SkyWest(US:SKYW)2025-10-30 20:01Financial Performance - SkyWest reported Q3 2025 net income of $116 million, or $2.81 per diluted share, up from $90 million, or $2.16 per diluted share in Q3 2024, representing a 29% increase in net income[1][4] - Revenue for Q3 2025 was $1.1 billion, an increase of $137 million, or 15%, compared to $913 million in Q3 2024[3] - Operating income for Q3 2025 was $174 million, up 33% from $131 million in Q3 2024[4] - Operating expenses increased to $876 million in Q3 2025, up $95 million, or 12%, from $781 million in Q3 2024, primarily due to higher block hour production[3] Operational Metrics - SkyWest's block hour production increased by 15% year-over-year, reflecting higher fleet utilization and strong demand[3] - For the three months ended September 30, 2025, total block hours increased by 14.9% to 384,247 hours compared to 334,459 hours in the same period of 2024[20] - The number of passengers carried in the three months ended September 30, 2025, was 12,446,270, reflecting a 10.5% increase from 11,263,322 passengers in the same period of 2024[20] - The passenger load factor for the three months ended September 30, 2025, was 84.0%, an increase of 0.3 percentage points from 83.7% in the same period of 2024[20] - SkyWest's CRJ700/CRJ550 block hours increased by 43.6% to 85,858 hours for the three months ended September 30, 2025, compared to 59,807 hours in the same period of 2024[20] - SkyWest's total departures for the three months ended September 30, 2025, increased by 12.4% to 226,305 compared to 201,397 in the same period of 2024[20] - The adjusted flight completion rate remained stable at 99.9% for both the three and nine months ended September 30, 2025[20] Cash and Debt Management - As of September 30, 2025, SkyWest had $753 million in cash and marketable securities, down from $802 million at the end of 2024[5] - Total debt decreased to $2.4 billion as of September 30, 2025, down from $2.7 billion at the end of 2024[5] Share Repurchase and Future Plans - SkyWest repurchased 244,000 shares of common stock for $26.6 million during Q3 2025, an increase of 25% from Q2 2025[6] - The company has a remaining availability of $240 million under its current share repurchase program as of September 30, 2025[6] - SkyWest anticipates nearly 300 E175 aircraft in its fleet by the end of 2028, with a purchase agreement for 44 additional E175s secured for delivery from 2028 to 2032[8] Revenue Recognition and Deferred Revenue - Revenue recognized in excess of fixed cash payments received for the three months ended September 30, 2025, was $18,647,000, compared to $17,082,000 in the same period of 2024[24] - Cumulative deferred revenue as of September 30, 2025, was $269,401,000, down from $322,369,000 as of December 31, 2024[24] Average Trip Length - The average trip length for the nine months ended September 30, 2025, was 457 miles, a decrease of 2.1% from 467 miles in the same period of 2024[20]