Segment Reporting

12 Months Ended

Dec. 31, 2023

Segment Reporting

Segment Reporting

(2) Segment Reporting

GAAP requires disclosures related to components of a company for which separate financial information is available to, and regularly evaluated by, the Company’s chief operating decision maker when deciding how to allocate resources and in assessing performance.

The Company’s two reportable segments consist of (1) the operations of SkyWest Airlines and SWC and (2) 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 and SWC segment includes revenue earned under the applicable capacity purchase agreements attributed to operating such aircraft and the respective operating costs, and revenue and operating expenses attributed to other flying or airport services agreements. 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 and other activities. 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. Additionally, aircraft removed from SkyWest Airlines’ operations and held for sale are included in the SkyWest Leasing segment.

The following represents the Company’s segment data for the years ended December 31, 2023, 2022, and 2021 (in thousands).

	Year ended December 31, 2023
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues (1)	$	2,392,174	$	543,258	$	2,935,432
Operating expense		2,566,946		264,417		2,831,363
Depreciation and amortization expense		149,264		233,851		383,115
Interest expense		17,053		113,877		130,930
Segment profit (loss) (2)		(191,825)		164,964		(26,861)
Total assets (as of December 31, 2023)		2,537,834		4,488,459		7,026,293
Capital expenditures (including non-cash)		113,783		150,126		263,909

	Year ended December 31, 2022
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues (1)	$	2,492,318	$	512,607	$	3,004,925
Operating expense		2,525,076		298,687		2,823,763
Depreciation and amortization expense		182,475		212,077		394,552
Interest expense		12,805		114,278		127,083
Segment profit (loss) (2)		(45,563)		99,642		54,079
Total assets (as of December 31, 2022)		2,977,804		4,436,749		7,414,553
Capital expenditures (including non-cash)		82,891		579,426		662,317

	Year ended December 31, 2021
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues (1)	$	2,192,432	$	521,059	$	2,713,491
Operating expense		2,177,524		260,100		2,437,624
Depreciation and amortization expense		210,281		229,917		440,198
Special items - impairment charges		84,592		—		84,592
Interest expense		13,360		109,762		123,122
Segment profit (2)		1,548		151,197		152,745
Total assets (as of December 31, 2021)		2,957,745		4,168,202		7,125,947
Capital expenditures (including non-cash)		128,712		438,325		567,037

(1) Prorate revenue and airport customer service revenue are reflected in the SkyWest Airlines and SWC segment.

(2) Segment profit (loss) is equal to operating income less interest expense.