Core Insights - SkyWest, Inc. (SKYW) reported second-quarter 2025 results that exceeded expectations, with both earnings and revenues surpassing the Zacks Consensus Estimate and showing year-over-year improvement [1][2]. Financial Performance - Quarterly earnings per share were $2.91, exceeding the Zacks Consensus Estimate by 24.4% and improving 59.9% year over year [2]. - Revenues reached $1.04 billion, beating the Zacks Consensus Estimate by 5.3% and increasing 19.4% year over year [2]. - Revenues from flying agreements, which contributed 96.5% to total revenues, grew 17.8% from the previous year's figure of $987.5 million [3]. - Operating expenses were $865 million, up 16% from the year-ago quarter, attributed to increased flight production [5]. Operational Highlights - The airline carried 13.1% more passengers year over year, with departures increasing by 17.7% [3]. - The passenger load factor decreased by 1.6 points to 82.8% [3]. Strategic Initiatives - SkyWest has a multi-year flying contract with Delta Air Lines (DAL) to purchase and operate 16 new E175 aircraft, which will replace older models [4]. - By the end of 2028, SkyWest anticipates having nearly 300 E175 aircraft in its fleet [5]. - Capital expenditures during the reported quarter totaled $169 million, including the purchase of four CRJ550 aircraft and spare engines [8]. Shareholder Actions - The board approved a $250 million increase in the existing share repurchase plan, with $17.3 million spent to repurchase 195,000 shares at an average price of $88.61 [7]. - As of June 30, 2025, SkyWest had $267 million remaining under its current share repurchase program [7]. Cash and Debt Position - At the end of the second quarter, the company had cash and marketable securities of $727 million, down from $802 million at the end of the previous quarter [6]. - Long-term debt decreased to $2.5 billion from $2.7 billion at the end of the previous quarter [6]. Market Reaction - Despite the strong financial results, SkyWest's shares fell by 1.7% following the earnings release [1].

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents SkyWest, Inc.'s unaudited condensed consolidated financial statements and detailed notes for the periods ended June 30, 2025 [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section provides SkyWest, Inc.'s unaudited condensed consolidated financial statements, including balance sheets, income, equity, and cash flow statements, with comprehensive explanatory notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section presents the consolidated balance sheets, detailing assets, liabilities, and stockholders' equity as of June 30, 2025, and December 31, 2024 | (Dollars in billions) | June 30, 2025 | December 31, 2024 | | :--------------------- | :------------ | :---------------- | | Total assets | $ 7.17 | $ 7.14 | | Total current assets | $ 1.06 | $ 1.12 | | Total liabilities | $ 4.59 | $ 4.73 | | Total stockholders' equity | $ 2.58 | $ 2.41 | - Total assets increased by **$34.2 million** from December 31, 2024, to June 30, 2025. Total stockholders' equity increased by **$173.6 million**, while total liabilities decreased by **$142.0 million** over the same period[7](index=7&type=chunk)[10](index=10&type=chunk) [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section details the consolidated statements of comprehensive income, including revenues, expenses, and net income for the three and six months ended June 30, 2025 and 2024 | (In millions, except per share amounts) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total operating revenues | $ 1,035.2 | $ 867.1 | $ 1,983.7 | $ 1,670.7 | | Total operating expenses | $ 865.1 | $ 747.5 | $ 1,674.2 | $ 1,451.6 | | Operating income | $ 170.1 | $ 119.6 | $ 309.5 | $ 219.1 | | Net income | $ 120.3 | $ 75.6 | $ 220.8 | $ 135.9 | | Basic earnings per share | $ 2.98 | $ 1.88 | $ 5.46 | $ 3.38 | | Diluted earnings per share | $ 2.91 | $ 1.82 | $ 5.32 | $ 3.28 | - For the three months ended June 30, 2025, total operating revenues increased by **19.4% YoY**, and net income increased by **59.1% YoY**. For the six months ended June 30, 2025, total operating revenues increased by **18.7% YoY**, and net income increased by **62.5% YoY**[13](index=13&type=chunk) [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) This section outlines changes in consolidated stockholders' equity, including common stock, retained earnings, and treasury stock, for the period ended June 30, 2025 | (In millions) | Balance at Dec 31, 2024 | Balance at June 30, 2025 | | :------------- | :---------------------- | :----------------------- | | Common Stock | $777.1 | $788.3 | | Retained Earnings | $2,594.2 | $2,815.0 | | Treasury Stock | $(962.7) | $(1,020.9) | | Total Stockholders' Equity | $2,408.8 | $2,582.4 | - Total stockholders' equity increased by **$173.6 million** from December 31, 2024, to June 30, 2025, primarily driven by net income of **$220.8 million**, partially offset by treasury stock purchases of **$30.9 million**[16](index=16&type=chunk)[199](index=199&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the condensed consolidated statements of cash flows, detailing operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 | (In millions) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $ 428.1 | $ 323.0 | | Net cash used in investing activities | $ (372.7) | $ (76.0) | | Net cash used in financing activities | $ (234.5) | $ (253.5) | | Decrease in cash and cash equivalents | $ (179.0) | $ (6.5) | | Cash and cash equivalents at end of period | $ 48.3 | $ 141.8 | - Net cash provided by operating activities increased by **32.5% YoY** to **$428.1 million** for the six months ended June 30, 2025. Net cash used in investing activities significantly increased by **390.4% YoY** to **$372.7 million**, primarily due to increased property and equipment acquisitions and aircraft deposits. Net cash used in financing activities decreased by **7.5% YoY** to **$234.5 million**[22](index=22&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk)[194](index=194&type=chunk)[198](index=198&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the basis of presentation, accounting policies, and specific financial statement line items [(1) Condensed Consolidated Financial Statements](index=10&type=section&id=%281%29%20Condensed%20Consolidated%20Financial%20Statements) This note clarifies the basis of presentation for the unaudited financial statements and discusses recent accounting pronouncements - The financial statements are unaudited and prepared in accordance with SEC rules and GAAP, reflecting all necessary recurring adjustments. The Company is evaluating the impact of new FASB ASUs on income tax disclosures (ASU 2023-09) and expense disaggregation (ASU 2024-03), effective for annual periods beginning after December 15, 2024, and December 15, 2026, respectively[24](index=24&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) [(2) Operating Revenues](index=10&type=section&id=%282%29%20Operating%20Revenues) This note details the composition of operating revenues, including flying agreements and other revenue sources, and related credit loss allowances - Flying agreements revenue is primarily derived from fixed-fee capacity purchase agreements (**85.5%** of flying agreements revenue for H1 2025) and prorate agreements (**14.5%** for H1 2025)[30](index=30&type=chunk)[31](index=31&type=chunk) | (in millions) | For the three months ended June 30, 2025 | For the three months ended June 30, 2024 | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Flying agreements revenue | $ 987.5 | $ 838.2 | $ 1,903.5 | $ 1,616.5 | | Lease, airport services and other | $ 47.7 | $ 28.9 | $ 80.2 | $ 54.3 | - The Company has **502 aircraft** in scheduled service or under contract as of June 30, 2025, and plans to add **13 new E175 aircraft** with United (2025-2026), **16 new E175 aircraft** with Delta (2027-2028), and **one new E175 aircraft** with Alaska (2025). Additionally, **32 CRJ550 aircraft** are anticipated to be placed into service with United by end of 2026[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk)[43](index=43&type=chunk) | Allowance for Credit Losses (in millions) | Amount | | :--------------------------------------- | :----- | | Balance at December 31, 2024 | $ 15.1 | | Adjustments to credit loss reserves | $ 10.1 | | Write-offs charged against allowance | $ (0.1) | | Balance at June 30, 2025 | $ 25.1 | [(3) Capital Transactions](index=20&type=section&id=%283%29%20Capital%20Transactions) This note describes capital transactions, including restricted stock units and performance share grants to employees - During the six months ended June 30, 2025, the Company granted **25,359 restricted stock units** and **59,165 performance shares** to employees, with a three-year vesting period and a weighted average fair value of **$118.96 per share**. Stock-based compensation expense for the period was **$9.9 million**[52](index=52&type=chunk)[54](index=54&type=chunk) [(4) Stock Repurchase](index=20&type=section&id=%284%29%20Stock%20Repurchase) This note provides information on the Company's stock repurchase program, including authorization and recent activity - The Board approved a **$250 million** increase to the existing stock repurchase program in May 2025, bringing the total authorized to **$500 million**. As of June 30, 2025, **$266.6 million** remained available. During the six months ended June 30, 2025, the Company repurchased **335,843 shares** for **$31.0 million** at an average price of **$92.24 per share**[55](index=55&type=chunk)[56](index=56&type=chunk) [(5) Net Income Per Common Share](index=20&type=section&id=%285%29%20Net%20Income%20Per%20Common%20Share) This note presents the calculation of basic and diluted net income per common share for the reported periods | (in millions, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $ 120.3 | $ 75.6 | $ 220.8 | $ 135.9 | | Basic earnings per share | $ 2.98 | $ 1.88 | $ 5.46 | $ 3.38 | | Diluted earnings per share | $ 2.91 | $ 1.82 | $ 5.32 | $ 3.28 | - **216,000 performance shares** (at target) were excluded from Diluted EPS computation for the six months ended June 30, 2025, as minimum target thresholds were not met[59](index=59&type=chunk) [(6) Segment Reporting](index=22&type=section&id=%286%29%20Segment%20Reporting) This note outlines the Company's reportable segments, SkyWest Airlines and SWC, and SkyWest Leasing, with their financial performance - The Company has two reportable segments: SkyWest Airlines and SWC (operations) and SkyWest Leasing (aircraft ownership/financing and third-party leasing). Segment profit is assessed based on income before income taxes[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) | (in millions) | SkyWest Airlines and SWC (3 months ended June 30, 2025) | SkyWest Leasing (3 months ended June 30, 2025) | Consolidated (3 months ended June 30, 2025) | | :------------- | :------------------------------------------------------ | :--------------------------------------------- | :------------------------------------------ | | Operating revenues | $ 869.3 | $ 165.9 | $ 1,035.2 | | Segment profit | $ 90.3 | $ 72.9 | $ 163.1 | | Total assets (as of June 30, 2025) | $ 3,086.2 | $ 4,087.9 | $ 7,174.1 | | Capital expenditures (including non-cash) | $ 74.3 | $ 65.2 | $ 139.5 | | (in millions) | SkyWest Airlines and SWC (6 months ended June 30, 2025) | SkyWest Leasing (6 months ended June 30, 2025) | Consolidated (6 months ended June 30, 2025) | | :------------- | :------------------------------------------------------ | :--------------------------------------------- | :------------------------------------------ | | Operating revenues | $ 1,671.0 | $ 312.7 | $ 1,983.7 | | Segment profit | $ 144.5 | $ 139.3 | $ 283.8 | | Total assets (as of June 30, 2025) | $ 3,086.2 | $ 4,087.9 | $ 7,174.1 | | Capital expenditures (including non-cash) | $ 193.2 | $ 65.2 | $ 258.4 | [(7) Leases, Commitments, Guarantees and Contingencies](index=25&type=section&id=%287%29%20Leases%2C%20Commitments%2C%20Guarantees%20and%20Contingencies) This note details the Company's lease obligations, firm purchase commitments for aircraft, and other financial guarantees - As of June 30, 2025, the Company had operating lease right-of-use assets of **$79.9 million** and total operating lease liabilities of **$79.9 million**. The weighted-average remaining lease term for operating leases is **11.0 years** with a weighted-average discount rate of **6.3%**[72](index=72&type=chunk)[73](index=73&type=chunk) | (in millions) | Total | Jul - Dec 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | | :------------- | :----------- | :------------- | :-------- | :-------- | :-------- | :-------- | :------------ | | Operating lease payments | $ 118.7 | $ 10.5 | $ 19.0 | $ 16.1 | $ 10.9 | $ 9.1 | $ 53.1 | | Firm aircraft and spare engine commitments | $ 2,434.0 | $ 206.8 | $ 229.2 | $ 323.3 | $ 329.1 | $ 309.2 | $ 1,036.5 | | Interest commitments | $ 378.9 | $ 52.5 | $ 89.3 | $ 66.1 | $ 49.2 | $ 36.9 | $ 84.9 | | Principal maturities on long-term debt | $ 2,514.6 | $ 266.9 | $ 535.1 | $ 490.2 | $ 320.3 | $ 216.7 | $ 685.4 | | Total commitments and obligations | $ 5,446.3 | $ 536.7 | $ 872.6 | $ 895.7 | $ 709.4 | $ 572.0 | $ 1,859.9 | - The Company has firm purchase commitments for **74 new E175 aircraft** (through 2032) and **21 used CRJ900 airframes** (2025). It also guarantees **$13.3 million** of debt for a 14 CFR Part 135 air carrier to support pilot hiring pipeline[75](index=75&type=chunk)[77](index=77&type=chunk)[80](index=80&type=chunk) [(8) Fair Value Measurements](index=29&type=section&id=%288%29%20Fair%20Value%20Measurements) This note describes the fair value measurements of financial assets, including cash, marketable securities, and investments | (in millions) | Fair Value Measurements as of June 30, 2025 | | :------------- | :------------------------------------------ | | Total Assets Measured at Fair Value | $ 737.3 | | Cash and Cash Equivalents (Level 1) | $ 48.3 | | Marketable Securities (Level 2) | $ 678.7 | | Investments in Other Companies (Level 3) | $ 10.3 | - Marketable securities, primarily bonds and commercial paper, are classified as **Level 2** and valued using broker quotes in non-active markets. Investments in other companies are classified as **Level 3**, requiring unobservable inputs[81](index=81&type=chunk)[82](index=82&type=chunk) [(9) Long-term Debt](index=31&type=section&id=%289%29%20Long-term%20Debt) This note provides details on the Company's long-term debt, including aircraft financing and unsecured debt to the U.S. Treasury | (in millions) | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Total