10-Q · April 24, 2026
SkyWest reported Q1 2026 revenue of $1,013,177,000 and diluted EPS of $2.50, up versus Q1 2025 revenue of $948,455,000 and diluted EPS of $2.42. Operating income declined to $123,686,000 from $139,377,000 a year earlier…
Earnings analysis · 10-Q
SKYW earnings analysis
Filed July 24, 2026 · Our reading of the company's report
The latest report
SkyWest delivered Q2 2026 revenue of $1.103 billion, up 6.5% year over year and above Q1's $1.013 billion, but diluted EPS fell 12.7% year over year to $2.54 as operating expenses increased 9.5%. Operating margin…
Read full summary
SkyWest delivered Q2 2026 revenue of $1.103 billion, up 6.5% year over year and above Q1's $1.013 billion, but diluted EPS fell 12.7% year over year to $2.54 as operating expenses increased 9.5%. Operating margin improved sequentially to 14.1% from 12.2% in Q1 but remained below 16.4% a year ago, with higher fuel, labor and pilot-training costs outweighing robust prorate and charter growth. Six-month free cash flow was approximately $183.4 million, though liquidity declined $105.9 million from year-end to $601.0 million as the company funded $149.9 million in repurchases and fleet investment.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.54
- Operating margin
- 14.1%
What stood out
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Revenue grew 6.5%, led by prorate/charter
Q2 operating revenue rose $67.5 million, or 6.5% year over year, to $1.103 billion, and increased from $1.013 billion in Q1 2026. Growth was led by $55.4 million, or 38.1%, growth in prorate and charter revenue to $200.8 million.
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Sequential margin recovery, year-over-year pressure
Operating income was $155.8 million, producing a 14.1% operating margin, up from 12.2% in Q1 2026 but down from 16.4% in Q2 2025. Diluted EPS of $2.54 increased from $2.50 sequentially but fell from $2.91 a year ago.
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Operating cash flow remained strong
Six-month operating cash flow increased $8.3 million to $436.3 million. Less $253.0 million of cash aircraft, equipment and deposit spending, six-month free cash flow was approximately $183.4 million, equal to 8.7% of $2.116 billion revenue.
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Liquidity supports fleet investment
Liquidity remained substantial at $601.0 million of cash and marketable securities and $79.0 million available under the credit line. Total debt declined $97.4 million from year-end to $2.311 billion.
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Leasing profit offset operating weakness
SkyWest Leasing segment profit increased $7.8 million, or 10.7%, to $80.7 million, helped by new E175 aircraft economics, lower maintenance expense and lower interest expense.
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Capital returns accelerated
The company repurchased 1,615,756 shares for $149.9 million in the first six months, and the Board added $250 million to the authorization in July 2026, leaving approximately $313 million authorized after the increase.
What to watch
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Cost inflation compressed year-over-year margin
Expenses grew $81.8 million, or 9.5%, faster than revenue growth of 6.5%, cutting operating income $14.3 million, or 8.4%, to $155.8 million. Fuel expense more than doubled, rising $33.1 million, or 120.6%, as fuel cost per gallon increased from $2.88 to $4.45.
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Core operating segment profit declined sharply
SkyWest Airlines and SWC segment profit fell $32.1 million, or 35.5%, to $58.2 million despite 8.2% revenue growth. Management attributes labor pressure in part to higher pilot attrition and related training costs; salaries, wages and benefits rose $36.6 million, or 9.4%.
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Working-capital deficit widened
Working capital weakened to negative $776.2 million at June 30, 2026 from negative $576.4 million at December 31, 2025. Receivables rose $29.2 million and inventories rose $25.1 million, while accounts payable and accrued liabilities increased $119.6 million.
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Large fleet commitments require debt financing
The company has $2.164 billion of firm aircraft and spare-engine commitments and $2.311 billion of debt principal maturities. It intends to finance its 67 firm E175 purchase commitments with approximately 75% to 85% debt, increasing execution and financing sensitivity.
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Prorate growth increases fuel-price exposure
No new or revised standalone risk factors were added in Item 1A; it incorporates the 2025 Form 10-K risks. However, fuel exposure is rising with prorate and charter operations at 18.9% of Q2 flying-agreement revenue; a hypothetical 25% fuel-price increase would add $15.1 million in quarterly fuel expense.
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Passenger utilization softened
Load factor declined 2.2 points year over year to 80.6%, while passengers carried fell 1.3% to 11.9 million despite a 5.4% increase in block hours. This indicates weaker passenger utilization alongside expanded production.
Management's outlook
No quantitative revenue or EPS guidance was provided in the 10-Q. Management expects seven United E175 deliveries in 2026, 11 American E175 deliveries during 2026-2027, 16 Delta E175 deliveries during 2027-2028, and approximately 50 CRJ200-to-CRJ450 conversions by 2028; timing is stated to be subject to change.
Earlier filings 4
10-K · February 17, 2026
SkyWest positions itself as the largest U.S. regional airline, operating 2,260 daily departures for major partners and a 637-aircraft fleet (487 in scheduled service or under contract) while growing flying activity…
10-Q · October 31, 2025
SkyWest reported Q3 operating revenues of $1,050,029,000 (up $137,243,000 vs. Q3 2024) and diluted EPS of $2.81 (vs. $2.16 in Q3 2024), beating consensus. Operating income rose to $174,143,000 (operating margin ~16.6%)…
10-Q · July 25, 2025
SkyWest beat Q2 consensus with operating revenues of $1,035,227 (in thousands) and diluted EPS of $2.91, driven by higher flying-agreements revenue and margin expansion. Operating income rose to $170,128 (in thousands)…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.