{"success":true,"data":{"pressRelease":{"id":"97179","rtpr_id":"nBw6PTzVsa","ticker":"SKYW","exchange":"NASDAQ","all_tickers":["SKYW"],"title":"SkyWest, Inc. Announces Second Quarter 2026 Profit","author":"Business Wire","published_at":"2026-07-23T20:01:00.332Z","article_body":"SkyWest, Inc. Announces Second Quarter 2026 Profit\n\n\n * Q2 2026 pre-tax income of $139 million, a 29% increase from Q1 2026 with a 9%\nsequential increase in block hours\n\n * SkyWest secured an agreement to purchase and operate 11 new E175 aircraft for\nAmerican Airlines\n\n * SkyWest’s Board of Directors approved a $250 million increase to its\nexisting stock repurchase program\n\n * SkyWest took delivery of one new E175 aircraft in Q2 2026 under a previously\nannounced agreement with United Airlines\n\nSkyWest, Inc. (NASDAQ: SKYW) (“SkyWest”) today reported financial and\noperating results for Q2 2026, including net income of $101 million, or $2.54\nper diluted share, compared to net income of $120 million, or $2.91 per\ndiluted share, for Q2 2025. The Q2 2026 financial results were negatively\nimpacted by higher fuel cost per gallon in SkyWest’s prorate business\ncompared to Q2 2025.\n\nCommenting on the results, Chip Childs, President and Chief Executive Officer\nof SkyWest, said, “Our block hour production outlook remains solid, as we\nprepare to invest in owning and operating 34 more E175s through the end of\n2028. We believe that the fleet initiatives and investments we continue to\nmake create long-term value and cash flow that benefits our people, our\ncustomers, and our shareholders. I want to thank our team for their steady,\ngood work through an unusually volatile quarter.”\n\nFinancial Results\n\nRevenue was $1.1 billion in Q2 2026, up $68 million, or 7%, from $1.0 billion\nin Q2 2025. SkyWest’s Q2 2026 block hour production increased 5% compared to\nQ2 2025 and increased 9% compared to Q1 2026, which reflects higher fleet\nutilization and strong demand.\n\nOperating expenses were $947 million in Q2 2026, up $82 million, or 9%, from\n$865 million in Q2 2025, driven by an expected increase in incremental direct\noperating costs associated with higher production and an increase in the cost\nper gallon for prorate fuel in Q2 2026 compared to Q2 2025.\n\nCapital and Liquidity\n\nSkyWest had $601 million in cash and marketable securities at June 30, 2026,\ncompared to $707 million at December 31, 2025.\n\nTotal debt at June 30, 2026 was $2.3 billion, down from $2.4 billion at March\n31, 2026 and December 31, 2025, reflecting $122 million in principal debt\npayments and $24 million in new debt issued during Q2 2026. Capital\nexpenditures during Q2 2026 were $139 million for the purchase of one new E175\naircraft, spare engines, and other fixed assets.\n\nSkyWest repurchased 833,000 shares of its common stock for approximately $75\nmillion during Q2 2026 at an average price per share of $89.55. During the\nfirst half of 2026, SkyWest repurchased 1.6 million shares of its common stock\nfor $150 million. As of June 30, 2026, SkyWest had approximately $63 million\nof remaining availability under its existing stock repurchase program. As\nannounced today, SkyWest’s Board of Directors approved a $250 million\nincrease to the existing stock repurchase program.\n\nCommercial Agreements\n\nSkyWest secured an agreement to purchase and operate 11 new E175 aircraft\nunder a multi-year flying contract for American Airlines (“American”). The\n11 new E175 aircraft are expected to replace 11 CRJ700s SkyWest is currently\nflying under contract with American. SkyWest is scheduled to purchase the 11\nE175s from Embraer with anticipated delivery dates in 2026 and 2027.\n\nThe table below summarizes anticipated E175 aircraft deliveries during the\nperiods indicated based on currently available information, which is subject\nto change. During the first half of 2026, SkyWest had two E175 aircraft\ndeliveries, one for Alaska Airlines (“Alaska”) and one for United Airlines\n(“United”), which are reflected in the table below.\n                       \n     2026   2027   2028   Thereafter   Total \n United   8   ꟷ   ꟷ   ꟷ   8 \n Delta Air Lines   ꟷ   10   6   ꟷ   16 \n American   4   7   ꟷ   ꟷ   11 \n Alaska   1   ꟷ   ꟷ   ꟷ   1 \n Unassigned   ꟷ   ꟷ   4   29   33 \n Total   13   17   10   29   69 \n\n\nBy the end of 2027, SkyWest anticipates having 300 E175 aircraft in its fleet.\nAs previously announced, SkyWest entered into a purchase agreement with\nEmbraer, which secures delivery positions for 33 additional E175s from 2028\nthrough 2032 for potential future flying opportunities. SkyWest’s purchase\nagreement with Embraer also includes purchase rights for 50 additional E175s\nfrom Embraer, as previously announced.\n\nAbout SkyWest\n\nSkyWest, Inc. is the holding company for SkyWest Airlines, Inc., SkyWest\nCharter, LLC (“SWC”) and SkyWest Leasing, Inc., an aircraft equipment\nleasing company. SkyWest Airlines has a fleet of approximately 500 aircraft\nconnecting passengers to over 240 destinations throughout North America.\nSkyWest Airlines operates through partnerships with United Airlines, Delta Air\nLines, American Airlines, and Alaska Airlines carrying more than 46 million\npassengers in 2025.