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SkyWest Q3 revenue, EPS up on fleet growth

By Reuters News


Overview

  • US regional airline's Q3 revenue rose 6% yr/yr to $1.12 bln

  • Q3 diluted EPS increased to $3.08 from $2.81 a year earlier

  • Company repurchased $75 mln in stock and took delivery of four new E175 aircraft


Outlook

  • SkyWest expects over 300 E175 aircraft in its fleet by end of 2027

  • Company has secured delivery positions for 33 additional E175s from 2028 through 2031

  • SkyWest holds purchase rights for 50 more E175s for potential future expansion


Result Drivers

  • HIGHER PRODUCTION - Co said Q3 block hour production rose 5% yr/yr, driven by more aircraft in scheduled service and strong overall demand

  • FLEET EXPANSION - Co took delivery of four new E175 aircraft in Q3 2026 under agreement with United Airlines

  • HIGHER FUEL COSTS - Co said Q3 results were negatively impacted by increased fuel cost per gallon in its prorate business compared to Q3 2025 and Q2 2026

  • LOWER DEPRECIATION - Co revised estimated useful life of E175 fleet to 30 years, reducing depreciation expense in Q3 2026


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Operating Revenue

$1.12 bln

Q3 EPS

$3.08

Q3 Net Income

$119.52 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the airlines peer group is "buy"

  • Wall Street's median 12-month price target for SkyWest, Inc. is $116.00, about 21.8% above its October 28 closing price of $95.27

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Oct 29 - Republic Airways Q3 revenue rises on Mesa merger

  • Oct 28 - As Iran war drags on, airlines pull back on fuel hedges and warn on fares

  • Oct 29 - Air China's third-quarter profit tumbles as rising fuel costs, competition bite


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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