Company Overview - SkyWest (SKYW) is currently ranked 2 (Buy) in the Zacks Rank system, indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for SKYW's full-year earnings has increased by 3.1% over the past quarter, reflecting improving analyst sentiment [3] Performance Analysis - Year-to-date, SkyWest has returned approximately 0.5%, outperforming the average loss of 5.7% in the Transportation sector [4] - In comparison, Westinghouse Air Brake Technologies (WAB) has returned 8% since the beginning of the year, also outperforming the sector [4] - Within the Transportation - Airline industry, which includes 29 stocks, SkyWest is performing better than the average loss of 9% this year [5] Industry Context - The Transportation sector consists of 124 individual stocks, with SkyWest being one of them, and the sector is currently ranked 15 in the Zacks Sector Rank [2] - The Transportation - Equipment and Leasing industry, which includes Westinghouse Air Brake Technologies, is ranked 68 and has seen a year-to-date increase of 5.5% [6]

Core Viewpoint - SkyWest (SKYW) is experiencing strong demand and operational efficiency, enhancing its prospects and share performance, making it an attractive investment opportunity [1] Upsides for SkyWest - Earnings estimates for SkyWest have been revised upward by 3.14% for the current quarter and by 3% for 2025, indicating broker confidence in the stock [2] - The company's shares have increased by 33.9% over the past year, outperforming the Zacks Transportation – Airline industry's growth of 14.9% [3] - SkyWest has a positive earnings surprise history, exceeding the Zacks Consensus Estimate in the last four quarters with an average surprise of 17.3% [4] - The company holds a solid Zacks Rank of 2 (Buy) [4] Growth Factors - SkyWest is set to operate a total of 278 E175 aircraft by the end of 2026, with 16 additional units scheduled for delivery, highlighting the E175's importance in its fleet strategy [5] - In Q1 2025, SkyWest reported a 21.5% increase in total block hours, a 19.1% rise in departures, and a 13.6% increase in passengers carried, demonstrating strong demand [6] - The airline maintained a 99.9% adjusted flight completion rate and improved raw flight completion to 98.2%, reflecting operational reliability [6] Financial Position - SkyWest increased its share repurchase plan by $250 million in May 2025, raising total authorization to $272 million [7] - In Q1 2025, the company repurchased 141,000 shares for $13.7 million at an average price of $97.27 per share, up from 47,000 shares in Q4 2024 [9] - As of March 31, 2025, SkyWest had $34 million remaining under its current share repurchase program [9]

Core Viewpoint - SkyWest (SKYW) has shown strong stock performance recently, with a +21.5% return over the past month, outperforming the S&P 500 composite's +9.9% and the Zacks Transportation - Airline industry's +21.8% [1] Earnings Estimate Revisions - SkyWest is expected to post earnings of $2.30 per share for the current quarter, reflecting a year-over-year increase of +26.4% [4] - The consensus earnings estimate for the current fiscal year is $9.28, indicating a +19.4% change from the previous year [4] - For the next fiscal year, the consensus estimate is $9.89, showing a +6.6% increase from the prior year [5] - The Zacks Rank for SkyWest is 2 (Buy), indicating a positive outlook based on recent changes in earnings estimates [6] Projected Revenue Growth - The consensus sales estimate for the current quarter is $977.68 million, representing a year-over-year increase of +12.8% [10] - For the current fiscal year, the revenue estimate is $3.9 billion, indicating a +10.5% change, while the next fiscal year's estimate is $4.06 billion, reflecting a +4.2% change [10] Last Reported Results and Surprise History - SkyWest reported revenues of $948.46 million in the last quarter, a year-over-year increase of +18% [11] - The EPS for the same period was $2.42, compared to $1.45 a year ago, with a surprise of +18.63% over the consensus estimate [11][12] Valuation - SkyWest is graded A on the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [16]

