SkyWest Expects $10.60 EPS in 2026 as Flight Hours Grow 5%
Key Facts
SkyWest expects GAAP earnings per share of about $10.60 in 2026, up from $10.35 in 2025, management said on its third-quarter earnings call. The forecast comes as the company expects to increase flight-hour production by about 5% during the year compared with 2025. Management said 2027 earnings per share will be roughly similar to the 2026 level, while flight-hour growth slows to a range of 1%–2%. This reflects a slower operating trajectory after expected growth this year, alongside continued fleet expansion and deliveries of new aircraft. The company said its 2026 estimate is affected by fuel costs in its prorate business and fuel assumptions for the final quarter.
In the third quarter of 2026, SkyWest reported net income of $120 million, or $3.08 per diluted share, compared with $116 million and $2.81 per share in the same period of 2025, according to a company statement published through Nasdaq. Revenue rose 6% to $1.12 billion from $1.05 billion a year earlier. Flight-hour production increased 5% year over year and also rose 1% compared with the second quarter of 2026. But operating expenses grew at a faster pace, reaching $941 million, up 7% from $876 million a year earlier. The company attributed the increase to direct operating costs tied to higher production and to higher fuel costs in its prorate business.
Management said third-quarter fuel cost $4.56 per gallon on consumption of 14.5 million gallons, an estimated burden of about $13 million, or $0.26 per share. The earnings statement also said higher fuel cost per gallon in the prorate business negatively affected results compared with the third quarter of 2025 and the second quarter of 2026. To estimate earnings of about $10.60 per share for the current year, the company assumed fuel costs of $4.90 per gallon on 14 million gallons in the fourth quarter. This assumption makes fuel costs a direct factor in the annual forecast, alongside production levels. In the third quarter, SkyWest revised the estimated useful life of its E175 fleet to 30 years, reducing depreciation expense during the period.
On liquidity and capital allocation, the company said cash and marketable securities totaled $569 million on September 30, 2026, compared with $707 million on December 31, 2025. SkyWest repurchased 738,000 shares for about $75 million during the third quarter. As of September 30, about $238 million remained available under its share repurchase program. The company estimates its 2027 capital expenditures at about $825 million. That total includes about $525 million to purchase 18 new E175 aircraft, about $200 million for recurring maintenance, and $100 million for CRJ fleet initiatives.
SkyWest expects to take delivery of 18 new E175 aircraft in 2027, but the full impact of those aircraft will not appear in results until 2028, management said on the earnings call. The company aims to have more than 300 E175 aircraft in its fleet by the end of 2027. It has also secured firm delivery positions for 33 additional aircraft between 2028 and 2031, along with purchase rights for 50 more aircraft from Embraer. By contrast, it expects to return all Delta-owned CRJ900 aircraft by mid-2027. Several CRJ200 aircraft will leave service during the year for conversion to CRJ450 aircraft, as part of the changes accompanying the fleet update.
SkyWest shares closed at $96.54 on October 29, up 1.33% from the previous close of $95.27, according to Investing.com data. The stock remained at $96.54 in after-hours trading. The move came on the day of the earnings announcement, which showed higher net income and earnings per share year over year, alongside increased operating expenses and fuel-cost pressure. Management’s 2027 outlook puts earnings per share near the 2026 level, with slower flight-hour growth and fleet deliveries whose full impact extends into 2028. The return of Delta aircraft and the retirement of some CRJ200 aircraft are also part of the fleet changes announced for the coming period.