SkyWest (SKYW) Q3 2025 earnings summary

Executive summary

• Q3 2025 net income was $116.4 million ($2.81 per diluted share), up from $89.7 million ($2.16 per share) in Q3 2024, reflecting strong demand, operational execution, and improved aircraft utilization.

• Achieved over 185 days of 100% controllable completion year-to-date, with more than 2,500 daily departures and block hours up 14.9% year-over-year.

• Capacity purchase revenue grew 11% and prorate/SWC revenue rose 36.1% year-over-year, driven by higher block hours and passenger volume.

• Navigated challenges from a federal government shutdown and ATC system strain, maintaining service commitments, especially under the EAS program.

• Department of Transportation finalized commuter authorization for SkyWest Charter, opening new growth opportunities.

Financial highlights

• Q3 2025 revenue was $1.1 billion, up 15% year-over-year; net income was $116.4 million (+29.7% YoY); diluted EPS was $2.81 (+30.1% YoY).

• Nine months ended September 30, 2025: operating revenues $3.03 billion (+17.4% YoY); net income $337.2 million (+49.5% YoY); diluted EPS $8.14 (+49.6% YoY).

• Q3 contract revenue was $844 million, pro-rate and charter revenue $167 million, and leasing/other revenue $39 million.

• Recognized $17 million of previously deferred revenue in Q3; $269 million remains deferred for future periods.

• Operating expenses for Q3 were $876 million (+12% YoY), driven by higher maintenance, labor, and fuel costs.

Outlook and guidance

• 2025 block hours expected to increase ~15% over 2024; 2025 GAAP EPS projected in the mid-$10 range.

• Q4 2025 EPS expected around $2.30; 2026 EPS growth projected at mid to high single digits, reaching ~$11.

• Scheduled to add 13 new E175 aircraft with United by end of 2026, 16 new E175s with Delta from 2027–2028, and one new E175 with Alaska in 2026.

• 2026 block hours anticipated to grow low single digits; CapEx for 2026 expected at $575–$625 million.

• Maintenance activity and effective tax rate expected to remain stable; tax rate to decrease to ~24% in 2026.