Core Insights - SkyWest, Inc. reported mixed fourth-quarter 2025 results, with earnings per share of $2.21 missing the Zacks Consensus Estimate of $2.25, while revenues of $1.02 billion exceeded the estimate of $986.9 million, reflecting an 8.5% year-over-year increase [1][8] Financial Performance - Quarterly earnings per share declined 5.5% year over year [1] - Revenues from flying agreements, which contributed 94.7% to total revenues, rose 6.3% from the prior-year figure of $970.36 million [2] - Operating expenses increased by 11% year over year to $890 million, driven by higher production costs and maintenance on the CRJ fleet [5] Operational Metrics - The airline carried 1.2% fewer passengers year over year, while departures increased by 2.9% [2] - The passenger load factor decreased by 2.3 points to 79.9% [2][8] Strategic Developments - SkyWest extended multi-year contracts with United Airlines for 40 E175 aircraft and with Delta Air Lines for 13 E175 aircraft, both effective January 2026 [3][8] - The company anticipates having nearly 300 E175 aircraft in its fleet by the end of 2028 and has secured delivery positions for 44 additional E175s from 2028 through 2032 [4] Capital Management - Cash and marketable securities at the end of the fourth quarter were $706.90 million, down from $753.35 million in the prior quarter [6] - Long-term debt decreased slightly to $1.84 billion from $1.86 billion [6] - Capital expenditures for the quarter totaled $214 million, including the purchase of five new E175 aircraft [6] - The company repurchased 268,000 shares for $27 million during the quarter, with $213 million remaining under its current share repurchase program [7]

同时，为保障务工人员顺利返乡返岗，山航积极开展"春风行动"，重点完善东西部之间的航线网络布 局，新增青岛—成都天府、昆明—南京，以及重庆至郑州、沈阳、泉州、温州等多条航线，高效服务务 工客流双向流动。 山航围绕"骏驰千里，幸福起航"春运服务主题，全面提升旅客出行全流程体验，优化服务流程、完善服 务细节，重点加强对老年人、儿童、残疾人、首乘旅客等特殊旅客的服务保障，严格落实军人依法优先 政策。妥善处理旅客诉求，切实维护旅客合法权益，并组织志愿者在机场航站楼等人流密集区域提供暖 心服务，多渠道发布春运安全提醒和服务信息，引导旅客安全乘机、文明出行。 《中国民航报》、 中国民航网 记者许晓泓 通讯员王亚、李振辉、国蕊、杨柳、王旭昊 报道：2026年春 运于2月2日启动，至3月13日结束，共计40天。为保障旅客平安、便捷、温馨出行，山东航空投入130架 客运飞机运力，新增、加密国内外航线50条，全力满足春运期间旅客返乡、旅游等多样化出行需求。 山航相关负责人介绍，其根据春运旅客特点及客源流向，科学调整运力布局，加强核心航线及潜力市场 开发。春运期间计划投入客运飞机130架，执行航班2.4万余班次，日均约590班，日均 ...

SkyWest (SKYW) came out with quarterly earnings of $2.21 per share, missing the Zacks Consensus Estimate of $2.25 per share. This compares to earnings of $2.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.78%. A quarter ago, it was expected that this regional airline would post earnings of $2.56 per share when it actually produced earnings of $2.81, delivering a surprise of +9.77%.Over the last four quarters, the company ...