\n\nSkyWest will host its conference call to discuss its second quarter 2026\nresults today, July 23, 2026, at 2:30 p.m. Mountain Time. The conference call\nnumber is 1-888-330-2455 for domestic callers, and 1-240-789-2717 for\ninternational callers. Please call up to ten minutes in advance to ensure you\nare connected prior to the start of the call. The conference call will also be\navailable live on the Internet at https://events.q4inc.com/attendee/759519720\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fevents.q4inc.com%2Fattendee%2F759519720&esheet=54576044&newsitemid=20260723720419&lan=en-US&anchor=https%3A%2F%2Fevents.q4inc.com%2Fattendee%2F759519720&index=1&md5=be2e956c9d0b75f5c0dc3f99cd6217d1)\n. This press release and additional information regarding SkyWest, including\naccess information for the digital rebroadcast of the second quarter 2026\nresults call, participation at investor conferences and investor presentations\ncan be accessed at inc.skywest.com.\n\nForward-Looking Statements\n\nIn addition to historical information, this release contains forward-looking\nstatements within the meaning of the Private Securities Litigation Reform Act\nof 1995. Words such as “forecasts,” “expects,” “intends,”\n“believes,” “anticipates,” “estimates,” “should,” “likely”\nand similar expressions identify forward-looking statements. Such statements\ninclude, but are not limited to, statements about the continued demand for our\nproduct, the effect of economic conditions on SkyWest’s business, financial\ncondition and results of operations, SkyWest’s plans with respect to share\nrepurchases, the timing of scheduled aircraft deliveries, including with\nrespect to aircraft for which SkyWest holds firm delivery positions or\npurchase rights, the transition of the new E175 aircraft to replace existing\naircraft in SkyWest’s fleet and the timing thereof, transition of\nSkyWest’s CRJ200 fleet to the CRJ450 configuration, fleet expansion and\nanticipated fleet size for SkyWest in upcoming periods, expected production\nlevels in future periods, SkyWest’s coordination with major airline partners\nregarding the delivery of aircraft under previously announced agreements and\ntiming of placing new aircraft deliveries into service, increasing the\nutilization and efficiency of all fleet types as well as SkyWest’s future\nfinancial and operating results, plans, objectives, expectations, estimates,\nintentions and outlook, including the ability to generate long-term value and\ncash flow that benefits SkyWest and its customers, people and shareholders,\nand other statements that are not historical facts. All forward-looking\nstatements included in this release are made as of the date hereof and are\nbased on information available to SkyWest as of such date. SkyWest assumes no\nobligation to update any forward-looking statements unless required by law.\nReaders should note that many factors could affect the future operating and\nfinancial results of SkyWest and could cause actual results to vary materially\nfrom those expressed in forward-looking statements set forth in this release.\nThese factors include, but are not limited to: the challenges of competing\nsuccessfully in a highly competitive and rapidly changing industry;\ndevelopments associated with fluctuations in the economy and the demand for\nair travel, including related to inflationary pressures, and related decreases\nin customer demand and spending; uncertainty regarding potential future\noutbreaks of infectious diseases or other health concerns, and the\nconsequences of such outbreaks to the travel industry, including travel demand\nand travel behavior, and our major airline partners in general and the\nfinancial condition and operating results of SkyWest in particular; the\nprospects of entering into agreements with existing or other carriers to fly\nnew aircraft; uncertainty regarding timing and performance of key third-party\nservice providers; ongoing negotiations between SkyWest and its major airline\npartners regarding their contractual obligations; uncertainties regarding\noperation of new aircraft; the ability to attract and retain qualified pilots,\nmechanics and other personnel in operations; the impact of regulatory issues\nsuch as pilot rest rules and qualification requirements; the ability to obtain\naircraft financing; the financial stability of SkyWest’s major airline\npartners and any potential impact of their financial condition on the\noperations of SkyWest; fluctuations in flight schedules, which are determined\nby the major airline partners for whom SkyWest conducts flight operations;\nvariations in market and economic conditions; significant aircraft debt\ncommitments; estimated useful life of long-lived assets, residual aircraft\nvalues and related asset impairments; labor relations and costs; the impact of\nglobal instability; rapidly fluctuating fuel costs and potential fuel\nshortages; the impact of weather-related, natural disasters and other air\nsafety incidents on air travel and airline costs; aircraft deliveries;\nuncertainty regarding ongoing international hostilities, including those\nbetween Russia and Ukraine, Israel and Hamas, and Israel, the United States\nand Iran, and the related impacts on macroeconomic conditions and on the\ninternational operations of any of our major airline partners as a result of\nsuch conflicts; the availability of parts used in connection with maintenance\nand repairs of the aircraft; the availability of suitable replacement aircraft\nfor aging aircraft; the impact of enacted and proposed U.S. tariffs on global\neconomic conditions and the financial markets, passenger demand, the cost of\naircraft parts and supplies sourced internationally and the cost of service\nproviders located outside of the United States; the impact of potential future\nU.S. government shutdowns on air traffic controller staffing, flight\ncancellations and federal Essential Air Service subsidies; the possibility\nthat the stock repurchase program may be suspended or discontinued at any\ntime; and other unanticipated factors. Risk factors, cautionary statements and\nother conditions which could cause SkyWest’s actual results to differ\nmaterially from management’s current expectations are contained in\nSkyWest’s filings with the Securities and Exchange Commission, including its\nmost recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and\nCurrent Reports on Form 8-K.