Skywest rallies

21/10/2009 Robert Tyerman

Skywest Airlines, which operates as a domestic Australian airline, is investigating the possibility of an additional share quote

After losing money in the first six months, Skywest Airlines achieved a reduced full-year pre-tax profit of £2.2 million.

Based in Singapore and quoted on AIM, Skywest showed a 60 per cent profits fall in the year to June on turnover 1.6 per cent lower at £78.5 million. Executive chairman Jeff Chatfield says the company, which handles much charter work with the resources industry in western Australia, blames economic uncertainty, a weak Australian dollar against the US currency and the impact of ‘exorbitant’ fuel prices during the period in question for the setbacks encountered.

However, he says Skywest responded by drastic restructuring and a shift in strategic focus from the pursuit of growth to ‘fiscal conservatism’. As a result, the second half saw a ‘very significant improvement’.

Chatfield says the company, which operates as a domestic Australian airline, is investigating the possibility of an additional share quote on the Australian Stock Exchange. He suggests this would increase liquidity in the shares and encourage more Australians to invest.

Skywest shares have rallied strongly from a 12-month low of 2.245p and now trade at 10.25p. This values the company at £20 million.