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SkyWest
(NASDAQ:SKYW)
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Rating:78Outperform
Price Target:
$106.00
▲(2.41% 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
Contracted Revenue Model
Fixed-fee capacity purchase agreements provide a more visible revenue framework than relying solely on passenger ticket sales. Major airline partners control commercial decisions while SkyWest focuses on operating contracted capacity, supporting planning visibility and a durable role in the regional aviation network.
Negative Factors
Fuel Cost Exposure
Partial fare recovery leaves SkyWest exposed to fuel-cost changes under its prorate operations, directly pressuring margins when prices rise. Because management's full-year EPS outlook assumes specific fuel prices and usage, sustained fuel volatility can make earnings less predictable over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Contracted Revenue Model
Fixed-fee capacity purchase agreements provide a more visible revenue framework than relying solely on passenger ticket sales. Major airline partners control commercial decisions while SkyWest focuses on operating contracted capacity, supporting planning visibility and a durable role in the regional aviation network.
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
$3.61B
Dividend Yield1.91%
Average Volume (3M)313.26K
Price to Earnings (P/E)9.1
Beta (1Y)1.07
Revenue Growth9.10%
EPS Growth1.55%
CountryUS
Employees14,797
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)10.26
Shares Outstanding38,828,323
10 Day Avg. Volume242,123
30 Day Avg. Volume313,265
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 Cap1.58
Enterprise Value/Revenue1.36
Enterprise Value/Gross Profit1.91
Enterprise Value/Ebitda5.84
Forecast
1Y Price Target
$110.67Price Target Upside6.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)10.62
Revenue Forecast (FY)$4.37B
SkyWest Business Overview & Revenue Model
Company Description
SkyWest, Inc. functions as a regional airline operator within the United States, managing its activities through various subsidiaries. The company organizes its business into two primary divisions: SkyWest Airlines and SkyWest Leasing. In addition...
How the Company Makes Money
SkyWest primarily makes money through fixed-fee (capacity purchase) agreements with major airlines, under which SkyWest operates flights on its partners’ behalf while the partner controls key commercial elements such as route planning, flight sche...
SkyWest Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 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 Technical Analysis
Negative
103.51
Price Trends
97.57
Negative
98.31
Negative
96.12
Negative
Market Momentum
-1.45
Negative
43.23
Neutral
62.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKYW, the sentiment is Negative. The current price of 103.51 is above the 20-day moving average (MA) of 95.34, above the 50-day MA of 97.57, and above the 200-day MA of 96.12, indicating a bearish trend. The MACD of -1.45 indicates Negative momentum. The RSI at 43.23 is Neutral, neither overbought nor oversold. The STOCH value of 62.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.61B | 9.07 | 15.02% | 1.91% | 9.10% | 1.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $793.12M | -4.62 | 4.88% | 2.99% | 299.75% | 87.78% | |
50 Neutral | $1.85B | 47.65 | 2.10% | 4.09% | 12.24% | ― | |
46 Neutral | $1.14B | -2.92 | -120.34% | ― | 9.95% | -1057.36% | |
45 Neutral | $990.44M | -1.09 | -45.51% | ― | 3.99% | -119.13% | |
44 Neutral | $3.84B | -9.75 | -10.50% | 2.16% | 8.23% | -370.75% |
* Industrials Sector Average
SKYW
SkyWest
93.03
-8.08
-7.99%
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34.40
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ALGT
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67.67
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JBLU
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2.63
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-44.39%
RJET
Republic Airways Holdings
16.94
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ULCC
Frontier Group Holdings
4.94
0.59
13.56%
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.