Long-term Debt

9 Months Ended

Sep. 30, 2024

Long-term Debt

Long-term Debt

(10) Long-term Debt

Long-term debt consisted of the following as of September 30, 2024, and December 31, 2023 (in thousands):

		September 30, 2024		December 31, 2023
Current portion of long-term debt	$	500,279	$	447,534
Current portion of unamortized debt issue cost, net		(3,490)		(3,665)
Current portion of long-term debt, net of debt issue costs	$	496,789	$	443,869
Long-term debt, net of current maturities	$	2,214,142	$	2,582,776
Long-term portion of unamortized debt issue cost, net		(17,594)		(20,593)
Long-term debt, net of current maturities and debt issue costs	$	2,196,548	$	2,562,183
Total long-term debt (including current portion)	$	2,714,421	$	3,030,310
Total unamortized debt issue cost, net		(21,084)		(24,258)
Total long-term debt, net of debt issue costs	$	2,693,337	$	3,006,052

As of September 30, 2024, the Company had $2.7 billion of total long-term debt, which consisted of $2.5 billion of debt used to finance aircraft and spare engines and $200.6 million of unsecured debt payable to U.S. Treasury. The average effective interest rate on the Company’s debt was approximately 4.1% at September 30, 2024.

As of September 30, 2024 and December 31, 2023, the Company had $47.1 million and $49.1 million, respectively, in letters of credit and surety bonds outstanding with various banks and surety institutions.

As of September 30, 2024, SkyWest Airlines had a $100.0 million line of credit. The line of credit includes minimum liquidity and profitability covenants and is secured by certain assets. As of September 30, 2024, SkyWest Airlines had no amounts outstanding under the facility. However, at September 30, 2024, SkyWest Airlines had $24.9 million in letters of credit issued under the facility, which reduced the amount available under the facility to $75.1 million. The line of credit expires March 25, 2025 and has a variable interest rate of 3.5% plus the one month SOFR rate.

The Company’s debt agreements are not traded on an active market and are recorded at carrying value on the Company’s consolidated balance sheet. The fair value of the Company’s long-term debt is estimated based on current rates offered to the Company for similar debt. Debt is primarily classified as Level 2 within the fair value hierarchy. The carrying value and fair value of the Company’s long-term debt as of September 30, 2024 and December 31, 2023, were as follows (in thousands):

	September 30, 2024		December 31, 2023
Carrying value	$	2,714,421	$	3,030,310
Fair value	$	2,660,160	$	2,918,012