SkyWest, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported Q3 2026 revenue of $1.12 billion, a 6% increase year-over-year from $1.05 billion in Q3 2025.
• Q3 2026 net income was $120 million ($3.08 diluted EPS), compared to $116 million ($2.81 diluted EPS) in Q3 2025.
• Pre-tax income reached $159 million in Q3 2026, up from $157 million in Q3 2025 and $139 million in Q2 2026.
• Operating expenses totaled $941 million in Q3 2026, a 7% increase from $876 million in Q3 2025, driven by higher direct operating costs and increased fuel costs per gallon.
• Block hour production increased 5% year-over-year and 1% sequentially in Q3 2026.
• Cash and marketable securities stood at $569 million as of September 30, 2026, down from $707 million at December 31, 2025.
• Total debt was $2.4 billion as of September 30, 2026, flat compared to December 31, 2025, and up from $2.3 billion at June 30, 2026.
• Deferred revenue (cumulative fixed cash payments received in excess of revenue recognized) was $190.4 million as of September 30, 2026, down from $264.6 million at December 31, 2025.
• Revenue recognized in excess of fixed cash payments was $23.5 million for the three months ended September 30, 2026, compared to $17.1 million in the prior year period.

Business Segments and Product Lines:

• Took delivery of four new E175 aircraft in Q3 2026 under an agreement with United Airlines.
• E175 fleet grew to 276 aircraft as of September 30, 2026, up from 270 at December 31, 2025 and 265 at September 30, 2025.
• E170 fleet increased to 5 aircraft as of September 30, 2026, up from zero in prior periods.
• CRJ550 fleet expanded to 61 aircraft as of September 30, 2026, up from 41 at December 31, 2025.
• CRJ900 fleet increased to 44 aircraft as of September 30, 2026, up from 36 at December 31, 2025.
• CRJ700 fleet decreased to 67 aircraft as of September 30, 2026, down from 82 at December 31, 2025.
• CRJ200 fleet decreased to 69 aircraft as of September 30, 2026, down from 73 at September 30, 2025.
• Total aircraft in service or under contract reached 522 as of September 30, 2026, up from 487 at December 31, 2025.
• Revised the estimated useful life of the E175 fleet to 30 years, reducing depreciation expense in Q3 2026.
• Anticipates over 300 E175 aircraft in the fleet by the end of 2027.
• Secured delivery positions for 33 additional E175s from 2028 through 2031 via an Embraer purchase agreement, with purchase rights for 50 additional E175s.

Other Key Points:

• Repurchased 738,000 shares of common stock for approximately $75 million during Q3 2026.
• Approximately $238 million of remaining availability exists under the existing stock repurchase program as of September 30, 2026.
• Capital expenditures and aircraft deposits totaled $163 million in Q3 2026 for four new E175 aircraft, spare engines, and other fixed assets.
• Six E175 aircraft deliveries occurred in the first nine months of 2026: one for Alaska Airlines and five for United Airlines.
• Anticipated E175 deliveries include 8 for United in 2026, 11 for Delta in 2027, 5 for Delta in 2028, 4 for American in 2026, and 7 for American in 2027.
• Passenger load factor was 81.0% in Q3 2026, down from 84.0% in Q3 2025.
• Total passengers carried decreased 3.6% to 11.99 million in Q3 2026 compared to 12.45 million in Q3 2025.
• Adjusted flight completion rate remained stable at 99.9% in Q3 2026 compared to Q3 2025.
• Block hours for CRJ550s increased 86.3% in Q3 2026 compared to Q3 2025.
• Block hours for CRJ900s increased 26.6% in Q3 2026 compared to Q3 2025.
• Block hours for CRJ700s decreased 14.3% in Q3 2026 compared to Q3 2025.
• Block hours for CRJ200s decreased 10.7% in Q3 2026 compared to Q3 2025.
• Total block hours increased 4.5% to 401,727 in Q3 2026 compared to 384,247 in Q3 2025.