Financial Data and Key Metrics Changes - SkyWest reported a net income of $91 million, or $2.21 per diluted share for Q4 2025, and a full-year net income of $428 million, or $10.35 per diluted share, reflecting a 31% increase in pre-tax income for the year [4][10] - Total Q4 revenue was $1 billion, down from $1.1 billion in Q3 2025 but up 8% from $944 million in Q4 2024 [10] - Pre-tax income for 2025 was $566 million, up 31% from 2024, with EBITDA reaching $982 million, an increase of over $100 million from the previous year [12] Business Line Data and Key Metrics Changes - Contract revenue for Q4 was $803 million, down from $844 million in Q3 2025 but up from $786 million in Q4 2024 [10][11] - Prorate and charter revenue was $167 million in Q4, flat with Q3 2025 but up from $126 million in Q4 2024 [11] - Leasing and other revenue increased to $54 million in Q4, up from $39 million in Q3 and $32 million in Q4 2024, driven by maintenance services provided to third parties [11] Market Data and Key Metrics Changes - SkyWest Airlines achieved over 250 days of 100% controllable completion in 2025, with over 2,500 daily scheduled departures [7] - The company experienced a modest impact from the government shutdown, with approximately 2,000 canceled flights and 3,000 block hours lost, resulting in a $7 million negative impact on Q4 results [25] Company Strategy and Development Direction - SkyWest announced extensions on key flying agreements, including 40 E175s with United and 13 E175s with Delta, solidifying partnerships and ensuring ongoing revenue stability [6][20] - The company plans to acquire and finance 29 additional E175s by the end of 2028, with a total of nearly 300 E175s expected in service by that time [16][21] - SkyWest aims to enhance service to underserved communities and capitalize on strong demand for its prorate product [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth possibilities in 2026, anticipating mid-single-digit percentage growth in block hours and earnings per share in the mid-$11 area [17][18] - The company is focused on improving return on invested capital and maintaining a strong balance sheet while pursuing various growth opportunities [16][70] - Management acknowledged challenges in the third-party MRO network but remains committed to enhancing fleet flexibility and operational execution [26][85] Other Important Information - SkyWest reduced its debt by $1 billion over the past three years, ending Q4 with a debt balance of $2.4 billion [13][16] - The company has $265 million of cumulative deferred revenue to be recognized in future periods [12] Q&A Session Summary Question: Impact of FAA cuts and government shutdown - Management acknowledged a strong cancellation rate relative to the industry due to the government shutdown but emphasized the importance of partnerships in mitigating impacts [29][30] Question: Update on encumbered assets - SkyWest has approximately $1.5 billion of unencumbered equipment, with expectations for this to increase as more E175s are paid off [32][33] Question: Aircraft utilization trends - Positive trends in aircraft utilization were noted, with expectations for continued improvement as schedules are optimized for 2026 [39] Question: E175 renewals and contract terms - The terms of the E175 renewals are consistent with previous agreements, reflecting evolving market conditions [42][47] Question: Maintenance expenses and aircraft readiness - Management indicated that maintenance expenses are consistent with previous levels, with 20 aircraft currently in heavy maintenance and expected to return to service soon [51][52] Question: Revenue model and charter business outlook - Demand for charter services remains strong, but aircraft availability limits the ability to capitalize on this demand in 2026 [77][78] Question: Performance compared to mainline partners - SkyWest consistently ranks as a high performer in completion percentages, emphasizing operational execution across multiple partnerships [81][82]

