SkyWest announced a firm order for 16 new Embraer E175 jets

The latest company order for 16 E175 jets to be flown by SkyWest Airlines confirms the airline’s long-term plans for fleet expansion, overall market growth, and enduring code share flight agreements with the major US carriers. On August 9, Embraer and SkyWest announced a firm order for 16 new Embraer E175 jets. SkyWest’s proclamation of new aircraft is for flight service operation with Delta Air Lines, surmounting to the total of 77 E175 jets in a fleet of SkyWest for Delta; 71 already operating for it. Three-class configuration having the total seating capacity of 76, Embraer E175 will wear Delta’s livery with delivery starting in Mid-2022.

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The new aircraft will fly exclusively by SkyWest Airlines under the Capacity Purchase Agreement with Delta Air Lines. The contract value is estimated at USD 798.4 million; the aircraft will be delivered fresh from the Embraer factory and will start operating flights between the first half and the end of 2022. SkyWest will own and finance these aircraft scheduled for delivery in the second quarter of 2022. The new addition of aircraft is set to replace sixteen Mitsubishi/ex-Bombardier CRJ 900s between the time period of mid-2022 and early months of 2023. At present, forty CRJ 900s of SkyWest operates for Delta. Non-cash impairment charges are expected to be implied on soon-to-be-replaced aircraft.

In May 2021, the two companies Embraer and SkyWest, signed the 12-year contract for E 175s on behalf of Alaska Airlines. The first airplane in Alaska Airlines livery will be delivered in the first half of 2022 that will complement the 32 E175s that already fly for Alaska Airlines.

Similarly, in January 2020, SkyWest ordered the delivery of twenty E175s with American Airlines (18 in the second half of the year and two in 2022). They will join the fleet by 2022 end, shortly before 21 used CRJ 700s will fly exclusively for American Airlines as well.

In the H41-results stock exchange filing document, SkyWest clarified its fleet addition between June 2020 and June 2021- 4 E175s, eighteen used CRJ 700s, one new CRJ 900, and four CRJ 900s and twelve CRJ 200s were removed from the fleet. The contract with American Airlines implies the placement of 34 CRJ 700s with third parties. The regional carrier, SkyWest, operating the aircraft under codeshare agreements for United Airlines, Delta Air Lines, American Airlines, and Alaska Airlines, has 478 such aircraft by the end of June, with a total of 608 aircraft on its fleet, up from 452 at the end of last year.

According to Cirium Fleet Data, SkyWest currently has 193 E 175s (190 in service and 3 in storage), but the latest order for 34 aircraft will amount to 237 E 175s. SkyWest’s fleet served over 15 million passengers and completed 600.227 flying hours between January and June, with E175s completing 277.724 hours. Executives have estimated the airline will return to the pre-pandemic level of flight operation by the first quarter of 2022.

The reason behind the order of another 16 E-175s

The new order of Embraer E175s boosts the growth strategy of SkyWest’s E-175 fleet, despite it being the largest operator of this type than any other carrier in the world. With the addition of new aircraft, SkyWest will have nearly 340 E175s operating with the major carriers in North America. This month marked the completion of two million flight hours in the E175. E-175 aircraft is the benchmark regional jet and a key part of SkyWest’s strategy to navigate through the pandemic. It is the foundation of the regional air travel market in North America. It anchors regional carriers as it has been designed to suit carrier’s aspirations to rebuild the routes, level up flight frequencies, and increase the capacity to meet the rejuvenating domestic demand. It will assist in adding flight routes and complement the mainline aircraft to match the fluctuating air demand with the suitable capacity.

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The premier aircraft was to bounce back in the pandemic period, completing the larger aircraft on different intra-US routes to meet the demand fluctuations. For Embraer, the firm order confirms the claims that E175 resumes beguiling the air market and demand in the US. The 16 new E175 that will fly for Delta Connection, the regional brands of Delta Air Lines will have wide seats and aisles, full-size cargo bins, and power outlets at every first-class seat. 

About SkyWest

SkyWest Airlines is one of the leaders in regional airlines serving North America, with its headquarter in St. George, Utah. It operates in partnership with UA, AA, DL, and AS and is on its way to excel in regional industry with its unmatched value for customers, shareholders, and over 14000 employees.

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