... 8.4¢ 9.5¢ (11.6)%
Cost per available seat mile ............................. 8.2¢ 9.2¢ (10.9)%
Fuel cost per available seat mile ......................... 0.5¢ 1.1¢ (54.5)%
Average passenger trip length (miles) ...................... 525 512 2.5%
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