Long-term Debt

9 Months Ended

Sep. 30, 2022

Long-term Debt

Long-term Debt

(9) Long-term Debt

Long-term debt consisted of the following as of September 30, 2022, and December 31, 2021 (in thousands):

		September 30, 2022		December 31, 2021
Current portion of long-term debt	$	433,283	$	395,371
Current portion of unamortized debt issue cost, net		(3,858)		(3,573)
Current portion of long-term debt, net of debt issue costs	$	429,425	$	391,798
Long-term debt, net of current maturities	$	3,008,451	$	2,745,567
Long-term portion of unamortized debt issue cost, net		(26,417)		(28,147)
Long-term debt, net of current maturities and debt issue costs	$	2,982,034	$	2,717,420
Total long-term debt (including current portion)	$	3,441,734	$	3,140,938
Total unamortized debt issue cost, net		(30,275)		(31,720)
Total long-term debt, net of debt issue costs	$	3,411,459	$	3,109,218

During the nine months ended September 30, 2022, the Company took delivery of 21 new E175 aircraft that the Company financed through $430.9 million of long-term debt. The debt associated with the E175 aircraft has 5- to 12-year terms, is due in monthly or quarterly installments, and is secured by the E175 aircraft.

During the nine months ended September 30, 2022, the Company executed promissory notes for $167.9 million. The promissory notes have three- to four-year terms, are due in monthly installments with fixed annual interest rates of 3.6% to 4.7% and are secured by spare engines.

As of both September 30, 2022, and December 31, 2021, the Company had $61.4 million in letters of credit and surety bonds outstanding with various banks and surety institutions.

As of September 30, 2022, SkyWest Airlines had a $100 million line of credit with an expiration date of March 25, 2025. The line of credit includes minimum liquidity and profitability covenants and is secured by certain assets. As of September 30, 2022, SkyWest Airlines had no amount outstanding under the facility. However, at September 30, 2022, SkyWest Airlines had $31.4 million in letters of credit issued under the facility, which reduced the amount available under the facility to $68.6 million.

The Company’s debt agreements are not traded on an active market and are recorded at carrying value on the Company’s consolidated balance sheet. The fair value of the Company’s long-term debt is estimated based on current rates offered to the Company for similar debt. Debt is primarily classified as Level 2 within the fair value hierarchy. The carrying value and fair value of the Company’s long-term debt as of September 30, 2022 and December 31, 2021, were as follows (in thousands):

		September 30, 2022		December 31, 2021
Carrying value	$	3,441,734	$	3,140,938
Fair value	$	3,298,578	$	3,132,072