SkyWest Third-Quarter EPS Rises to $3.08 as Revenue Grows 6% on More Flying

SkyWest earned $3.08 a diluted share in the third quarter, up from $2.81 a year earlier and $2.54 in the second quarter, as more aircraft in service lifted flying and revenue despite higher fuel costs, according to the earnings release it filed with an 8-K on Thursday after the market close.

The regional airline reported net income of $120 million, compared with $116 million in the third quarter of 2025. Pre-tax income rose to $159 million from $157 million a year earlier and from $139 million in the second quarter.

"Our results reflect the value we provide to our customers, including our ongoing opportunities to invest in the fleet," President and CEO Chip Childs said in the release.

More flying, higher fuel

Revenue rose 6%, or $67 million, to $1.12 billion from $1.05 billion. Block hour production, a measure of flying time, increased 5% from a year earlier, driven by more aircraft in scheduled service and strong overall demand, and rose 1% from the second quarter.

Operating expenses climbed 7% to $941 million from $876 million. SkyWest attributed the increase to higher direct operating costs from the added flying and a higher cost per gallon of fuel in its prorate business, where it shares revenue on certain routes, compared with both the year-earlier and prior quarters. The company said the fuel cost increase negatively affected results.

One accounting change helped. During the quarter, SkyWest extended the estimated useful life of its E175 jets to 30 years, which reduced depreciation expense compared with the third quarter of 2025 and the second quarter of 2026.

Fleet growth continues

SkyWest took delivery of four new E175 aircraft during the quarter under a previously announced agreement with United Airlines. Capital spending and aircraft deposits totaled $163 million for those jets, spare engines and other fixed assets.

The company expects 13 E175 deliveries in 2026, including eight for United, four for American and one for Alaska, followed by 18 in 2027 and 10 in 2028. It said it anticipates having more than 300 E175s in its fleet by the end of 2027. A purchase agreement with Embraer secures positions for 33 additional E175s from 2028 through 2031, plus purchase rights for 50 more.

Buybacks and balance sheet

SkyWest repurchased 738,000 shares for about $75 million in the third quarter and had about $238 million of remaining capacity under its buyback program as of Sept. 30.

Cash and marketable securities totaled $569 million at quarter-end, down from $707 million at the end of 2025. Total debt was $2.4 billion, up from $2.3 billion at June 30 after $187 million in new borrowing and $119 million in principal payments, and flat with the end of last year.

By the numbers

• $3.08: third-quarter diluted EPS, up from $2.81
• $1.12 billion: revenue, up 6%
• 5%: year-over-year increase in block hour production
• 4: new E175 aircraft delivered in the quarter
• About $75 million: stock repurchased in the quarter

Sources

1. SkyWest Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001104659-26-120182)

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