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SkyWest
(NASDAQ:SKYW)
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Rating:78Outperform
Price Target:
$126.00
▲(21.56% Upside)
Action:Reiterated
Date:07/28/26
SKYW scores well due to strengthening fundamentals (solid current profitability and improved leverage) and a strong technical uptrend with the stock above key moving averages. The low P/E supports the score, while fuel-cost sensitivity, maintenance constraints, and uneven cash conversion/volatility temper the overall rating.
Positive Factors
Contract-based revenue model (CPAs)
SkyWest's CPA-driven business converts demand risk into contracted capacity revenue, creating predictable cash flows and stable take-rates from major carriers. Over 2–6 months this durability supports revenue visibility, planning for fleet adds, and steadier margin economics versus pure-ticket sellers.
Negative Factors
Prorate fuel cost sensitivity
SkyWest is structurally exposed to prorate fuel since a material portion is not fully passed to partners. Persistent fuel volatility can compress margins and cash flow over multiple quarters, making earnings and free cash flow vulnerable despite contractual safeguards.
Read all positive and negative factors
Positive Factors
Negative Factors
Contract-based revenue model (CPAs)
SkyWest's CPA-driven business converts demand risk into contracted capacity revenue, creating predictable cash flows and stable take-rates from major carriers. Over 2–6 months this durability supports revenue visibility, planning for fleet adds, and steadier margin economics versus pure-ticket sellers.
Read all positive factors
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 (SKYW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.15B
Dividend YieldN/A
Average Volume (3M)452.64K
Price to Earnings (P/E)10.4
Beta (1Y)1.01
Revenue Growth9.10%
EPS Growth1.55%
CountryUS
Employees12,876
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)10.26
Shares Outstanding38,828,323
10 Day Avg. Volume483,771
30 Day Avg. Volume452,642
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$109.33Price Target Upside5.48% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)10.88
Revenue Forecast (FY)$4.37B
SkyWest Business Overview & Revenue Model
Company Description
SkyWest, Inc. (SKYW) is a U.S. regional airline holding company that provides scheduled passenger air transportation primarily by operating regional flights on behalf of major network carriers. Through its principal airline subsidiary, SkyWest Air...
How the Company Makes Money
SkyWest primarily makes money by operating flights for major airline partners under capacity purchase agreements (CPAs) and similar fixed-fee arrangements. Under these contracts, the major airline (the marketing carrier) controls branding, schedul...
SkyWest Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveys a generally positive outlook driven by strong demand, revenue and profitability growth, significant fleet expansion (notably a large E175 order and 300-plane E175 target), robust cash generation, active share repurchases and meaningful debt reduction. Key risks highlighted include a substantial year-over-year increase in prorate fuel costs (price per gallon rose to $4.45), only ~60% of that increase being recovered in fares, ongoing MRO labor/parts challenges, and near-term financing needs for new aircraft deliveries. On balance the company emphasizes execution, growth opportunities and a strong balance sheet while acknowledging fuel and maintenance headwinds.Positive Updates
Strong GAAP Profitability
Q2 GAAP net income of $101 million, or $2.54 per diluted share; Q2 pretax income of $139 million, up 29% sequentially vs Q1 2026.
Negative Updates
Material Prorate Fuel Cost Increase
Prorate fuel expense rose to $61 million in Q2 2026 vs $28 million in Q2 2025, an increase of $33 million driven by higher price per gallon (+$21 million) and incremental prorate production (+$12 million). Prorate price per gallon was $4.45 in Q2 (vs $2.88 in Q2 2025 and $3.40 in Q1 2026).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong GAAP Profitability
Q2 GAAP net income of $101 million, or $2.54 per diluted share; Q2 pretax income of $139 million, up 29% sequentially vs Q1 2026.
Read all positive updates
Company Guidance
SkyWest guided full‑year 2026 GAAP EPS of about $11 and block‑hour production up roughly 5% versus 2025 (Q3 expected to be seasonally strongest with Q4 modestly down; a slight sequential increase in block hours into Q3 vs Q2), assuming average jet fuel of $3.65/gal in 2H26 and ~28 million gallons of prorate fuel in 2H26 (Q2 prorate fuel was $4.45/gal and $61M). They expect 2026 CapEx of about $700M (roughly half tied to 13 E175s in 2026 — 2 delivered, 11 in 2H), plan to place ~34–36 E175s into service from 2026–2028 (targeting a 300‑aircraft E175 fleet by end‑2027 and >100 unencumbered E175s by end‑2029), expect maintenance activity/expense broadly in line with 2025, and model an effective tax rate of ~27–28% for Q3–Q4 (~23–24% for the full year).SkyWest Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.19B | 4.06B | 3.53B | 2.94B | 3.00B | 2.71B |
| Gross Profit | 2.99B | 2.50B | 788.96M | 372.19M | 499.31M | 193.72M |
| EBITDA | 979.65M | 1.03B | 930.36M | 554.35M | 614.22M | 713.93M |
| Net Income | 409.91M | 428.33M | 322.96M | 34.34M | 72.95M | 111.91M |
Balance Sheet | ||||||
| Total Assets | 7.41B | 7.39B | 7.14B | 7.03B | 7.86B | 7.13B |
| Cash, Cash Equivalents and Short-Term Investments | 600.98M | 706.91M | 801.63M | 835.22M | 1.05B | 860.41M |
| Total Debt | 2.30B | 2.39B | 2.76B | 3.09B | 3.54B | 3.35B |
| Total Liabilities | 4.65B | 4.64B | 4.73B | 4.91B | 5.51B | 4.86B |
| Stockholders Equity | 2.76B | 2.75B | 2.41B | 2.11B | 2.35B | 2.27B |
Cash Flow | ||||||
| Free Cash Flow | 315.17M | 287.00M | 364.18M | 420.01M | -202.22M | 150.42M |
| Operating Cash Flow | 948.62M | 940.36M | 692.46M | 736.33M | 480.38M | 831.82M |
| Investing Cash Flow | -464.49M | -651.83M | -228.63M | -23.23M | -904.89M | -698.52M |
| Financing Cash Flow | -451.06M | -393.22M | -384.75M | -667.81M | 269.08M | -90.60M |
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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.15B | 10.43 | 15.02% | ― | 9.10% | 1.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $1.55B | -3.99 | -120.34% | ― | 9.95% | -1057.36% | |
54 Neutral | $2.64B | -49.29 | -3.25% | ― | 3.31% | 82.72% | |
50 Neutral | $2.28B | -2.50 | -45.51% | ― | 3.99% | -119.13% | |
46 Neutral | $5.29B | -30.03 | -4.50% | ― | 9.79% | -161.50% |
* Industrials Sector Average
SKYW
SkyWest
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3.20%
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SkyWest Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
SkyWest Q2 Results and Expanded Share Buyback Program
Positive
Jul 23, 2026
On July 23, 2026, SkyWest reported second-quarter 2026 net income of $101 million, or $2.54 per diluted share, down from $120 million a year earlier as higher fuel costs weighed on its prorate business despite strong demand. Revenue rose 7% year-o...
Executive/Board ChangesShareholder Meetings
SkyWest Shareholders Reelect Board and Back Executive Pay
Positive
May 7, 2026
At its May 5, 2026 annual meeting, SkyWest shareholders elected all nominated directors to serve until the next annual meeting, reaffirming the existing board leadership. Investors also cast an advisory vote approving executive compensation, indic...
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.