(RTTNews) - SkyWest, Inc. (SKYW: News ), a regional airlines operator, Thursday reported a rise in profit for the third quarter, despite a decline in revenues, helped by lower operating expenses mainly related to aircraft fuel. Earnings topped analysts' consensus by five cents.

Net income for the third quarter increased to $28.57 million or $0.50 per share from $26.16 million or $0.45 per share last year.

On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.45 per share. Analysts' estimates typically exclude special items.

Total operating revenues for the quarter declined to $637.75 million from $934.11 million a year ago, primarily as a result of a reduction in fuel cost reimbursements paid by SkyWest's major partners.

The reduction in operating revenues was partially offset during the third quarter of 2009 as SkyWest experienced an increase in block hours of 3.2%, compared to the same quarter of 2008. SkyWest produced 359,573 block hours for the quarter, compared to 348,522 block hours for the same period last year.

Total operating expenses declined to $574.49 million from $873.85 million last year. Aircraft fuel expenses declined to $61.84 million from $363.73 million in the previous year. Salaries, wages and benefits declined to $175.55 million from $182.10 million and Station rentals and landing fees declined to $27.50 million from $33.92 million a year ago.
Total operating expense and interest per available seat mile or ASM for the third quarter of 2009, excluding fuel expense of $61.8 million or $0.010 per ASM, decreased 4.3% to $0.090 from $0.094 for the comparable quarter of 2008. The decrease was due primarily to the reduction in customer service labor as well as other labor-related costs.

SkyWest recorded stock-based compensation expense of about $1.7 million for the quarter ended September 30, 2009, compared to $2.6 million in the previous year.

Quarterly traffic increased 9% to 4.83 billion revenue passenger miles or RPMs from 4.43 billion RPMs in the previous year. Capacity rose 5.6% to 5.94 billion ASMs from 5.63 billion ASMs last year. Quarterly load factor increased 2.5 points to 81.3% from 78.8%.

For the nine-month period net income declined to $64.16 million or $1.13 per share from $91.73 million or $1.55 per share in the same period of the previous year. Total operating revenues for the period declined to $2.01 billion from $2.75 billion last year.

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