SkyWest Airlines 2015 Annual Report Download - page 51

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The following table sets forth our segment data for the years ended December 31, 2015 and 2014 (in
thousands):
2015 2014 $ Change % Change
Amount Amount Amount Percent
Operating Revenues:
SkyWest Airlines operating revenue ......... $ 1,848,363 $ 1,873,675 $ (25,312) (1.4)%
ExpressJet operating revenues .............. 1,169,923 1,346,859 (176,936) (13.1)%
SkyWest Leasing operating revenues . . . . . . . . 77,277 16,913 60,364 356.9 %
Total Operating Revenues .................... $ 3,095,563 $ 3,237,447 $ (141,884) (4.4)%
Airline Expenses:
SkyWest Airlines airline expense ........... $ 1,666,341 $ 1,797,596 $ (131,255) (7.3)%
ExpressJet airlines expense ................ 1,204,161 1,464,804 (260,643) (17.8)%
SkyWest Leasing airline expense ........... 66,396 16,194 50,202 310.0%
Total Airline Expense(1) ..................... $ 2,936,898 $ 3,278,594 $ (341,696) (10.4)%
Segment profit (loss):
SkyWest Airlines segment profit ............ $ 182,022 $ 76,079 $ 105,943 139.3%
ExpressJet segment loss ................... (34,238) (117,945) 83,707 (71.0)%
SkyWest Leasing profit (Loss) ............. 10,881 719 10,162 NM
Total Segment Profit (Loss) .................. $ 158,665 $ (41,147) $ 199,812 (485.6)%
Interest Income ............................ 1,997 4,096 (2,099) (51.2)%
Other Income (Expense), net ................. 33,660 20,708 12,952 62.5%
Consolidated Income (Loss) Before Taxes . . . . . . $ 194,322 $ (16,343) $ 210,665 NM
(1) Total Airline Expense includes operating expense and interest expense
NM: Change more than 1,000%
SkyWest Airlines Segment Profit. SkyWest Airlines segment profit increased $105.9 million, or 139.3%, during
the year ended December 31, 2015, compared to the year ended December 31, 2014. The SkyWest Airlines 2014
segment included $57.0 million of special item expenses associated with the removal of the EMB120 aircraft type. The
remaining improvement in the SkyWest segment profit was primarily due to additional contract incentives earned under
its fixed-fee contracts, additional profitability from operating the E175 aircraft and a reduction in fuel costs incurred
under the pro-rate agreements.
SkyWest Airlines block hour production increased to 1,074,809, or 1.4% for the 2015 year from 1,060,147 for
the 2014 year primarily due to the additional block hour production from the new E175 aircraft added subsequent to
December 31, 2014 which was partially offset by a reduction in block hour production from removing the EMB120
aircraft type from service. Significant items contributing to the SkyWest Airlines segment profit are set forth below.
SkyWest Airlines operating revenue decreased by $25.3 million or 1.4%, for the 2015 year compared to the
2014 year. The decrease was primarily due to a decrease in fuel, landing fees, station rents and engine overhaul
reimbursements from major partners. This decrease was partially offset by additional E175 operations along with
improved contract performance incentives.
SkyWest Airlines Airline Expense decreased by $131.3 million, or 7.3% during the year ended December 31,
2015, compared to the year ended December 31, 2014. The decrease in the SkyWest Airlines Airline Expense was
primarily due to the following factors:
• SkyWest Airlines airline expense included an increase in salaries, wages and employee benefits of
$29.1 million, or 4.8%, for the 2015 year compared to the 2014 year, primarily due to the additional block
hour production and related crew training associated with the new E175 aircraft deliveries.