SkyWest (SKYW) Q3 2025 earnings summary

Executive summary

• Q3 2025 net income was $116.4 million, or $2.81 per diluted share, up from $89.7 million and $2.16 per share in Q3 2024, reflecting strong demand and operational execution.

• Q3 2025 operating revenues reached $1.1 billion, up 15% year-over-year, with block hours increasing 14.9% and aircraft in scheduled service or under contract rising 2.9% year-over-year.

• Achieved over 185 days of 100% controllable completion year-to-date, with more than 2,500 daily departures and 12.4 million passengers carried in Q3.

• Navigated challenges from a federal government shutdown, ATC system strain, and inflationary pressures while maintaining service commitments.

• Department of Transportation finalized commuter authorization for SkyWest Charter, opening new growth avenues.

Financial highlights

• Q3 2025 revenue was $1.1 billion (+15% YoY); net income: $116.4 million (+29.7% YoY); diluted EPS: $2.81 (+30.1% YoY).

• Nine months ended September 30, 2025: operating revenues $3.03 billion (+17.4% YoY); net income $337.2 million (+49.5% YoY); diluted EPS $8.14 (+49.6% YoY).

• Q3 contract revenue reached $844 million, pro-rate and charter revenue $167 million, and leasing/other revenue $39 million.

• Ended Q3 with $753 million in cash, $2.4 billion in debt (down from $2.7 billion at year-end 2024), and generated $144 million in Q3 free cash flow.

• Operating expenses for Q3 were $876 million (+12% YoY), driven by higher maintenance, labor, and fuel costs.

Outlook and guidance

• 2025 block hours expected to rise ~15% over 2024; 2025 GAAP EPS projected in the mid-$10 range, with Q4 EPS around $2.30.

• 2026 block hours anticipated to grow low single digits, with mid to high single-digit EPS growth to ~$11.

• Scheduled to add 13 new E175s with United by end of 2026, 16 new E175s with Delta from 2027–2028, and one new E175 with Alaska in 2026.

• 2026 CapEx expected at $575–$625 million, with 11 E175 deliveries and 20 CRJ-550s entering service.

• Management expects available liquidity to be sufficient for at least the next 12 months.