SKYWEST INC SEC 10-Q Report

SkyWest Inc., a leading regional airline operator, has released its latest Form 10-Q report, showcasing significant improvements in both financial and operational performance. The report highlights the company's robust revenue growth, increased profitability, and strategic fleet expansion, underscoring its strong position in the regional airline industry.

Financial Highlights

SkyWest Inc. reported impressive financial results for the period, marked by substantial growth across key metrics:

• Total Operating Revenues: $1,035.2 million, a 19.4% increase compared to the same period last year, driven by an increase in block hour production and additional aircraft under capacity purchase agreements.
• Operating Income: $170.1 million, reflecting improved efficiency and increased block hours.
• Net Income: $120.3 million, up from $75.6 million in the prior year, attributed to higher operating revenues and effective cost management.
• Basic Earnings Per Share: $2.98, compared to $1.88 in the previous year, indicating strong earnings growth.
• Diluted Earnings Per Share: $2.91, up from $1.82, reflecting the company's improved profitability.

Business Highlights

SkyWest Inc. also demonstrated strong operational performance, with key developments in its business activities:

• Revenue Segments: SkyWest's flying agreements revenue is divided into capacity purchase agreements flight operations revenue, capacity purchase agreements aircraft lease revenue, and prorate agreements and SWC revenue. The capacity purchase agreements flight operations revenue increased by 14.8% due to an 18.5% increase in block hour production and recognition of previously deferred revenue. Capacity purchase agreements aircraft lease revenue rose by 17.0% due to additional aircraft under agreements and contract extensions.
• Sales Units: The number of aircraft in scheduled service or under contract increased from 475 as of June 30, 2024, to 502 as of June 30, 2025. Block hours increased by 18.5% from 317,462 to 376,269, and departures rose by 17.7% from 189,325 to 222,874, reflecting higher aircraft utilization and an increase in available captains.
• Fleet Activity: SkyWest added seven new E175 aircraft and 10 partner-financed E175 aircraft from June 30, 2024, to June 30, 2025. The fleet is expected to continue evolving with the addition of 13 new E175 aircraft with United, 16 new E175 aircraft with Delta, and one new E175 aircraft with Alaska in the coming years.
• Future Outlook: SkyWest anticipates further fleet expansion with new aircraft deliveries scheduled through 2028. The company is coordinating with major airline partners to optimize delivery timing and fleet utilization, aiming to improve profitability by adding new E175 and dual-class CRJ aircraft while potentially removing older aircraft from service.
• Operational Performance: The increase in block hours and departures was primarily due to additional aircraft operating under capacity purchase agreements and an increase in the number of available captains, allowing for higher scheduled utilization of aircraft.
• Geographical Performance: As of June 30, 2025, approximately 45.6% of aircraft in scheduled service or under contract were operated for United, 28.3% for Delta, 17.7% for American, and 8.4% for Alaska, indicating a diverse distribution of operations across major airline partners.

SEC Filing: SKYWEST INC [ SKYW ] - 10-Q - Jul. 25, 2025