long-term debt (including current portion) | $ 2,514.6 | $ 2,692.6 | | Carrying value | $ 2,514.6 | $ 2,692.6 | | Fair value | $ 2,457.8 | $ 2,612.8 | - As of June 30, 2025, total long-term debt was **$2.51 billion**, consisting of **$2.3 billion** for aircraft/spare engines and **$200.6 million** unsecured debt to the U.S. Treasury. The average effective interest rate was approximately **4.3%**. The Company financed two new E175 aircraft with **$47.1 million** in long-term debt during the period[85](index=85&type=chunk)[86](index=86&type=chunk) - SkyWest Airlines has a **$100.0 million** line of credit, with **$25.0 million** issued in letters of credit, leaving **$75.0 million** available as of June 30, 2025. The line of credit expires March 25, 2028, with a variable interest rate of **3.5% plus one-month SOFR**[87](index=87&type=chunk) [(10) Investments in Other Companies](index=33&type=section&id=%2810%29%20Investments%20in%20Other%20Companies) This note describes the Company's equity method investments in Aero Engines, LLC and Contour Airlines, and its warrant in Eve Holding, Inc - The Company holds a **75% ownership** in Aero Engines, LLC, accounted for under the equity method, with an investment balance of **$12.1 million** as of June 30, 2025. It also holds a **25% ownership** in Contour Airlines, accounted for under the equity method, with an investment balance of **$22.2 million** as of June 30, 2025[90](index=90&type=chunk)[91](index=91&type=chunk) - The Company's remaining investment in Eve Holding, Inc. is a warrant to acquire **1,500,000 shares**, classified as a **Level 3 fair value investment**. Its fair value increased by **$2.1 million** to **$10.3 million** as of June 30, 2025, recognized as an unrealized gain[96](index=96&type=chunk)[97](index=97&type=chunk) [(11) Income Taxes](index=35&type=section&id=%2811%29%20Income%20Taxes) This note presents the effective income tax rates and factors influencing tax expense for the reported periods | Period | Effective Tax Rate | | :----- | :----------------- | | H1 2025 | 22.2% | | H1 2024 | 25.5% | - The effective tax rate for H1 2025 was **22.2%**, lower than H1 2024 (**25.5%**), primarily due to a higher discrete tax benefit from additional tax deductions generated from employee equity awards that vested[98](index=98&type=chunk)[99](index=99&type=chunk)[163](index=163&type=chunk) [(12) Legal Matters](index=35&type=section&id=%2812%29%20Legal%20Matters) This note addresses the Company's legal proceedings and management's assessment of their potential financial impact - Management believes the ultimate outcome of routine legal actions is not likely to have a material adverse effect on the Company's financial position, liquidity, or results of operations as of June 30, 2025[100](index=100&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of SkyWest, Inc.'s financial condition, operational results, and liquidity for the reported periods [Cautionary Statement Concerning Forward-Looking Statements](index=36&type=section&id=Cautionary%20Statement%20Concerning%20Forward-Looking%20Statements) This statement advises readers about forward-looking information in the report, highlighting inherent risks and uncertainties - The report contains forward-looking statements identified by words like 'may,' 'will,' 'expect,' 'intend,' and 'anticipate,' related to outlook, operations, revenue environment, contractual relationships, and financial performance. These statements are subject to various risks and uncertainties, including competition, economic conditions, demand for air travel, infectious diseases, pilot availability, regulatory issues, financing, fuel costs, and global instability[102](index=102&type=chunk) [Overview](index=38&type=section&id=Overview) This section provides a general overview of SkyWest's business model, fleet operations, and strategic focus on code-share agreements - SkyWest operates the largest regional airline in the U.S., with approximately **2,530 daily departures** to destinations in the U.S., Canada, and Mexico. As of June 30, 2025, the total fleet comprised **632 aircraft**, with **502** in scheduled service or under code-share agreements[106](index=106&type=chunk) | Aircraft in Service or Under Contract | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :---------------- | :------------ | | E175s | 265 | 262 | 248 | | CRJ900s | 36 | 36 | 41 | | CRJ700s/CRJ550s | 121 | 119 | 99 | | CRJ200s | 80 | 75 | 87 | | Total | 502 | 492 | 475 | - The business model relies on code-share agreements, with capacity purchase agreements accounting for **85.5%** of flying agreements revenue and prorate/SWC revenue for **14.5%** for the six months ended June 30, 2025. The fleet is evolving with additions of new E175 aircraft and used CRJ aircraft to improve profitability[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk)[111](index=111&type=chunk) [Second Quarter Summary](index=40&type=section&id=Second%20Quarter%20Summary) This section summarizes key financial and operational highlights for the second quarter of 2025, including revenue and net income growth | (in millions, except per share) | Q2 2025 | Q2 2024 | % Change | | :------------------------------ | :-------- | :-------- | :------- | | Total operating revenues | $1,035.2 | $867.1 | 19.4% | | Net income | $120.3 | $75.6 | 59.1% | | Diluted EPS | $2.91 | $1.82 | 59.9% | - The increase in revenue was driven by a **5.7% increase** in aircraft in service and an **18.5% increase** in block hours, attributed to more aircraft under capacity purchase agreements and an increase in available captains. Capacity purchase revenue increased by **15.2%**, and prorate/SWC revenue increased by **35.8% YoY**[113](index=113&type=chunk)[114](index=114&type=chunk) - Total operating expenses increased by **15.7%** due to higher direct operating expenses from increased flight volume (**17.7% increase** in departures, **18.5% increase** in block hours)[115](index=115&type=chunk) [Fleet Activity](index=42&type=section&id=Fleet%20Activity) This section details changes in the Company's aircraft fleet, including additions and removals, and their impact on operational capacity | Aircraft in Service or Under Contract | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :---------------- | :------------ | | E175s | 265 | 262 | 248 | | CRJ900s | 36 | 36 | 41 | | CRJ700s/CRJ550s | 121 | 119 | 99 | | CRJ200s | 80 | 75 | 87 | | Total | 502 | 492 | 475 | - The number of aircraft in service or under contract increased from **475** at June 30, 2024, to **502** at June 30, 2025, primarily driven by additions of E175s and CRJ700s/CRJ550s[117](index=117&type=chunk) [Critical Accounting Policies and Estimates](index=42&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section discusses the significant accounting policies and estimates that require management judgment in financial reporting - Critical accounting policies include revenue recognition, long-lived assets, and income tax, which involve significant management judgment and assumptions. No significant changes in critical accounting estimates occurred during the six months ended June 30, 2025[118](index=118&type=chunk) [Recent Accounting Pronouncements](index=42&type=section&id=Recent%20Accounting%20Pronouncements) This section outlines new FASB accounting standards