Group 1 - SkyWest (NASDAQ: SKYW) is highlighted as a notable company in the aviation sector, particularly in the context of current economic uncertainties [1] - The management of SkyWest has a proven track record, suggesting potential resilience in navigating industry challenges [1] Group 2 - Crude Value Insights focuses on cash flow and companies in the oil and natural gas sector, emphasizing value and growth prospects [1] - The service offers subscribers access to a stock model account, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Core Insights - SkyWest, Inc. reported better-than-expected first-quarter 2025 results with earnings per share (EPS) of $2.42, surpassing the Zacks Consensus Estimate of $2.04 and improving 66% year-over-year. Revenues reached $948.5 million, exceeding the estimate of $931.4 million and increasing 18% year-over-year [1]. Revenue Performance - Revenues from flying agreements, which contributed 96.5% to total revenues, grew 17.6% from the prior year's figure of $915.99 million. The airline carried 13.6% more passengers year-over-year, and departures increased by 19.1% year-over-year. However, the passenger load factor decreased by 2.2 points to 78.6% [2]. Management Commentary - Chip Childs, CEO of SkyWest, emphasized the solid demand for their services despite uncertain macroeconomic factors. The company is focused on enhancing value for partners, improving service to smaller communities, and investing in fleet upgrades for long-term growth. A multi-year contract extension with Delta Air Lines for five CRJ700 and 11 CRJ900 aircraft was also announced [3]. Operating Expenses - Operating expenses totaled $809 million, reflecting a 15% increase from the previous year, primarily due to higher maintenance costs for the CRJ fleet and increased flight production, partially offset by operational efficiencies from better fleet utilization [4]. Financial Position - As of the end of the first quarter, SkyWest had cash and marketable securities amounting to $750.88 million, down from $801.62 million in the prior quarter. Long-term debt decreased to $2.07 billion from $2.14 billion [5]. Share Repurchase and Capital Expenditures - During the first quarter of 2025, SkyWest repurchased 141,000 shares for $13.7 million under its share repurchase program, with $34 million remaining available. Capital expenditures for the quarter were $73 million, which included the purchase of four CRJ550 aircraft and other fixed assets [6].

Financial Data and Key Metrics Changes - The company reported a net income of $101 million or $2.42 per diluted share for Q1 2025, reflecting a slight increase in production compared to Q4 2024 [7][16] - Total revenue for Q1 was $948 million, up from $944 million in Q4 2024 and up 18% from $804 million in Q1 2024 [17] - The effective tax rate for Q1 was 17%, with a normalized EPS of $2.18 per share if the tax rate were 25% [16] Business Line Data and Key Metrics Changes - Contract revenue was $785 million, flat from Q4 2024 but up 16% from Q1 2024 [17] - Pro rate and charter revenue was $131 million, up 3% from Q4 2024 and up 29% from Q1 2024 [17] - Leasing and other revenue was $32 million, up 3% from Q4 2024 and up 28% from Q1 2024 [17] Market Data and Key Metrics Changes - The company completed over 30,000 more flights compared to the same quarter last year, achieving a 99.9% adjusted completion rate [8] - The dual-class aircraft generated 87% of block hour production during Q1, indicating strong demand in the regional market [12] Company Strategy and Development Direction - The company aims to restore or bring new service to underserved communities, redeploy and fully utilize its existing fleet, and prepare for the delivery of 16 new E175s over the next two years [10] - The competitive landscape is changing, and the company is focused on disciplined strategic decisions to advance market share through fleet acquisitions and flying agreements [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning despite macroeconomic uncertainties, highlighting strong partnerships and demand [15] - The company anticipates a 12% to 13% increase in block hour production for 2025 compared to 2024, driven by improved fleet utilization and ongoing strong demand [24][26] Other Important Information - The company ended Q1 with cash of $751 million, down from $802 million in the previous quarter, and has $39 million of cumulative deferred revenue to be recognized in future periods [19][18] - Capital expenditures for 2025 are expected to be approximately $575 to $600 million, including the purchase of eight new E175s [23] Q&A Session Summary Question: When will the company start conversations about extending contracts for E175s? - Management is optimistic about continuing to fly the E175s for major partners due to their good maintenance and performance [45][46] Question: What are the metrics for pacing share repurchases? - The company evaluates capital deployment broadly, prioritizing business growth while also taking advantage of favorable stock prices for share repurchases [46][48] Question: What is the status of the CRJ 200 fleet? - The company has successfully utilized many CRJ 200s in prorate and charter services, with ongoing demand for these assets [49][52] Question: How is the company addressing the DOT approval process for SkyWest Charter? - Management is awaiting final approval from the DOT, which has been delayed due to external factors [72][74] Question: How does the company view the leasing of aircraft versus integrating them into its own operations? - The company maintains a healthy lease portfolio while also evaluating opportunities to integrate leased aircraft into its operations as needed [81][82] Question: Are there any changes in customer scheduling due to demand fluctuations? - Management noted that while there is softening demand, they still see strong schedules and are prepared to adapt as necessary [88][90] Question: What is the company's stance on consolidation in the regional industry? - The company prefers organic growth and strategic asset acquisitions rather than pursuing mergers or acquisitions, focusing on enhancing partnerships [104][106]

