SKYW Stock Surges 92% in 2024: Will the Momentum Continue in 2025?

Core Viewpoint - SkyWest (SKYW) has shown exceptional stock performance in 2024, with a 91.8% year-over-year increase, significantly outperforming the industry average of 31.1% [1][2]. Group 1: Growth Drivers - The increase in air travel demand, particularly in the leisure sector, is a primary factor driving growth for SkyWest [3]. - SkyWest reported an 18.7% year-over-year revenue growth in the first nine months of 2024, primarily due to a 19.1% rise in flying agreements, which now account for 96.8% of total revenues [3]. - The supply chain challenges faced by Boeing have inadvertently benefited SkyWest by improving pilot staffing, as major airlines have slowed or paused pilot hiring [4]. Group 2: Fleet and Operations - SkyWest operates a fleet of approximately 500 aircraft, serving over 240 destinations across North America, and carried more than 38 million passengers in 2023 [5]. - The company is modernizing its fleet with agreements to operate 278 E175 aircraft by the end of 2026 and has acquired a 25% stake in regional carrier Contour Airlines [5]. Group 3: Future Outlook - With strong air travel demand expected to continue, SkyWest's stock is likely to maintain positive market performance in the upcoming year [6]. - The Zacks Consensus Estimate for SkyWest's fourth quarter of 2024, full-year 2024, and full-year 2025 has been revised upward by 3%, 3%, and 5.3% respectively over the past 60 days [7].