Following last week’s announcement that Skywest Airlines, Western Australia’s premier airline expects to benefit from a significant increase in capacity, Growth Equities and Company Research reiterates its BUY recommendation. GE&CR has set Skywest a target price of 32.5p - nearly four times its current price of 8.75p.

• Improvement in outlook with the anticipated capacity boost from the A$50 billion Gorgon gas project deal;

• Skywest’s position at the heart of a strong resource sector distinguishes it from other UK quoted airline operators. Charter services for mining companies continue to thrive – up 67% for the year ended 30th June 2009;

• £10.99 million of net tangible asset backing at the last balance sheet date; and

• At the current price, despite strong balance sheet support, the shares trade on a lowly 2.7 times forecast earnings while yielding more than 8%.

Analyst Steven Moore commented:

“Despite the challenges of the past year, we believe Skywest will have remained comfortably profitable in the year to 30th June 2009 and for the current year we believe a pre-tax profit of SGD$21 million and earnings per share of 3.25p are achievable.”