SkyWest, Inc.

SkyWest reported Q2 2026 GAAP net income of $101 million, or $2.54 per diluted share, on pretax income of $139 million. Revenue was $1.1 billion, up 9% sequentially from Q1 2026 and up 7% year over year; contract revenue was $864 million, prorate and charter revenue was $201 million, and leasing and other revenue was $38 million. Prorate fuel expense was $61 million versus $28 million in Q2 2025, with the average prorate fuel price at $4.45 per gallon versus $2.88 a year ago; management said the fare portion of prorate revenue offset about 60% of the fuel increase. Cash at quarter-end was $601 million, deferred revenue was $214 million, and the company repurchased 833,000 shares for $75 million in Q2. Looking ahead, management expects full-year 2026 block hours to be up approximately 5% and GAAP EPS to be in the $11 area, assuming average second-half jet fuel of $3.65 per gallon; they also expect 2026 CapEx of about $700 million.

Chip Childs emphasized that demand remains very strong in both contract and prorate flying despite higher fuel costs, and he framed the quarter as proof that SkyWest’s disciplined strategy is working. He pointed to the new American E175 agreement, ongoing CRJ550/CRJ450 conversions, and the goal of an all dual-class fleet as key parts of the long-term plan. His tone was confident and steady, stressing that the company is well positioned to respond quickly to market demand and continue creating value.

Rob Simmons highlighted Q2 GAAP EPS of $2.54 and revenue of $1.1 billion, along with pretax income of $139 million, which was 29% higher than Q1. He walked through cash deployment, including $122 million of debt repayment, $24 million of new debt financing, $139 million of CapEx, and $75 million of share repurchases, and noted that the company had $63 million left under the prior authorization before the new $250 million increase. He also said SkyWest generated over $460 million of EBITDA in the first half of 2026, reduced total debt by about $100 million since year-end 2025, and expects to finance 11 new E175s this year while keeping leverage favorable.

Analysts focused on the impact of higher fuel prices on prorate, the economics of replacing 11 American CRJ700s with E175s, the timing of E175 deliveries, and the pace of buybacks. Management said this round of fuel volatility feels more manageable than earlier in the year, with stronger conversations with partners and no need for the American E175s to achieve the expected 5% block-hour growth in 2026. On fleet disposition, management said the CRJ700s and some CRJ900s could be placed through prorate, contract flying, or leasing, and that 2026 E175 slots are nearly tapped out, with 17 scheduled for 2027. On buybacks, Rob Simmons said capital allocation is balanced and opportunistic, driven by free cash flow, fleet opportunities, debt reduction, and perceived share-price mispricing.