\n   \n SkyWest, Inc. and Subsidiaries \n \n \n \nCondensed Consolidated Statements of Income \n \n \n \n(Dollars and Shares in Thousands, Except per Share Amounts) \n \n \n \n(Unaudited) \n                   \n   Three Months Ended   Six Months Ended \n     June 30,   June 30, \n       2026       2025       2026       2025   \n OPERATING REVENUES:                 \n Flying agreements   $ 1,064,549     $ 987,511     $ 2,042,434     $ 1,903,505   \n Lease, airport services and other     38,202       47,716       73,494       80,177   \n Total operating revenues     1,102,751       1,035,227       2,115,928       1,983,682   \n                   \n OPERATING EXPENSES:                 \n Salaries, wages and benefits     426,826       390,243       848,930       767,554   \n Aircraft maintenance, materials and repairs     242,928       238,885       455,955       447,985   \n Depreciation and amortization     92,497       90,150       182,713       179,596   \n Aircraft fuel     60,563       27,459       99,467       51,947   \n Airport-related expenses     32,600       27,116       68,770       54,939   \n Other operating expenses     91,507       91,246       180,577       172,156   \n Total operating expenses     946,921       865,099       1,836,412       1,674,177   \n OPERATING INCOME     155,830       170,128       279,516       309,505   \n                   \n OTHER INCOME (EXPENSE):                 \n Interest income     8,794       11,050       17,391       21,136   \n Interest expense     (24,926 )     (26,566 )     (49,391 )     (53,684 ) \n Other income (expense), net     (844 )     8,504       (892 )     6,877   \n Total other expense, net     (16,976 )     (7,012 )     (32,892 )     (25,671 ) \n                   \n INCOME BEFORE INCOME TAXES     138,854       163,116       246,624       283,834   \n PROVISION FOR INCOME TAXES     38,154       42,847       44,232       63,014   \n NET INCOME   $ 100,700     $ 120,269     $ 202,392     $ 220,820   \n                   \n BASIC EARNINGS PER SHARE   $ 2.55     $ 2.98     $ 5.10     $ 5.46   \n DILUTED EARNINGS PER SHARE   $ 2.54     $ 2.91     $ 5.04     $ 5.32   \n                   \n Weighted average common shares:                 \n Basic     39,424       40,416       39,711       40,453   \n Diluted     39,617       41,351       40,142       41,475   \n   \n\n SkyWest, Inc. and Subsidiaries \n \n \n \nSummary of Consolidated Balance Sheets \n \n \n \n(Dollars in Thousands) \n \n \n \n(Unaudited) \n           \n     June 30,   December 31, \n     2026   2025 \n Cash and marketable securities   $ 600,979   $ 706,909 \n Other current assets     423,269     384,285 \n Total current assets     1,024,248     1,091,194 \n           \n Property and equipment, net     5,845,352     5,742,968 \n Deposits on aircraft     100,000     100,000 \n Other long-term assets     442,630     452,087 \n Total assets   $ 7,412,230   $ 7,386,249 \n           \n Current portion, long-term debt   $ 653,695   $ 546,812 \n Other current liabilities     1,146,732     1,120,796 \n Total current liabilities     1,800,427     1,667,608 \n           \n Long-term debt, net of current maturities     1,642,763     1,845,272 \n Other long-term liabilities     1,207,547     1,126,936 \n Stockholders' equity     2,761,493     2,746,433 \n Total liabilities and stockholders' equity   $ 7,412,230   $ 7,386,249 \n   \n\n SkyWest, Inc. and Subsidiaries \n \n \n \nAdditional Operational Information (unaudited) \n   \n SkyWest’s fleet in scheduled service or under contract by aircraft type: \n               \n     June 30, 2026   December 31, 2025   June 30, 2025 \n E175 aircraft   272   270   265 \n CRJ900 aircraft   43   36   36 \n CRJ700/E170 aircraft   77   82   88 \n CRJ550 aircraft   52   41   33 \n CRJ200 aircraft   73   58   80 \n Total aircraft in service or under contract   517   487   502 \n\n\nAs of June 30, 2026, SkyWest leased 41 CRJ550s and one CRJ700 to third parties\nand had seven CRJ200s that are configured for service under SWC operations\n(these aircraft are excluded from the table above).\n Selected operational data: \n                                       \n     For the three months ended June 30,   For the six months ended June 30, \n Block hours by aircraft type:   2026     2025     % Change   2026     2025     % Change \n E175s   229,991     219,566     4.7   %   441,450     426,928     3.4   % \n CRJ900s   30,763     22,671     35.7   %   58,733     45,659     28.6   % \n CRJ700s/E170s   59,964     68,058     (11.9 ) %   117,667     132,063     (10.9 ) % \n CRJ550s   28,102     16,268     72.7   %   52,573     27,340     92.3   % \n CRJ200s   47,876     49,706     (3.7 ) %   89,206     96,434     (7.5 ) % \n Total block hours   396,696     376,269     5.4   %   759,629     728,424     4.3   % \n                                       \n                                       \n Departures   227,960     222,874     2.3   %   431,979     424,712     1.7   % \n Passengers carried   11,938,147     12,092,758     (1.3 ) %   22,270,657     22,483,122     (0.9 ) % \n Adjusted flight completion   99.9 %   99.9 %   —   pts   99.9 %   99.9 %   —   pts \n Raw flight completion   98.6 %   99.1 %   (0.5 ) pts   98.0 %   98.7 %   (0.7 ) pts \n Passenger load factor   80.6 %   82.8 %   (2.2 ) pts   79.4 %   80.8 %   (1.4 ) pts \n Average trip length   459     451     1.8   %   465     457     1.8   % \n   \n\n\nAdjusted flight completion percent excludes weather cancellations. Raw flight\ncompletion includes weather cancellations.