Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-14719 | |
Entity Registrant Name | SKYWEST INC | |
Entity Incorporation, State or Country Code | UT | |
Entity Tax Identification Number | 87-0292166 | |
Entity Address, Address Line One | 444 South River Road | |
Entity Address, City or Town | St. George | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84790 | |
City Area Code | 435 | |
Local Phone Number | 634-3000 | |
Title of 12(b) Security | Common Stock, No Par Value | |
Trading Symbol | SKYW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 50,345,560 | |
Entity Central Index Key | 0000793733 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 231,005 | $ 215,723 |
Marketable securities | 605,438 | 610,185 |
Receivables, net | 43,666 | 34,462 |
Inventories, net | 95,380 | 91,196 |
Other current assets | 23,292 | 31,236 |
Total current assets | 998,781 | 982,802 |
PROPERTY AND EQUIPMENT: | ||
Aircraft and rotable spares | 7,587,004 | 7,527,555 |
Deposits on aircraft | 36,625 | 31,625 |
Buildings and ground equipment | 253,154 | 258,863 |
Total property and equipment, gross | 7,876,783 | 7,818,043 |
Less-accumulated depreciation and amortization | (2,563,123) | (2,455,995) |
Total property and equipment, net | 5,313,660 | 5,362,048 |
OTHER ASSETS: | ||
Operating lease right-of-use assets | 274,025 | 282,362 |
Long-term receivables and other assets | 308,219 | 260,410 |
Total other assets | 582,244 | 542,772 |
Total assets | 6,894,685 | 6,887,622 |
CURRENT LIABILITIES: | ||
Current maturities of long-term debt | 357,463 | 402,158 |
Accounts payable | 315,238 | 278,677 |
Accrued salaries, wages and benefits | 122,715 | 125,944 |
Current maturities of operating lease liabilities | 82,671 | 82,641 |
Taxes other than income taxes | 26,523 | 26,183 |
Other current liabilities | 45,828 | 26,119 |
Total current liabilities | 950,438 | 941,722 |
LONG-TERM DEBT, net of current maturities | 2,748,717 | 2,801,538 |
DEFERRED INCOME TAXES PAYABLE | 639,046 | 625,931 |
NONCURRENT OPERATING LEASE LIABILITIES | 200,598 | 205,845 |
OTHER LONG-TERM LIABILITIES | 174,365 | 173,041 |
COMMITMENTS AND CONTINGENCIES (Note 7) | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, 5,000,000 shares authorized; none issued | ||
Common stock, no par value, 120,000,000 shares authorized; 82,301,551 and 82,094,985 shares issued as of March 31, 2021 and December 31, 2020, respectively | 712,324 | 704,675 |
Retained earnings | 2,087,906 | 2,052,006 |
Treasury stock, at cost, 31,955,991 and 31,913,635 shares as of March 31, 2021 and December 31, 2020, respectively | (618,709) | (617,136) |
Total stockholders' equity | 2,181,521 | 2,139,545 |
Total liabilities and stockholders' equity | $ 6,894,685 | $ 6,887,622 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 82,301,551 | 82,094,985 |
Treasury stock, at cost, shares | 31,955,991 | 31,913,635 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
OPERATING REVENUES: | ||
Total operating revenues | $ 534,555 | $ 729,936 |
OPERATING EXPENSES: | ||
Salaries, wages and benefits | 219,842 | 249,160 |
Depreciation and amortization | 109,597 | 111,708 |
Payroll support grant | (193,173) | |
Other operating expenses | 54,488 | 69,422 |
Total operating expenses | 453,713 | 663,615 |
OPERATING INCOME | 80,842 | 66,321 |
OTHER INCOME (EXPENSE): | ||
Interest income | 284 | 2,564 |
Interest expense | (31,354) | (30,204) |
Other income, net | 216 | 398 |
Total other expense, net | (30,854) | (27,242) |
INCOME BEFORE INCOME TAXES | 49,988 | 39,079 |
PROVISION FOR INCOME TAXES | 14,088 | 9,091 |
NET INCOME | $ 35,900 | $ 29,988 |
BASIC EARNINGS PER SHARE (in dollars per share) | $ 0.71 | $ 0.60 |
DILUTED EARNINGS PER SHARE (in dollars per share) | $ 0.71 | $ 0.59 |
Weighted average common shares: | ||
Basic (in shares) | 50,286 | 50,277 |
Diluted (in shares) | 50,727 | 50,559 |
COMPREHENSIVE INCOME: | ||
Net income | $ 35,900 | $ 29,988 |
TOTAL COMPREHENSIVE INCOME | 35,900 | 29,988 |
Flying agreements | ||
OPERATING REVENUES: | ||
Total operating revenues | 511,191 | 709,494 |
Lease, airport services and other | ||
OPERATING REVENUES: | ||
Total operating revenues | 23,364 | 20,442 |
Aircraft maintenance, materials and repairs | ||
OPERATING EXPENSES: | ||
Total operating expenses | 203,827 | 160,216 |
Airport-related expenses | ||
OPERATING EXPENSES: | ||
Total operating expenses | 24,448 | 30,640 |
Aircraft fuel | ||
OPERATING EXPENSES: | ||
Total operating expenses | 19,194 | 25,413 |
Aircraft rentals | ||
OPERATING EXPENSES: | ||
Total operating expenses | $ 15,490 | $ 17,056 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) shares in Thousands, $ in Thousands | Common StockCumulative Effect, Period of Adoption, as Adjusted | Common Stock | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained EarningsCumulative Effect, Period of Adoption, as Adjusted | Retained Earnings | Treasury StockCumulative Effect, Period of Adoption, as Adjusted | Treasury Stock | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, as Adjusted | Total |
Balance at Dec. 31, 2019 | $ 686,806 | $ 686,806 | $ (11,639) | $ 2,067,540 | $ 2,079,179 | $ (590,971) | $ (590,971) | $ (11,639) | $ 2,163,375 | $ 2,175,014 |
Balance (in shares) at Dec. 31, 2019 | 81,743 | 81,743 | (31,420) | (31,420) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 29,988 | 29,988 | ||||||||
Exercise of common stock options and vested employee stock awards | $ 38 | 38 | ||||||||
Exercise of common stock options and vested employee stock awards (in shares) | 287 | |||||||||
Employee income tax paid on vested equity awards | $ (6,165) | (6,165) | ||||||||
Employee income tax paid on vested equity awards (in shares) | (108) | |||||||||
Sale of common stock under employee stock purchase plan | $ 1,494 | 1,494 | ||||||||
Sale of common stock under employee stock purchase plan (in shares) | 24 | |||||||||
Stock based compensation expense | $ 1,727 | 1,727 | ||||||||
Treasury stock purchases | $ (20,000) | (20,000) | ||||||||
Treasury stock purchases (in shares) | (386) | |||||||||
Cash dividends declared ($0.14 per share) | (7,019) | (7,019) | ||||||||
Balance at Mar. 31, 2020 | $ 690,065 | 2,090,509 | $ (617,136) | 2,163,438 | ||||||
Balance (in shares) at Mar. 31, 2020 | 82,054 | (31,914) | ||||||||
Balance at Dec. 31, 2020 | $ 704,675 | 2,052,006 | $ (617,136) | 2,139,545 | ||||||
Balance (in shares) at Dec. 31, 2020 | 82,095 | (31,914) | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 35,900 | 35,900 | ||||||||
Exercise of common stock options and vested employee stock awards | $ 606 | 606 | ||||||||
Exercise of common stock options and vested employee stock awards (in shares) | 177 | |||||||||
Employee income tax paid on vested equity awards | $ (1,573) | (1,573) | ||||||||
Employee income tax paid on vested equity awards (in shares) | (42) | |||||||||
Sale of common stock under employee stock purchase plan | $ 1,139 | 1,139 | ||||||||
Sale of common stock under employee stock purchase plan (in shares) | 30 | |||||||||
Stock based compensation expense | $ 2,613 | 2,613 | ||||||||
Warrants issued to U.S. Treasury | 3,291 | 3,291 | ||||||||
Balance at Mar. 31, 2021 | $ 712,324 | $ 2,087,906 | $ (618,709) | $ 2,181,521 | ||||||
Balance (in shares) at Mar. 31, 2021 | 82,302 | (31,956) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (Parenthetical) | 3 Months Ended |
Mar. 31, 2020$ / shares | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY | |
Cash dividends declared (in dollars per share) | $ 0.14 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
NET CASH PROVIDED BY OPERATING ACTIVITIES | $ 231,593 | $ 269,483 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of marketable securities | (332,865) | (236,527) |
Sales of marketable securities | 337,612 | 381,142 |
Acquisition of property and equipment: | ||
Aircraft and rotable spare parts | (51,904) | (73,482) |
Buildings and ground equipment | (4,224) | (3,542) |
Proceeds from the sale of property and equipment | 2,150 | 1,366 |
Deposits on aircraft | (5,000) | |
Increase in other assets | (67,176) | (13,970) |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (121,407) | 54,987 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of long-term debt | 39,931 | |
Principal payments on long-term debt | (135,007) | (89,796) |
Net proceeds from issuance of common stock | 1,745 | 1,532 |
Purchase of treasury stock | (20,000) | |
Employee income tax paid on vested equity awards | (1,573) | (6,165) |
Payment of debt issuance cost | (1,664) | |
Payment of cash dividends | (6,039) | |
NET CASH USED IN FINANCING ACTIVITIES | (94,904) | (122,132) |
Increase in cash and cash equivalents | 15,282 | 202,338 |
Cash and cash equivalents at beginning of period | 215,723 | 87,206 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 231,005 | 289,544 |
Non-cash investing and financing activities: | ||
Acquisition of rotable spare parts | 1,380 | 34,100 |
Warrants issued to U.S. Treasury | 3,291 | |
Cash paid during the period for: | ||
Interest, net of capitalized amounts | 31,646 | 31,413 |
Income taxes | $ 157 | $ 126 |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 3 Months Ended |
Mar. 31, 2021 | |
Condensed Consolidated Financial Statements | |
