Jake's questions to SkyWest Inc (SKYW) leadership • Q4 2024
Question
Speaking on behalf of Duane Pfenningwerth, Jake from Evercore ISI asked about SkyWest's target leverage levels given its recent deleveraging and inquired about the mix of flying (contract, pro rate, charter) that constitutes the 12% block hour growth forecast for 2025.
Answer
Chief Financial Officer Rob Simmons explained that while there is no specific target leverage, the company has intentionally deleveraged to prepare for growth, maintaining flexibility with strong liquidity and over $1.5 billion in unpledged collateral. Chief Commercial Officer Wade Steel specified that the vast majority of the 2025 block hour growth will come from increased utilization and returning parked aircraft to service under existing partner contracts.