SkyWest (SKYW)
NASDAQ:SKYW
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SkyWest
(NASDAQ:SKYW)
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Rating:67Neutral
Price Target:
$93.00
▼(-6.34% Downside)
Action:DowngradedDate:04/25/26
The score is driven mainly by improved financial performance (profitability and a healthier leverage profile) and a low P/E valuation, partially offset by weak technicals (price below key moving averages with negative momentum). Earnings call commentary was constructive on full-year EPS guidance and capital returns, but near-term operational and cost headwinds (maintenance/MRO, production trim, fuel exposure) keep the overall rating in the mid-range.
Positive Factors
Contracted revenue stability (CPAs)
Long-dated capacity purchase agreements and recent multiyear E175 extensions with United and Delta provide durable revenue visibility and downside protection. Contract structure shifts demand risk to partners, stabilizing cash flows and planning for fleet deliveries through 2028 and beyond.
Negative Factors
Uneven free-cash-flow conversion
Despite recent positive free cash flow, conversion of accounting profits to cash has been inconsistent historically. Variability from heavy reinvestment, working-capital swings and episodic negative FCF raises execution risk and may constrain returns or add funding pressure under stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Contracted revenue stability (CPAs)
Long-dated capacity purchase agreements and recent multiyear E175 extensions with United and Delta provide durable revenue visibility and downside protection. Contract structure shifts demand risk to partners, stabilizing cash flows and planning for fleet deliveries through 2028 and beyond.
Read all positive factors
SkyWest (SKYW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.23B
Dividend YieldN/A
Average Volume (3M)387.41K
Price to Earnings (P/E)9.0
Beta (1Y)1.06
Revenue Growth12.26%
EPS Growth18.57%
CountryUS
Employees12,876
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)10.68
Shares Outstanding39,660,282
10 Day Avg. Volume346,944
30 Day Avg. Volume387,408
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)1.47
Price to Sales (P/S)1.00
P/FCF Ratio14.10
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit2.89
Enterprise Value/Ebitda3.87
Forecast
1Y Price Target
$112.25Price Target Upside13.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)10.94
Revenue Forecast (FY)$4.34B
SkyWest Business Overview & Revenue Model
Company Description
SkyWest, Inc., through its subsidiaries, operates a regional airline in the United States. The company operates through two segment, SkyWest Airlines and SkyWest Leasing. It also leases regional jet aircraft and spare engines to third parties. As ...
How the Company Makes Money
SkyWest primarily makes money by operating flights for major airlines under capacity purchase agreements (CPAs). Under a CPA model, SkyWest is paid by its major-airline partner to operate a defined schedule using SkyWest aircraft and crews (or oth...
SkyWest Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how different business areas contribute to overall revenue, indicating diversification and potential growth opportunities.
Shows how different business areas contribute to overall revenue, indicating diversification and potential growth opportunities.
Data provided by:
The Fly
The FlySkyWest Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call communicated a generally positive operational and strategic trajectory: solid Q1 profitability (GAAP net income $102M, EPS $2.50), revenue growth (+7% YoY), strong free cash flow and a $1 billion reduction in debt since 2022, plus meaningful fleet growth plans (E175 orders and CRJ450/CRJ550 programs) and high operational performance (3rd in DOT on-time). Offsetting these positives are near-term pressures: lower ending cash, maintenance/MRO constraints increasing near-term costs, a sequential drop in leasing revenue, and a modest scaling back of summer production expectations driven by partner schedules and elevated fuel costs impacting guidance. Overall, the company portrays durable fundamentals and strategic optionality that outweigh the near-term operational and cost headwinds.Positive Updates
Profitability and EPS
GAAP net income of $102 million in Q1 2026, or $2.50 diluted EPS, slightly better than Q1 2025; Q1 pretax income was $108 million. Management expects full-year 2026 GAAP EPS in the low-to-mid $11 range and directional quarterly progression: Q2 slightly above Q1, Q3 above Q2 (seasonally strongest), Q4 modestly below Q3.
Negative Updates
Decline in Ending Cash Balance
Ending cash of $627 million, down $80 million sequentially from $707 million (≈ -11.3% QoQ) and down $124 million year-over-year from $751 million (≈ -16.5% YoY); cash used for debt activity, CapEx and $75 million of buybacks.
Read all updates
Q1-2026 Updates
Positive
Negative
Profitability and EPS
GAAP net income of $102 million in Q1 2026, or $2.50 diluted EPS, slightly better than Q1 2025; Q1 pretax income was $108 million. Management expects full-year 2026 GAAP EPS in the low-to-mid $11 range and directional quarterly progression: Q2 slightly above Q1, Q3 above Q2 (seasonally strongest), Q4 modestly below Q3.