Condensed Consolidated Financial Statements | ( 1) Condensed Consolidated Financial Statements Basis of Presentation The condensed consolidated financial statements of SkyWest, Inc. (“SkyWest” or the “Company”) and its operating subsidiary SkyWest Airlines, Inc. (“SkyWest Airlines”) and its leasing subsidiary SkyWest Leasing, Inc. (“SkyWest Leasing”) included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal recurring nature, unless otherwise disclosed. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Due in part to the severe effects from the global COVID-19 pandemic, in addition to other factors, the results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions. |
Impact of the COVID-19 Pandemic
Impact of the COVID-19 Pandemic | 3 Months Ended |
Mar. 31, 2021 | |
Impact of the COVID-19 Pandemic | |
Impact of the COVID-19 Pandemic | (2) Impact of the COVID-19 Pandemic COVID-19, which was declared a global health pandemic by the World Health Organization in March 2020, has continued to spread around the world and driven the implementation and continuation of significant, government-imposed measures to prevent or reduce its spread, including travel restrictions, closing of borders, “shelter in place” orders and business closures. Consequently, the Company and its major airline partners, have experienced an unprecedented decline in the demand for air travel, which has materially and adversely affected the Company’s revenues, particularly under its prorate agreements. The continued spread of the virus and the ongoing global pandemic has affected nearly all of the domestic and international networks of the Company’s major airline partners for whom it conducts flight operations and relies on to set its flight schedules. While the length and severity of the reduction in demand due to COVID-19 are uncertain, the Company presently expects a continued negative impact on its results of operations in 2021 and possibly thereafter. Liquidity. 2021 Appropriations Act. In connection with the receipt of financial assistance under the PSP Extension Agreement, SkyWest Airlines is required to comply with the relevant provisions of the 2021 Appropriations Act, many of which are substantially similar to the requirements placed on SkyWest Airlines by the Payroll Support Program under the CARES Act that the Company entered into with U.S. Treasury in April 2020. The relevant provisions include the requirement that the funding be used exclusively for the continuation of payment of employee wages, salaries and benefits. Similar to the Payroll Support Program under the CARES Act, SkyWest Airlines and, in some cases, the Company was also subject to certain restrictions, including, but not limited to, limitations on involuntary terminations, pay rate reductions and furloughs through March 31, 2021, restrictions on the payment of dividends and the repurchase of shares through March 31, 2022, and certain limitations on executive compensation through October 1, 2022. SkyWest Airlines was also required to recall employees involuntarily terminated or furloughed after September 30, 2020 with pay from December 1, 2020 to March 31, 2021. The PSP Extension Agreement payments received through March 31, 2021 included $193.2 million in the form of a payroll grant and $39.9 million in the form of an unsecured 10-year loan. The loan bears interest at an annual rate of 1.00% for the first five years (through January 2026) and the Secured Overnight Financing Rate plus 2.00% in the final five years. In return, the Company issued to U.S. Treasury warrants to purchase 98,815 shares of the Company’s common stock. These warrants have an exercise price of $40.41 per share and a five-year term from the date of issuance. The relative fair value of the warrants is recorded within stockholder's equity and as a discount reducing the carrying value of the loan, which will be amortized as interest expense in the Company’s income statement over the term of the loan. The proceeds of the grant are recorded in cash and cash equivalents when received and will be recognized as a reduction in expense in payroll support grant in our income statement over the periods that the funds are intended to compensate. Additional Funding Under the PSP Extension Agreement. Treasury Secured Loan Amendment. American Rescue Plan Act of 2021. In connection with the receipt of financial assistance under the PSP 3 Agreement, SkyWest Airlines is required to comply with the relevant provisions of the American Rescue Plan Act, many of which are substantially similar to the requirements placed on SkyWest Airlines by the Payroll Support Program Agreement under the CARES Act and the PSP Extension Agreement under the 2021 Appropriations Act. The relevant provisions include the requirement that the funding be used exclusively for the continuation of payment of employee wages, salaries and benefits. Similar to the previous Payroll Support Programs, SkyWest Airlines and, in some cases, the Company will also be subject to certain restrictions, including, but not limited to, limitations on involuntary terminations, pay rate reductions and furloughs through September 30, 2021, restrictions on the payment of dividends and the repurchase of shares through September 30, 2022, and certain limitations on executive compensation through April 1, 2023. As partial compensation to U.S. Treasury for the provision of financial assistance under the PSP 3 Agreement, SkyWest Airlines issued, and the Company guaranteed, a promissory note (the “Promissory Note”) to U.S. Treasury on April 23, 2021 (the “PSP 3 Closing Date”). The Promissory Note provides for SkyWest Airlines’ unconditional promise to pay to U.S. Treasury the expected principal sum of up to approximately $45.0 million. On the PSP 3 Closing Date, the principal amount of the Promissory Note was approximately $7.5 million, and such principal amount will be increased by an amount equal to 30% of each additional disbursement of grants to SkyWest Airlines under the PSP 3 Agreement in connection with each additional disbursement following the PSP 3 Closing Date. The Promissory Note will bear interest at a rate equal to 1.00% per annum until the fifth anniversary of the PSP 3 Closing Date, and 2.00% plus an interest rate based on the secured overnight financing rate per annum (but not less than 0.00%) thereafter until the tenth anniversary of the PSP 3 Closing Date (the “Maturity Date”). Accrued interest will be payable in arrears on the last business day of each of March and September of each year, beginning with September 30, 2021. The aggregate unpaid principal amount of the Promissory Note, all accrued and unpaid interest and all other amounts payable under the Promissory Note will be due and payable on the Maturity Date. In connection with the PSP 3 Agreement and as partial compensation to U.S. Treasury for the provision of financial assistance under the PSP 3 Agreement, the Company will issue warrants (each a “Warrant” and, collectively, the “Warrants”) to U.S. Treasury to purchase up to an expected aggregate of 78,317 shares (the “Warrant Shares”) of the Company’s common stock, at an exercise price of $57.47 per share, which was the closing price of the Common Stock on The Nasdaq Stock Market on March 10, 2021. The Warrants will be issued pursuant to the terms of a Warrant Agreement entered into by the Company and U.S. Treasury on April 23, 2021. The number of Warrant Shares to be issued is subject to adjustment as a result of certain anti-dilution provisions contained in the Warrants. On the PSP 3 Closing Date, the Company issued a Warrant to Treasury to purchase 13,058 shares of the Company’s common stock in connection with the PSP 3 Agreement. |
Flying Agreements Revenue and L
Flying Agreements Revenue and Lease, Airport Services and Other Revenues | 3 Months Ended |
Mar. 31, 2021 | |
Flying Agreements Revenue and Lease, Airport Services and Other Revenues | |
Flying Agreements Revenue and Lease, Airport Services and Other Revenues | (3) Flying Agreements Revenue and Lease, Airport Services and Other Revenues The Company recognizes flying agreements revenue and lease, airport services and other revenues when the service is provided under its code-share agreements. Under the Company’s fixed-fee arrangements (referred to as “capacity purchase agreements”) with United Airlines, Inc. (“United”), Delta Air Lines, Inc. (“Delta”), American Airlines, Inc. (“American”) and Alaska Airlines, Inc. (“Alaska”) (each, a “major airline partner”), the major airline partner generally pays the Company a fixed-fee for each departure, flight hour (measured from takeoff to landing, excluding taxi time) or block hour (measured from takeoff to landing, including taxi time) incurred, and an amount per aircraft in service each month with additional incentives based on flight completion and on-time performance. The major airline partner also directly pays for or reimburses the Company for certain direct expenses incurred under the capacity purchase agreement, such as fuel, airport landing fees and airport rents. Under the capacity purchase agreements, the Company’s performance obligation is met when each flight is completed, measured in completed block hours, and is reflected in flying agreements revenue. The transaction price for the capacity purchase agreements is determined from the fixed-fee consideration, incentive consideration and directly reimbursed expenses earned as flights are completed over the agreement term. For the three months ended March 31, 2021 and 2020, capacity