Skywest profit plunges

“The financial results are entirely satisfactory given several compounding issues: the adverse economic conditions, a significant drop in the value of the Australian dollar versus the US currency, and the impact of exorbitant fuel prices earlier in the period when oil reached US$140 per barrel,” said executive chairman Jeff Chatfield in a letter to investors.

Chatfield also noted that the company reported a loss during the first half of the year, forcing it to take a more conservative growth profile which led to a “very significant improvement in profit in the second half of the year”. It also successfully negotiated new Enterprise Bargaining Agreements with its pilot and engineering groups and hired two new executives during the year.

While it didn’t offer specific profit guidance, the airline noted that with the increase in resources sector activity in WA and the recent renewing of its Coastal route license by the WA government that it was well placed to sustain continued revenue growth in the future.

The airline, which is listed on the London Stock Exchange’s Alternate Investment Market but primarily owned by Singaporean interests, said that it was still investigating listing on the Australian Securities Exchange in order to increase participation by Australian investors. The airline notes that this “might facilitate an increase in the Australian level of investment in the company which may in turn assist the group to obtain an Australian international airline licence”.

Perth based Skywest operates a fleet of seven Fokker 50 turboprops and eight Fokker 100s on regional RPT and resource charter services throughout WA and into the Northern Territory.