Financial Data and Key Metrics Changes - The company reported a net income of $101 million or $2.42 per diluted share for Q1 2025, reflecting a slight increase in production compared to Q4 2024 [7][16] - Total revenue for Q1 was $948 million, up from $944 million in Q4 2024 and up 18% from $804 million in Q1 2024 [17] - The effective tax rate for Q1 was 17%, with a normalized EPS of $2.18 per share if calculated at a 25% tax rate [16][18] Business Line Data and Key Metrics Changes - Contract revenue was $785 million, flat from Q4 2024 but up 16% from Q1 2024 [17] - Pro rate and charter revenue was $131 million, up 3% from Q4 2024 and up 29% from Q1 2024 [17] - Leasing and other revenue was $32 million, up 3% from Q4 2024 and up 28% from Q1 2024 [17] Market Data and Key Metrics Changes - The company completed over 30,000 more flights compared to the same quarter last year, achieving a 99.9% adjusted completion rate [8] - The dual-class aircraft generated 87% of block hour production during Q1, indicating strong demand in the regional market [12] Company Strategy and Development Direction - The company aims to restore or bring new service to underserved communities, redeploy and fully utilize its existing fleet, and prepare for the delivery of 16 new E175s over the next two years [10][26] - The competitive landscape is changing, and the company is focused on disciplined strategic decisions to advance market share through fleet acquisitions and flying agreements [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning despite macroeconomic uncertainties, highlighting strong partnerships and demand [15] - The company anticipates a 12% to 13% increase in block hour production for 2025 compared to 2024, driven by improved fleet utilization and ongoing strong demand [24][26] Other Important Information - The company ended Q1 with cash of $751 million and debt of $2.6 billion, down from $802 million and $2.7 billion respectively in the previous quarter [19][21] - The company plans to spend approximately $575 to $600 million on capital expenditures in 2025, including the purchase of eight new E175s [23] Q&A Session Summary Question: When will the company start conversations about extending contracts for E175s? - Management is optimistic about continuing to fly the E175s for major partners due to their good maintenance and performance [45][46] Question: What are the metrics for pacing share repurchases? - The company evaluates capital deployment broadly, prioritizing business growth while also taking advantage of favorable stock prices for repurchases [46][48] Question: What is the status of the CRJ 200 fleet? - The company has successfully utilized many CRJ 200s in various capacities and remains optimistic about their demand [49][52] Question: How are partners discussing post-summer plans? - Management noted ongoing conversations with partners about future scheduling, emphasizing strong demand despite some softening [56][60] Question: What is the status of the DOT approval for SkyWest Charter? - The company is awaiting final approval from the DOT, which has been delayed due to external factors [70][73] Question: How does the company view its lease portfolio? - The company maintains a healthy lease portfolio, which provides diversification and good margins, while also evaluating opportunities to operate leased aircraft [80][82] Question: Are there any changes in customer scheduling due to peak and off-peak dynamics? - Management indicated that while there is visibility in yield, no significant changes in scheduling have been made yet [88][90]

SkyWest (SKYW) came out with quarterly earnings of $2.42 per share, beating the Zacks Consensus Estimate of $2.04 per share. This compares to earnings of $1.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.63%. A quarter ago, it was expected that this regional airline would post earnings of $1.77 per share when it actually produced earnings of $2.34, delivering a surprise of 32.20%.Over the last four quarters, the company ...