\n\nSupplemental Cash Flow Information\n\nSkyWest receives certain fixed monthly cash payments under its capacity\npurchase agreements (“CPAs”) that are attributed to SkyWest’s overhead\ncosts and certain fixed monthly cash payments associated with SkyWest’s\naircraft ownership costs. Fixed payments allocated to the non-lease portion\nare recognized as revenue on a completed block hour basis over the applicable\ncontract term. Fixed payments allocated to the lease portion are accounted for\nas lease revenue under the CPAs and are recognized on a straight-line basis\nover the applicable contract term. Fixed monthly cash payments received in\nexcess of revenue recognized during the reporting period are recorded as\ndeferred revenue and revenue recognized in excess of fixed monthly cash\npayments during the reporting period are recorded as unbilled revenue on\nSkyWest’s consolidated balance sheet. The following supplemental cash flow\nschedule summarizes the total revenue recognized in excess of the fixed\nmonthly cash received during the indicated reporting periods and the\ncumulative difference as of June 30, 2026 and December 31, 2025 (dollars in\nthousands, unaudited).\n                         \n   Three Months Ended   Six Months Ended \n   June 30,   June 30, \n   2026   2025   2026   2025 \n Revenue recognized in excess of fixed cash payments received $ 26,872   $ 22,976   $ 50,786   $ 35,886 \n\n               \n     As of June 30,   As of December 31, \n     2026   2025 \n Cumulative fixed cash payments received in excess of revenue recognized,   $ 213,823   $ 264,609 \n commonly referred to as \"deferred revenue\" \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260723720419/en/\n(https://www.businesswire.com/news/home/20260723720419/en/)\n\nInvestor Relations\n\n435.634.3200\n\nInvestor.relations@skywest.com (mailto:Investor.relations@skywest.com)\n\nCorporate Communications\n\n435.634.3553\n\ncorporate.communications@skywest.com\n(mailto:corporate.communications@skywest.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw6PTzVsa","title":"SkyWest, Inc. Announces Second Quarter 2026 Profit","author":"Business Wire","ticker":"SKYW","created":"2026-07-23T20:01:00.332Z","tickers":["SKYW"],"exchange":"NASDAQ","article_body":"SkyWest, Inc. Announces Second Quarter 2026 Profit\n\n\n * Q2 2026 pre-tax income of $139 million, a 29% increase from Q1 2026 with a 9%\nsequential increase in block hours\n\n * SkyWest secured an agreement to purchase and operate 11 new E175 aircraft for\nAmerican Airlines\n\n * SkyWest’s Board of Directors approved a $250 million increase to its\nexisting stock repurchase program\n\n * SkyWest took delivery of one new E175 aircraft in Q2 2026 under a previously\nannounced agreement with United Airlines\n\nSkyWest, Inc. (NASDAQ: SKYW) (“SkyWest”) today reported financial and\noperating results for Q2 2026, including net income of $101 million, or $2.54\nper diluted share, compared to net income of $120 million, or $2.91 per\ndiluted share, for Q2 2025. The Q2 2026 financial results were negatively\nimpacted by higher fuel cost per gallon in SkyWest’s prorate business\ncompared to Q2 2025.\n\nCommenting on the results, Chip Childs, President and Chief Executive Officer\nof SkyWest, said, “Our block hour production outlook remains solid, as we\nprepare to invest in owning and operating 34 more E175s through the end of\n2028. We believe that the fleet initiatives and investments we continue to\nmake create long-term value and cash flow that benefits our people, our\ncustomers, and our shareholders. I want to thank our team for their steady,\ngood work through an unusually volatile quarter.”\n\nFinancial Results\n\nRevenue was $1.1 billion in Q2 2026, up $68 million, or 7%, from $1.0 billion\nin Q2 2025. SkyWest’s Q2 2026 block hour production increased 5% compared to\nQ2 2025 and increased 9% compared to Q1 2026, which reflects higher fleet\nutilization and strong demand.\n\nOperating expenses were $947 million in Q2 2026, up $82 million, or 9%, from\n$865 million in Q2 2025, driven by an expected increase in incremental direct\noperating costs associated with higher production and an increase in the cost\nper gallon for prorate fuel in Q2 2026 compared to Q2 2025.\n\nCapital and Liquidity\n\nSkyWest had $601 million in cash and marketable securities at June 30, 2026,\ncompared to $707 million at December 31, 2025.\n\nTotal debt at June 30, 2026 was $2.3 billion, down from $2.4 billion at March\n31, 2026 and December 31, 2025, reflecting $122 million in principal debt\npayments and $24 million in new debt issued during Q2 2026. Capital\nexpenditures during Q2 2026 were $139 million for the purchase of one new E175\naircraft, spare engines, and other fixed assets.