Skywest Airlines profit dips, but strong growth in Virgin regional network.
Western Australian carrier Skywest Airlines has just revealed that it made a consolidated net profit after tax of A$5.47 million for the year to 30 Jun, down 28% on last year, but saw a 26% increase in group revenue to A$233 million.
The period included the commencement of operations under the Australian Regional Airline Network (ARAN) wet lease agreement with Virgin Australia last Oct, with six ATR-72 aircraft operating under the deal by 30 Jun.
The company said the ARAN gives it significant diversification outside of Western Australia, as well as “revenues uncorrelated with the resources sector,” and flagged significant expansion of operations under the Virgin Australia agreement.
Skywest said its regular passenger transport operations responded to competition on certain routes by reducing capacity, which cut revenue and lowered load factors, but growth in the charter business more than offset the RPT declines.
More information in tomorrow’s Travel Daily.