Net Income Per Common Share

9 Months Ended

Sep. 30, 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				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Treasury Warrants(1)		—		78		—		355
Employee Stock Awards		—		—		—		20
Total antidilutive securities		—		78		—		375

(1) Warrants originally issued to U.S. Treasury 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 nine months ended September 30, 2024 and 2023, 336,000 and 422,000 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 nine months ended September 30, 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				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Numerator:
Net income	$	89,709	$	23,478	$	225,585	$	16,826
Denominator:
Basic earnings per share weighted average shares		40,253		41,826		40,244		45,018
Dilutive effect of employee stock awards and warrants		1,308		754		1,251		522
Diluted earnings per share weighted average shares		41,561		42,580		41,495		45,540
Basic earnings per share	$	2.23	$	0.56	$	5.61	$	0.37
Diluted earnings per share	$	2.16	$	0.55	$	5.44	$	0.37