Regional carrier SkyWest has reported robust financial performance for its 2025 fiscal year, setting the stage for continued strategic growth. The company’s expansion is being fueled by significant debt reduction, a modernizing fleet, and new long-term agreements with major airline partners.
Financial Performance and Shareholder Returns
For the full year 2025, SkyWest generated revenue of $4.1 billion, a notable increase from the $3.5 billion reported the previous year. Net income reached $428 million, equating to earnings of $10.35 per share. While fourth-quarter earnings per share of $2.21 came in slightly below market forecasts, quarterly revenue of $1.02 billion exceeded analyst expectations.
A central pillar of management’s strategy has been strengthening the balance sheet. The company made debt payments totaling $492 million in 2025, successfully reducing its total debt load to $2.4 billion from $2.7 billion a year earlier.
Concurrently, SkyWest returned capital to shareholders through an accelerated buyback program. It invested $85 million throughout the year to repurchase approximately 850,000 of its own shares—a 50% increase in volume compared to 2024. An additional $213 million remains authorized under the current repurchase program for future use.
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Fleet Modernization and Key Partnerships
Operational capacity, measured as flight hour production, saw a substantial 15% year-over-year increase from 2024. To meet this rising demand, SkyWest is aggressively upgrading its fleet. The delivery of five new Embraer 175 (E175) aircraft for United Airlines was completed in the fourth quarter.
Critical to the long-term outlook are capacity agreement extensions signed in January 2026. The company secured contracts with United Airlines for 40 E175 aircraft and with Delta Air Lines for an additional 13 jets of the same model. This expansion is projected to grow the total E175 fleet to 278 units by the end of 2026. Despite industry-wide pilot shortages, recent operational data indicates the current expansion is proceeding smoothly.
Infrastructure and Forward Look
Supporting this growth, SkyWest is expanding its operational infrastructure. A new maintenance facility in Salina, Kansas, is scheduled to commence operations in the spring of 2026.
Investors can expect the next financial update on April 23, 2026, when the company is set to release its results for the first quarter of the new fiscal year.
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