SkyWest (SKYW) Q4 2025 earnings summary

Executive summary

• Q4 2025 net income was $91 million ($2.21 per diluted share), impacted by FAA-mandated flight cancellations due to a government shutdown, reducing pre-tax income by $7 million.

• Full-year 2025 net income rose 33% year-over-year to $428 million ($10.35 per diluted share), driven by 15% block hour growth and strong operating leverage.

• Achieved multiyear contract extensions for 40 E175s with United and 13 E175s with Delta, ensuring no major E175 contract expirations until late 2028.

• Named a Fortune World's Most Admired Company for 2026, the only regional airline in the top 10.

• Five new E175 aircraft delivered in Q4 2025.

Financial highlights

• Q4 2025 revenue was $1 billion, up 8% year-over-year; operating expenses rose 11% to $890 million, reflecting higher production and maintenance costs.

• Full year 2025 operating revenues were $4.06 billion, up from $3.53 billion in 2024; operating income for the year was $617.8 million, up from $494.7 million.

• Q4 contract revenue was $803 million, up from $786 million in Q4 2024.

• Prorate and charter revenue reached $167 million in Q4, up from $126 million in Q4 2024.

• Free cash flow for 2025 exceeded $400 million.

Outlook and guidance

• By end of 2028, nearly 300 E175 aircraft expected in fleet; 44 additional E175s secured for delivery from 2028–2032, with purchase rights for 50 more.

• 2026 block hours expected to grow mid-single digits over 2025, with EPS anticipated in the mid-$11 range.

• 2026 CapEx forecasted at $600–$625 million, with 9 new E175 deliveries planned.

• Q1 2026 EPS expected to be flat to down from Q4 2025 due to sharper seasonality; Q2 and Q3 projected as strongest quarters.

• Focus areas for 2026 include redeploying 20 parked dual-class CRJs, strong prorate demand, and new E175 placements.