Financial Data and Key Metrics Changes - SkyWest reported a net income of $91 million, or $2.21 per diluted share for Q4 2025, and a full-year net income of $428 million, or $10.35 per diluted share, reflecting a 31% increase in pre-tax income for the year [4][10] - Total Q4 revenue was $1 billion, down from $1.1 billion in Q3 2025 but up 8% from $944 million in Q4 2024 [10] - Pre-tax income for 2025 was $566 million, up 31% from 2024, with EBITDA reaching $982 million, an increase of over $100 million from the previous year [12][16] Business Line Data and Key Metrics Changes - Contract revenue for Q4 was $803 million, down from $844 million in Q3 2025 but up from $786 million in Q4 2024 [10][11] - Prorate and charter revenue was $167 million in Q4, flat with Q3 2025 and up from $126 million in Q4 2024 [11] - Leasing and other revenue increased to $54 million in Q4, up from $39 million in Q3 and $32 million in Q4 2024, driven by maintenance services provided to third parties [11] Market Data and Key Metrics Changes - SkyWest Airlines achieved over 250 days of 100% controllable completion in 2025, with over 2,500 daily scheduled departures [7] - The fourth quarter faced challenges due to a government shutdown and mandatory flight reductions, resulting in approximately 2,000 canceled flights and a $7 million impact on results [24] Company Strategy and Development Direction - SkyWest announced extensions on key flying agreements, including 40 E175s with United and 13 E175s with Delta, solidifying partnerships and ensuring revenue stability [4][19] - The company plans to invest in nearly 300 E175s by the end of 2028, enhancing its position as the largest E175 operator globally [20][21] - SkyWest aims to increase service to underserved communities and capitalize on strong demand for its prorate product [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities in 2026, anticipating mid-single-digit percentage growth in block hours compared to 2025 [17][19] - The effective tax rate is expected to be approximately 24% for 2026, similar to 2025 [18] - Management highlighted the importance of maintaining a strong balance sheet and liquidity to pursue growth and capital opportunities [16][70] Other Important Information - The company reduced its debt by $1 billion over the past three years, ending Q4 with a debt balance of $2.4 billion [8][13] - Cash flow generation remains strong, with over $400 million in free cash flow for 2025, providing liquidity for long-term investments [12][15] Q&A Session Summary Question: Impact of FAA cuts and government shutdown - Management acknowledged the significant impact of the government shutdown and flight cancellations, noting that they worked collaboratively with partners to mitigate effects [28][30] Question: Update on encumbered assets - The company reported approximately $1.5 billion in unencumbered equipment, with expectations for this to increase as E175s are paid off [32][33] Question: Aircraft order book and placement discussions - Management confirmed ongoing discussions with major partners regarding the placement of new aircraft, with most deliveries in 2027 and 2028 already spoken for [36] Question: Utilization trends and targets - Positive trends in aircraft utilization were noted, with expectations for increased utilization in the upcoming spring and summer [39] Question: E175 renewals and contract terms - The terms of the E175 renewals were described as economically similar to previous contracts, with ongoing discussions reflecting strong market demand [42][47] Question: Maintenance expenses and aircraft readiness - Management indicated that maintenance expenses would remain consistent with 2025 levels, with 20 aircraft currently in heavy maintenance ready to return to service [51][52] Question: Revenue model for charter business - Demand for charter services is strong, but current aircraft availability limits the ability to capitalize on this demand in 2026 [76][77]

Financial Data and Key Metrics Changes - SkyWest reported a net income of $91 million, or $2.21 per diluted share for Q4 2025, and a full year net income of $428 million, or $10.35 per diluted share, reflecting a 31% increase in pre-tax income for 2025 compared to the previous year [4][11] - Total Q4 revenue was $1 billion, down from $1.1 billion in Q3 2025, but up 8% from $944 million in Q4 2024 [9] - Pre-tax income for 2025 was $566 million, up 31% from 2024, with EBITDA reaching $982 million, an increase of over $100 million from 2024 [11][12] Business Line Data and Key Metrics Changes - Contract revenue for Q4 was $803 million, down from $844 million in Q3 2025, but up from $786 million in Q4 2024 [9] - Prorate and charter revenue was $167 million in Q4, flat with Q3 2025, and up from $126 million in Q4 2024 [10] - Leasing and other revenue increased to $54 million in Q4, up from $39 million in Q3 and $32 million in Q4 2024, driven by maintenance services provided to third parties [10] Market Data and Key Metrics Changes - SkyWest Airlines achieved over 250 days of 100% controllable completion in 2025, with over 2,500 daily scheduled departures [6] - The fourth quarter faced challenges due to a government shutdown and mandatory flight reductions, leading to more canceled flights than major partners [6][22] Company Strategy and Development Direction - SkyWest announced extensions on key flying agreements, including 40 E175s with United and 13 E175s with Delta, solidifying partnerships and ensuring ongoing revenue stability [5][18] - The company plans to acquire and finance 29 additional E175s by the end of 2028, with a total of nearly 300 E175s expected in service by that time [14][20] - SkyWest aims to enhance service to underserved communities and capitalize on strong demand for its prorate product [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth possibilities in 2026, expecting mid-single-digit percentage growth in block hours compared to 2025 [16][18] - The effective tax rate for 2026 is anticipated to be approximately 24%, similar to 2025 [17] - Management acknowledged challenges in the third-party MRO network but remains committed to enhancing fleet flexibility and operational execution [23][24] Other Important Information - The company reduced its debt by $1 billion over the past three years, ending Q4 with $2.4 billion in debt, down from $2.7 billion at the end of 2024 [12][14] - Cash balance at the end of Q4 was $707 million, down from $753 million in Q3 2025 and $802 million in Q4 2024 [13] Q&A Session Summary Question: Impact of FAA cuts and government shutdown - Management acknowledged the significant impact of the government shutdown and flight cancellations, noting that they worked collaboratively with partners to mitigate effects [26][27] Question: Update on encumbered assets - Management reported approximately $1.5 billion in unencumbered assets, with expectations for this to increase as more E175s are paid off [29][31] Question: Aircraft order book and placement discussions - Management confirmed ongoing discussions with major partners regarding the placement of new aircraft, with most deliveries in 2027 and 2028 already spoken for [34] Question: Trends in aircraft utilization - Management noted positive trends in aircraft utilization, with expectations for increased utilization in the upcoming spring and summer [35][36] Question: E175 renewals and contract terms - Management indicated that the terms of the E175 renewals are economically similar to previous contracts, with some evolution due to changing market conditions [40][44] Question: Maintenance expenses and aircraft readiness - Management confirmed that maintenance expenses are consistent with previous levels, with 20 aircraft currently in heavy maintenance and expected to return to service soon [47][48] Question: Revenue model and growth opportunities - Management expressed optimism about the revenue model for parked aircraft and ongoing demand for services, with plans to capitalize on opportunities as they arise [75][76]

