SkyWest, Inc. Reports Strong First Quarter 2025 Results, Highlighting Solid Profitability and Operational Momentum
SkyWest, Inc. (NASDAQ: SKYW), a leading provider of regional airline services in North America, announced its financial and operating results for the first quarter ended March 31, 2025. The company reported net income of $101 million, or $2.42 per diluted share, reflecting a 68% increase compared to the $60 million, or $1.45 per diluted share, reported in the same period last year. This result includes a one-time discrete income tax benefit of $10 million, or approximately $0.24 per diluted share.
The strong earnings performance underscores SkyWest’s continued operational recovery, ongoing fleet optimization, and ability to execute effectively amid industry-wide challenges. As the airline sector continues to navigate economic uncertainty, labor constraints, and seasonal weather disruptions, SkyWest remains focused on delivering dependable service to its partners and the communities it serves.
CEO Commentary
Commenting on the company’s Q1 performance, Chip Childs, President and Chief Executive Officer of SkyWest, praised the resilience and dedication of the airline’s workforce.
“Although the airline industry is dealing with uncertain macroeconomic factors, demand for our product remains solid,” said Childs. “We continue to be committed to adding value to our partners’ network strategies, improving daily scheduled service to smaller communities, and deploying our capital to improve our fleet for long-term opportunities. I want to thank our teams for continuing to deliver an exceptional product through the challenging winter conditions of the first quarter.”
Childs emphasized that SkyWest’s ability to support and align with its major airline partners — including United Airlines, Delta Air Lines, American Airlines, and Alaska Airlines — remains a core strategic advantage. This commitment has enabled SkyWest to scale operations efficiently and maintain its leadership as the largest regional airline operator in the United States by flight departures and aircraft in service.
Revenue and Operational Growth
For the first quarter of 2025, SkyWest reported operating revenues of $948 million, an increase of $144 million, or 18%, compared to $804 million in Q1 2024. The year-over-year revenue growth was driven by a 22% increase in block hour production, signaling higher flight activity, improved fleet utilization, and a steady ramp-up in pilot availability—especially among captains, a key constraint in the regional industry over the past several years.
The strong demand from partner airlines and the resulting increase in flight schedules allowed SkyWest to capture greater economies of scale and improve asset utilization across its regional jet fleet. SkyWest continues to operate a mixed fleet of Embraer E175 aircraft and Bombardier CRJ-series regional jets, providing flexible solutions for a wide variety of routes, especially those serving mid-size and smaller markets.
Expense Management and Efficiency
Operating expenses for the first quarter totaled $809 million, up $105 million, or 15%, from $704 million in the same quarter of the prior year. The increase in expenses was attributed to higher flight production, as well as anticipated maintenance costs associated with the aging CRJ fleet. SkyWest has been proactive in managing its fleet lifecycle, and maintenance investments in Q1 reflect the airline’s strategy to ensure reliability and safety while continuing to support legacy aircraft that are still central to many regional routes.
Despite higher costs, the company benefitted from operating leverage tied to improved aircraft utilization and continued investments in process efficiencies. These efforts helped to partially offset the impact of inflationary pressure on maintenance, labor, and fuel.
Capital Position and Liquidity
As of March 31, 2025, SkyWest reported cash and marketable securities totaling $751 million, compared to $802 million at December 31, 2024. The company’s liquidity remains strong, enabling continued investment in fleet renewal and shareholder returns, while maintaining a conservative approach to balance sheet management.
Total debt stood at approximately $2.6 billion at the end of the quarter, down from $2.7 billion at the end of 2024. The reduction reflects prudent capital allocation and continued deleveraging, which remains a priority for the company as it seeks to strengthen its financial foundation over the long term.
Capital expenditures for the quarter reached $73 million, which included the purchase of four CRJ550 aircraft, spare engines, and other fixed assets. The CRJ550, a 50-seat variant of the CRJ700 retrofitted for premium service, continues to be an important aircraft for select SkyWest routes under partnership agreements, particularly with United Airlines.
Share Repurchase Program
Under its ongoing share repurchase program, initially authorized by the Board of Directors in May 2023, SkyWest repurchased 141,000 shares of its common stock during Q1 2025 for a total of $13.7 million. The average repurchase price was $97.27 per share. This compares to 47,000 shares repurchased in Q4 2024, signaling an acceleration in shareholder returns as cash flow generation strengthens.
As of March 31, 2025, $34 million remained available under the current repurchase authorization. The company noted that it will continue to evaluate capital returns opportunistically, balancing reinvestment in operations with enhancing shareholder value.
Fleet Update and Commercial Agreements
SkyWest continues to work closely with its major airline partners to optimize the deployment and timing of fleet additions, particularly the Embraer E175 aircraft, which is the regional workhorse for many U.S. carriers. The company reaffirmed its planned delivery schedule for new E175s and highlighted its flexibility to adjust timelines based on partner needs, market conditions, and supply chain developments.
As previously disclosed, SkyWest expects to take delivery of additional E175 aircraft throughout 2025 and 2026. These deliveries will support expanded service under capacity purchase agreements (CPAs), which provide stable revenue streams and help mitigate exposure to fuel cost fluctuations and fare volatility.
While specific delivery timing is subject to change, SkyWest maintains confidence in its long-term fleet strategy, which centers around operating efficient, right-sized aircraft that offer compelling unit economics and serve critical regional markets underserved by larger jets.
About SkyWest
SkyWest, Inc. is the holding company for SkyWest Airlines, SkyWest Charter (“SWC”) and SkyWest Leasing, an aircraft leasing company. SkyWest Airlines has a fleet of approximately 500 aircraft connecting passengers to over 240 destinations throughout North America. SkyWest Airlines operates through partnerships with United Airlines, Delta Air Lines, American Airlines, and Alaska Airlines carrying more than 42 million passengers in 2024.