purchase agreements represented approximately 86.6% and 85.9% of the Company’s flying agreements revenue, respectively. Under the Company’s prorate arrangements (referred to as a “prorate” or “revenue-sharing” agreement), the major airline partner and the Company negotiate a passenger fare proration formula, pursuant to which the Company receives a percentage of the ticket revenues for those passengers traveling for one portion of their trip on a Company airline and the other portion of their trip on the major airline partner. Under the Company’s prorate flying agreements, the performance obligation is met and revenue is recognized when each flight is completed based upon the portion of the prorate passenger fare the Company anticipates that it will receive for each completed flight. The transaction price for the prorate agreements is determined from the proration formula derived from each passenger ticket amount on each completed flight over the agreement term. For the three months ended March 31, 2021 and 2020, prorate flying agreements represented approximately The following table represents the Company’s flying agreements revenue by type for the three months ended March 31, 2021 and 2020 (in thousands): For the three months ended March 31, 2021 2020 Capacity purchase agreements revenue: flight operations $ 211,052 $ 366,409 Capacity purchase agreements revenue: aircraft lease and fixed revenue 231,491 242,734 Prorate agreements revenue 68,648 100,351 Flying agreements revenue $ 511,191 $ 709,494 A portion of the Company’s compensation under its capacity purchase agreements is designed to reimburse the Company for certain aircraft ownership costs. The consideration for aircraft ownership costs varies by agreement but is intended to cover either the Company’s aircraft principal and interest debt service costs, its aircraft depreciation and interest expense or its aircraft lease expense costs while the aircraft is under contract. The consideration received for the use of the aircraft under the Company’s capacity purchase agreements is reflected as lease revenue, inasmuch as the agreements identify the “right of use” of a specific type and number of aircraft over a stated period of time. The lease revenue associated with the Company’s capacity purchase agreements is accounted for as an operating lease and is reflected as flying agreements revenue on the Company’s consolidated statements of comprehensive income. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statement of comprehensive income since the use of the aircraft is not a separate activity of the total service provided. Under the Company’s capacity purchase agreements, the Company is paid a fixed amount per aircraft each month over the contract term. The Company recognizes revenue attributed to the fixed monthly payments proportionate to the number of block hours completed during each reporting period, relative to the estimated number of block hours the Company anticipates completing over the remaining contract term. The Company operated a materially lower number of flights during the three months ended March 31, 2021 from historical levels due to a reduction in flight schedules resulting from the COVID-19 pandemic. The Company’s completed departures decreased 26% and completed block hours decreased 23% during the three months ended March 31, 2021 compared to the three months ended March 31, 2020. Due to the lower number of flights operated during the three months ended March 31, 2021, the amount of cash collected for the fixed amount per aircraft exceeded the revenue recognized based on flights completed. Accordingly, the Company deferred $21.2 million of revenue attributed to the fixed amount per month per aircraft received during the three months ended March 31, 2021. The Company’s deferred revenue balance was $131.9 million as of March 31, 2021, including $19.9 million in other current liabilities and $112.0 million in other long-term liabilities. The Company anticipates the future monthly flight levels will increase over the remaining applicable contract terms compared to the three months ended March 31, 2021. The Company’s deferred revenue balance will be recognized based on the number of block hours completed during each period relative to the estimated number of block hours the Company anticipates completing over the remaining contract term. The Company’s capacity purchase and prorate agreements include weekly provisional cash payments from the respective major airline partner based on a projected level of flying each month. The Company and each major airline partner subsequently reconcile these payments to the actual completed flight activity on a monthly or quarterly basis. The following table summarizes the significant provisions of each code-share agreement SkyWest Airlines has with each major airline partner: United Express Agreements Agreement Aircraft type Number of Term / Termination Dates United Express Agreements (capacity purchase agreement) • E175 • CRJ 700 • CRJ200 90 19 70 • Individual aircraft have scheduled removal dates from 2022 to 2029 United Express Prorate Agreement (prorate agreement) • CRJ 200 38 • Terminable with 120-day notice Delta Connection Agreements Agreement Aircraft type Number of Term / Termination Dates Delta Connection Agreement (capacity purchase agreement) • E175 • CRJ 900 • CRJ 700 71 40 5 • Individual aircraft have scheduled removal dates from 2021 to 2030 Delta Connection Prorate Agreement (prorate agreement) • CRJ 200 29 • Terminable with 30-day notice American Capacity Purchase Agreement Agreement Aircraft type Number of Term / Termination Dates American Agreement (capacity purchase agreement) • CRJ 700 74 • Individual aircraft have scheduled removal dates from 2022 to 2026 Alaska Capacity Purchase Agreement Agreement Aircraft type Number of Term / Termination Dates Alaska Agreement (capacity purchase agreement) • E175 32 • Individual aircraft have scheduled removal dates in 2030 In addition to the contractual arrangements described above, as of March 31, 2021, SkyWest Airlines has a capacity purchase agreement with American to place 20 Embraer E175 dual-class regional jet aircraft (“E175”) into service. The delivery dates for the 20 new E175 aircraft are currently scheduled for the third and fourth quarters of 2021 and early 2022 and the aircraft are expected to be placed into service in 2022. SkyWest Airlines also has an agreement with American to place 16 used CRJ700s under a multi-year capacity purchase agreement in 2021. Final delivery dates may be adjusted based on various factors. When an aircraft is scheduled to be removed from a capacity purchase agreement, the Company may, as practical under the circumstances, negotiate an extension with the respective major airline partner, negotiate the placement of the aircraft with another major airline partner, return the aircraft to the lessor if the aircraft is leased and the lease is expiring, place owned aircraft for sale, or pursue other uses for the aircraft. Other uses for the aircraft may include placing the aircraft in a prorate agreement, leasing the aircraft to a third party or parting out the aircraft to use the engines and parts as spare inventory or to lease the engines to a third party. The following represents the Company’s lease, airport services and other revenue for the three months ended March 31, 2021 and 2020 (in thousands): For the three months ended March 31, 2021 2020 Operating lease revenue $ 14,950 $ 10,546 Airport customer service and other revenue 8,414 9,896 Lease, airport services and other $ 23,364 $ 20,442 The following table summarizes future minimum rental income under operating leases primarily related to leased aircraft and engines that had remaining non-cancelable lease terms as of March 31, 2021 (in thousands): April 2021 through December 2021 $ 34,167 2022 45,391 2023 44,848 2024 42,530 2025 39,082 Thereafter 155,089 $ 361,107 Of the Company’s $5.3 billion of property and equipment, net as of March 31, 2021, $268.2 million of regional jet aircraft and spare engines was leased to third parties under operating leases. The Company mitigates the residual asset risks of these assets by leasing aircraft and engine types that can be operated by the Company in the event of a default. Additionally, the operating leases typically have specified lease return condition requirements paid by the lessee to the Company and the Company typically maintains inspection rights under the leases. Additionally, lease, airport services and other revenues includes airport agent services, such as gate and ramp agent services at applicable airports where the Company provides such services. The transaction price for airport customer service agreements is determined from an agreed-upon rate by location applied to the applicable number of flights handled by the Company over the agreement term. The Company’s operating revenues could be impacted by a number of factors, including changes to the Company’s code-share agreements with its major airline partners, changes in flight schedules, contract modifications resulting from contract renegotiations, the Company’s ability to earn incentive payments contemplated under the Company’s code-share agreements and settlement of reimbursement disputes with the Company’s major airline partners. Other ancillary revenues commonly associated with airlines, such