Core Viewpoint - SkyWest Inc. has experienced a recent decline in share price, raising concerns about its long-term performance despite some short-term gains [1] Group 1: Stock Performance - SkyWest's current share price is $95.46, reflecting a decrease of 5.98% in the current market session [1] - Over the past month, the stock has increased by 0.33%, but it has fallen by 16.04% over the past year [1] Group 2: Price-to-Earnings Ratio Analysis - The P/E ratio is a critical metric for evaluating SkyWest's market performance against its historical earnings and industry benchmarks [2] - SkyWest's P/E ratio is lower than the aggregate P/E of 21.62 for the Passenger Airlines industry, suggesting potential undervaluation [3] - A lower P/E may indicate that shareholders do not expect future growth, but it could also mean the stock is undervalued [4]

Financial Performance - SkyWest reported Q4 2025 net income of $91 million, or $2.21 per diluted share, down from $97 million, or $2.34 per diluted share in Q4 2024[2][4] - For the full year 2025, SkyWest's net income increased by 33% to $428 million, or $10.35 per diluted share, compared to $323 million, or $7.77 per diluted share in 2024[3][4] - Q4 2025 revenue was $1.0 billion, an increase of $80 million, or 8%, from $944 million in Q4 2024[5] - Operating expenses in Q4 2025 were $890 million, up $90 million, or 11%, from $800 million in Q4 2024, driven by higher production costs[6] Assets and Liabilities - As of December 31, 2025, SkyWest had $707 million in cash and marketable securities, down from $802 million at the end of 2024[7] - Total debt decreased to $2.4 billion at December 31, 2025, from $2.7 billion at the end of 2024, reflecting $492 million in principal debt payments during 2025[7] - SkyWest's total assets increased to $7.39 billion as of December 31, 2025, compared to $7.14 billion at the end of 2024[20] Fleet and Operations - SkyWest took delivery of five new E175 aircraft in Q4 2025 and secured multi-year contract extensions with United Airlines for 40 E175 aircraft and Delta Air Lines for 13 E175 aircraft[4] - As of December 31, 2025, SkyWest operated a total of 487 aircraft, an increase from 492 aircraft in December 2024[21] - By the end of 2028, SkyWest anticipates having nearly 300 E175 aircraft in its fleet, with additional purchase agreements for 44 E175s from 2028 through 2032[11] - Total block hours for the three months ended December 31, 2025, were 369,052, representing a 5.3% increase compared to 350,318 hours in the same period of 2024[22] - SkyWest's CRJ700/CRJ550 block hours increased by 34.5% year-over-year for the year ended December 31, 2025, totaling 329,347 hours[22] - SkyWest leased 40 CRJ700/CRJ550s and five CRJ900s to third parties as of December 31, 2025[21] Passenger Metrics - For the year ended December 31, 2025, passengers carried increased by 8.7% to 46,021,999 from 42,335,302 in 2024[22] - The average trip length increased by 2.9% to 456 miles in Q4 2025 compared to 443 miles in Q4 2024[22] - The passenger load factor for the year ended December 31, 2025, was 81.5%, a decrease of 1.3 percentage points from 82.8% in 2024[22] Revenue Recognition - Revenue recognized in excess of fixed cash payments received for the three months ended December 31, 2025, was $4,792,000, compared to $19,847,000 in the same period of 2024[26] - Cumulative deferred revenue as of December 31, 2025, was $264,609,000, down from $322,369,000 as of December 31, 2024[26] Operational Efficiency - The adjusted flight completion rate remained stable at 99.9% for both the three months and year ended December 31, 2025[22] - SkyWest repurchased 268,000 shares of common stock for $27 million during Q4 2025, with an average price per share of $100.43[8]

