SkyWest(US:SKYW)2025-10-31 20:01Financial Performance - Total operating revenues for the three months ended September 30, 2025, were $1.1 billion, a 15.0% increase from $912.8 million for the same period in 2024[113]. - Net income for the three months ended September 30, 2025, was $116.4 million, or $2.81 per diluted share, compared to $89.7 million, or $2.16 per diluted share, for the same period in 2024[113]. - Total operating revenues rose by 15.0% to $1,050,029 thousand for the three months ended September 30, 2025, from $912,786 thousand in 2024[124]. - Operating revenues rose by 17.4% to $3,033,711 thousand for the nine months ended September 30, 2025, up from $2,583,518 thousand in 2024[145]. - Net income for the nine months ended September 30, 2025, was $337.2 million, or $8.14 per diluted share, compared to $225.6 million, or $5.44 per diluted share, in 2024[165]. Operational Metrics - The number of aircraft in scheduled service or under contract increased from 484 as of September 30, 2024, to 498 as of September 30, 2025, representing a 2.9% increase[114]. - Block hours increased from 334,459 for the three months ended September 30, 2024, to 384,247 for the same period in 2025, a 14.9% increase[114]. - Departures increased from 201,397 for the three months ended September 30, 2024, to 226,305 for the same period in 2025, a 12.4% increase[118]. - The number of passengers carried increased by 10.5% to 12,446,270 for the three months ended September 30, 2025, compared to 11,263,322 in 2024[123]. - The number of passengers carried grew by 12.3% to 34,929,392 for the nine months ended September 30, 2025, compared to 31,103,792 in 2024[144]. Revenue Sources - Capacity purchase revenue increased by $83.5 million, or 11.0%, for the three months ended September 30, 2025, primarily due to an increase in completed block hours[115]. - Prorate and SWC revenue increased by $44.3 million, or 36.1%, for the three months ended September 30, 2025, compared to the same period in 2024[115]. - Capacity purchase agreements flight operations revenue increased by 7.7% to $672,559 thousand for the three months ended September 30, 2025, compared to $624,342 thousand in 2024[125]. - Capacity purchase agreements flight operations revenue increased by 13.1% to $1,994,660 thousand, driven by higher block hour production[148]. Expenses - Total operating expenses increased by $94.5 million, or 12.1%, for the three months ended September 30, 2025, compared to the same period in 2024[116]. - Operating expenses increased by 12.1% to $875,886 thousand for the three months ended September 30, 2025, compared to $781,351 thousand in 2024[132]. - Aircraft maintenance expenses rose by 36.5% to $247,978 thousand for the three months ended September 30, 2025, from $181,652 thousand in 2024[134]. - Aircraft maintenance expenses rose by 36.4% to $695,963 thousand, primarily due to increased maintenance activity[154]. - Salaries, wages, and benefits for SkyWest Airlines and SWC increased by $14.2 million, or 3.8%, from $376.8 million in Q3 2024 to $391.0 million in Q3 2025[173]. Cash Flow and Debt - As of September 30, 2025, the company had $753.4 million in cash and cash equivalents, a decrease of $48.2 million from $801.6 million as of December 31, 2024[194]. - Net cash provided by operating activities increased by 39.9% to $708.9 million for the nine months ended September 30, 2025, compared to $506.6 million for the same period in 2024[197]. - Cash used in investing activities surged by 336.3% to $519.2 million for the nine months ended September 30, 2025, compared to $119.0 million for the same period in 2024[197]. - Long-term debt as of September 30, 2025, was $2.4 billion, with an average effective interest rate of approximately 4.3%[210]. Future Commitments - The company plans to add a total of 13 new E175 aircraft with United between Q4 2025 and the end of 2026[109]. - The company has a firm purchase commitment for 74 new E175 aircraft from Embraer, with delivery dates anticipated into 2032[207]. - The company intends to finance the firm purchase commitment for 74 E175 aircraft with approximately 75-85% debt and the remaining balance with cash[208].