updates and their potential impact on the Company's financial statements - The Company is evaluating the potential impact of new FASB ASUs on income tax disclosures (ASU 2023-09) and expense disaggregation (ASU 2024-03)[26](index=26&type=chunk)[27](index=27&type=chunk)[119](index=119&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the Company's operating revenues and expenses for the reported periods [Three Months Ended June 30, 2025 and 2024](index=42&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section analyzes the operational statistics, revenues, and expenses for the three months ended June 30, 2025, compared to 2024 | Operational Statistics (Q2) | 2025 | 2024 | % Change | | :-------------------------- | :---------- | :---------- | :------- | | Total block hours | 376,269 | 317,462 | 18.5% | | Departures | 222,874 | 189,325 | 17.7% | | Passengers carried | 12,092,758 | 10,691,017 | 13.1% | | Passenger load factor | 82.8% | 84.4% | (1.6)pts | | Operating Revenues (Q2, in millions) | 2025 | 2024 | $ Change | % Change | | :------------------------------------ | :---------- | :---------- | :------- | :------- | | Flying agreements | $987.5 | $838.2 | $149.3 | 17.8% | | Lease, airport services and other | $47.7 | $28.9 | $18.8 | 64.8% | | Total operating revenues | $1,035.2 | $867.1 | $168.1 | 19.4% | | Operating Expenses (Q2, in millions) | 2025 | 2024 | $ Change | % Change | | :------------------------------------ | :---------- | :---------- | :------- | :------- | | Salaries, wages and benefits | $390.2 | $355.0 | $35.2 | 9.9% | | Aircraft maintenance, materials and repairs | $238.9 | $183.3 | $55.6 | 30.3% | | Depreciation and amortization | $90.2 | $96.8 | $(6.7) | (6.9)% | | Airport-related expenses | $27.1 | $17.5 | $9.6 | 54.6% | | Aircraft fuel | $27.5 | $21.3 | $6.1 | 28.7% | | Other operating expenses | $91.2 | $73.5 | $17.7 | 24.1% | | Total operating expenses | $865.1 | $747.5 | $117.6 | 15.7% | - Net income for Q2 2025 was **$120.3 million** (**$2.91 diluted EPS**), up from **$75.6 million** (**$1.82 diluted EPS**) in Q2 2024, driven by increased block hours and revenue recognition, partially offset by higher operating expenses[140](index=140&type=chunk) [Six Months Ended June 30, 2025 and 2024](index=48&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section analyzes the operational statistics, revenues, and expenses for the six months ended June 30, 2025, compared to 2024 | Operational Statistics (H1) | 2025 | 2024 | % Change | | :-------------------------- | :---------- | :---------- | :------- | | Total block hours | 728,424 | 607,263 | 20.0% | | Departures | 424,712 | 358,757 | 18.4% | | Passengers carried | 22,483,122 | 19,840,470 | 13.3% | | Passenger load factor | 80.8% | 82.7% | (1.9)pts | | Operating Revenues (H1, in millions) | 2025 | 2024 | $ Change | % Change | | :------------------------------------ | :---------- | :---------- | :------- | :------- | | Flying agreements | $1,903.5 | $1,616.5 | $287.0 | 17.8% | | Lease, airport services and other | $80.2 | $54.3 | $25.9 | 47.7% | | Total operating revenues | $1,983.7 | $1,670.7 | $313.0 | 18.7% | | Operating Expenses (H1, in millions) | 2025 | 2024 | $ Change | % Change | | :------------------------------------ | :---------- | :---------- | :------- | :------- | | Salaries, wages and benefits | $767.6 | $706.0 | $61.6 | 8.7% | | Aircraft maintenance, materials and repairs | $448.0 | $328.7 | $119.3 | 36.3% | | Depreciation and amortization | $179.6 | $192.7 | $(13.1) | (6.8)% | | Airport-related expenses | $54.9 | $38.4 | $16.5 | 43.0% | | Aircraft fuel | $51.9 | $42.5 | $9.5 | 22.3% | | Other operating expenses | $172.2 | $143.3 | $28.9 | 20.1% | | Total operating expenses | $1,674.2 | $1,451.6 | $222.6 | 15.3% | - Net income for H1 2025 was **$220.8 million** (**$5.32 diluted EPS**), up from **$135.9 million** (**$3.28 diluted EPS**) in H1 2024, driven by increased block hours and revenue, partially offset by higher operating expenses[164](index=164&type=chunk) [Our Business Segments](index=56&type=section&id=Our%20Business%20Segments) This section analyzes the financial performance of SkyWest Airlines and SWC, and SkyWest Leasing segments - SkyWest Airlines and SWC segment profit increased by **182.3%** to **$90.3 million** for Q2 2025 and by **290.9%** to **$144.5 million** for H1 2025, primarily due to increased block hour production and operating revenues[168](index=168&type=chunk)[170](index=170&type=chunk)[179](index=179&type=chunk)[181](index=181&type=chunk) - SkyWest Leasing segment profit increased by **3.8%** to **$72.9 million** for Q2 2025, driven by increased maintenance services revenue and lower depreciation. However, for H1 2025, SkyWest Leasing profit decreased by **4.2%** to **$139.3 million**, mainly due to an increase in credit loss reserves, partially offset by decreased interest expense and depreciation[177](index=177&type=chunk)[187](index=187&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the Company's cash position, marketable securities, debt, and capital expenditure plans | (in millions) | June 30, 2025 | December 31, 2024 | $ Change | % Change | | :------------- | :------------ | :---------------- | :--------- | :------- | | Cash and cash equivalents | $ 48.3 | $ 227.4 | $ (179.0) | (78.7)% | | Marketable securities | $ 678.7 | $ 574.3 | $ 104.4 | 18.2% | | Total | $ 727.0 | $ 801.6 | $ (74.6) | (9.3)% | - As of June 30, 2025, total liquidity (cash, cash equivalents, and marketable securities) was **$727.0 million**, a **9.3% decrease** from December 31, 2024. The Company had **$75.0 million** available under its line of credit[188](index=188&type=chunk)[191](index=191&type=chunk) - The capital mix at June 30, 2025, was **50.8% equity** and **49.2% total long-term debt**, shifting from **47.4% equity** and **52.6% debt** at December 31, 2024, indicating an improved equity position relative to debt[189](index=189&type=chunk) - Cash flows from operating activities increased by **$105.1 million (32.5%)** to **$428.1 million** for H1 2025. Cash used in investing activities increased significantly by **$296.7 million (390.4%)** to **$372.7 million**, primarily due to increased property and equipment acquisitions and aircraft deposits[191](index=191&type=chunk)[192](index=192&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk) - The Company intends to finance its firm purchase commitment for **74 E175 aircraft** with **75-85% debt** and the remainder with cash, and to use cash for the **21 used CRJ900 airframes**[202](index=202&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section assesses the Company's exposure to market risks, including fuel prices, interest rates, and labor costs [Aircraft Fuel](index=67&type=section&id=Aircraft%20Fuel) This section discusses the Company's exposure to aircraft fuel price fluctuations and mitigation strategies - Major airline partners bear the economic risk of fuel price fluctuations on contracted flights. SkyWest bears this risk for its prorate and SWC operations, which represented approximately **14.5%** of total flying agreements revenue for H1 2025. A hypothetical **25% increase** in fuel price would result in an additional **$13.0 million** in fuel expense for H1 2025[208](index=208&type=chunk) [Interest Rates](index=67&type=section&id=Interest%20Rates) This