SkyWest, Inc. (NASDAQ:SKYW) Q1 2024 Earnings Call Transcript

Rob Simmons: The $1 million was revenue that had been previously deferred and was recognized that. $1 million is a little bit lower than we sort of indicated last quarter for Q1, just because we had a few changes to contracts and we had a few and just the production going up sort of pushes some of that out. But we think that for the full year that we should recognize about $50 million of revenue that had been previously deferred. And again, as I said on my script, we have today, as of the end of March, we have about $366 million of deferred revenue yet to be reversed over the years to come.

Operator: Your next question comes as a follow-up from Savi Syth with Raymond James.

Savi Syth: Question for Rob, actually, and this is kind of following-up I’m doing’s question. It does seem that the deferred revenue recognition for this year is a little bit on the low end of what you were thinking and your earnings still go up, so that’s kind of impressive in itself. I was just kind of curious what your thoughts are on as you go to ‘25, ‘26, just how that recognition comes in or the reversal of that comes.

Rob Simmons: Again, it’s a little tough to dial that in too much at this point. It’s going to depend on production levels. It’ll depend on what happens with some of these contracts if they’re extended or whatever. It is a little tough to know, but again, as we’ve said in the past, that $366 million that’s sitting there on our balance sheet right now that that’ll likely take many years to fully reverse. $50 million this year and then probably the cadence will depend on production beyond that,

Savi Syth: But at least $50 million next year, is a fair way to think about it?

Rob Simmons: It could be, that’s one of the possible sort of outcomes, again, depending on contracts and production.

Operator: Seeing no further questions at this time, I will now turn the call back over to Chip Childs for any closing remarks.

Chip Childs: Thank you, Brianna. And again, thank you all for your interest in SkyWest. We feel very fortunate to be in the position where we are at, where we have fantastic partners, fantastic shareholders, as well as we have the most professional, best employees in the entire industry. I want to thank them personally for the work that they’ve done over the winter months and how well their operation has operated. And it’s a pleasure to represent them as well. And with that, we will conclude and talk to you next quarter. Thank you.

Operator: This concludes today’s conference. Thank you for your participation. You may now disconnect.