\n\nSkyWest repurchased 833,000 shares of its common stock for approximately $75\nmillion during Q2 2026 at an average price per share of $89.55. During the\nfirst half of 2026, SkyWest repurchased 1.6 million shares of its common stock\nfor $150 million. As of June 30, 2026, SkyWest had approximately $63 million\nof remaining availability under its existing stock repurchase program. As\nannounced today, SkyWest’s Board of Directors approved a $250 million\nincrease to the existing stock repurchase program.\n\nCommercial Agreements\n\nSkyWest secured an agreement to purchase and operate 11 new E175 aircraft\nunder a multi-year flying contract for American Airlines (“American”). The\n11 new E175 aircraft are expected to replace 11 CRJ700s SkyWest is currently\nflying under contract with American. SkyWest is scheduled to purchase the 11\nE175s from Embraer with anticipated delivery dates in 2026 and 2027.\n\nThe table below summarizes anticipated E175 aircraft deliveries during the\nperiods indicated based on currently available information, which is subject\nto change. During the first half of 2026, SkyWest had two E175 aircraft\ndeliveries, one for Alaska Airlines (“Alaska”) and one for United Airlines\n(“United”), which are reflected in the table below.\n                       \n     2026   2027   2028   Thereafter   Total \n United   8   ꟷ   ꟷ   ꟷ   8 \n Delta Air Lines   ꟷ   10   6   ꟷ   16 \n American   4   7   ꟷ   ꟷ   11 \n Alaska   1   ꟷ   ꟷ   ꟷ   1 \n Unassigned   ꟷ   ꟷ   4   29   33 \n Total   13   17   10   29   69 \n\n\nBy the end of 2027, SkyWest anticipates having 300 E175 aircraft in its fleet.\nAs previously announced, SkyWest entered into a purchase agreement with\nEmbraer, which secures delivery positions for 33 additional E175s from 2028\nthrough 2032 for potential future flying opportunities. SkyWest’s purchase\nagreement with Embraer also includes purchase rights for 50 additional E175s\nfrom Embraer, as previously announced.\n\nAbout SkyWest\n\nSkyWest, Inc. is the holding company for SkyWest Airlines, Inc., SkyWest\nCharter, LLC (“SWC”) and SkyWest Leasing, Inc., an aircraft equipment\nleasing company. SkyWest Airlines has a fleet of approximately 500 aircraft\nconnecting passengers to over 240 destinations throughout North America.\nSkyWest Airlines operates through partnerships with United Airlines, Delta Air\nLines, American Airlines, and Alaska Airlines carrying more than 46 million\npassengers in 2025.\n\nSkyWest will host its conference call to discuss its second quarter 2026\nresults today, July 23, 2026, at 2:30 p.m. Mountain Time. The conference call\nnumber is 1-888-330-2455 for domestic callers, and 1-240-789-2717 for\ninternational callers. Please call up to ten minutes in advance to ensure you\nare connected prior to the start of the call. The conference call will also be\navailable live on the Internet at https://events.q4inc.com/attendee/759519720\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fevents.q4inc.com%2Fattendee%2F759519720&esheet=54576044&newsitemid=20260723720419&lan=en-US&anchor=https%3A%2F%2Fevents.q4inc.com%2Fattendee%2F759519720&index=1&md5=be2e956c9d0b75f5c0dc3f99cd6217d1)\n. This press release and additional information regarding SkyWest, including\naccess information for the digital rebroadcast of the second quarter 2026\nresults call, participation at investor conferences and investor presentations\ncan be accessed at inc.skywest.com.\n\nForward-Looking Statements\n\nIn addition to historical information, this release contains forward-looking\nstatements within the meaning of the Private Securities Litigation Reform Act\nof 1995. Words such as “forecasts,” “expects,” “intends,”\n“believes,” “anticipates,” “estimates,” “should,” “likely”\nand similar expressions identify forward-looking statements. Such statements\ninclude, but are not limited to, statements about the continued demand for our\nproduct, the effect of economic conditions on SkyWest’s business, financial\ncondition and results of operations, SkyWest’s plans with respect to share\nrepurchases, the timing of scheduled aircraft deliveries, including with\nrespect to aircraft for which SkyWest holds firm delivery positions or\npurchase rights, the transition of the new E175 aircraft to replace existing\naircraft in SkyWest’s fleet and the timing thereof, transition of\nSkyWest’s CRJ200 fleet to the CRJ450 configuration, fleet expansion and\nanticipated fleet size for SkyWest in upcoming periods, expected production\nlevels in future periods, SkyWest’s coordination with major airline partners\nregarding the delivery of aircraft under previously announced agreements and\ntiming of placing new aircraft deliveries into service, increasing the\nutilization and efficiency of all fleet types as well as SkyWest’s future\nfinancial and operating results, plans, objectives, expectations, estimates,\nintentions and outlook, including the ability to generate long-term value and\ncash flow that benefits SkyWest and its customers, people and shareholders,\nand other statements that are not historical facts. All forward-looking\nstatements included in this release are made as of the date hereof and are\nbased on information available to SkyWest as of such date. SkyWest assumes no\nobligation to update any forward-looking statements unless required by law.\nReaders should note that many factors could affect the future operating and\nfinancial results of SkyWest and could cause actual results to vary materially\nfrom those expressed in forward-looking statements set forth in this release.