section details the Company's exposure to interest rate changes on its long-term debt and financing arrangements - Long-term debt secured by aircraft and spare engines has fixed interest rates. Reimbursement rates under capacity purchase agreements are adjusted to reflect interest rates at financing closing, mitigating the impact of future interest rate changes on new aircraft acquisitions. Of the **$200.6 million** unsecured debt to Treasury, **$138.6 million** has a fixed **1% rate**, and **$62.0 million** has a variable **SOFR + 2.0% rate**[209](index=209&type=chunk) [Labor and Inflation Risk](index=69&type=section&id=Labor%20and%20Inflation%20Risk) This section addresses the impact of labor costs and inflationary pressures on the Company's operating expenses - The Company expects continued inflationary pressures on costs, particularly salaries, wages, and benefits, which represented **45.8%** of total operating expenses for H1 2025. A hypothetical **25% increase** in these costs would raise operating expenses by approximately **$191.9 million**. Inability to offset these costs or retain qualified personnel could harm business and operating results[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) This section reports on the effectiveness of the Company's disclosure controls and internal control over financial reporting [Disclosure Controls and Procedures](index=69&type=section&id=Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's disclosure controls and procedures as of June 30, 2025 - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2025, ensuring timely and accurate reporting under the Exchange Act[213](index=213&type=chunk) [Changes in Internal Control](index=69&type=section&id=Changes%20in%20Internal%20Control) This section reports on any material changes in the Company's internal control over financial reporting - No changes in internal control over financial reporting materially affected, or are reasonably likely to materially affect, the Company's internal control during the six months ended June 30, 2025[214](index=214&type=chunk) [PART II. OTHER INFORMATION](index=40&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides additional information not covered in Part I, including legal proceedings, risk factors, and equity sales [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) This section addresses the Company's involvement in legal actions and management's assessment of their potential impact - As of June 30, 2025, management believes that the ultimate outcome of routine legal matters is not likely to have a material adverse effect on the Company's financial position, liquidity, or results of operations[215](index=215&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the comprehensive discussion of risk factors that could materially affect the Company's business - Readers should carefully consider the risk factors discussed in the Annual Report on Form 10-K for the year ended December 31, 2024, and other SEC filings, as these could materially affect the Company's business, financial condition, and results of operations. Additional unknown or immaterial risks may also adversely affect the business[216](index=216&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the Company's stock repurchase program, including recent activity and remaining authorization | Period (Q2 2025) | Total Number of Shares Purchased | Average Price Paid Per Share | | :----------------------- | :------------------------------- | :--------------------------- | | April 1, 2025 - April 30, 2025 | 144,657 | $ 85.46 | | May 1, 2025 - May 31, 2025 | 39,128 | $ 96.80 | | June 1, 2025 - June 30, 2025 | 11,400 | $ 100.48 | | Total | 195,185 | $ 88.61 | - In May 2025, the Board approved a **$250 million** increase to the stock repurchase program. As of June 30, 2025, **$266.6 million** remained available under the program, after repurchasing **195,185 shares** for **$17.3 million** during Q2 2025[218](index=218&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) This section confirms no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[219](index=219&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including corporate documents and certifications - Exhibits include Restated Articles of Incorporation, Amended and Restated Bylaws, CEO and CFO certifications (31.1, 31.2, 32.1, 32.2), and Inline XBRL documents[220](index=220&type=chunk) [Signature](index=42&type=section&id=Signature) This section contains the official signature block for the Quarterly Report on Form 10-Q - The Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, was signed on July 25, 2025, by Robert J. Simmons, Chief Financial Officer of SkyWest, Inc[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk)

Core Insights - The article does not provide specific company or industry insights, focusing instead on disclosures and disclaimers related to investment positions and advice [1][2] Group 1 - There are no stock, option, or similar derivative positions held by the analyst in any mentioned companies, nor plans to initiate such positions in the next 72 hours [1] - The article expresses personal opinions of the author and does not reflect the views of Seeking Alpha as a whole [2] - Seeking Alpha's analysts include both professional and individual investors who may not be licensed or certified by any regulatory body [2]

Core Viewpoint - SkyWest (SKYW) reported quarterly earnings of $2.91 per share, exceeding the Zacks Consensus Estimate of $2.34 per share, and showing a significant increase from $1.82 per share a year ago, indicating strong financial performance [1][2] Financial Performance - The company achieved revenues of $1.04 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.29%, compared to $867.12 million in the same quarter last year [2] - Over the last four quarters, SkyWest has consistently surpassed consensus EPS estimates, indicating a strong track record of performance [2][6] Stock Performance - SkyWest shares have increased approximately 13.3% since the beginning of the year, outperforming the S&P 500's gain of 8.1% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting it is expected to outperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.35 on revenues of $990.38 million, while for the current fiscal year, the estimate is $9.36 on revenues of $3.91 billion [7] - The outlook for the airline industry, where SkyWest operates, is favorable, with the Transportation - Airline sector ranking in the top 39% of Zacks industries, indicating potential for continued performance [8]

