SkyWest Q3 Earnings & Revenues Beat Estimates, Improve Year Over Year

Core Insights - SkyWest, Inc. (SKYW) reported strong third-quarter 2025 results, with earnings per share (EPS) of $2.81 exceeding the Zacks Consensus Estimate of $2.56, marking a 30% year-over-year increase. Revenues reached $1.05 billion, surpassing the Zacks Consensus Estimate of $1.01 billion and reflecting a 15% year-over-year growth [1][7]. Financial Performance - Revenues from flying agreements, which accounted for 96.3% of total revenues, increased by 14.5% compared to the previous year's figure of $1.01 billion. The airline experienced a 10.5% rise in passenger numbers and a 12.4% increase in departures year-over-year. The passenger load factor improved by 0.3 points to 84% [2]. - Operating expenses rose to $876 million, a 12% increase year-over-year, primarily due to higher block hour production, although this was partially offset by operational efficiencies. Cash and marketable securities stood at $753.35 million, up from $727.02 million in the prior quarter, while long-term debt decreased to $1.86 billion from $2.01 billion [5]. Strategic Developments - SkyWest extended its multi-year contract with United Airlines for up to 40 CRJ200 aircraft, indicating a positive outlook on regional flying opportunities. The company plans to expand its E175 fleet to nearly 300 aircraft by the end of 2028, with a purchase agreement for 44 additional E175s secured for delivery from 2028 to 2032 [3][4]. - During the third quarter, SkyWest repurchased 244,000 shares for $26.6 million, with $240 million remaining under its current share repurchase program. Capital expenditures for the quarter totaled $122 million, which included purchases of spare CRJ airframes and parts [6].