SkyWest (SKYW) Q1 2026 earnings summary

Executive summary

• Q1 2026 net income was $102 million ($2.50 per diluted share), up from $101 million ($2.42 per share) in Q1 2025, driven by increased production, fleet utilization, and a $12 million discrete income tax benefit.

• Revenue rose 7% year-over-year to $1.01 billion, with strong demand, increased block hour production, and capacity purchase and prorate/charter revenue growth.

• Delivered one new E175, with eight more expected in 2026, and introduced the CRJ-450, a premium 41-seat aircraft launching with United in the fall.

• Achieved 3rd place in 2025 DOT on-time performance statistics, despite operational challenges from winter storms.

• Increased aircraft in scheduled service or under contract to 500, up from 488 a year ago, and block hours rose 3% year-over-year.

Financial highlights

• Q1 2026 GAAP net income: $102 million; EPS: $2.50; pre-tax income: $108 million; effective tax rate: 6%.

• Q1 revenue: $1.01 billion, up 7% year-over-year; contract revenue: $810 million; prorate and charter revenue: $168 million.

• Operating income was $124 million, down from $139 million in Q1 2025; operating margin: 12.2%.

• Cash and marketable securities totaled $627 million at quarter-end, after $116 million debt repayment, $118 million new debt, $102 million CapEx, and $75 million in share buybacks.

• Long-term debt remained stable at $2.4 billion, with an average effective interest rate of 4.4%.

Outlook and guidance

• 2026 GAAP EPS expected around $11, slightly down from prior guidance, reflecting higher fuel costs.

• Plans to convert all single-class CRJ200s to dual-class CRJ450s by 2028, with the first entering service in Fall 2026.

• Expects to have over 300 E175 aircraft in the fleet by end of 2028, with secured delivery positions for 44 more E175s through 2032 and purchase rights for 50 additional E175s.

• Effective tax rate for 2026 projected at 23%-24% for the year, with 27%-28% for remaining quarters.

• Block hour production for summer 2026 expected to be slightly lower than previously modeled, but still up year-over-year.