\nThese factors include, but are not limited to: the challenges of competing\nsuccessfully in a highly competitive and rapidly changing industry;\ndevelopments associated with fluctuations in the economy and the demand for\nair travel, including related to inflationary pressures, and related decreases\nin customer demand and spending; uncertainty regarding potential future\noutbreaks of infectious diseases or other health concerns, and the\nconsequences of such outbreaks to the travel industry, including travel demand\nand travel behavior, and our major airline partners in general and the\nfinancial condition and operating results of SkyWest in particular; the\nprospects of entering into agreements with existing or other carriers to fly\nnew aircraft; uncertainty regarding timing and performance of key third-party\nservice providers; ongoing negotiations between SkyWest and its major airline\npartners regarding their contractual obligations; uncertainties regarding\noperation of new aircraft; the ability to attract and retain qualified pilots,\nmechanics and other personnel in operations; the impact of regulatory issues\nsuch as pilot rest rules and qualification requirements; the ability to obtain\naircraft financing; the financial stability of SkyWest’s major airline\npartners and any potential impact of their financial condition on the\noperations of SkyWest; fluctuations in flight schedules, which are determined\nby the major airline partners for whom SkyWest conducts flight operations;\nvariations in market and economic conditions; significant aircraft debt\ncommitments; estimated useful life of long-lived assets, residual aircraft\nvalues and related asset impairments; labor relations and costs; the impact of\nglobal instability; rapidly fluctuating fuel costs and potential fuel\nshortages; the impact of weather-related, natural disasters and other air\nsafety incidents on air travel and airline costs; aircraft deliveries;\nuncertainty regarding ongoing international hostilities, including those\nbetween Russia and Ukraine, Israel and Hamas, and Israel, the United States\nand Iran, and the related impacts on macroeconomic conditions and on the\ninternational operations of any of our major airline partners as a result of\nsuch conflicts; the availability of parts used in connection with maintenance\nand repairs of the aircraft; the availability of suitable replacement aircraft\nfor aging aircraft; the impact of enacted and proposed U.S. tariffs on global\neconomic conditions and the financial markets, passenger demand, the cost of\naircraft parts and supplies sourced internationally and the cost of service\nproviders located outside of the United States; the impact of potential future\nU.S. government shutdowns on air traffic controller staffing, flight\ncancellations and federal Essential Air Service subsidies; the possibility\nthat the stock repurchase program may be suspended or discontinued at any\ntime; and other unanticipated factors. Risk factors, cautionary statements and\nother conditions which could cause SkyWest’s actual results to differ\nmaterially from management’s current expectations are contained in\nSkyWest’s filings with the Securities and Exchange Commission, including its\nmost recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and\nCurrent Reports on Form 8-K.\n   \n SkyWest, Inc. and Subsidiaries \n \n \n \nCondensed Consolidated Statements of Income \n \n \n \n(Dollars and Shares in Thousands, Except per Share Amounts) \n \n \n \n(Unaudited) \n                   \n   Three Months Ended   Six Months Ended \n     June 30,   June 30, \n       2026       2025       2026       2025   \n OPERATING REVENUES:                 \n Flying agreements   $ 1,064,549     $ 987,511     $ 2,042,434     $ 1,903,505   \n Lease, airport services and other     38,202       47,716       73,494       80,177   \n Total operating revenues     1,102,751       1,035,227       2,115,928       1,983,682   \n                   \n OPERATING EXPENSES:                 \n Salaries, wages and benefits     426,826       390,243       848,930       767,554   \n Aircraft maintenance, materials and repairs     242,928       238,885       455,955       447,985   \n Depreciation and amortization     92,497       90,150       182,713       179,596   \n Aircraft fuel     60,563       27,459       99,467       51,947   \n Airport-related expenses     32,600       27,116       68,770       54,939   \n Other operating expenses     91,507       91,246       180,577       172,156   \n Total operating expenses     946,921       865,099       1,836,412       1,674,177   \n OPERATING INCOME     155,830       170,128       279,516       309,505   \n                   \n OTHER INCOME (EXPENSE):                 \n Interest income     8,794       11,050       17,391       21,136   \n Interest expense     (24,926 )     (26,566 )     (49,391 )     (53,684 ) \n Other income (expense), net     (844 )     8,504       (892 )     6,877   \n Total other expense, net     (16,976 )     (7,012 )     (32,892 )     (25,671 ) \n                   \n INCOME BEFORE INCOME TAXES     138,854       163,116       246,624       283,834   \n PROVISION FOR INCOME TAXES     38,154       42,847       44,232       63,014   \n NET INCOME   $ 100,700     $ 120,269     $ 202,392     $ 220,820   \n                   \n BASIC EARNINGS PER SHARE   $ 2.55     $ 2.98     $ 5.10     $ 5.46   \n DILUTED EARNINGS PER SHARE   $ 2.54     $ 2.91     $ 5.04     $ 5.32   \n                   \n Weighted average common shares:                 \n Basic     39,424       40,416       39,711       40,453   \n Diluted     39,617       41,351       40,142       41,475   \n   \n\n