Read all positive updates
Company Guidance
Management guided full‑year 2026 GAAP EPS in the ~ $11 area (Q2 directionally slightly above Q1’s $2.50, Q3 higher than Q2, Q4 modestly below Q3) and a full‑year effective tax rate of ~23–24% (implying ~27–28% for the remaining quarters), after reporting Q1 GAAP net income of $102M ($2.50/diluted share), pretax income $108M, weighted average shares 40.7M and a Q1 effective tax rate of 6% (including a $0.29 discrete benefit); Q1 revenue was $1.01B (contract $810M, prorate/charter $168M, leasing/other $35M), block hours were up 3% year‑over‑year, cash ended at $627M (vs. $707M Q4 and $751M YoY), cumulative deferred revenue is $241M (with $24M recognized in Q1), the company repaid $116M of debt, issued $118M of new debt, invested $102M in CapEx (including one E175), repurchased 783k shares for $75M (authorization remaining $138M), and highlighted nearly $1B of free cash flow generated over two years, $1B less total debt vs. 2022, CapEx of ~ $580M in 2025 with 2026 CapEx expected roughly flat, fleet/delivery metrics of one E175 delivered in Q1 and eight more expected in 2026 (nine total this year), 68 E175s on firm order (24 allocated/44 unassigned) toward nearly 300 E175s by 2028, 29 CRJ550s in service with 21 more expected this year (50 total), and fuel exposure on roughly 10% of flying (~40M gallons remaining) with maintenance spend expected roughly at 2025 levels.SkyWest Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.12B | 4.06B | 3.53B | 2.94B | 3.00B | 2.71B |
| Gross Profit | 1.35B | 2.50B | 788.96M | 372.19M | 499.31M | 193.72M |
| EBITDA | 1.01B | 1.03B | 930.36M | 554.35M | 614.22M | 713.93M |
| Net Income | 429.48M | 428.33M | 322.96M | 34.34M | 72.95M | 111.91M |
Balance Sheet | ||||||
| Total Assets | 7.35B | 7.39B | 7.14B | 7.03B | 7.86B | 7.13B |
| Cash, Cash Equivalents and Short-Term Investments | 627.25M | 706.91M | 801.63M | 835.22M | 1.05B | 860.41M |
| Total Debt | 681.40M | 2.39B | 2.76B | 3.09B | 3.54B | 3.35B |
| Total Liabilities | 4.61B | 4.64B | 4.73B | 4.91B | 5.51B | 4.86B |
| Stockholders Equity | 2.73B | 2.75B | 2.41B | 2.11B | 2.35B | 2.27B |
Cash Flow | ||||||
| Free Cash Flow | 230.29M | 287.00M | 364.18M | 420.01M | -202.22M | 150.42M |
| Operating Cash Flow | 913.82M | 940.36M | 692.46M | 736.33M | 480.38M | 831.82M |
| Investing Cash Flow | -668.55M | -651.83M | -228.63M | -23.23M | -904.89M | -698.52M |
| Financing Cash Flow | -358.40M | -393.22M | -384.75M | -667.81M | 269.08M | -90.60M |
SkyWest Technical Analysis
Positive
99.30
Price Trends
97.07
Positive
99.14
Positive
103.03
Negative
Market Momentum
0.53
Negative
59.18
Neutral
61.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKYW, the sentiment is Positive. The current price of 99.3 is above the 20-day moving average (MA) of 93.39, above the 50-day MA of 97.07, and below the 200-day MA of 103.03, indicating a neutral trend. The MACD of 0.53 indicates Negative momentum. The RSI at 59.18 is Neutral, neither overbought nor oversold. The STOCH value of 61.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKYW.
SkyWest Risk Analysis
SkyWest disclosed 41 risk factors in its most recent earnings report. SkyWest reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SkyWest Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $3.23B | 9.03 | 16.00% | ― | 12.26% | 18.57% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $827.58M | 9.24 | 8.62% | ― | 4.36% | -25.89% | |
49 Neutral | $939.60M | 5.08 | -27.39% | ― | -1.35% | -261.43% | |
47 Neutral | $4.19B | -5.45 | 1.85% | ― | 13.94% | -79.71% | |
46 Neutral | $1.33B | 8.68 | -4.22% | ― | 3.31% | 82.72% | |
46 Neutral | $1.78B | -1.28 | -33.13% | ― | -0.52% | -138.22% |
* Industrials Sector Average
SKYW
SkyWest
81.37
-12.70
-13.50%
ALK
Alaska Air
36.96
-12.98
-25.99%
ALGT
Allegiant Travel Company
71.97
22.56
45.66%
JBLU
JetBlue Airways
4.79
0.39
8.86%
SNCY
Sun Country Airlines Holdings
15.27
4.03
35.85%
ULCC
Frontier Group Holdings
4.09
0.66
19.24%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.