Key Takeaways SkyWest's Q3 EPS rose 30% year over year to $2.81, beating the Zacks Consensus Estimate of $2.56.Revenue climbed 15% to $1.05B, driven by higher flying agreement income and a 10.5% passenger increase.SkyWest extended its United Airlines deal and plans to expand its E175 fleet to nearly 300 by 2028.SkyWest, Inc. (SKYW) ) reported better-than-expected third-quarter 2025 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and improved on a year-over-year basis.Quart ...

Core Insights - SkyWest, Inc. (SKYW) is positioned to benefit from rising air travel demand and fleet modernization initiatives, supported by a strong balance sheet that allows for consistent shareholder rewards through share repurchases [1] Fleet Modernization - SkyWest's fleet modernization efforts are commendable, with agreements in place with major airlines such as United Airlines (UAL), Delta Air Lines (DAL), and Alaska Airlines (ALK) to enhance its fleet [2] - Under an agreement with UAL, SkyWest received two new E175 aircraft in Q2 2025, with additional deliveries scheduled: five E175 planes in the remaining quarters of 2025 and eight in 2026, along with one E175 from Alaska Airlines in 2025 [3] - SkyWest has a multi-year contract with Delta Air Lines to purchase and operate 16 new E175 aircraft, replacing older CRJ900s and CRJ700s, with further deliveries of 10 E175 planes in 2027 and six in 2028 [4] - In addition to existing agreements, SkyWest plans to purchase 16 E175s from Embraer, with deliveries expected in 2027 and 2028, aiming for nearly 300 E175 aircraft by the end of 2028 [5] Financial Position - SkyWest's solid balance sheet enhances financial flexibility, ending Q2 2025 with cash and marketable securities of $727.02 million, significantly higher than its current debt of $490.53 million, indicating sufficient cash to meet obligations [7] - Long-term debt decreased to $2.00 billion at the end of Q2 2025, improving the debt-to-capitalization ratio to 49.2% from 55.5% a year earlier [7] Shareholder Returns - The strong financial position allows SkyWest to reward shareholders through share repurchases, increasing its repurchase plan by $250 million in May 2025 [8] - In Q2 2025, SkyWest repurchased 195,000 shares for $17.3 million, with $267 million remaining under its current repurchase program as of June 30, 2025 [8][10] - Share buybacks not only reduce the total outstanding shares, thereby increasing earnings per share, but also reflect management's confidence in the stock's intrinsic value [9]

Core Insights - SkyWest (SKYW) stock has shown strong performance in 2024, with shares rising 22.6% year over year, significantly outperforming the Zacks Transportation sector, which declined by 11% [1][9] Growth Drivers - The investment in Maeve Aerospace in September 2025 enhances SkyWest's prospects by securing exclusive launch customer rights for the hybrid-electric MAEVE Jet, positioning the company at the forefront of sustainable regional aviation and reflecting a proactive fleet modernization strategy [3] - SkyWest plans to expand its fleet to nearly 300 E175 aircraft by the end of 2028, including 44 additional deliveries from 2028 to 2032, supported by partnerships with leading U.S. carriers, indicating a strong focus on the regional jet market [4] Operational Performance - In Q2 2025, SkyWest reported a 19% year-over-year increase in total block hours, with departures up by 17.7% and passengers carried increasing by 13.1%. The airline maintained a high adjusted flight completion rate of 99.9% and improved raw flight completion to 99.1%, showcasing operational excellence [5][9] Financial Estimates - The Zacks Consensus Estimate for the current quarter of 2025, full-year 2025, and full-year 2026 has increased by 5.35%, 1.02%, and 1.64%, respectively, over the past 60 days, reflecting positive sentiment around the company's performance [6]

Core Insights - SkyWest, Inc. (SKYW) is enhancing its position in the aviation sector by investing in Maeve Aerospace, focusing on economic regional aviation solutions [1][8] - The investment allows SkyWest to contribute its operational and design expertise to the development of Maeve's hybrid electric aircraft, MAEVE Jet [2][8] - The agreement grants SkyWest exclusive launch customer rights, aligning with its long-term fleet upgrade strategy [3][8] Fleet Modernization Efforts - SkyWest has ongoing fleet modernization initiatives, including agreements with major airlines such as United Airlines (UAL), Delta Air Lines (DAL), and Alaska Airlines (ALK) [3][6] - Under a prior agreement with UAL, SkyWest received two new E175 aircraft in Q2 2025, with additional deliveries scheduled [4] - Delta Air Lines has a multi-year contract with SkyWest for 16 new E175 aircraft, which will replace older CRJ900s and CRJ700s [5] Future Deliveries and Projections - SkyWest is set to purchase 16 E175s from Embraer, with deliveries planned for 2027 and 2028, aiming for a fleet of nearly 300 E175 aircraft by the end of 2028 [6] - The investment in Maeve Aerospace is seen as a strategic move to support long-term fleet renewal with more sustainable aircraft [6]

Core Insights - SkyWest, Inc. (SKYW) reported second-quarter 2025 results that exceeded expectations, with both earnings and revenues surpassing the Zacks Consensus Estimate and showing year-over-year improvement [1][2]. Financial Performance - Quarterly earnings per share were $2.91, exceeding the Zacks Consensus Estimate by 24.4% and improving 59.9% year over year [2]. - Revenues reached $1.04 billion, beating the Zacks Consensus Estimate by 5.3% and increasing 19.4% year over year [2]. - Revenues from flying agreements, which contributed 96.5% to total revenues, grew 17.8% from the previous year's figure of $987.5 million [3]. - Operating expenses were $865 million, up 16% from the year-ago quarter, attributed to increased flight production [5]. Operational Highlights - The airline carried 13.1% more passengers year over year, with departures increasing by 17.7% [3]. - The passenger load factor decreased by 1.6 points to 82.8% [3]. Strategic Initiatives - SkyWest has a multi-year flying contract with Delta Air Lines (DAL) to purchase and operate 16 new E175 aircraft, which will replace older models [4]. - By the end of 2028, SkyWest anticipates having nearly 300 E175 aircraft in its fleet [5]. - Capital expenditures during the reported quarter totaled $169 million, including the purchase of four CRJ550 aircraft and spare engines [8]. Shareholder Actions - The board approved a $250 million increase in the existing share repurchase plan, with $17.3 million spent to repurchase 195,000 shares at an average price of $88.61 [7]. - As of June 30, 2025, SkyWest had $267 million remaining under its current share repurchase program [7]. Cash and Debt Position - At the end of the second quarter, the company had cash and marketable securities of $727 million, down from $802 million at the end of the previous quarter [6]. - Long-term debt decreased to $2.5 billion from $2.7 billion at the end of the previous quarter [6]. Market Reaction - Despite the strong financial results, SkyWest's shares fell by 1.7% following the earnings release [1].

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 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].