SkyWest Q3 revenue, EPS up on fleet growth
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
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(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.)