Private believes he saw a flying orca while on a sugar high, and has to convince the others it was real.
Private loses the penguins' version of "eenie-meenie-miny-mo" and gets put on aerial recon duty. Private sneaks an entire box of "peanut butter winkies" out with him.
Private begins rewarding himself for a couple of seconds of diligence with a piece of candy. He eventually eats the entire box and becomes insanely hyper. Through his binoculars he sees a what he believes is a giant floating killer whale. He freaks out and runs screaming back to the others.
He informs them that he saw an orca come from the sky. King Julien brands it as the "Skorca" when he combines "sky orca". Joey the kangaroo offers to catch the skorca for a fee and the penguins offer to do it for free. King Julien, believing something that is not incredibly expensive cannot possibly be good, enlists the help of the other animals to pay Joey's fee.
While investigating Private's claims, Skipper notices some chocolate on Private's chin and assumes that he imagined the Orca. Despite Private's protests, the others refuse to believe him. While the others analyze the situation, and scratch off the back of the winky's box to see if they've won a prize, Private sees the Orca multiple times. Every time Private sees it he tries to get the others' attention but they turn around too late. Kowalski suggests they pretend fight the Skorca to alleviate Private's fears. Private, upset that no one believes him, heads into the city to prove the Skorca really exists.
The others realize where he's gone and go after him. The penguins see humans screaming when they come out of a manhole and realize the Skorca is real. The Skorca is actually a giant inflatable parade balloon. Joey bursts into the middle of the parade, knocks out all of the people holding the Skorca's ropes, and begins his ascent up a rope to the top of the Skorca. The penguins jump off of a nearby building and attempt to defeat the Skorca. However, after Kowalski mentions that it has some sort of "blubber force field", Joey attacks the penguins as he does not share. During the commotion, Private's beak pokes a hole in the Skorca and they go flying off into the distance.
Believing that he's dead, Skipper and the others hold a memorial service remembering Private when he comes back carrying a defeated, deflated Skorca. Kowalski said that a flying orca is their worst nightmare yet. Then the scene swaps to King Julien outside the street, screaming about a giant walking ice cream that what appears to be another inflated ice cream.
Penguin Chant - by the Penguins