On this page of StockholderLetter.com we present the 3/23/2023 shareholder letter from SKYWEST INC — ticker symbol SKYW. Reading current and past SKYW letters to shareholders can bring important insights into the investment thesis.
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3/23/2023 Letter Continued (Full PDF)
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3/26/2024 SKYW Stockholder Letter
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SKYW Benford's Law Stock Score = 96
3/23/2023 Letter Continued (Full PDF)
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3/26/2024 SKYW Stockholder Letter•
3/25/2025 SKYW Stockholder Letter•
More "Airlines" Category Stockholder Letters•
SKYW Benford's Law Stock Score = 96SKYW 3/23/2023 Shareholder/Stockholder Letter Transcript:
2022 ANNUAL REPORT N ot i ce o f 2 0 2 3 A n n ual Meetin g an d Proxy St at emen t E ugene Redmond Great Falls Jackson Pocatello Sun Valley Idaho Falls Riverton Casper Dickinson Scottsbluff Rapid City International Falls Sioux Falls Ft. Dodge Sioux City Aberdeen Jamestown Houghton Cedar Rapids Mason City Milwaukee Detroit E lmira Sault Ste. Marie Iron Mountain Pellston Rhinelander E scanaba Alpena Green Bay Minneapolis- Appleton Traverse City St. Paul Grand Rapids Rochester Rochester Madison Toronto Brainerd Duluth Grand Forks Devils Lake Bemidji Hibbing Fargo Bismarck Williston Minot Sheridan Gillette Bozeman Billings Helena Butte Missoula Twin Falls Boise Lewiston Spokane Kalispell Calgary E dmonton Albany Hartford Syracuse Burlington Montreal 2022 Mapbox OpenStreetMap 2022 Mapbox OpenStreetMap Loreto Mazatl n Monterrey Brownsville Corpus Christi Sarasota-Bradenton December 2022 Boston Laramie Chicago-O'Hare South Bend Cleveland Providence Omaha Rock Springs Cheyenne Des Moines Moline Chicago-Midway White Plains Pittsburgh Arcata Akron HaydenE lko NYCRedding North Platte Grand Island State College Fort Wayne Columbus Bloomington Steamboat Sp. Salt Lake City Lincoln LaGuardia Allentown Indianapolis Vernal Vail-E agle Newark Johnstown Harrisburg Springfield Manhattan Reno Denver Decatur Grand Junction Philadelphia Columbia Wash.Sacramento Kansas City Aspen Colorado Springs Moab St. Louis Louisville Cincinnati Dulles Santa Rosa Hays Salina Wash.Montrose Garden City Gunnison Charleston Reagan Oakland Pueblo Lexington San Francisco E vansville Dodge City Wichita Cedar City San Jose Richmond Bishop Springfield Roanoke Durango Paducah St. George Liberal Tulsa Joplin Monterey Norfolk Fresno NW Arkansas/ Tri-Cities Stillwater Nashville Bakersfield Fayettevile Las Vegas Santa Fe Knoxville Flagstaff Jacksonville San Luis Obispo Chattanooga Oklahoma City Fort Smith Amarillo Fayetteville Albuquerque Memphis Burbank GreenvilleSanta Barbara Little Rock Lawton Ontario Prescott Huntsville Spartanburg Los Angeles Texarkana Palm Springs Wichita Falls Long Beach Santa Ana Atlanta Lubbock Monroe Dallas-Ft. Worth Birmingham Phoenix Augusta Shreveport Roswell Meridian Columbus Tyler San Diego Yuma Killeen Longview Jackson Hattiesburg-Laurel Savannah Tucson College Station Midland E l Paso Baton Rouge Waco San Angelo Alexandria HoustonMobile Intercontinental Gulfport Austin Tallahassee HoustonLake Charles New Orleans San Antonio Hobby Lafayette Beaumont Del Rio Hermosillo Victoria Chihuahua Laredo Medford Kelowna Pasco/Tri-Cities Seattle-Tacoma Vancouver Portland North Bend Ketchikan Sitka To our Shareholders, Throughout 2022, we positioned SkyWest to be a fundamentally different and better company. We have done this by focusing on the core areas of our business that we believe will set us up for growth in 2024 and beyond for a solid, sustainable future. These fundamentals include: 1. Enhancing our partnerships to adapt to an evolving industry and continue to deliver on our partners needs; 2. Shoring up our operating processes and IT systems; 3. Effectively and efficiently utilizing our industry-leading, flexible fleet today and into the future; 4. Maintaining a healthy, strong balance sheet, which is a key SkyWest differentiator; and 5. Last and most importantly, continuing to take care of our people and create value for our shareholders We are confident our ongoing execution on these fundamentals will enable us to deliver value for all SkyWest stakeholders. We invested heavily in our people throughout 2022, including increasing pay for nearly every workgroup and finalizing a pilot agreement in the third quarter. While this pilot agreement represents a significant cost increase, we are pleased to have worked with the majority of our partners to help offset these higher crew costs. We continue to strengthen our partnerships and we appreciate their continued support and deep engagement with our efforts in the new environment. We remain committed to working with our partners to evolve, adapt and provide strong solutions to their needs. Our focus on dual-class flying continues to deliver, with 83% of our flying now dual class. We are nearing the end of this fleet transition capital expenditure cycle, leaving us capacity for growth and driving free cash flow within the existing fleet. As a result of our continued focus, we can proudly say our teams delivered some of our strongest operating performance in 2022. We also want to commend SkyWest people for over 180 days of 100% adjusted completion for the full year. Our teams have done a tremendous job as we develop a new normal and continue to provide the best product in the regional industry. SkyWest is clearly recognized as one of the most desired career destinations. We continue to believe it will take some time, over the next couple of years, to rebalance our crews and restore production and full utilization of our highly accretive fleet. The pandemic fundamentally changed our industry and our operating environment. We have spent the past couple of years identifying vulnerabilities and refining and reinforcing our operation and systems. Postpandemic realities have had an impact on every aspect of our operations, from fuel supply and airport staff to lodging and accommodations for our crews. We spent a large part of 2022 ensuring we have the resources, processes, and systems in place to run the most reliable operation and to mitigate negative impacts on our people and customers. We also remain transparent with our partners about our constraints and are disciplined in ensuring we deliver on our commitments. We believe our competitive advantage is and will continue to be our ability to provide best-in-class operations, capital and cost advantages, and fleet flexibility. We believe as we remain firm in our execution of these objectives, SkyWest will continue to create value for our employees, our customers, and our investors. We want to thank our team of professionals for their good work in delivering exceptional performance and adapting to the evolving market. Jerry C. Atkin Chairman SkyWest, Inc. Russell A. Chip Childs President and Chief Executive Officer SkyWest, Inc.