SkyWest, Inc. Reports Fourth Quarter and Full-Year 2025 Financial Results
SkyWest, Inc. (NASDAQ: SKYW) (“SkyWest”), a leading regional airline operator in the United States, announced its financial and operational results for the fourth quarter and full year of 2025. The company reported net income of $91 million, or $2.21 per diluted share, for Q4 2025, compared to net income of $97 million, or $2.34 per diluted share, in the fourth quarter of 2024. This slight decline in quarterly earnings was primarily influenced by the Federal Aviation Administration’s (FAA) mandated flight cancellations related to the U.S. government shutdown in October and November 2025. These interruptions reduced SkyWest’s pre-tax income in the quarter by approximately $7 million, equivalent to $0.13 per diluted share.
Despite these challenges in the fourth quarter, SkyWest reported strong performance for the full year. For the 2025 fiscal year, net income reached $428 million, or $10.35 per diluted share, compared to $323 million, or $7.77 per diluted share, for the 2024 fiscal year. This represents a significant 33% increase in annual net income year-over-year, reflecting robust growth in operations. The increase was supported by a 15% rise in block hours, indicating greater utilization of SkyWest’s fleet and continued strong demand for regional air travel services.
Executive Commentary
Chip Childs, President and Chief Executive Officer of SkyWest, commented on the results, stating, “We are honored to be named among the World’s Most Admired Companies by Fortune Magazine in 2026 for the third time. This recognition underscores our commitment to operational excellence, safety, and strong partnerships with our airline customers. As we continue to strengthen these partnerships and reinvest in our product, our capital deployment strategy is focused on creating long-term value for our customers, our people, and our shareholders. I want to extend my sincere thanks to our employees for their dedication and performance during a challenging fourth quarter.”
Revenue and Operating Performance
SkyWest’s revenue for Q4 2025 totaled $1.0 billion, an increase of $80 million, or 8%, compared to $944 million in the fourth quarter of 2024. The growth in revenue was primarily driven by a 5% increase in block hour production relative to the same period in the previous year. This increase reflects higher fleet utilization and continued strong demand for regional flights across the company’s partner networks.
Operating expenses for the fourth quarter of 2025 were $890 million, up $90 million, or 11%, from $800 million in Q4 2024. The increase in operating expenses was largely attributable to higher direct operating costs associated with increased production, as well as the company’s ongoing maintenance and investment in its CRJ fleet. Despite these expense increases, SkyWest maintained a disciplined approach to cost management and operational efficiency, which contributed to overall profitability.
Capital Structure and Liquidity
SkyWest’s liquidity position remained strong at the end of 2025, with $707 million in cash and marketable securities on hand as of December 31, compared to $802 million at the end of 2024. The reduction in cash balances reflects ongoing investments in fleet expansion and infrastructure, as well as debt repayment and share repurchases.
Total debt decreased to $2.4 billion at year-end 2025 from $2.7 billion at December 31, 2024, reflecting principal debt repayments of $492 million during the year. SkyWest’s disciplined approach to managing debt demonstrates its commitment to maintaining a solid balance sheet while funding strategic investments.
During the fourth quarter, SkyWest invested $214 million in capital expenditures. These expenditures primarily consisted of the purchase of five new Embraer E175 aircraft, spare engines, and other fixed assets, supporting both fleet modernization and operational efficiency initiatives.
Share Repurchase Activity
SkyWest continued its share repurchase program in Q4 2025, repurchasing 268,000 shares of common stock for $27 million at an average price per share of $100.43. This represents an increase from the 244,000 shares repurchased during Q3 2025. As of December 31, 2025, SkyWest had $213 million of remaining availability under its current share repurchase authorization, demonstrating the company’s commitment to returning capital to shareholders while maintaining financial flexibility.
Commercial Agreements and Fleet Expansion
SkyWest continues to coordinate with its major airline partners regarding the timing of future aircraft deliveries to ensure alignment with operational requirements and strategic growth plans. The company anticipates additional deliveries of Embraer E175 aircraft over the next several years, supporting its long-term fleet expansion strategy.
As of Q4 2025, SkyWest received five E175 aircraft. Looking forward, anticipated E175 deliveries by airline partner and year are as follows:
- United Airlines: 8 aircraft in 2026
- Delta Air Lines: 10 aircraft in 2027 and 6 aircraft in 2028
- Alaska Airlines: 1 aircraft in 2026
- Unassigned deliveries: 4 aircraft in 2028 and 40 thereafter
In total, SkyWest expects to receive 69 additional E175 aircraft from 2026 through 2028, further expanding the company’s fleet. By the end of 2028, SkyWest anticipates operating nearly 300 E175 aircraft.
Additionally, SkyWest has entered into a purchase agreement with Embraer, securing delivery positions for 44 additional E175 aircraft from 2028 through 2032. The company has also obtained purchase rights on 50 additional E175 aircraft, providing flexibility to support future growth opportunities as market demand evolves. These fleet expansion plans position SkyWest to meet the growing needs of its airline partners and enhance service offerings for passengers.
SkyWest’s results for 2025 demonstrate the company’s resilience in the face of operational challenges, including government-mandated flight cancellations and fluctuations in demand. Looking ahead, the company remains focused on delivering sustainable growth through strategic fleet investments, strong partnerships with major airlines, and disciplined financial management.
The company’s capital deployment strategy emphasizes creating long-term value by balancing investment in fleet modernization, shareholder returns through stock repurchases, and prudent debt management. By maintaining a flexible approach to fleet planning and financial management, SkyWest is well-positioned to continue delivering reliable regional air service while pursuing profitable growth.
In summary, SkyWest’s fourth-quarter and full-year 2025 results reflect a solid performance despite operational headwinds. Key highlights include:
- Fourth-quarter net income of $91 million, slightly lower than the previous year due to FAA-mandated flight cancellations.
- Full-year net income of $428 million, a 33% increase over 2024.
- Revenue growth of 8% in Q4 2025 driven by higher block hour production and strong demand.
- Total debt reduction to $2.4 billion through disciplined repayment.
- Fleet expansion with five E175 deliveries in Q4 2025 and an anticipated nearly 300 E175 aircraft by 2028.
- Share repurchase program execution, returning capital to shareholders while maintaining financial flexibility.
Overall, SkyWest’s 2025 performance highlights the company’s operational strength, financial discipline, and strategic vision for long-term growth. By continuing to focus on fleet modernization, cost management, and partnerships with major airlines, SkyWest is positioned to navigate the dynamic regional airline industry and deliver consistent value to its shareholders, customers, and employees.
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