How did Skywest's revenue surge in Q4 2024?

SkyWest's revenue surge in Q4 2024 can be attributed to several key factors: 1. **Increase in Flying Contract Rates**: The company's revenues from flying agreements grew by 19.1% year-over-year, reaching $944.4 million in Q4 2024, up from $751.79 million in the same period of the previous year. This increase was primarily driven by flying contract rate increases, which contributed significantly to the revenue growth. 2. **Passenger Growth**: SkyWest carried 10.3% more passengers and had a 11.8% increase in departures compared to the same quarter of the previous year. This growth in passenger traffic reflects the company's successful operational performance and market demand for its services. 3. **Deferred Revenues**: The company recognized $20 million of previously deferred revenues under its flying contracts in Q4 2024, compared to deferring $63 million in Q4 2023. This indicates a more efficient revenue recognition process and a better cash flow management. 4. **Strategic Fleet Expansion**: SkyWest's strategic expansion of its fleet, including the addition of new aircraft and the conversion of existing ones, has likely contributed to its revenue growth. The company took delivery of four new E175 aircraft and has plans to operate 278 E175 aircraft by the end of 2026. This expansion is expected to enhance its capacity and improve its market position. In conclusion, SkyWest's revenue surge in Q4 2024 is a result of a combination of factors including increased flying contract rates, passenger growth, efficient revenue recognition, and strategic fleet expansion. These elements collectively contributed to the company's robust revenue performance in the quarter.