SkyWest Lifts Pre-Tax Income to $159 Million

The Tip Desk · October 31, 2026 · 3 min read

Diluted earnings reached $3.08 a share as revenue rose 6% to $1.12 billion and four United E175s joined the fleet.

SkyWest, Inc. (SKYW), the regional airline holding company, reported pre-tax income of $159 million for the third quarter of 2026, up from $157 million a year earlier and from $139 million in the second quarter. Diluted earnings were $3.08 a share, compared with $2.81 a year earlier. Net income was $120 million.

The company said the quarter’s results were negatively impacted by higher fuel cost per gallon in its prorate business versus both the year-ago quarter and the second quarter. Flying-agreement operating revenues were $1.084 billion, versus $1.011 billion a year earlier. Lease, airport services and other revenue was $33.2 million.

Block hour production increased 5% from the year-ago quarter, which the company attributed to more aircraft in scheduled service and strong overall demand, and was up 1% sequentially from the second quarter. Total block hours were 401,727. Passengers carried were 11.99 million, down 3.6% from 12.45 million a year earlier, and the passenger load factor was 81.0%, down 3.0 points from 84.0%. Departures were 229,595.

Operating expenses were $941 million, up $65 million, or 7%, from $876 million a year earlier. The company said the increase reflected an expected rise in incremental direct operating costs associated with higher production and a higher cost per gallon for prorate fuel. Aircraft fuel expense was $66.3 million, versus $34.2 million a year earlier. Salaries, wages and benefits were $429.7 million.

In the third quarter SkyWest revised the estimated useful life of its E175 fleet to 30 years, which reduced depreciation expense versus both the year-ago quarter and the second quarter. Depreciation and amortization was $76.3 million, versus $92.5 million a year earlier. Operating income was $176.0 million.

The fleet in scheduled service or under contract totaled 522 aircraft at September 30, 2026, versus 487 at year-end 2025, including 276 E175s and five E170s. CRJ550 block hours were 33,325, up 86.3% from 17,884 a year earlier. CRJ700 block hours were 58,220, down 14.3% from 67,974. CRJ900 block hours were 30,725. E175 block hours were 229,514.

SkyWest took delivery of four new E175 aircraft in the third quarter under a previously announced agreement with United Airlines. Capital expenditures and aircraft deposits were $163 million for those four aircraft, spare engines, and other fixed assets. During the first nine months of 2026 the company had six E175 deliveries, one for Alaska Airlines and five for United.

Cash and marketable securities were $569 million at September 30, 2026, compared with $707 million at December 31, 2025. Total debt was $2.4 billion, up from $2.3 billion at June 30, 2026, after $119 million in principal payments and $187 million in new debt issued in the third quarter. SkyWest repurchased 738,000 shares for approximately $75 million in the quarter, leaving about $238 million of remaining availability under its existing repurchase program.

By the end of 2027, SkyWest anticipates having over 300 E175 aircraft in its fleet. Anticipated deliveries through 2028 and thereafter include 11 E175s for American, 16 for Delta, and 33 unassigned, for a total of 60 aircraft across those three categories. The company also entered a purchase agreement with Embraer securing delivery positions for 33 additional E175s from 2028 through 2031, plus purchase rights for 50 more.