as baggage fee revenue, ticket change fee revenue and the marketing component of the sale of mileage credits, are retained by the Company’s major airline partners on flights that the Company operates under its code-share agreements. Allowance for credit losses The Company adopted on January 1, 2020. At adoption, the Company’s primary financial assets included trade receivables from its flying agreements, a note receivable from the sale of the Company’s subsidiary, ExpressJet Airlines, Inc., in 2019, and receivables from aircraft manufacturers and other third parties in the airline industry. The Company recorded a credit loss of $11.6 million net of income tax in conjunction with the adoption of Topic 326. The Company recorded this credit loss as a January 1, 2020 beginning balance sheet entry to retained earnings (net of income tax). The Company monitors publicly available credit ratings for entities for which the Company has a significant receivable balance. As of March 31, 2021, the Company had gross receivables of $65.5 million in current assets and gross receivables of $219.8 million in other long-term assets. The Company has established credit loss reserves based on publicly available historic default rates issued by a third party for companies with similar credit ratings, factoring in the term of the respective accounts receivable or note receivable. During the three months ended March 31, 2021, there were no significant changes in the outstanding accounts receivable or notes receivable or the credit ratings of the entities. The Company’s credit loss reserve was $45.9 million at March 31, 2021, compared to $46.2 million at December 31, 2020. The $0.3 million decrease in the credit loss reserve for the three months ended March 31, 2021 was reflected as a reduction to the credit loss expense. |
Share-Based Compensation and St
Share-Based Compensation and Stock Repurchases | 3 Months Ended |
Mar. 31, 2021 | |
Share-Based Compensation and Stock Repurchases | |
Share-Based Compensation and Stock Repurchases | (4) Share-Based Compensation and Stock Repurchases During the three months ended March 31, 2021, the Company granted 44,770 restricted stock units and 157,210 performance shares to certain employees of the Company under the SkyWest, Inc. 2019 Long-Term Incentive Plan. Both the restricted stock units and performance shares have a three-year vesting period, during which the recipient must remain employed with the Company or one of the Company’s subsidiaries. The number of performance shares awardable from the 2021 grants can range from 0% to 250% of the original amount granted depending on the Company’s performance over a two-year measurement period against the pre-established targets. Upon vesting, each restricted stock unit and performance share will be replaced with one share of common stock. The fair value of these restricted stock units and performance shares on their date of grant was $44.87 per share. During the three months ended March 31, 2021, the Company did not grant any options to purchase shares of common stock to employees. Additionally, during the three months ended March 31, 2021, the Company granted 21,175 fully vested shares of common stock to the Company’s directors at a grant date fair value of $44.87. The Company accounts for forfeitures of restricted stock units and performance shares when forfeitures occur. The estimated fair value of the restricted stock units and performance shares is amortized over the applicable vesting periods. During the three months ended March 31, 2021 and 2020, the Company recorded pre-tax share-based compensation expense of $2.6 million and $1.7 million, respectively. During the three months ended March 31, 2021, the Company paid $1.6 million for the income tax obligation on vested employee equity awards and issued the net, after-tax shares to employees. The Company did not repurchase any shares of its common stock during the three months ended March 31, 2021. During the three months ended March 31, 2020, the Company repurchased 385,606 shares of its common stock for $20.0 million and paid $6.2 million for the income tax obligation on vested employee equity awards and issued the net, after-tax shares to employees. Under the terms of the |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Mar. 31, 2021 | |
Net Income Per Common Share | |
Net Income Per Common Share | (5) Net Income Per Common Share Basic net income per common share (“Basic EPS”) excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share. During the three months ended March 31, 2021, 295,000 performance shares (at target performance) were excluded from the computation of Diluted EPS since the Company had not achieved the minimum target thresholds as of March 31, 2021. During the three months ended March 31, 2020, 219,000 performance shares (at target performance) were excluded from the computation of Diluted EPS since the Company had not achieved the minimum target thresholds as of March 31, 2020. The calculation of the weighted average number of shares of common stock outstanding for Basic EPS and Diluted EPS for the periods indicated (in thousands, except per share data) is as follows: Three Months Ended March 31, 2021 2020 Numerator: Net income $ 35,900 $ 29,988 Denominator: Basic earnings per share weighted average shares 50,286 50,277 Dilution due to stock options and restricted stock units 441 282 Diluted earnings per share weighted average shares 50,727 50,559 Basic earnings per share $ 0.71 $ 0.60 Diluted earnings per share $ 0.71 $ 0.59 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting | |
Segment Reporting | (6) Segment Reporting The Company’s two reporting segments consist of the operations of SkyWest Airlines and 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 segment includes revenue earned under the applicable capacity purchase agreements attributed to operating such aircraft and the respective operating costs. 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. 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. The following represents the Company’s segment data for the three-month periods ended March 31, 2021 and 2020 (in thousands): Three months ended March 31, 2021 SkyWest SkyWest Airlines Leasing Consolidated Operating revenues (1) $ 406,450 $ 128,105 $ 534,555 Operating expense 387,870 65,843 453,713 Depreciation and amortization expense 50,326 59,271 109,597 Interest expense 3,129 28,225 31,354 Segment profit (2) 15,451 34,037 49,488 Total assets (as of March 31, 2021) 2,924,598 3,970,087 6,894,685 Capital expenditures (including non-cash) 35,206 22,302 57,508 Three months ended March 31, 2020 SkyWest SkyWest Airlines Leasing Consolidated Operating revenues (1) $ 606,842 $ 123,094 $ 729,936 Operating expense 594,141 69,474 663,615 Depreciation and amortization expense 51,775 59,933 111,708 Interest expense 2,541 27,663 30,204 Segment profit (2) 10,160 25,957 36,117 Total assets (as of March 31, 2020) 2,650,094 4,011,317 6,661,411 Capital expenditures (including non-cash) 38,879 72,245 111,124 (1) Prorate revenue and airport customer service revenue are primarily reflected in the SkyWest Airlines segment. (2) Segment profit is equal to operating income less interest expense. |
Leases, Commitments and Conting
Leases, Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Leases, Commitments and Contingencies | |
Leases, Commitments and Contingencies | (7) — Leases, Commitments and Contingencies The Company leases property and equipment under operating leases. For leases with durations longer than 12 months, the Company recorded the related operating lease right-of-use asset and operating lease liability at the present value of lease payments over the term. The Company used its incremental borrowing rate to discount the lease payments based on information available at lease commencement. Aircraft As of March 31, 2021, excluding aircraft financed by our major partners that we operate for them under contract, the Company had 42 aircraft under long-term lease agreements with remaining terms ranging from three Airport facilities The Company has operating leases for facility space including airport terminals, office space, cargo warehouses and maintenance facilities. The Company generally leases this space from government agencies that control the use of the various airports. The remaining lease terms for facility space vary from one month to 36 years. The Company’s operating leases with lease rates that are variable based on airport operating costs, use of the facilities or other variable factors are excluded from the Company’s right-of-use assets and operating lease liabilities in accordance with accounting guidance. Leases As of March 31, 2021, the Company’s right-of-use assets were $274.0 million, the Company’s current maturities of operating lease liabilities were $82.7 million, and the Company’s noncurrent lease liabilities were $200.6 million. During the three months ended March 31, 2021, the Company paid $16.6 million in operating leases reflected as a reduction from operating cash flows. The table below presents lease related terms and discount rates as of March 31, 2021. As of March 31, 2021 Weighted-average remaining lease term for operating leases 6.4 years Weighted-average discount rate for operating leases 6.1% The Company’s lease costs for the three months ended March 31, 2021 and 