Financial Data and Key Metrics Changes - SkyWest reported a net income of $120 million or $2.91 per diluted share for Q2 2025, reflecting higher production and strong demand [5][11] - Total Q2 revenue was $1 billion, up 9% from $948 million in Q1 2025 and up 19% from $867 million in Q2 2024 [11][12] - Contract revenue for Q2 was $842 million, up from $785 million in Q1 and $731 million in Q2 2024 [11] - Cash at the end of Q2 was $727 million, down from $751 million last quarter and $834 million at Q2 2024 [13] - Free cash flow generated in the first half of 2025 was over $200 million, including $68 million in Q2 [15] Business Line Data and Key Metrics Changes - Pro rate and charter revenue was $145 million in Q2, up from $131 million in Q1 and $107 million in Q2 2024 [12] - Leasing and other revenue was $47 million in Q2, up from $32 million in Q1 2025 and $29 million in Q2 2024 [12] - Q2 completed block hours were up 7% compared to Q1 2025, with a projected 14% increase in 2025 compared to 2024 [26] Market Data and Key Metrics Changes - Demand for air travel in small and mid-sized communities remains exceptionally strong, with no replacement for face-to-face connections [5][9] - The company anticipates a 2% increase in block hours for Q3 compared to Q2, with a return to seasonal patterns expected [26] Company Strategy and Development Direction - SkyWest plans to restore or bring new service to underserved communities, redeploy existing fleet, and prepare for future aircraft deliveries [10] - The company has secured agreements for 16 new E175s with Delta, with deliveries expected in 2027 and 2028 [7][19] - A new purchase agreement with Embraer for 60 firm aircraft has been established, enhancing fleet flexibility [22][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position despite macroeconomic uncertainties, emphasizing strong relationships with partners [9][10] - The effective tax rate is expected to be approximately 26% to 27% for the remainder of 2025 [18] - Management remains optimistic about growth opportunities in 2026, focusing on underserved communities and improved aircraft utilization [18][26] Other Important Information - The company has approximately $286 million of cumulative deferred revenue to be recognized in future periods [12] - Maintenance expenses are expected to remain at Q2 levels for the remainder of 2025 due to challenges in the third-party MRO network [27] Q&A Session Summary Question: Discussion on CRJ200 fleet opportunities - Management indicated that the CRJ200 fleet provides flexibility, with priorities to fly those aircraft and add to contracts with major partners [33][35] Question: MRO challenges and maintenance issues - Management acknowledged ongoing challenges with parts and labor but noted improvements are being made [36][37] Question: Tariff implications on aircraft costs - The 10% tariff paid was not on the full aircraft but on certain components, with ongoing monitoring of tariff impacts [43][45] Question: Recovery in the pro rate and small community market - Management reported strong demand in small communities, with supply chain challenges being the primary constraint [55][58] Question: Capital allocation and delivery timing - Management expressed flexibility in capital deployment, with options to buy back stock or invest in fleet [60][74] Question: Reactivation of dual-class aircraft - The reactivation of 25 dual-class aircraft is due to new flying agreements and previously parked aircraft being brought back into service [81][82]

Financial Data and Key Metrics Changes - SkyWest reported a net income of $120 million or $2.91 per diluted share for Q2 2025, reflecting higher production and strong demand [4][11] - Total revenue for Q2 was $1 billion, up 9% from $948 million in Q1 2025 and up 19% from $867 million in Q2 2024 [11][12] - Contract revenue was $842 million in Q2, up from $785 million in Q1 and $731 million in Q2 2024 [11] - Cash at the end of Q2 was $727 million, down from $751 million last quarter and $834 million at Q2 2024 [13][14] - Free cash flow generated in the first half of 2025 was over $200 million, including $68 million in Q2 [14] Business Line Data and Key Metrics Changes - Pro rate and charter revenue was $145 million in Q2, up from $131 million in Q1 and $107 million in Q2 2024 [12] - Leasing and other revenue was $47 million in Q2, up from $32 million in Q1 2025 and $29 million in Q2 2024 [12] - Q2 completed block hours were up 7% compared to Q1 2025, with a projected 14% increase in block hours for 2025 compared to 2024 [25] Market Data and Key Metrics Changes - Demand for air travel in small and mid-sized communities remains exceptionally strong, with no replacement for face-to-face connections facilitated by air travel [4][8] - The company anticipates a 2% increase in Q3 block hours compared to Q2, with a return to seasonal block hour patterns expected [25] Company Strategy and Development Direction - SkyWest announced an agreement to purchase and operate 16 new E175s under a multi-year contract with Delta, with deliveries expected to begin in 2027 [6][19] - The company is focused on restoring service to underserved communities, redeploying its existing fleet, and preparing for future aircraft deliveries [9][15] - SkyWest aims to maintain fleet flexibility and has secured delivery slots for 44 additional E175s from 2028 to 2032 [6][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position despite macroeconomic uncertainties, emphasizing strong relationships with partners and demand for services [8][9] - The effective tax rate is expected to be approximately 26% to 27% for the remainder of 2025, with GAAP EPS projected to be around $10 per share if growth opportunities are successfully executed [17][18] - Management remains optimistic about growth possibilities in 2026, focusing on increasing service to underserved communities and improving aircraft utilization [18][66] Other Important Information - The company has a strong balance sheet and liquidity, allowing for various growth opportunities, including acquiring additional aircraft and executing share repurchase programs [15][72] - SkyWest is experiencing challenges in its third-party MRO network, particularly with parts and labor, but is actively working to mitigate these risks [26][36] Q&A Session Summary Question: Discussion on CRJ200 fleet opportunities - Management indicated that the CRJ200 fleet provides flexibility, with priorities to fly those aircraft and add to current contracts with major partners [32][34] Question: Insights on MRO challenges - Management acknowledged ongoing challenges with parts and labor but noted improvements are being made [35][36] Question: Clarification on tariff impacts - The 10% tariff paid was not on the full aircraft cost but on certain components, with ongoing monitoring of tariff implications [43][44] Question: State of recovery in the pro rate and small community market - Management reported strong demand in small communities, with efforts to restore and enhance air service [52][56] Question: Capital allocation strategy - Management emphasized flexibility in capital deployment, with options for share repurchases and fleet investments [59][72] Question: Clarification on aircraft reactivation - The reactivation of 25 dual-class CRJ aircraft is due to new flying agreements and previously parked aircraft being brought back into service [79][80]

