Segment Reporting

6 Months Ended

Jun. 30, 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 June 30, 2024 and 2023 (in thousands):

	Three months ended June 30, 2024
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues (1)	$	711,784	$	155,334	$	867,118
Operating expense		678,102		69,376		747,478
Depreciation and amortization expense		37,004		59,810		96,814
Interest expense		3,255		25,711		28,966
Segment profit (2)		30,427		60,247		90,674
Total assets (as of June 30, 2024)		2,644,446		4,317,993		6,962,439
Capital expenditures (including non-cash)		40,907		—		40,907

	Three months ended June 30, 2023
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues (1)	$	586,476	$	139,167	$	725,643
Operating expense		624,490		69,293		693,783
Depreciation and amortization expense		37,966		59,203		97,169
Interest expense		4,695		29,023		33,718
Segment profit (loss) (2)		(42,709)		40,851		(1,858)
Total assets (as of June 30, 2023)		2,570,050		4,545,724		7,115,774
Capital expenditures (including non-cash)		25,609		410		26,019

(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.

The following represents the Company’s segment data for the six-month periods ended June 30, 2024 and 2023 (in thousands):

	Six months ended June 30, 2024
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues (1)	$	1,358,593	$	312,139	$	1,670,732
Operating expense		1,319,465		132,121		1,451,586
Depreciation and amortization expense		73,112		119,572		192,684
Interest expense		6,731		52,064		58,795
Segment profit (2)		32,397		127,954		160,351
Total assets (as of June 30, 2024)		2,644,446		4,317,993		6,962,439
Capital expenditures (including non-cash)		85,257		—		85,257

	Six months ended June 30, 2023
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues (1)	$	1,154,649	$	262,825	$	1,417,474
Operating expense		1,257,882		132,436		1,390,318
Depreciation and amortization expense		76,224		115,094		191,318
Interest expense		8,757		58,581		67,338
Segment profit (loss) (2)		(111,990)		71,808		(40,182)
Total assets (as of June 30, 2023)		2,570,050		4,545,724		7,115,774
Capital expenditures (including non-cash)		46,720		87,220		133,940

(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.