Financial Data and Key Metrics Changes - SkyWest reported a net income of $101 million or $2.42 per diluted share for Q1 2025, reflecting a slight increase in production compared to Q4 2024 [5][11] - Total Q1 revenue was $948 million, up from $944 million in Q4 2024 and up 18% from $804 million in Q1 2024 [12] - Q1 pretax income was $121 million, with an effective tax rate of 17% [11] Business Line Data and Key Metrics Changes - Contract revenue for Q1 was $785 million, flat from Q4 2024 but up 16% from Q1 2024 [12] - Pro rate and charter revenue was $131 million, up 3% from Q4 2024 and up 29% from Q1 2024 [12] - Leasing and other revenue was $32 million, up 3% from Q4 2024 and up 28% from Q1 2024 [12] Market Data and Key Metrics Changes - The company completed over 30,000 more flights in Q1 2025 compared to the same quarter last year, achieving a 99.9% adjusted completion rate [6] - The dual-class aircraft generated 87% of block hour production during Q1 [8] Company Strategy and Development Direction - SkyWest aims to restore or bring new service to underserved communities, redeploy and fully utilize its existing fleet, and prepare for the delivery of 16 new E175s over the next two years [7][9] - The company is focused on smart investments in its people and fleet while maintaining a disciplined approach to growth opportunities [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning despite macroeconomic uncertainties, highlighting strong demand for their services [10] - The company anticipates a 12% to 13% increase in block hour production in 2025 compared to 2024, driven by improved fleet utilization and ongoing strong demand [18] Other Important Information - The company ended Q1 with cash of $751 million, down from $821 million in Q1 2024, and reduced debt to $2.6 billion [13][15] - SkyWest expects capital expenditures for 2025 to be approximately $575 million to $600 million, including the purchase of eight new E175s [17] Q&A Session Summary Question: When will discussions about extending contracts for E175s begin? - Management is optimistic about continuing to fly the E175s for their major partners due to their good maintenance and performance [30][31] Question: What are the guardrails for pacing future share purchases? - The company evaluates capital deployment quarterly and has repurchased about 22% of its shares since early 2023 [32][34] Question: What is the status of the CRJ200 fleet? - Approximately 80 CRJ200s are currently flying, with some being used in SkyWest Charter and others sold or leased [35][37] Question: How are customers scheduling flights given stronger peaks and weaker off-peak periods? - Management noted that while there is strong demand, they are still in a catch-up mode with partners due to ongoing pilot shortages [41][42] Question: What is the outlook for SkyWest Charter? - The company anticipates that the majority of aircraft will return to SkyWest Charter as demand fluctuates seasonally [45][46] Question: What is the status of the DOT approval process for SkyWest Charter? - Management is awaiting final approval from the DOT, which has been delayed due to chaotic conditions in Washington, D.C. [54][57] Question: How does the company view consolidation in the regional industry? - Management prefers organic growth and strategic asset acquisitions rather than mergers, emphasizing their focus on enhancing partnerships [80][82]

Exhibit 99.1 NEWS RELEASE CONTACT: Investor Relations Corporate Communications 435.634.3200 435.634.3553 Investor.relations@skywest.com corporate.communications@skywest.com SkyWest, Inc. Announces First Quarter 2025 Profit First Quarter 2025 Summary ST. GEORGE, UTAH, April 24, 2025 -- SkyWest, Inc. (NASDAQ: SKYW) ("SkyWest") today reported financial and operating results for Q1 2025, including net income of $101 million, or $2.42 per diluted share, compared to net income of $60 million, or $1.45 per diluted ...