Key Highlights

  • Revenue increased 6% to $1.12 billion in the third quarter, from $1.05 billion a year earlier.
  • Net income was $120 million, or $3.08 per diluted share, compared with $116 million, or $2.81, in the third quarter of 2025.
  • Aircraft fuel expense was $66.3 million, against $34.2 million a year ago.
  • Cash and marketable securities stood at $569 million at September 30, 2026, with total Debt of $2.4 billion.
  • The company repurchased 738,000 shares for approximately $75 million, leaving about $238 million of repurchase availability.

Revenue climbs 6% on higher block hour production

SkyWest (NASDAQ:SKYW) is the Holding Company for SkyWest Airlines, which flies regional aircraft for United Airlines, Delta Air Lines, American Airlines and Alaska Airlines. It reported third quarter 2026 results on October 29, 2026.

Revenue reached $1.12 billion, an increase of $67 million, or 6%, from $1.05 billion in the third quarter of 2025.

Block hour production rose 5% from the prior year period and 1% from the second quarter, which the company attributed to more aircraft in scheduled service and strong overall demand.

Fuel and labor costs lift expenses, while a Depreciation change offers relief

Operating expenses totaled $941 million, up $65 million, or 7%, from $876 million. The company pointed to higher production-related direct costs and a higher cost per gallon of fuel in its prorate business, where it carries fuel costs itself.

Aircraft fuel expense climbed to $66.3 million from $34.2 million, an increase of about 94% on a calculated basis.

During the quarter SkyWest revised the estimated useful life of its E175 fleet to 30 years. Depreciation and amortization fell to $76.3 million from $92.5 million, a decline of about 17.5% on a calculated basis, which helped offset the cost pressure.

Earnings per share rise faster than net income

Operating income was $176.0 million, compared with $174.1 million a year earlier. Pre-tax income reached $159 million, up from $157 million in the third quarter of 2025 and $139 million in the second quarter of 2026.

Net income of $119.5 million compared with $116.4 million, while diluted Earnings Per Share of $3.08 compared with $2.81, and with $2.54 in the second quarter. Diluted weighted average shares fell to 38.8 million from 41.4 million, which explains the faster per-share gain.

Fleet growth, E175 deliveries and Capital spending

SkyWest took delivery of four new E175 aircraft in the quarter under a previously announced United Airlines agreement, and it had received six E175 deliveries in the first nine months. Capital expenditures and aircraft deposits totaled $163 million, covering the four aircraft, spare engines and other fixed assets.

The company expects 13 E175 deliveries in 2026, 18 in 2027 and 10 in 2028, and anticipates more than 300 E175 aircraft in its fleet by the end of 2027. It has also secured delivery positions for 33 more E175s from 2028 through 2031, plus purchase rights for 50 additional aircraft.

Passenger load Factor was 81.0%, compared with 84.0% in the third quarter of 2025.

Cash, debt and Buybacks set the Balance Sheet picture

Cash and marketable securities were $569 million at September 30, 2026, versus $707 million at December 31, 2025. Total debt was $2.4 billion, up from $2.3 billion at June 30, 2026, reflecting $119 million in principal payments and $187 million of new debt issued during the quarter, and was flat versus year end.

SkyWest repurchased 738,000 shares for approximately $75 million. About $238 million remained under its existing repurchase program as of September 30, 2026.

Readers following the name will likely watch the fuel cost per gallon in the prorate business, the pace of E175 deliveries, and how much of the remaining repurchase authorization gets used.