2020 included the following components (in thousands): For the three months ended March 31, 2021 2020 Operating lease cost $ 22,127 $ 25,018 Variable and short-term lease cost 1,224 1,344 Sublease income (1,335) (1,571) Total lease cost $ 22,016 $ 24,791 As of March 31, 2021, the Company leased aircraft, airport facilities, office space, and other property and equipment under non-cancelable operating leases, which are generally on a long-term, triple-net lease basis pursuant to which the Company pays taxes, maintenance, insurance and certain other operating expenses applicable to the leased property. The Company expects that, in the normal course of business, such operating leases that expire may be renewed or replaced by other leases, or the property may be purchased rather than leased. The following table summarizes future minimum rental payments primarily related to leased aircraft required under operating leases that had initial or remaining non-cancelable lease terms as of March 31, 2021 (in thousands): April 2021 through December 2021 $ 70,255 2022 79,112 2023 72,153 2024 29,274 2025 16,725 Thereafter 83,239 $ 350,758 As of March 31, 2021, the Company had a firm purchase commitment for 20 E175 aircraft from Embraer, S.A. (“Embraer”) with anticipated delivery dates through 2022 and a firm purchase commitment for eight used CRJ700 aircraft from a third party with anticipated delivery dates through 2021. The following table summarizes the Company’s commitments and obligations as noted for each of the next five years and thereafter (in thousands): Total Apr - Dec 2021 2022 2023 2024 2025 Thereafter Operating lease payments for aircraft and facility obligations $ 350,758 $ 70,255 $ 79,112 $ 72,153 $ 29,274 $ 16,725 $ 83,239 Firm aircraft and spare engine commitments 555,458 499,306 56,152 — — — — Interest commitments (1) 522,585 90,454 106,979 89,228 73,056 57,835 105,033 Principal maturities on long-term debt 3,140,774 271,082 407,226 417,720 371,994 446,924 1,225,828 Total commitments and obligations $ 4,569,575 $ 931,097 $ 649,469 $ 579,101 $ 474,324 $ 521,484 $ 1,414,100 (1) At March 31, 2021, 98.1% of the Company’s total long-term debt had fixed interest rates. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | Note 8 — Fair Value Measurements The Company holds certain assets that are required to be measured at fair value in accordance with GAAP. The Company determined the fair value of these assets based on the following three levels of inputs: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Some of the Company’s marketable securities primarily utilize broker quotes in a non-active market for valuation of these securities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, therefore requiring an entity to develop its own assumptions. As of March 31, 2021, and December 31, 2020, the Company held certain assets that are required to be measured at fair value on a recurring basis. Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements as of March 31, 2021 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 92,025 $ — $ 92,025 $ — Commercial paper 513,413 — 513,413 — $ 605,438 $ — $ 605,438 $ — Cash and Cash Equivalents 231,005 231,005 — — Total Assets Measured at Fair Value $ 836,443 $ 231,005 $ 605,438 $ — Fair Value Measurements as of December 31, 2020 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 117,928 $ — $ 117,928 $ — Commercial paper 492,257 — 492,257 — $ 610,185 $ — $ 610,185 $ — Cash and Cash Equivalents 215,723 215,723 — — Total Assets Measured at Fair Value $ 825,908 $ 215,723 $ 610,185 $ — The Company’s “marketable securities” classified as Level 2 securities primarily utilize broker quotes in a non-active market for valuation of these securities. The Company did not make any significant transfers of securities between Level 1, Level 2 and Level 3 during the three months ended March 31, 2021. The Company’s policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period. As of March 31, 2021, and December 31, 2020, the Company classified $605.4 million and $610.2 million of marketable securities, respectively, as short-term since it had the intent to maintain a liquid portfolio and the ability to redeem the securities within one year. As of March 31, 2021, and December 31, 2020, the cost of the Company’s total cash and cash equivalents and available for sale securities was $836.4 million and $825.9 million, respectively. The fair value of the Company’s long-term debt classified as Level 2 debt was estimated using discounted cash flow analyses, based on the Company’s current estimated incremental borrowing rates for similar types of borrowing arrangements. The fair value of the Company’s long-term debt is estimated based on current rates offered to the Company for similar debt and was estimated to be $3.1 billion as of March 31, 2021 and $3.2 billion as of December 31, 2020, as compared to the carrying amount of $3.1 billion as of March 31, 2021 and $3.2 billion as of December 31, 2020. |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2021 | |
Long-term Debt | |
Long-term Debt | (9) Long-term Debt Long-term debt consisted of the following as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 December 31, 2020 Current portion of long-term debt $ 360,843 $ 406,005 Current portion of unamortized debt issue cost, net (3,380) (3,847) Current portion of long-term debt, net of debt issue costs $ 357,463 $ 402,158 Long-term debt, net of current maturities $ 2,779,931 $ 2,829,997 Long-term portion of unamortized debt issue cost, net (31,214) (28,459) Long-term debt, net of current maturities and debt issue costs $ 2,748,717 $ 2,801,538 Total long-term debt (including current portion) $ 3,140,774 $ 3,236,002 Total unamortized debt issue cost, net (34,594) (32,306) Total long-term debt, net of debt issue costs $ 3,106,180 $ 3,203,696 During the three months ended March 31, 2021, in connection with the PSP Extension Agreement, the Company issued to U.S. Treasury a promissory note for an aggregate principal amount of $39.9 million and issued warrants to purchase 98,815 shares of the Company’s common stock. The Company has recorded the value of the promissory note and warrants on a relative fair value basis as $39.9 million of long-term debt and $3.3 million in common stock, respectively. These warrants have an exercise price of $40.41 per share and a five-year term from the date of issuance. See Note 2, “Impact of the COVID-19 Pandemic,” for further discussion of the terms of the payroll support program loan and warrants. As of March 31, 2021, and December 31, 2020, the Company had $59.5 million and $61.1 million, respectively, in letters of credit and surety bonds outstanding with various banks and surety institutions. As of March 31, 2021, SkyWest Airlines had a $75 million line of credit. The line of credit includes minimum liquidity and profitability covenants and is secured by certain assets. As of March 31, 2021, SkyWest Airlines had no amount outstanding under the facility. However, at March 31, 2021 SkyWest Airlines had $34.0 million in letters of credit issued under the facility, which reduced the amount available under the facility to $41.0 million. The Company obtained waivers for the line of credit agreement that permitted the Company to receive funding under the CARES Act and waived compliance with minimum profitability covenants through June 30, 2021. The line of credit expires on September 30, 2021. |
Investment in Other Companies
Investment in Other Companies | 3 Months Ended |
Mar. 31, 2021 | |
Investment in Other Companies | |
Investment in Other Companies | (10) — Investment in Other Companies During 2019, the Company created a joint venture with Regional One, Inc. (“Regional One”) by investing $22.3 million for a 75% ownership interest in Aero Engines, LLC. (“Aero Engines”). The primary purpose of Aero Engines is to lease engines to third parties. Aero Engines requires unanimous approval from the Company and Regional One for its engine purchases, dispositions, lease agreements with third parties and all other material transactions. The Company determined Aero Engines is a variable interest entity as the Company has a 75% ownership interest in Aero Engines and all material decisions require unanimous approval from the Company and Regional One, resulting in disproportionate ownership rights relative to voting rights. As unanimous approval is required for all Aero Engines’ material activities, Aero Engines has no primary beneficiary. The Company accounts for its investment in Aero Engines under the equity method. The Company’s exposure in its investment in Aero Engines primarily consists of the Company’s portion of income or loss from Aero Engines’ engine lease agreements with third parties and the Company’s ownership percentage in Aero Engines’ engines book value. The Company invested an additional $1.0 million into Aero Engines in 2020. Aero Engines had no debt outstanding as of March 31, 2021. As of March 31, 2021, the Company’s investment balance in Aero Engines was $25.7 million. The Company’s investment in Aero Engines has been recorded in “Other Assets” on the Company’s consolidated balance sheet. The Company’s portion of the income generated by Aero Engines for the three months ended March 31, 2021 was $0.2 million, which is recorded in “Other Income” on the Company’s consolidated statements of comprehensive income. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Taxes | |
