Net Income Per Common Share

3 Months Ended

Mar. 31, 2024

Net Income Per Common Share

Net Income Per Common Share

(5) Net Income Per Common Share

Basic net income per common share (“Basic EPS”) excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share. Securities that could potentially dilute Basic EPS in the future, and which were excluded from the calculation of Diluted EPS because inclusion of such share would be anti-dilutive, are as follows (in thousands):

	Three Months Ended
	March 31,
	2024		2023
Treasury Warrants (1)		—		785
Employee Stock Awards		—		700
Total antidilutive securities		—		1,485

(1) U.S. Department of the Treasury (“U.S. Treasury”) warrants to purchase shares of SkyWest common stock issued pursuant to the three Payroll Support Program Agreements and a loan agreement with the U.S. Treasury.

Additionally, during the three months ended March 31, 2024 and 2023, 452,000 and 538,000 performance shares (at target performance) were excluded from the computation of Diluted EPS because the Company had not achieved the minimum target thresholds for these shares for the three months ended March 31, 2024 and 2023, respectively.

The calculation of the weighted average number of shares of common stock outstanding for Basic EPS and Diluted EPS are as follows for the periods indicated (in thousands, except per share data):

	Three Months Ended
	March 31,
	2024		2023
Numerator:
Net income (loss)	$	60,298	$	(22,071)
Denominator:
Basic earnings per share weighted average shares		40,299		49,391
Dilutive effect of employee stock awards and warrants		1,193		—
Diluted earnings per share weighted average shares		41,492		49,391
Basic earnings per share	$	1.50	$	(0.45)
Diluted earnings per share	$	1.45	$	(0.45)