Skywest Stock Earnings Reports

SkyWest reported Q1 2026 GAAP net income of $102 million ($2.50 diluted EPS), modestly above last year, driven by higher production and fleet utilization. Total revenue was $1.01 billion (up 7% year-over-year). Key fleet developments: delivery of 1 E175 in the quarter with 8 more expected this year, 68 E175s on firm order (24 allocated, 44 unassigned) and plans to reach roughly 300 E175s by end of 2028; continued conversions to CRJ550s (29 in service, 21 more expected this year); launch of the new CRJ450 (41-seat reimagined CRJ200) with United this fall and an expected CRJ450 fleet of ~100 aircraft including prorate conversions. The company reduced debt materially (about $1 billion less than end of 2022), ended the quarter with $627 million cash after $116 million debt repayment, $118 million new debt, $102 million CapEx and $75 million of buybacks (783k shares); $138 million remains on the repurchase authorization. Free cash flow over the past two years was nearly $1 billion and will continue to be directed to fleet, debt reduction and opportunistic repurchases. Guidance and outlook: management expects 2026 GAAP EPS around $11 (slightly below prior color), Q2 likely up modestly from Q1, Q3 seasonally strongest, Q4 down modestly from Q3. They now expect summer block-hour production to be slightly lower than previously modeled but still up year-over-year. Fuel is a key uncertainty — SkyWest is exposed to fuel on roughly 10% of flying (~40 million gallons) and expects higher fuel to have partial offset from prorate pricing. Maintenance activity and costs will remain roughly at 2025 levels as stored aircraft are returned; MRO network constraints (labor/parts) remain a near-term headwind. Management emphasizes fleet flexibility, strong partner contracts (no major E175 expirations until late 2028), healthy prorate demand, and a durable, conservative capital deployment strategy focused on balance sheet strength and long-term shareholder returns.