Skywest set for listing take-off
Tues "The Australian"
Skywest set for listing take-off
Steve Creedy, Aviation writer
November 23, 2004
PERTH-based Skywest Airlines is hoping a better than expected start to the year will help boost its share price today when it becomes the nation's third carrier to list on the Australian Stock Exchange.
The regional carrier will list 98.9 million shares with a market capitalisation of $20.8 million based on an issue price of 21c a share.
The listing comes as Skywest yesterday revealed an after-tax profit of $49,000 for the September quarter, which it said was $208,000 ahead of internal budgets.
The regional airline said the 80,000 passengers carried during the quarter was 11 per cent ahead of forecasts.
It attributed the increase to a reduction in average fares and a fare rule change that removed advance purchase requirements and attracted more last-minute customers.
New routes to Karratha, Port Hedland and Broome were also performing ahead of expectations. Revenue of $18.6 million was 4.7 per cent up on budget, while rising fuel prices boosted direct costs to $17.6 million, 3.8 per cent ahead of expectations.
Managing director Scott Henderson said the passenger growth provided a good basis for a solid year.
"From now on, if we hit budget every month, we'll beat the $2.8 million (forecast) by 7.5 per cent," Mr Henderson said. "So that's why it's a pretty positive, fairly strong first quarter."
Skywest earlier this month closed an oversubscribed capital raising a week early after raising $6.3 million through a 1-for-3 rights issue and a supplementary offer to new shareholders.
Patersons Securities, the issue's underwriter, reported a high level of interest from shareholders, institutional and other retail investors.
Skywest carries more than 250,000 passengers a year across Western Australia, the Northern Territory and to Bali on a fleet of Fokker 50 turbo-prop and Fokker 100 jet aircraft.
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