SkyWest’s third-quarter earnings reach $3.08 a share, topping estimates
Key Facts
SkyWest reported diluted earnings per share of $3.08 in the third quarter of 2026, topping analysts’ estimate of $3.07, according to Investing.com data. The result came in a quarter that saw year-over-year revenue growth, but fell short of analysts’ expectations. Revenue was $1.12 billion, up 6% from $1.05 billion in the third quarter of 2025, but below the market estimate of $1.14 billion. The divergence presents results that combine business growth and better-than-expected earnings per share with revenue that did not reach consensus. Net income also rose to $119.523 million from $116.358 million a year earlier, while pretax income was $159.487 million, compared with $157.169 million.
On a quarter-over-quarter basis, revenue rose from $1.10 billion in the second quarter of 2026 to $1.12 billion in the third quarter, while earnings per share increased from $2.54 to $3.08, according to figures Reuters reported via Investing.com before the results announcement and the third-quarter figures. This coincided with a 5% increase in flight-hour production compared with the third quarter of 2025 and a 1% increase compared with the second quarter of 2026. The company attributed year-over-year production growth to more aircraft entering scheduled service and strong overall demand. Higher operating hours indicate an expansion in activity that generated higher revenue year over year, but also brought additional direct operating costs. Production thus rose alongside revenue, while revenue remained below the published market estimate.
Operating expenses totaled $941 million in the third quarter, up $65 million, or 7%, from $876 million in the same period of 2025, according to a SkyWest statement. The company said the increase was tied to additional direct operating costs expected with higher production, as well as a higher per-gallon cost of fuel for flights operating under revenue-sharing agreements. It added that the higher price per gallon of fuel hurt quarterly results compared with the third quarter of 2025 and the second quarter of 2026. This puts fuel costs at the heart of the divergence between business and revenue growth on one side and rising expenses on the other. Although net income rose year over year, operating expenses grew faster than the 6% annual increase in revenue.
Operational expansion included the delivery of four new E175 aircraft during the quarter under a previously announced agreement with United Airlines, according to SkyWest. The company expects its E175 fleet to exceed 300 aircraft by the end of 2027. Chief Executive Chip Childs said the company believes it is positioned to continue growing its E175 fleet in the coming years, noting there is room for continued investment in the fleet. This strategy links the new aircraft entering service with the increase in flight hours cited by the company, which attributed part of its production growth to more aircraft being available in scheduled service. The fleet target for the end of 2027 makes E175 expansion a key element of the company’s operational plans, alongside continued investment.
On capital allocation, SkyWest repurchased 738,000 shares for about $75 million during the third quarter, according to the company’s statement. Approximately $238 million remained available under its repurchase program on September 30, 2026. On the same date, the company held $569 million in cash and marketable securities, compared with $707 million on December 31, 2025. These figures show a decline in cash and marketable securities between the two dates, alongside share repurchases during the quarter. The statement did not specify the reason for the change in the balance in the information provided, so the figures remain a comparison between the stated measurement dates.
SkyWest shares closed at $95.27 on October 28, 2026, according to EL7 data. Investing.com reported that the stock fell 2% after the results were announced on October 29. The third-quarter announcement followed the company’s report of earnings per share of $2.54 and revenue of $1.10 billion in the second quarter, according to a Reuters report published before the third-quarter results. SkyWest also revised the estimated useful life of its E175 fleet to 30 years during the quarter, reducing depreciation expense, according to Investing.com. The company scheduled its third-quarter earnings call for October 29, 2026, at 2:30 p.m. Mountain Time, with a digital replay available through November 12 at 9:59 p.m. the same time zone.