[Second Quarter 2025 Summary & Highlights](index=1&type=section&id=Second%20Quarter%202025%20Summary) SkyWest reported strong Q2 2025 financial results with increased net income and EPS, supported by block hour growth and strategic fleet expansion [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) SkyWest, Inc. reported strong financial results for Q2 2025, with net income increasing to $120 million and diluted EPS to $2.91, compared to $76 million and $1.82 respectively in Q2 2024, supported by a 19% year-over-year increase in block hour production Q2 2025 Key Financials | Metric | Q2 2025 | Q2 2024 | Change ($) | | :----- | :------ | :------ | :--------- | | Net Income | $120 million | $76 million | +$44 million | | Diluted EPS | $2.91 | $1.82 | +$1.09 | | Pre-tax Income | $163 million | $102 million | +$61 million | - Q2 2025 block hour production increased by **19%** compared to Q2 2024 and **7%** compared to Q1 2025[4](index=4&type=chunk) [Strategic Developments & CEO Commentary](index=1&type=section&id=Strategic%20Developments%20%26%20CEO%20Commentary) SkyWest secured an agreement to purchase and operate 16 new E175 aircraft for Delta Air Lines, scheduled for delivery in 2027 and 2028, which will replace existing CRJ900s and CRJ700s, with the CEO highlighting solid demand and strategic capital deployment for long-term growth and fleet optimization - SkyWest secured an agreement to purchase and operate **16 new E175 aircraft** for Delta Air Lines, expected to replace 11 CRJ900s and 5 CRJ700s, with deliveries in 2027 and 2028[2](index=2&type=chunk)[4](index=4&type=chunk) - CEO Chip Childs noted solid demand for SkyWest's product and a strong position to deploy capital for long-term growth, fleet opportunities, service expansion in smaller communities, and fleet optimization[3](index=3&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Results) SkyWest's Q2 2025 saw revenue growth and increased net income, alongside a stable balance sheet with reduced debt and increased stockholders' equity [Q2 2025 Income Statement Analysis](index=2&type=section&id=Q2%202025%20Income%20Statement%20Analysis) SkyWest's Q2 2025 revenue increased by 19% to $1.0 billion, driven by higher block hour production, while operating expenses rose by 16%, resulting in a significant increase in operating income and net income compared to the prior year Condensed Consolidated Statements of Income (Three Months Ended June 30) | Metric (Thousands) | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :----------------- | :------ | :------ | :--------- | :--------- | | Total operating revenues | $1,035,227 | $867,118 | $168,109 | 19.4% | | Total operating expenses | $865,099 | $747,478 | $117,621 | 15.7% | | OPERATING INCOME | $170,128 | $119,640 | $50,488 | 42.2% | | INCOME BEFORE INCOME TAXES | $163,116 | $102,166 | $60,950 | 59.7% | | NET INCOME | $120,269 | $75,578 | $44,691 | 59.1% | | DILUTED EARNINGS PER SHARE | $2.91 | $1.82 | $1.09 | 59.9% | - The **19%** revenue increase was attributed to improvements in captain availability, higher fleet utilization, and strong demand, mirroring the **19%** increase in block hour production[5](index=5&type=chunk) - Operating expense increase was driven by higher flight production, partially offset by operating efficiencies from increased fleet utilization[6](index=6&type=chunk) [Balance Sheet Overview](index=7&type=section&id=Summary%20of%20Consolidated%20Balance%20Sheets) As of June 30, 2025, SkyWest's total assets slightly increased to $7.17 billion, while cash and marketable securities decreased to $727 million, with total debt reduced to $2.5 billion and stockholders' equity growing to $2.58 billion Summary of Consolidated Balance Sheets (June 30, 2025 vs December 31, 2024) | Metric (Thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------- | :------------ | :---------------- | :--------- | :--------- | | Cash and marketable securities | $727,021 | $801,628 | -$74,607 | -9.3% | | Total assets | $7,174,083 | $7,139,867 | +$34,216 | 0.5% | | Total current liabilities | $1,457,675 | $1,429,591 | +$28,084 | 2.0% | | Long-term debt, net of current maturities | $2,006,034 | $2,136,786 | -$130,752 | -6.1% | | Total debt (Current + Long-term) | $2,496,570 | $2,672,375 | -$175,805 | -6.6% | | Stockholders' equity | $2,582,420 | $2,408,781 | +$173,639 | 7.2% | [Capital, Liquidity & Shareholder Returns](index=2&type=section&id=Capital%20and%20Liquidity) SkyWest maintained strong liquidity, reduced debt, invested in fleet expansion, and increased its share repurchase program, demonstrating strategic capital management [Cash, Marketable Securities & Debt](index=2&type=section&id=Cash%2C%20Marketable%20Securities%20%26%20Debt) SkyWest maintained a strong liquidity position with $727 million in cash and marketable securities as of June 30, 2025, and successfully reduced its total debt to $2.5 billion from $2.7 billion at year-end 2024 Cash and Debt Overview | Metric | June 30, 2025 | December 31, 2024 | Change ($) | | :----- | :------------ | :---------------- | :--------- | | Cash and marketable securities | $727 million | $802 million | -$75 million | | Total debt | $2.5 billion | $2.7 billion | -$0.2 billion | [Capital Expenditures](index=2&type=section&id=Capital%20Expenditures) Capital expenditures for Q2 2025 totaled $169 million, primarily for the acquisition of two new E175 aircraft, four CRJ900 aircraft, spare engines, and other fixed assets - Capital expenditures during Q2 2025 were **$169 million**[7](index=7&type=chunk) - Purchases included two new E175 aircraft, four CRJ900 aircraft, spare engines, and other fixed assets[7](index=7&type=chunk) [Share Repurchase Program](index=2&type=section&id=Share%20Repurchase%20Program) The Board approved a $250 million increase to the share repurchase plan in May 2025, with SkyWest repurchasing 195,000 shares for $17.3 million in Q2 2025, leaving $267 million remaining under the program - In May 2025, the SkyWest Board of Directors approved a **$250 million increase** to its existing share repurchase plan[8](index=8&type=chunk) Share Repurchase Activity | Metric | Q2 2025 | Q1 2025 | Change (%) | | :----- | :------ | :------ | :--------- | | Shares repurchased | 195,000 | 141,000 | +38% | | Value of shares repurchased | $17.3 million | N/A | N/A | | Average price per share | $88.61 | N/A | N/A | - As of June 30, 2025, SkyWest had **$267 million** of remaining availability under its current share repurchase program[8](index=8&type=chunk) [Fleet & Commercial Agreements](index=2&type=section&id=Commercial%20Agreements) SkyWest expanded its fleet with new E175 deliveries and future agreements, increasing total aircraft in service and demonstrating strong operational growth in Q2 2025 [New Aircraft Agreements & Deliveries](index=2&type=section&id=New%20Aircraft%20Agreements%20%26%20Deliveries) SkyWest took delivery of two new E175 aircraft for United Airlines in Q2 2025 and has secured delivery positions for 44 additional E175s from 2028 through 2032, along with purchase rights for 50 more, anticipating nearly 300 E175 aircraft by the end of 2028 - Under an agreement with United Airlines, SkyWest took delivery of **two new E175 aircraft** during Q2 2025[9](index=9&type=chunk) E175 Aircraft Deliveries | Airline | Q2 2025 | Q3-Q4 2025 | 2026 | 2027 | 2028 | Thereafter | Total | | :------ | :------ | :--------- | :--- | :--- | :--- | :--------- | :---- | | United | 2 | 5 | 8 | — | — | — | 13 | | Delta | — | — | — | 10 | 6 | — | 16 | | Alaska Airlines | — | 1 | — | — | — | — | 1 | | Unassigned | — | — | — | — | 4 | 40 | 44 | | Total | 2 | 6 | 8 | 10 | 10 | 40 | 74 | - By the end of 2028, SkyWest anticipates having nearly **300 E175 aircraft**[10](index=10&type=chunk) - SkyWest secured delivery positions for **44 additional E175s** from 2028 through 2032 and purchase rights on **50 additional E175s**[10](index=10&type=chunk) [Fleet Composition](index=8&type=section&id=SkyWest%27s%20fleet%20in%20scheduled%20service%20or%20under%20contract%20by%20aircraft%20type) SkyWest's