SkyWest, Inc. and Subsidiaries \n \n \n \nSummary of Consolidated Balance Sheets \n \n \n \n(Dollars in Thousands) \n \n \n \n(Unaudited) \n           \n     June 30,   December 31, \n     2026   2025 \n Cash and marketable securities   $ 600,979   $ 706,909 \n Other current assets     423,269     384,285 \n Total current assets     1,024,248     1,091,194 \n           \n Property and equipment, net     5,845,352     5,742,968 \n Deposits on aircraft     100,000     100,000 \n Other long-term assets     442,630     452,087 \n Total assets   $ 7,412,230   $ 7,386,249 \n           \n Current portion, long-term debt   $ 653,695   $ 546,812 \n Other current liabilities     1,146,732     1,120,796 \n Total current liabilities     1,800,427     1,667,608 \n           \n Long-term debt, net of current maturities     1,642,763     1,845,272 \n Other long-term liabilities     1,207,547     1,126,936 \n Stockholders' equity     2,761,493     2,746,433 \n Total liabilities and stockholders' equity   $ 7,412,230   $ 7,386,249 \n   \n\n SkyWest, Inc. and Subsidiaries \n \n \n \nAdditional Operational Information (unaudited) \n   \n SkyWest’s fleet in scheduled service or under contract by aircraft type: \n               \n     June 30, 2026   December 31, 2025   June 30, 2025 \n E175 aircraft   272   270   265 \n CRJ900 aircraft   43   36   36 \n CRJ700/E170 aircraft   77   82   88 \n CRJ550 aircraft   52   41   33 \n CRJ200 aircraft   73   58   80 \n Total aircraft in service or under contract   517   487   502 \n\n\nAs of June 30, 2026, SkyWest leased 41 CRJ550s and one CRJ700 to third parties\nand had seven CRJ200s that are configured for service under SWC operations\n(these aircraft are excluded from the table above).\n Selected operational data: \n                                       \n     For the three months ended June 30,   For the six months ended June 30, \n Block hours by aircraft type:   2026     2025     % Change   2026     2025     % Change \n E175s   229,991     219,566     4.7   %   441,450     426,928     3.4   % \n CRJ900s   30,763     22,671     35.7   %   58,733     45,659     28.6   % \n CRJ700s/E170s   59,964     68,058     (11.9 ) %   117,667     132,063     (10.9 ) % \n CRJ550s   28,102     16,268     72.7   %   52,573     27,340     92.3   % \n CRJ200s   47,876     49,706     (3.7 ) %   89,206     96,434     (7.5 ) % \n Total block hours   396,696     376,269     5.4   %   759,629     728,424     4.3   % \n                                       \n                                       \n Departures   227,960     222,874     2.3   %   431,979     424,712     1.7   % \n Passengers carried   11,938,147     12,092,758     (1.3 ) %   22,270,657     22,483,122     (0.9 ) % \n Adjusted flight completion   99.9 %   99.9 %   —   pts   99.9 %   99.9 %   —   pts \n Raw flight completion   98.6 %   99.1 %   (0.5 ) pts   98.0 %   98.7 %   (0.7 ) pts \n Passenger load factor   80.6 %   82.8 %   (2.2 ) pts   79.4 %   80.8 %   (1.4 ) pts \n Average trip length   459     451     1.8   %   465     457     1.8   % \n   \n\n\nAdjusted flight completion percent excludes weather cancellations. Raw flight\ncompletion includes weather cancellations.\n\nSupplemental Cash Flow Information\n\nSkyWest receives certain fixed monthly cash payments under its capacity\npurchase agreements (“CPAs”) that are attributed to SkyWest’s overhead\ncosts and certain fixed monthly cash payments associated with SkyWest’s\naircraft ownership costs. Fixed payments allocated to the non-lease portion\nare recognized as revenue on a completed block hour basis over the applicable\ncontract term. Fixed payments allocated to the lease portion are accounted for\nas lease revenue under the CPAs and are recognized on a straight-line basis\nover the applicable contract term. Fixed monthly cash payments received in\nexcess of revenue recognized during the reporting period are recorded as\ndeferred revenue and revenue recognized in excess of fixed monthly cash\npayments during the reporting period are recorded as unbilled revenue on\nSkyWest’s consolidated balance sheet. The following supplemental cash flow\nschedule summarizes the total revenue recognized in excess of the fixed\nmonthly cash received during the indicated reporting periods and the\ncumulative difference as of June 30, 2026 and December 31, 2025 (dollars in\nthousands, unaudited).\n                         \n   Three Months Ended   Six Months Ended \n   June 30,   June 30, \n   2026   2025   2026   2025 \n Revenue recognized in excess of fixed cash payments received $ 26,872   $ 22,976   $ 50,786   $ 35,886 \n\n               \n     As of June 30,   As of December 31, \n     2026   2025 \n Cumulative fixed cash payments received in excess of revenue recognized,   $ 213,823   $ 264,609 \n commonly referred to as \"deferred revenue\" \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260723720419/en/\n(https://www.businesswire.com/news/home/20260723720419/en/)\n\nInvestor Relations\n\n435.634.3200\n\nInvestor.relations@skywest.com (mailto:Investor.relations@skywest.com)\n\nCorporate Communications\n\n435.634.3553\n\ncorporate.communications@skywest.com\n(mailto:corporate.communications@skywest.