SkyWest (SKYW) Q2 2026 earnings summary

Executive summary

• Q2 2026 net income was $101 million ($2.54 per diluted share), down from $120.3 million ($2.91 per share) in Q2 2025, driven by strong demand but offset by higher fuel and labor costs.

• Q2 2026 operating revenues reached $1.1 billion, up 7% year-over-year, supported by increased block hours and fleet utilization.

• Achieved 99.9% adjusted completion on nearly 228,000 flights, reflecting operational excellence.

• Announced agreement to purchase and operate 11 new E175s for American Airlines, with deliveries starting in 2026 and a total of 34 additional E175s expected by end of 2028.

• Board approved a $250 million increase to the stock repurchase program, reflecting confidence in ongoing free cash flow generation.

Financial highlights

• Q2 2026 GAAP net income was $101 million, or $2.54 EPS; pre-tax income was $139 million, up 29% sequentially from Q1.

• Q2 revenue reached $1.1 billion, up 9% from Q1 2026 and 7% year-over-year from Q2 2025.

• Operating expenses increased 9.5% year-over-year, mainly due to a 120.6% rise in fuel costs and a 9.4% increase in salaries and benefits.

• Cash and marketable securities at June 30, 2026: $601 million, down from $707 million at year-end 2025.

• Total debt decreased to $2.3 billion from $2.4 billion at the end of Q1 and year-end 2025.

Outlook and guidance

• Expect to take delivery of 11 new E175s in the second half of 2026, with total CapEx for 2026 projected at $700 million.

• Plans to add 34 new E175s by end of 2028 and convert approximately 50 CRJ200s to CRJ450 configuration by 2028.

• Management expects sufficient liquidity to meet financial requirements for at least the next 12 months.

• Anticipate full-year 2026 block hour production up approximately 5% from 2025.

• GAAP EPS for 2026 expected to be around $11, assuming average jet fuel of $3.65/gallon in H2 2026.