Income Taxes | (11) Income Taxes The Company’s effective tax rate for the three months ended March 31, 2021 was 28.2%. The Company’s effective tax rate for the three months ended March 31, 2021 varied from the federal statutory rate of 21.0% primarily due to the provision for state income taxes and the impact of non-deductible expenses. The Company’s effective tax rate for the three months ended March 31, 2020 was 23.3%. The Company’s effective tax rate for the three months ended March 31, 2020 varied from the federal statutory rate of 21.0% primarily due to the provision for state income taxes and the impact of non-deductible expenses, partially offset by a $1.4 million discrete tax benefit from excess tax deductions generated from employee equity transactions that occurred during the three months ended March 31, 2020. |
Legal Matters
Legal Matters | 3 Months Ended |
Mar. 31, 2021 | |
Legal Matters | |
Legal Matters | (12) Legal Matters The Company is subject to certain legal actions which it considers routine to its business activities. As of March 31, 2021, the Company’s management believed, after consultation with legal counsel, that the ultimate outcome of such legal matters was not likely to have a material adverse effect on the Company’s financial position, liquidity or results of operations. |
Condensed Consolidated Financ_2
Condensed Consolidated Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Condensed Consolidated Financial Statements | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements of SkyWest, Inc. (“SkyWest” or the “Company”) and its operating subsidiary SkyWest Airlines, Inc. (“SkyWest Airlines”) and its leasing subsidiary SkyWest Leasing, Inc. (“SkyWest Leasing”) included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal recurring nature, unless otherwise disclosed. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Due in part to the severe effects from the global COVID-19 pandemic, in addition to other factors, the results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions. |
Flying Agreements Revenue and_2
Flying Agreements Revenue and Lease, Airport Services and Other Revenues (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Agreements with other airlines | |
Schedule of revenue by type | The following table represents the Company’s flying agreements revenue by type for the three months ended March 31, 2021 and 2020 (in thousands): For the three months ended March 31, 2021 2020 Capacity purchase agreements revenue: flight operations $ 211,052 $ 366,409 Capacity purchase agreements revenue: aircraft lease and fixed revenue 231,491 242,734 Prorate agreements revenue 68,648 100,351 Flying agreements revenue $ 511,191 $ 709,494 |
Schedule of details of agreements with other airlines | The following table summarizes the significant provisions of each code-share agreement SkyWest Airlines has with each major airline partner: United Express Agreements Agreement Aircraft type Number of Term / Termination Dates United Express Agreements (capacity purchase agreement) • E175 • CRJ 700 • CRJ200 90 19 70 • Individual aircraft have scheduled removal dates from 2022 to 2029 United Express Prorate Agreement (prorate agreement) • CRJ 200 38 • Terminable with 120-day notice Delta Connection Agreements Agreement Aircraft type Number of Term / Termination Dates Delta Connection Agreement (capacity purchase agreement) • E175 • CRJ 900 • CRJ 700 71 40 5 • Individual aircraft have scheduled removal dates from 2021 to 2030 Delta Connection Prorate Agreement (prorate agreement) • CRJ 200 29 • Terminable with 30-day notice American Capacity Purchase Agreement Agreement Aircraft type Number of Term / Termination Dates American Agreement (capacity purchase agreement) • CRJ 700 74 • Individual aircraft have scheduled removal dates from 2022 to 2026 Alaska Capacity Purchase Agreement Agreement Aircraft type Number of Term / Termination Dates Alaska Agreement (capacity purchase agreement) • E175 32 • Individual aircraft have scheduled removal dates in 2030 |
Schedule of future minimum rental payments for operating leases | April 2021 through December 2021 $ 70,255 2022 79,112 2023 72,153 2024 29,274 2025 16,725 Thereafter 83,239 $ 350,758 |
Aircraft | |
Agreements with other airlines | |
Schedule of future minimum rental payments for operating leases | The following table summarizes future minimum rental income under operating leases primarily related to leased aircraft and engines that had remaining non-cancelable lease terms as of March 31, 2021 (in thousands): April 2021 through December 2021 $ 34,167 2022 45,391 2023 44,848 2024 42,530 2025 39,082 Thereafter 155,089 $ 361,107 |
Airport customer service and other | |
Agreements with other airlines | |
Schedule of revenue by type | The following represents the Company’s lease, airport services and other revenue for the three months ended March 31, 2021 and 2020 (in thousands): For the three months ended March 31, 2021 2020 Operating lease revenue $ 14,950 $ 10,546 Airport customer service and other revenue 8,414 9,896 Lease, airport services and other $ 23,364 $ 20,442 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Net Income Per Common Share | |
Schedule of net income per common share | The calculation of the weighted average number of shares of common stock outstanding for Basic EPS and Diluted EPS for the periods indicated (in thousands, except per share data) is as follows: Three Months Ended March 31, 2021 2020 Numerator: Net income $ 35,900 $ 29,988 Denominator: Basic earnings per share weighted average shares 50,286 50,277 Dilution due to stock options and restricted stock units 441 282 Diluted earnings per share weighted average shares 50,727 50,559 Basic earnings per share $ 0.71 $ 0.60 Diluted earnings per share $ 0.71 $ 0.59 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting | |
Schedule of Company's segment data | The following represents the Company’s segment data for the three-month periods ended March 31, 2021 and 2020 (in thousands): Three months ended March 31, 2021 SkyWest SkyWest Airlines Leasing Consolidated Operating revenues (1) $ 406,450 $ 128,105 $ 534,555 Operating expense 387,870 65,843 453,713 Depreciation and amortization expense 50,326 59,271 109,597 Interest expense 3,129 28,225 31,354 Segment profit (2) 15,451 34,037 49,488 Total assets (as of March 31, 2021) 2,924,598 3,970,087 6,894,685 Capital expenditures (including non-cash) 35,206 22,302 57,508 Three months ended March 31, 2020 SkyWest SkyWest Airlines Leasing Consolidated Operating revenues (1) $ 606,842 $ 123,094 $ 729,936 Operating expense 594,141 69,474 663,615 Depreciation and amortization expense 51,775 59,933 111,708 Interest expense 2,541 27,663 30,204 Segment profit (2) 10,160 25,957 36,117 Total assets (as of March 31, 2020) 2,650,094 4,011,317 6,661,411 Capital expenditures (including non-cash) 38,879 72,245 111,124 (1) Prorate revenue and airport customer service revenue are primarily reflected in the SkyWest Airlines segment. (2) Segment profit is equal to operating income less interest expense. |
Leases, Commitments and Conti_2
Leases, Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases, Commitments and Contingencies | |
Summary of related terms and discount rates | As of March 31, 2021 Weighted-average remaining lease term for operating leases 6.4 years Weighted-average discount rate for operating leases 6.1% |
Summary of lease costs | The Company’s lease costs for the three months ended March 31, 2021 and 2020 included the following components (in thousands): For the three months ended March 31, 2021 2020 Operating lease cost $ 22,127 $ 25,018 Variable and short-term lease cost 1,224 1,344 Sublease income (1,335) (1,571) Total lease cost $ 22,016 $ 24,791 |
Schedule of future minimum rental payments for operating leases | April 2021 through December 2021 $ 70,255 2022 79,112 2023 72,153 2024 29,274 2025 16,725 Thereafter 83,239 $ 350,758 |
Summary of commitments and obligations | The following table summarizes the Company’s commitments and obligations as noted for each of the next five years and thereafter (in thousands): Total Apr - Dec 2021 2022 2023 2024 2025 Thereafter Operating lease payments for aircraft and facility obligations $ 350,758 $ 70,255 $ 79,112 $ 72,153 $ 29,274 $ 16,725 $ 83,239 Firm aircraft and spare engine commitments 555,458 499,306 56,152 — — — — Interest commitments (1) 522,585 90,454 106,979 89,228 73,056 57,835 105,033 Principal maturities on long-term debt 3,140,774 271,082 407,226 417,720 371,994 446,924 1,225,828 Total commitments and obligations $ 4,569,575 $ 931,097 $ 649,469 $ 579,101 $ 474,324 $ 521,484 $ 1,414,100 (1) At March 31, 2021, 98.1% of the Company’s total long-term debt had fixed interest rates. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Measurements | |
Schedule of assets measured at fair value on a recurring basis | Fair Value Measurements as of March 31, 2021 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 92,025 $ — $ 92,025 $ — Commercial paper 513,413 — 513,413 — $ 605,438 $ — $ 605,438 $ — Cash and Cash Equivalents 231,005 231,005 — — Total Assets Measured at Fair Value $ 836,443 $ 231,005 $ 605,438 $ — Fair Value Measurements as of December 31, 2020 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 117,928 $ — $ 117,928 $ — Commercial paper 492,257 — 492,257 — $ 610,185 $ — $ 610,185 $ — Cash and Cash Equivalents 215,723 215,723 — — Total Assets Measured at Fair Value $ 825,908 $ 215,723 $ 610,185 $ — |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Long-term Debt | |