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-07-23T20:01:00.507631648Z","server_sent_at_ms":1784836860507},"received_at":"2026-07-23T20:01:00.613Z","source_url":"https://www.businesswire.com/news/home/20260723720419/en/"},"analysis":{"id":"86217","press_release_id":"97179","analysis_json":{"industry":{"label":"Airlines","sector":"Industrials"},"redFlags":["Net income decreased from $120 million in Q2 2025 to $101 million in Q2 2026","Fuel cost per gallon increased in Q2 2026 compared to Q2 2025"],"eventType":"earnings","narrative":"SkyWest reported Q2 2026 net income of $101 million ($2.54 EPS) on revenue of $1.1 billion, up 7% year-over-year, driven by a 9% sequential increase in block hours.\n\nThe Board approved a $250 million increase to its stock repurchase program, adding to the $75 million of shares bought back in the quarter at an average price of $89.55.\n\nSkyWest secured an agreement with American Airlines to purchase and operate 11 new E175 aircraft, replacing 11 CRJ700s, as part of its strategy to expand its fleet to 300 E175s by the end of 2027.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Earnings beat with expanded buyback authorization and fleet expansion."},"keyFigures":{"eps":2.54,"revenue":1102751000,"guidance":"","revenueYoy":"6.5%","customDimensions":{"net_income":100700000,"total_debt":2300000000,"block_hours_q2":396696,"pre_tax_income":138854000,"operating_income":155830000,"cash_and_securities":600979000,"shares_repurchased_q2":833000,"block_hours_yoy_change":"5.4%","avg_repurchase_price_q2":89.55,"share_repurchase_value_q2":75000000,"buyback_authorization_increase":250000000}},"quotedText":"Our block hour production outlook remains solid, as we prepare to invest in owning and operating 34 more E175s through the end of 2028.","namedEntities":{"people":[{"name":"Chip Childs","role":"President and Chief Executive Officer"}],"products":["E175","CRJ700","CRJ900","CRJ550","CRJ200"],"companies":[{"name":"SkyWest, Inc.","ticker":"SKYW"},{"name":"American Airlines","relationship":"partner"},{"name":"United Airlines","relationship":"partner"},{"name":"Delta Air Lines","relationship":"partner"},{"name":"Alaska Airlines","relationship":"partner"},{"name":"Embraer","relationship":"supplier"}],"dollarAmounts":[{"amount":"$101 million","context":"Q2 2026 net income"},{"amount":"$1.1 billion","context":"Q2 2026 revenue"},{"amount":"$139 million","context":"Q2 2026 pre-tax income"},{"amount":"$250 million","context":"stock repurchase program increase"},{"amount":"$75 million","context":"value of shares repurchased in Q2 2026"},{"amount":"$89.55","context":"average price per share repurchased in Q2 2026"},{"amount":"$2.3 billion","context":"Total debt at June 30, 2026"},{"amount":"$601 million","context":"cash and marketable securities at June 30, 2026"}]},"materialImpact":{"score":4,"reasoning":"Q2 results showed strong operational momentum with 29% sequential pre-tax income growth and a 9% sequential block hour increase. The company also announced a $250 million expansion to its stock repurchase program and secured a significant new aircraft agreement with American Airlines."},"tickerRelevance":{"others":[],"primary":"SKYW"},"globalImportance":35,"audienceRelevance":40,"eventTypeSecondary":["buyback","operations_update"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"solid earnings beat + buyback","sectorWeight":"Airlines","marketCapAdjustment":"moderate"}},"event_type":"earnings","event_type_secondary":["buyback","operations_update"],"sentiment":"bullish","material_impact_score":4,"narrative":"SkyWest reported Q2 2026 net income of $101 million ($2.54 EPS) on revenue of $1.1 billion, up 7% year-over-year, driven by a 9% sequential increase in block hours.\n\nThe Board approved a $250 million increase to its stock repurchase program, adding to the $75 million of shares bought back in the quarter at an average price of $89.55.\n\nSkyWest secured an agreement with American Airlines to purchase and operate 11 new E175 aircraft, replacing 11 CRJ700s, as part of its strategy to expand its fleet to 300 E175s by the end of 2027.","key_figures":{"eps":2.54,"revenue":1102751000,"guidance":"","revenueYoy":"6.5%","customDimensions":{"net_income":100700000,"total_debt":2300000000,"block_hours_q2":396696,"pre_tax_income":138854000,"operating_income":155830000,"cash_and_securities":600979000,"shares_repurchased_q2":833000,"block_hours_yoy_change":"5.4%","avg_repurchase_price_q2":89.55,"share_repurchase_value_q2":75000000,"buyback_authorization_increase":250000000}},"named_entities":{"people":[{"name":"Chip Childs","role":"President and Chief Executive Officer"}],"products":["E175","CRJ700","CRJ900","CRJ550","CRJ200"],"companies":[{"name":"SkyWest, Inc.","ticker":"SKYW"},{"name":"American Airlines","relationship":"partner"},{"name":"United Airlines","relationship":"partner"},{"name":"Delta Air Lines","relationship":"partner"},{"name":"Alaska Airlines","relationship":"partner"},{"name":"Embraer","relationship":"supplier"}],"dollarAmounts":[{"amount":"$101 million","context":"Q2 2026 net income"},{"amount":"$1.1 billion","context":"Q2 2026 revenue"},{"amount":"$139 million","context":"Q2 2026 pre-tax income"},{"amount":"$250 million","context":"stock repurchase program increase"},{"amount":"$75 million","context":"value of shares repurchased in Q2 2026"},{"amount":"$89.55","context":"average price per share repurchased in Q2 2026"},{"amount":"$2.3 billion","context":"Total debt at June 30, 2026"},{"amount":"$601 million","context":"cash and marketable securities at June 30, 2026"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-07-23T21:53:22.555Z","global_importance":35,"audience_relevance":40,"importance_components":{"tickerTier":"mid-cap","eventGravity":"solid earnings beat + buyback","sectorWeight":"Airlines","marketCapAdjustment":"moderate"}},"durationMs":374610,"modelName":"glm-4.7"}}