SkyWest Airlines 2013 Annual Report Download - page 57

we record as revenue. The following table summarizes the amount of fuel and engine overhaul
expenses which are included in our total airline expenses for the periods indicated (dollar amounts in
thousands).
For the year ended December 31,
2013 2012 $ Change % Change
Total airline expense ......................... $3,213,272 $3,445,765 $(232,493) (6.7)%
Less: Fuel expense .......................... 193,513 426,387 (232,874) (54.6)%
Less: Engine overhauls Directly-Reimbursed Engine
Contracts ............................... 123,024 159,220 (36,196) (22.7)%
Less: CRJ200 engine overhauls reimbursed at fixed
hourly rate .............................. 39,388 55,183 (15,795) (28.6)%
Total airline expense excluding fuel and engine
overhauls and CRJ200 engine overhauls reimbursed
at fixed hourly rate ........................ 2,857,347 $2,804,975 $ 52,372 1.9%
Excluding fuel and engine overhaul costs and CRJ200 engine overhauls reimbursed at fixed hourly
rates, our total airline expenses increased $52.4 million, or 1.9%, during the year ended December 31,
2013, compared to the year ended December 31, 2012. The percentage increase in total airline
expenses, excluding fuel and engine overhauls, was different than the percentage increase in passenger
revenues, excluding fuel and engine overhaul reimbursements from major partners, due primarily to the
factors described above.
Summary of other income (expense) items:
Other, net. Other, net, increased $21.0 million during the year ended December 31, 2013,
compared to the year ended December 31, 2012. The increase was primarily attributable to the
termination of our aircraft sub-lease with Air Mekong, and our recognition of $5.1 million of other
income primarily due to the maintenance deposits we collected during the nine months ended
September 30, 2013 and sale of our shares of Air Mekong. In conjunction with the sale of the Air
Mekong shares, we recognized a gain of $5.0 million. During the year ended December 31, 2012, we
incurred other expense primarily consisting of losses from our equity investments in TRIP and Air
Mekong.
Interest Income. Interest income decreased $4.2 million during the year ended December 31,
2013, compared to the year ended December 31, 2012. The decrease was primarily due to our receipt
of $49 million of cash from United for amounts previously deferred under the United Express
Agreement. Prior to repayment, the deferred amounts accrued interest at 8%.
Net Income. Primarily due to factors described above, net income increased to $59.0 million, or
$1.12 per diluted share, for the year ended December 31, 2013, compared to $51.2 million, or $0.99 per
diluted share, for the year ended December 31, 2012.
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