Schedule of long-term debt | Long-term debt consisted of the following as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 December 31, 2020 Current portion of long-term debt $ 360,843 $ 406,005 Current portion of unamortized debt issue cost, net (3,380) (3,847) Current portion of long-term debt, net of debt issue costs $ 357,463 $ 402,158 Long-term debt, net of current maturities $ 2,779,931 $ 2,829,997 Long-term portion of unamortized debt issue cost, net (31,214) (28,459) Long-term debt, net of current maturities and debt issue costs $ 2,748,717 $ 2,801,538 Total long-term debt (including current portion) $ 3,140,774 $ 3,236,002 Total unamortized debt issue cost, net (34,594) (32,306) Total long-term debt, net of debt issue costs $ 3,106,180 $ 3,203,696 |
Impact of the COVID-19 Pandem_2
Impact of the COVID-19 Pandemic (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 23, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Unusual or Infrequent Item, or Both [Line Items] | ||||
Liquid assets | $ 1,542,400 | |||
Cash and marketable securities | 836,400 | |||
Line of credit facility, reduction of amount available | 41,000 | |||
Borrowed amount | 3,140,774 | $ 3,236,002 | ||
Maximum borrowing capacity | 75,000 | |||
PSP Extension Agreement | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Principal amount | 233,100 | |||
PSP 3 Agreement | Subsequent event | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Proceeds received | $ 125,000 | |||
Grant | PSP Extension Agreement | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Principal amount | 193,200 | |||
Grant | PSP Extension Agreement | Subsequent event | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Principal amount | 35,000 | |||
Forecast | PSP 3 Agreement | Subsequent event | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Principal amount | $ 250,000 | |||
Unsecured term loan | PSP Extension Agreement | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Principal amount | $ 39,900 | |||
Debt term | 10 years | |||
Unsecured term loan | First five years | PSP Extension Agreement | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Interest rate (as a percent) | 1.00% | |||
Unsecured term loan | Final five years | PSP Extension Agreement | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Interest rate (as a percent) | 2.00% | |||
Secured loan | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Borrowed amount | $ 60,000 | |||
Secured loan | COVID-19 | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Liquid assets | $ 665,000 | |||
Promissory Note | PSP Extension Agreement | Subsequent event | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Increase in debt instrument principal amount | 10,500 | |||
Promissory Note | PSP 3 Agreement | Subsequent event | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Principal amount | $ 7,500 | |||
Percentage of increase in principal amount | 30.00% | |||
Promissory Note | PSP 3 Agreement | Minimum | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Interest rate (as a percent) | 0.00% | |||
Promissory Note | PSP 3 Agreement | Maximum | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Principal amount | $ 45,000 | |||
Promissory Note | Until the fifth anniversary of the Closing Date | PSP 3 Agreement | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Interest rate (as a percent) | 1.00% | |||
Promissory Note | Thereafter until the tenth anniversary of the Closing Date | PSP 3 Agreement | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Interest rate (as a percent) | 2.00% | |||
Warrant Shares | PSP Extension Agreement | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Warrants to purchase shares | 98,815 | |||
Warrants exercise price | $ 40.41 | |||
Warrant term | 5 years | |||
Warrant Shares | PSP Extension Agreement | Subsequent event | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Warrants to purchase shares | 25,958 | |||
Warrants exercise price | $ 40.41 | |||
Warrant Shares | PSP 3 Agreement | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Warrants exercise price | $ 57.47 | |||
Warrant Shares | PSP 3 Agreement | Subsequent event | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Warrants to purchase shares | 13,058 | |||
Warrant Shares | PSP 3 Agreement | Maximum | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Warrants to purchase shares | 78,317 |
Flying Agreements Revenue and_3
Flying Agreements Revenue and Lease, Airport Services and Other Revenues (Details) $ in Thousands | Jan. 01, 2020USD ($) | Mar. 31, 2021USD ($)aircraft | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) |
Agreements with other airlines | ||||
Percentage of ASMs flown under fixed-fee arrangements | 86.60% | 85.90% | ||
Percentage of ASMs flown under pro-rate arrangements | 13.40% | 14.10% | ||
Revenues [Abstract] | ||||
Operating revenues | $ 534,555 | $ 729,936 | ||
Rental income under operating leases | ||||
Operating lease revenue | 14,950 | 10,546 | ||
Future minimum rental income | ||||
April 2021 through December 2021 | 34,167 | |||
2022 | 45,391 | |||
2023 | 44,848 | |||
2024 | 42,530 | |||
2025 | 39,082 | |||
Thereafter | 155,089 | |||
Total | $ 361,107 | |||
Percentage of reduction in completed departures of flights | 26.00% | |||
Percentage of reduction in completed block hours of flights | 23.00% | |||
Deferred revenue | $ 131,900 | |||
Deferred revenue in other current liabilities | 19,900 | |||
Deferred revenue in other long-term liabilities | 112,000 | |||
Deferred revenue during the period | 21,200 | |||
Property and equipment and related assets | 5,313,660 | $ 5,362,048 | ||
Credit loss reserve | 45,900 | 46,200 | ||
Credit loss | 300 | |||
Topic 326 | ||||
Future minimum rental income | ||||
Credit loss | $ 11,600 | |||
Third Party Lease | ||||
Future minimum rental income | ||||
Property and equipment and related assets | $ 268,200 | |||
CRJ 200 | Sky West Airlines Inc | Delta Connection Prorate Agreement | ||||
Future minimum rental income | ||||
Number of aircraft | aircraft | 29 | |||
Agreement term | 30 days | |||
CRJ 200 | Sky West Airlines Inc | United Express Agreements | ||||
Future minimum rental income | ||||
Number of aircraft | aircraft | 70 | |||
CRJ 200 | Sky West Airlines Inc | United Express Prorate Agreement | ||||
Future minimum rental income | ||||
Number of aircraft | aircraft | 38 | |||
Agreement term | 120 days | |||
CRJ 700 | ||||
Future minimum rental income | ||||
Number of aircraft under firm purchase commitment | aircraft | 8 | |||
CRJ 700 | Sky West Airlines Inc | Delta Connection Agreement | ||||
Future minimum rental income | ||||
Number of aircraft | aircraft | 5 | |||
CRJ 700 | Sky West Airlines Inc | United Express Agreements | ||||
Future minimum rental income | ||||
Number of aircraft | aircraft | 19 | |||
CRJ 700 | Sky West Airlines Inc | American Capacity Purchase Agreement | ||||
Future minimum rental income | ||||
Number of aircraft | aircraft | 74 | |||
Number of aircraft under firm purchase commitment | aircraft | 16 | |||
CRJ 900 | Sky West Airlines Inc | Delta Connection Agreement | ||||
Future minimum rental income | ||||
Number of aircraft | aircraft | 40 | |||
E175 | ||||
Future minimum rental income | ||||
Number of aircraft under firm purchase commitment | aircraft | 20 | |||
E175 | Sky West Airlines Inc | Delta Connection Agreement | ||||
Future minimum rental income | ||||
Number of aircraft | aircraft | 71 | |||
E175 | Sky West Airlines Inc | United Express Agreements | ||||
Future minimum rental income | ||||
Number of aircraft | aircraft | 90 | |||
E175 | Sky West Airlines Inc | Alaska Capacity Purchase Agreement | ||||
Future minimum rental income | ||||
Number of aircraft | aircraft | 32 | |||
Number of aircraft under firm purchase commitment | aircraft | 20 | |||
Current assets | ||||
Future minimum rental income | ||||
Gross receivables current | $ 65,500 | |||
Other noncurrent assets | ||||
Future minimum rental income | ||||
Gross receivables Non-current | 219,800 | |||
Flying agreements | ||||
Revenues [Abstract] | ||||
Operating revenues | 511,191 | 709,494 | ||
Flight operations | ||||
Revenues [Abstract] | ||||
Operating revenues | 211,052 | 366,409 | ||
Aircraft lease and fixed revenue | ||||
Revenues [Abstract] | ||||
Operating revenues | 231,491 | 242,734 | ||
Prorate agreements | ||||
Revenues [Abstract] | ||||
Operating revenues | 68,648 | 100,351 | ||
Airport customer service and other revenue | ||||
Revenues [Abstract] | ||||
Operating revenues | 8,414 | 9,896 | ||
Lease, airport services and other | ||||
Revenues [Abstract] | ||||
Operating revenues | $ 23,364 | $ 20,442 |
Share-Based Compensation and _2
Share-Based Compensation and Stock Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-Based Compensation | ||
Upon vesting, each restricted stock unit and performance share replaced with common stock | 1.00% | |
Stock based compensation expense | $ 2.6 | $ 1.7 |
Common stock repurchased (in shares) | 0 | 385,606 |
Common stock repurchased, value | $ 20 | |
Payment of income tax obligation on employee equity awards | $ 1.6 | $ 6.2 |
Restricted stock units | ||