Company Overview - SkyWest (SKYW) stock closed at $98.55, down 2.11%, underperforming the S&P 500 which gained 0.16% [1] - Over the past month, SkyWest shares have decreased by 4.88%, while the Transportation sector increased by 4.67% and the S&P 500 rose by 1.89% [1] Upcoming Financial Results - SkyWest is set to announce its earnings on January 29, 2026, with an expected EPS of $2.25, reflecting a decrease of 3.85% from the same quarter last year [2] - Revenue is anticipated to be $986.87 million, indicating a 4.5% increase compared to the previous year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $10.09 per share, representing a growth of 29.86%, while revenue is expected to remain stable at $4.02 billion [3] - Recent analyst estimate revisions are crucial as they often indicate near-term business trends, with positive revisions suggesting a favorable business outlook [3] Stock Performance and Valuation - The Zacks Rank system, which evaluates estimate changes, currently rates SkyWest at 4 (Sell), with no changes in the consensus EPS projection over the past 30 days [5] - SkyWest's Forward P/E ratio is 9.09, which is lower than the industry average of 9.79, and its PEG ratio stands at 0.69, compared to the Transportation - Airline industry average of 0.62 [6] Industry Context - The Transportation - Airline industry has a Zacks Industry Rank of 162, placing it in the bottom 34% of over 250 industries, indicating weaker performance compared to higher-ranked industries [7]

Core Viewpoint - SkyWest, Inc. (SKYW) is currently undervalued based on its trailing 12-month price-to-book (P/B) ratio, trading at 1.50X compared to the industry average of 3.16X, indicating an attractive valuation [1] Financial Performance - SkyWest's revenues from flying agreements, which account for 96.1% of total revenue, increased by 16.5% year-over-year in the first nine months of 2025 [6] - The airline carried 12.3% more passengers and saw a 16.2% increase in departures year-over-year during the same period [6] Fleet Modernization - SkyWest is modernizing its fleet through agreements with major airlines such as United Airlines, Delta Air Lines, and Alaska Airlines [7] - The company has a multi-year contract extension with United Airlines for up to 40 CRJ200 aircraft and is set to receive additional E175 aircraft deliveries from various airlines between 2026 and 2028 [8][9] Financial Health - As of the end of the third quarter of 2025, SkyWest had cash and marketable securities totaling $753.35 million, significantly higher than its current debt of $519.51 million, indicating strong financial flexibility [10] - Long-term debt decreased from $2.19 billion to $1.86 billion, improving the debt-to-capitalization ratio from 53.8% to 49% [10] Shareholder Initiatives - SkyWest has increased its share repurchase plan by $250 million, repurchasing 244,000 shares for $26.6 million in the third quarter of 2025 [11] - The company had $240 million available under its current share repurchase program, which is expected to enhance earnings per share and signal management's confidence in the stock's value [11] Earnings Estimates - The Zacks Consensus Estimate for full-year earnings for 2025 and 2026 has been revised upward, reflecting positive sentiment among brokers [14] - The current earnings estimate for the first quarter of 2026 stands at $2.45, with the full-year 2025 estimate at $10.09 and 2026 at $11.07 [15] Investment Recommendation - Given the attractive valuation, increasing flying contracts, fleet modernization efforts, and shareholder-friendly initiatives, it is suggested that investors consider adding SKYW stock to their portfolios for potential healthy returns [16]