SkyWest reported higher third-quarter earnings as revenue and flying activity grew, while operating costs rose faster than revenue. The regional airline also continued investing in its Embraer E175 fleet, repurchased shares and outlined expected aircraft deliveries through 2028 and beyond.
Financial and operating results
- Net income was $120 million, or $3.08 per diluted share, compared with $116 million, or $2.81 per share, a year earlier. Pre-tax income rose to $159 million from $157 million and was up from $139 million in the second quarter.
- Revenue increased 6% to $1.12 billion, from $1.05 billion a year earlier. Block-hour production—an indicator of flying activity—rose 5% year over year and 1% from the second quarter, reflecting more aircraft in scheduled service and strong demand.
- Operating expenses grew 7% to $941 million, from $876 million. SkyWest attributed the increase to the costs of higher production and higher fuel costs per gallon in its prorate business compared with both the year-earlier quarter and the second quarter.
- A change in the estimated useful life of SkyWest’s E175 aircraft to 30 years reduced depreciation expense in the quarter compared with both comparison periods. The company did not quantify the effect.
- SkyWest took delivery of four new E175s for United Airlines during the quarter. It had received six E175s in the first nine months of 2026: five for United and one for Alaska.
Cash, debt and share repurchases
- SkyWest had $569 million in cash and marketable securities at September 30, down from $707 million at the end of 2025.
- Total debt was $2.4 billion, up from $2.3 billion at the end of June but flat compared with year-end 2025. During the quarter, the company made $119 million in principal payments and issued $187 million of new debt.
- Capital spending and aircraft deposits totaled $163 million, covering the four E175s, spare engines and other fixed assets.
- SkyWest repurchased 738,000 shares for about $75 million in the quarter. About $238 million remained available under its existing repurchase program.
E175 delivery outlook
SkyWest’s current delivery schedule calls for 13 E175s in 2026, 18 in 2027 and 10 in 2028, with another 28 scheduled thereafter—a total of 69 aircraft. The schedule assigns deliveries to United, Delta Air Lines, American Airlines and Alaska, while 33 aircraft remain unassigned. The company said the schedule is based on currently available information and may change.
SkyWest expects to have more than 300 E175s in its fleet by the end of 2027. Its previously announced agreement with Embraer secures delivery positions for 33 additional aircraft from 2028 through 2031 for potential future flying, and includes purchase rights for 50 more.
What changes for investors
The quarter combined higher earnings and greater flying activity with rising operating costs, including fuel expense. The longer estimated useful life for E175s lowered quarterly depreciation, while aircraft investment and share repurchases used capital. The delivery schedule also points to continued E175 fleet growth, with some future aircraft not yet assigned to a specific airline partner.