Share-Based Compensation | ||
Granted (in dollars per share) | $ 44.87 | |
Restricted stock units | Long Term Incentive Plan 2010 | ||
Share-Based Compensation | ||
Granted (in shares) | 44,770 | |
Vesting period | 3 years | |
Performance stock units | Long Term Incentive Plan 2010 | ||
Share-Based Compensation | ||
Granted (in shares) | 157,210 | |
Performance stock units | Minimum | Long Term Incentive Plan 2010 | ||
Share-Based Compensation | ||
Percentage number of performance shares awarded | 0.00% | |
Performance stock units | Maximum | Long Term Incentive Plan 2010 | ||
Share-Based Compensation | ||
Percentage number of performance shares awarded | 250.00% | |
Director | ||
Share-Based Compensation | ||
Granted (in shares) | 21,175 | |
Granted (in dollars per share) | $ 44.87 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Income Per Common Share | ||
Number of outstanding units not included in computation of Diluted EPS (in shares) | 295,000 | 219,000 |
Numerator: | ||
Net income | $ 35,900 | $ 29,988 |
Denominator: | ||
Basic earnings per share weighted average shares | 50,286,000 | 50,277,000 |
Dilution due to stock options and restricted stock units | 441,000 | 282,000 |
Diluted earnings per share weighted average shares | 50,727,000 | 50,559,000 |
Basic earnings per share (in dollars per share) | $ 0.71 | $ 0.60 |
Diluted earnings per share (in dollars per share) | $ 0.71 | $ 0.59 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment Reporting | |||
Number of operating segments | segment | 2 | ||
Operating revenues | $ 534,555 | $ 729,936 | |
Operating expense | 453,713 | 663,615 | |
Depreciation and amortization expense | 109,597 | 111,708 | |
Interest expense | 31,354 | 30,204 | |
Segment profit | 49,488 | 36,117 | |
Total assets as of March 31 | 6,894,685 | 6,661,411 | $ 6,887,622 |
Capital expenditures (including non-cash) | 57,508 | 111,124 | |
SkyWest Airlines | |||
Segment Reporting | |||
Operating revenues | 406,450 | 606,842 | |
Operating expense | 387,870 | 594,141 | |
Depreciation and amortization expense | 50,326 | 51,775 | |
Interest expense | 3,129 | 2,541 | |
Segment profit | 15,451 | 10,160 | |
Total assets as of March 31 | 2,924,598 | 2,650,094 | |
Capital expenditures (including non-cash) | 35,206 | 38,879 | |
SkyWest Leasing | |||
Segment Reporting | |||
Operating revenues | 128,105 | 123,094 | |
Operating expense | 65,843 | 69,474 | |
Depreciation and amortization expense | 59,271 | 59,933 | |
Interest expense | 28,225 | 27,663 | |
Segment profit | 34,037 | 25,957 | |
Total assets as of March 31 | 3,970,087 | 4,011,317 | |
Capital expenditures (including non-cash) | $ 22,302 | $ 72,245 |
Leases, Commitments and Conti_3
Leases, Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)aircraft | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Number of aircraft leased | aircraft | 42 | ||
Retained earnings | $ 2,087,906 | $ 2,052,006 | |
Operating lease right-of-use assets | 274,025 | 282,362 | |
Current maturities of lease liabilities | 82,671 | 82,641 | |
Noncurrent operating leases | 200,598 | $ 205,845 | |
Operating leases | $ 16,600 | ||
Weighted-average remaining lease term for operating leases | 6 years 4 months 24 days | ||
Weighted-average discount rate for operating leases | 6.10% | ||
Lease costs | |||
Operating lease cost | $ 22,127 | $ 25,018 | |
Variable and short-term lease cost | 1,224 | 1,344 | |
Sublease income | (1,335) | (1,571) | |
Total lease cost | $ 22,016 | $ 24,791 | |
Aircraft | Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 3 years | ||
Aircraft | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 10 years | ||
Airport Facilities | Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 month | ||
Airport Facilities | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 36 years |
Leases, Commitments and Conti_4
Leases, Commitments and Contingencies - Operating Leases (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)aircraft | |
Future minimum rental payments required under operating leases | |
April 2021 through December 2021 | $ 70,255 |
2022 | 79,112 |
2023 | 72,153 |
2024 | 29,274 |
2025 | 16,725 |
Thereafter | 83,239 |
Total | $ 350,758 |
E175 | |
Future minimum rental payments required under operating leases | |
Number of aircraft under firm purchase commitment | aircraft | 20 |
CRJ 700 | |
Future minimum rental payments required under operating leases | |
Number of aircraft under firm purchase commitment | aircraft | 8 |
Leases, Commitments and Conti_5
Leases, Commitments and Contingencies - Commitments and Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Operating lease payments for aircraft and facility obligations | ||
Apr - Dec 2021 | $ 70,255 | |
2022 | 79,112 | |
2023 | 72,153 | |
2024 | 29,274 | |
2025 | 16,725 | |
Thereafter | 83,239 | |
Total | 350,758 | |
Firm aircraft and spare engine commitments | ||
Apr - Dec 2021 | 499,306 | |
2022 | 56,152 | |
Total | 555,458 | |
Interest commitments | ||
Apr - Dec 2021 | 90,454 | |
2022 | 106,979 | |
2023 | 89,228 | |
2024 | 73,056 | |
2025 | 57,835 | |
Thereafter | 105,033 | |
Total | 522,585 | |
Principal maturities on long-term debt | ||
Apr - Dec 2021 | 271,082 | |
2022 | 407,226 | |
2023 | 417,720 | |
2024 | 371,994 | |
2025 | 446,924 | |
Thereafter | 1,225,828 | |
Total long-term debt | 3,140,774 | $ 3,236,002 |
Total commitments and obligations | ||
Apr - Dec 2021 | 931,097 | |
2022 | 649,469 | |
2023 | 579,101 | |
2024 | 474,324 | |
2025 | 521,484 | |
Thereafter | 1,414,100 | |
Total | $ 4,569,575 | |
Percentage of long-term debt with fixed interest rates | 98.10% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Measurements | ||
Marketable securities | $ 605,438 | $ 610,185 |
Fair Value of Financial Instruments | ||
Carrying amount of long-term debt | 3,106,180 | 3,203,696 |
Recurring | ||
Fair Value Measurements | ||
Cost of cash and cash equivalents and available for sale securities | 836,400 | 825,900 |
Recurring | Fair value | ||
Fair Value Measurements | ||
Marketable securities | 605,438 | 610,185 |
Cash and Cash Equivalents | 231,005 | 215,723 |
Total Assets Measured at Fair Value | 836,443 | 825,908 |
Recurring | Fair value | Bonds and bond funds | ||
Fair Value Measurements | ||
Marketable securities | 92,025 | 117,928 |
Recurring | Fair value | Commercial paper | ||
Fair Value Measurements | ||
Marketable securities | 513,413 | 492,257 |
Recurring | Level 1 | ||
Fair Value Measurements | ||
Cash and Cash Equivalents | 231,005 | 215,723 |
Total Assets Measured at Fair Value | 231,005 | 215,723 |
Recurring | Level 2 | ||
Fair Value Measurements | ||
Marketable securities | 605,438 | 610,185 |
Total Assets Measured at Fair Value | 605,438 | 610,185 |
Fair Value of Financial Instruments | ||
Fair value of long-term debt | 3,100,000 | 3,200,000 |
Carrying amount of long-term debt | 3,100,000 | 3,200,000 |
Recurring | Level 2 | Bonds and bond funds | ||
Fair Value Measurements | ||
Marketable securities | 92,025 | 117,928 |
Recurring | Level 2 | Commercial paper | ||
Fair Value Measurements | ||
Marketable securities | $ 513,413 | $ 492,257 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Current portion long-term debt | $ 360,843 | $ 406,005 |
Current portion of unamortized debt issue cost, net | (3,380) | (3,847) |
Current portion of long-term debt, net of debt issue costs | 357,463 | 402,158 |
Long-term debt, net of current maturities | 2,779,931 | 2,829,997 |
Long-term portion of unamortized debt issue cost, net | (31,214) | (28,459) |
Long-term debt, net of current maturities and debt issue costs | 2,748,717 | 2,801,538 |
Total long-term debt (including current portion) | 3,140,774 | 3,236,002 |
Total unamortized debt issue cost, net | (34,594) | (32,306) |
Total long-term debt, net of debt issue costs | 3,106,180 | 3,203,696 |
Long-term debt | 3,106,180 | 3,203,696 |
Amount outstanding | 0 | |
Maximum borrowing capacity | 75,000 | |
Current borrowing capacity | 41,000 | |
Letters of credit and surety bonds | ||
Debt Instrument [Line Items] | ||
Amount outstanding | 59,500 | $ 61,100 |
Letters of credit | ||
Debt Instrument [Line Items] | ||
Amount outstanding | 34,000 | |
Promissory note | ||
Debt Instrument [Line Items] | ||
Total long-term debt, net of debt issue costs | 39,900 | |
Principal amount | $ 39,900 | |
Warrants to purchase shares | 98,815 | |
Long-term debt | $ 39,900 | |
Common stock value issued | $ 3,300 | |
Warrants exercise price | $ 40.41 | |
Warrant term | 5 years | |
Secured loan | ||
Debt Instrument [Line Items] | ||
Total long-term debt (including current portion) | $ 60,000 |
Investment in Other Companies (
Investment in Other Companies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Long-term debt | $ 3,106,180 | $ 3,203,696 | |
Aero Engines, LLC. | |||
Payments to acquire interest in joint venture | $ 22,300 | ||
Investment ownership (as a percent) | 75.00% | 75.00% | |
Additional interest in Joint venture | $ 1,000 | ||
Long-term debt | 0 | ||
Aero Engines, LLC. | Other Assets | |||
Investment balance in Aero Engines | 25,700 | ||
Aero Engines, LLC. | Other Nonoperating Income. | |||
Company's portion of income generated by Aero Engines | $ 200 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Taxes | ||
Effective tax rate (as a percent) | 28.20% | 23.30% |
Statutory Federal income tax rate (as a percent) | 21.00% | 21.00% |
Offset of discrete tax benefit | $ 1.4 |