total aircraft in service or under contract increased to 502 as of June 30, 2025, from 492 at year-end 2024, primarily driven by an increase in E175 and CRJ700/CRJ550 aircraft Aircraft in Service or Under Contract by Type | Aircraft Type | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :------------ | :------------ | :---------------- | :------------ | | E175 aircraft | 265 | 262 | 248 | | CRJ900 aircraft | 36 | 36 | 41 | | CRJ700/CRJ550 aircraft | 121 | 119 | 99 | | CRJ200 aircraft | 80 | 75 | 87 | | Total aircraft | 502 | 492 | 475 | - As of June 30, 2025, SkyWest leased **35 CRJ700/CRJ550s** and **five CRJ900s** to third parties and had **eight CRJ200s** configured for service under SWC operations[20](index=20&type=chunk) [Operational Data](index=8&type=section&id=Selected%20operational%20data) SkyWest experienced significant operational growth in Q2 2025, with total block hours increasing by 18.5% and passengers carried by 13.1% year-over-year, while maintaining high flight completion rates Selected Operational Data (Three Months Ended June 30) | Metric | Q2 2025 | Q2 2024 | % Change | | :----- | :------ | :------ | :------- | | Total block hours | 376,269 | 317,462 | 18.5 % | | Departures | 222,874 | 189,325 | 17.7 % | | Passengers carried | 12,092,758 | 10,691,017 | 13.1 % | | Adjusted flight completion | 99.9 % | 99.9 % | — pts | | Raw flight completion | 99.1 % | 99.0 % | 0.1 pts | | Passenger load factor | 82.8 % | 84.4 % | (1.6)pts | | Average trip length | 451 | 460 | (2.0)% | [Supplemental Financial Information](index=9&type=section&id=Supplemental%20Cash%20Flow%20Information) This section provides additional details on SkyWest's cash flow, highlighting revenue recognized in excess of fixed payments and changes in cumulative deferred revenue [Supplemental Cash Flow Details](index=9&type=section&id=Supplemental%20Cash%20Flow%20Details) SkyWest reported $23.0 million in revenue recognized in excess of fixed cash payments received for Q2 2025, a significant increase from Q2 2024, with cumulative deferred revenue decreasing to $286.5 million as of June 30, 2025 - Fixed monthly cash payments under capacity purchase agreements (CPAs) are attributed to overhead costs and aircraft ownership costs. Non-lease portions are recognized as revenue on a completed block hour basis, while lease portions are recognized on a straight-line basis[24](index=24&type=chunk) Revenue Recognized in Excess of Fixed Cash Payments Received (Thousands) | Period | 2025 | 2024 | | :----- | :--- | :--- | | Three Months Ended June 30, | $22,976 | $5,551 | | Six Months Ended June 30, | $35,886 | $6,414 | Cumulative Deferred Revenue (Thousands) | Metric | As of June 30, 2025 | As of December 31, 2024 | | :----- | :------------------ | :-------------------- | | Cumulative fixed cash payments received in excess of revenue recognized ("deferred revenue") | $286,483 | $322,369 | [Company Information](index=4&type=section&id=About%20SkyWest) This section provides an overview of SkyWest, Inc.'s business structure and operations, along with details for its upcoming Q2 2025 earnings conference call [About SkyWest, Inc.](index=4&type=section&id=About%20SkyWest%2C%20Inc.) SkyWest, Inc. is a holding company for SkyWest Airlines, SkyWest Charter, and SkyWest Leasing, operating a fleet of approximately 500 aircraft and serving over 240 destinations across North America through partnerships with major airlines - SkyWest, Inc. is the holding company for SkyWest Airlines, SkyWest Charter ("SWC"), and SkyWest Leasing, an aircraft leasing company[11](index=11&type=chunk) - SkyWest Airlines has a fleet of approximately **500 aircraft** connecting passengers to over **240 destinations** throughout North America[11](index=11&type=chunk) - SkyWest Airlines operates through partnerships with United Airlines, Delta Air Lines, American Airlines, and Alaska Airlines, carrying more than **42 million passengers** in 2024[11](index=11&type=chunk) [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) SkyWest will host a conference call on July 24, 2025, at 2:30 p.m. Mountain Time to discuss its second quarter 2025 results, with details provided for domestic and international callers and a live internet webcast - SkyWest will host its conference call to discuss its second quarter 2025 results on **July 24, 2025, at 2:30 p.m. Mountain Time**[12](index=12&type=chunk) - Conference call numbers are 1-888-330-2455 for domestic callers and 1-240-789-2717 for international callers. A live webcast will be available at https://events.q4inc.com/attendee/794666333[12](index=12&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section outlines the inherent risks and uncertainties associated with forward-looking statements, emphasizing factors that could materially impact future results [Disclaimer and Risk Factors](index=4&type=section&id=Disclaimer%20and%20Risk%20Factors) This section contains forward-looking statements subject to various risks and uncertainties, including economic conditions, demand for air travel, operational challenges, regulatory issues, and geopolitical factors, which could cause actual results to differ materially from expectations - Forward-looking statements are identified by words such as "forecasts," "expects," "intends," "believes," "anticipates," "estimates," "should," "likely" and similar expressions[13](index=13&type=chunk) - Factors that could cause actual results to vary materially include challenges of competing in a rapidly changing industry, economic fluctuations, uncertainty regarding infectious diseases, ability to secure new aircraft agreements, timing and performance of third-party service providers, pilot retention, regulatory issues, aircraft financing, financial stability of major airline partners, fuel costs, global instability, and tariffs[13](index=13&type=chunk)[14](index=14&type=chunk) - Readers are directed to SkyWest's filings with the SEC, including its most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, for additional risk factors[14](index=14&type=chunk)

Imagine you're on a plane and the pilot comes on the intercom and says he just avoided a collision with a B-52 bomber. That's exactly what happened on a Sky West flight and then the pilot comes on very calmly and explains everything. Sorry about the aggressive maneuver.It caught me by surprise. This is not not normal at all. Long story short, it was not not fun, but I do uh apologize for it and uh and thank you for understanding.Not a not a fun day at work. Well, after that announcement, the entire plane br ...

Core Viewpoint - SkyWest (SKYW) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - For SkyWest, the Zacks Consensus Estimate for the fiscal year ending December 2025 is projected at $9.36 per share, remaining unchanged from the previous year, but has seen a 4.6% increase in estimates over the past three months [8]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4][5]. - The upgrade of SkyWest reflects an improvement in its underlying business, which is expected to attract investor interest and drive the stock price higher [5][10]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - SkyWest's upgrade places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9][10].

The market expects SkyWest (SKYW) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Ju ...