SkyWest Inc. (NASDAQ:SKYW) Q1 2019 Earnings Conference Call - Final Transcript

Apr 26, 2018 • 04:30 pm ET

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SkyWest Inc. (NASDAQ:SKYW) Q1 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] Our first question today comes from Savi Syth from Raymond James. Please go ahead with your question.

Analyst
Savi Syth

Hey, good afternoon. I just have some couple of questions on the fleet data you had by a year-end here. I notice that with the CRJ900/CRJ700 numbers, they don't necessarily go down by an additional 30 by the end of the year. Is that a function of -- the timing of things coming out with Delta or is that some level of confidence that [Indecipherable]

Executive
Wade Steel

Hi Savi, this is Wade. So what in our CRJ700/CRJ900 lines as I talk about my script there is still six more CRJ900 that will be removed during Q2. There are also some other 7s and there is also some other CRJ700s and CRJ900s that are going away. The 22 are going away in this model as well what we have in the pressure release. And so if we are able to place those, that will be upside.

Analyst
Savi Syth

Okay. So its adjusting from -- I think it was like 169 to 140, okay. So that's the 29 just coming down.

Executive
Wade Steel

Yes. That's right.

Analyst
Savi Syth

Okay. And then the CRJ200 just wondering how many you're flying with prorate -- has a prorate number increase at all and with the --king of the ones that you place with United, how long of those contracts going at?

Executive
Wade Steel

Yes. So this is way again Savi. So as far as the prorate, it's very consistent with what we have in the past, its about 10% of our total fleet. And then on the United side, the 8 CRJ200, it is a two-year contract that we sign off those yet.

Analyst
Savi Syth

Okay. And then just somewhat a question on pilot supply, could you just provide kind of update on what you're seeing from hiring an attrition on that side. And I thought I heard that maybe can ExpressJet has an agreement with United for a path through, at least interview on that front and they can -- is there more opportunity to do things like that?

Executive
Chip Childs

Thanks, Savi. This is Chip. Yes, let me just make a couple of quick observations about pilot supply, I think as we usually update relative to our current position with pilots, I can tell you that right now we're still in a very good position. Going into the summer, we feel very comfortable being able to fly with what we have forecasted and being able to meet our partners need. The ever changing pilot supply model, we do see things that are happening within the pipeline. I believe the longer that we continue to go down the pathway of dealing with this struggle, the pipeline gradually continues to grow. It's not necessarily growing as fast as what probably should, but we are -- we spent a lot of time and energy and effort with schools and the front end of our pipeline of both of the -- both carriers to make sure that we've got a good strong recruiting