Segment Reporting

3 Months Ended

Mar. 31, 2024

Segment Reporting

Segment Reporting

(6) Segment Reporting

The Company’s two reportable segments consist of (1) the operations of SkyWest Airlines and SWC (collectively, “SkyWest Airlines and SWC”) and (2) SkyWest Leasing activities.

The Company’s chief operating decision maker analyzes the profitability of operating new aircraft financed through the issuance of debt, including the Company’s E175 fleet, separately from the profitability of the Company’s capital deployed for ownership and financing of such aircraft. The SkyWest Airlines and SWC segment includes revenue earned under the applicable capacity purchase agreements attributed to operating such aircraft and the respective operating costs. The SkyWest Airlines and SWC segment also includes revenue and operating expenses attributed to other flying agreements and airport services agreements. The SkyWest Leasing segment includes applicable revenue earned under the applicable capacity purchase agreements attributed to the ownership of new aircraft acquired through the issuance of debt and the respective depreciation and interest expense of such aircraft. The SkyWest Leasing segment also includes the activity of leasing regional jet aircraft and spare engines to third parties and other activities. The SkyWest Leasing segment’s total assets and capital expenditures include new aircraft acquired through the issuance of debt and assets leased to third parties. Additionally, aircraft removed from SkyWest Airlines’ operations and held for sale are included in the SkyWest Leasing segment.

The following represents the Company’s segment data for the three-month periods ended March 31, 2024 and 2023 (in thousands):

	Three months ended March 31, 2024
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues (1)	$	646,809	$	156,805	$	803,614
Operating expense		641,363		62,745		704,108
Depreciation and amortization expense		36,108		59,762		95,870
Interest expense		3,476		26,353		29,829
Segment profit (2)		1,970		67,707		69,677
Total assets (as of March 31, 2024)		2,608,104		4,374,639		6,982,743
Capital expenditures (including non-cash)		44,350		—		44,350

	Three months ended March 31, 2023
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues (1)	$	568,173	$	123,658	$	691,831
Operating expense		633,392		63,143		696,535
Depreciation and amortization expense		38,258		55,891		94,149
Interest expense		4,062		29,558		33,620
Segment profit (loss) (2)		(69,281)		30,957		(38,324)
Total assets (as of March 31, 2023)		2,629,521		4,604,240		7,233,761
Capital expenditures (including non-cash)		21,111		86,810		107,921

(1) Prorate revenue and airport customer service revenue are reflected in the SkyWest Airlines and SWC segment.

(2) Segment profit (loss) is equal to operating income less interest expense.