SkyWest (SKYW) Q3 2026 earnings summary

Executive summary

• Q3 net income was $119.5M, or $3.08 per diluted share, versus $116.4M and $2.81 in Q3 2025.

• Revenue rose 6.4% to $1,117.4M; block-hour production increased 4.5%, while fuel, labor and other operating costs pressured segment profit.

• Strategic priorities include debt reduction, E175 growth, CRJ fleet conversions and disciplined capital deployment; investments are expected to deliver economic benefits in 2028.

Financial highlights

• Q3 operating income was $176.0M versus $174.1M; pretax income was $159.5M versus $157.2M, and net income was $119.5M versus $116.4M.

• Revenue comprised $866M contract, $218M prorate and charter, and $33M leasing and other revenue; flying-agreement revenue rose 7.2% to $1,084.1M.

• Q3 operating expenses rose 7% to $941.3M; salaries, wages and benefits increased to $429.7M from $391.6M, and fuel expense to $66.3M from $34.2M.

• 9M revenue rose 6.6% to $3,233.3M, while operating income fell to $455.5M from $483.6M and net income to $321.9M from $337.2M; diluted EPS was $8.11 versus $8.14.

• Q3 GAAP results included $23M of previously deferred revenue; $190.4M remained deferred at quarter-end.

Outlook and guidance

• FY 2026 block-hour production is expected up ~5% YoY; GAAP EPS is expected near $10.60, assuming Q4 prorate fuel at $4.90/gallon on 14M gallons.

• 2027 block hours are expected up 1%–2% YoY, with EPS similar to 2026; 18 E175 deliveries and fleet initiatives support cash earnings.

• 2027 guidance assumes $4.30/gallon on 60M prorate gallons; each $1 reduction from that average could add $1.20 of EPS.

• 2027 deferred-revenue recognition is expected near $70M versus ~$100M in 2026, a non-cash comparative EPS headwind of ~$0.60.

• FY 2026 CapEx is expected near $725M; 2027 CapEx near $825M, including $525M for 18 E175s, $200M for maintenance and $100M for CRJ initiatives.