SkyWest Airlines 2015 Annual Report Download - page 42

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38
Results of Operations
2015 Compared to 2014
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,
2015 2014 % Change
Revenue passenger miles (000) .................................... 29,671,911 31,499,397 (5.8)%
Available seat miles (“ASMs”) (000) ............................... 35,902,503 38,220,150 (6.1)%
Block hours .................................................... 2,074,804 2,275,562 (8.8)%
Departures ..................................................... 1,226,897 1,357,454 (9.6)%
Passengers carried ............................................... 56,228,593 58,962,010 (4.6)%
Passenger load factor ............................................. 82.6% 82.4 % 0.2pts
Revenue per available seat mile .................................... 8.6¢ 8.5 ¢ 1.2%
Cost per available seat mile ....................................... 8.2¢ 8.6 ¢ (4.7)%
Average passenger trip length (miles) ............................... 528 534 (1.1)%
Revenues. Total operating revenues decreased $141.9 million, or 4.4%, during the year ended December 31,
2015, compared to the year ended December 31, 2014 primarily due to a decrease in our fleet size as further explained in
the passenger revenues section below. Under certain of our fixed-fee flying contracts, certain expenses are subject to
direct reimbursement from our major partners and we record such reimbursements as passenger revenue. These
reimbursed expenses include fuel, landing fees, station rents and certain engine maintenance expenses. Our fuel expense,
landing fees, station rents and directly-reimbursed engine expense decreased by $73.1 million during the year ended
December 31, 2015, as compared to the year ended December 31, 2014, due primarily to (i) our major partners
purchasing an increased volume of fuel, landing fees and station rents directly from vendors on flights we operated under
our fixed-fee flying agreements and (ii) a reduction in the number of engine maintenance events. The following table
summarizes the amount of fuel, landing fees, station rents, and engine maintenance incurred under our fixed-fee
agreements and the direct reimbursement was included in our passenger revenues for the periods indicated (dollar
amounts in thousands).
Year Ended December 31,
2015 2014 $ Change % Change
Passenger revenues ..................................... $ 3,030,023 $ 3,168,000 $ (137,977) (4.4)%
Less: directly-reimbursed fuel from airline partners ........... 41,567 76,675 (35,108) (45.8)%
Less: directly-reimbursed landing fee and station rent from
airline partners ......................................... 22,171 23,800 (1,629) (6.8)%
Less: directly-reimbursed engine maintenance from airline
partners ............................................... 94,142 130,505 (36,363) (27.9)%
Passenger revenue excluding directly-reimbursed fuel, landing
fee, station rent and engine maintenance .................... $ 2,872,143 $ 2,937,020 $ (64,877) (2.2)%
Passenger revenues. Passenger revenues decreased $138.0 million, or 4.4%, during year ended December 31,
2015, compared to the year ended December 31, 2014. Our passenger revenues, excluding fuel, landing fees, station
rents and engine overhaul reimbursements from major partners, decreased $64.9 million, or 2.2%, during the year ended
December 31, 2015, compared to the year ended December 31, 2014. The decrease in passenger revenues, excluding
fuel, landing fees, station rents and engine overhaul reimbursements, was primarily due to the net reduction to our
aircraft in scheduled service from 717 aircraft at December 31, 2014 to 660 aircraft at December 31, 2015 and a
reduction to revenue of $7.9 million from a resolution of a contract matter with a major partner. This decrease was
partially offset by higher compensation we earned on aircraft placed into service during 2015, improvements in the
provisions in certain of our flying contracts since 2014 and additional operational performance incentives earned under
our fixed-fee contracts in 2015.