SKYWEST INC 10-Q

Item 1. Financial Statements ​ SKYWEST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands) ​ ASSETS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2025 2024 CURRENT ASSETS: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 44,528 ​ $ 227,362 Marketable securities ​ 708,831 ​ 574,266 Receivables, net ​ 146,516 ​ 122,778 Inventories, net ​ 154,962 ​ 139,002 Other current assets ​ 45,079 ​ 53,659 Total current assets ​ 1,099,916 ​ 1,117,067 ​ ​ ​ ​ ​ ​ ​ PROPERTY AND EQUIPMENT: ​ ​ ​ ​ ​ ​ Aircraft and rotable spares ​ 9,066,940 ​ 8,774,570 Deposits on aircraft ​ 85,000 ​ 65,612 Buildings, ground equipment and other ​ 315,363 ​ 292,682 Total property and equipment, gross ​ 9,467,303 ​ 9,132,864 Less-accumulated depreciation and amortization ​ ( 3,804,913 ) ​ ( 3,545,456 ) Total property and equipment, net ​ 5,662,390 ​ 5,587,408 ​ ​ ​ ​ ​ ​ ​ OTHER ASSETS: ​ ​ ​ ​ ​ ​ Operating lease right-of-use assets ​ ​ 84,751 ​ ​ 87,731 Long-term receivables and other assets ​ 367,139 ​ 347,661 Total other assets ​ 451,890 ​ 435,392 Total assets ​ $ 7,214,196 ​ $ 7,139,867 ​ See accompanying notes to condensed consolidated financial statements. ​ 3 Table of Contents SKYWEST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (continued) (Dollars in thousands) ​ LIABILITIES AND STOCKHOLDERS’ EQUITY ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2025 2024 CURRENT LIABILITIES: ​ ​ ​ ​ ​ ​ Current maturities of long-term debt ​ $ 519,511 ​ $ 535,589 Accounts payable and accrued liabilities ​ 580,080 ​ 527,351 Accrued salaries, wages and benefits ​ 229,762 ​ 226,770 Current maturities of operating lease liabilities ​ 19,919 ​ 20,467 Taxes other than income taxes ​ 23,393 ​ 22,581 Other current liabilities ​ 180,594 ​ 96,833 Total current liabilities ​ 1,553,259 ​ 1,429,591 ​ ​ ​ ​ ​ ​ ​ LONG-TERM DEBT, net of current maturities ​ 1,865,283 ​ 2,136,786 ​ ​ ​ ​ ​ ​ ​ DEFERRED INCOME TAXES PAYABLE ​ 863,756 ​ 787,968 ​ ​ ​ ​ ​ ​ ​ NONCURRENT OPERATING LEASE LIABILITIES ​ 64,832 ​ 67,264 ​ ​ ​ ​ ​ ​ ​ OTHER LONG-TERM LIABILITIES ​ 188,799 ​ 309,477 ​ ​ ​ ​ ​ ​ ​ COMMITMENTS AND CONTINGENCIES (Note 7) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STOCKHOLDERS’ EQUITY: ​ ​ ​ ​ ​ ​ Preferred stock, 5,000,000 shares authorized; none issued ​ — ​ — Common stock, no par value, 120,000,000 shares authorized; 84,270,723 and 83,638,680 shares issued as of September 30, 2025, and December 31, 2024, respectively ​ 794,215 ​ 777,090 Retained earnings ​ 2,931,351 ​ 2,594,173 Treasury stock, at cost, 44,130,979 and 43,310,324 shares as of September 30, 2025, and December 31, 2024, respectively ​ ( 1,047,640 ) ​ ( 962,650 ) Accumulated other comprehensive income ​ ​ 341 ​ ​ 168 Total stockholders’ equity ​ 2,678,267 ​ 2,408,781 Total liabilities and stockholders’ equity ​ $ 7,214,196 ​ $ 7,139,867 ​ See accompanying notes to condensed consolidated financial statements. ​ 4 Table of Contents SKYWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (In thousands, except per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Nine months ended ​ ​ September 30, ​ September 30, ​ 2025 2024 2025 2024 OPERATING REVENUES: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Flying agreements ​ $ 1,011,284 ​ $ 883,494 ​ $ 2,914,789 ​ $ 2,499,953 Lease, airport services and other ​ 38,745 ​ 29,292 ​ 118,922 ​ 83,565 Total operating revenues ​ 1,050,029 ​ 912,786 ​ 3,033,711 ​ 2,583,518 OPERATING EXPENSES: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Salaries, wages and benefits ​ 391,634 ​ 377,435 ​ 1,159,188 ​ 1,083,439 Aircraft maintenance, materials and repairs ​ 247,978 ​ 181,652 ​ 695,963 ​ 510,334 Depreciation and amortization ​ 92,474 ​ 96,662 ​ 272,070 ​ 289,346 Airport-related expenses ​ 31,876 ​ 22,642 ​ 86,815 ​ 61,065 Aircraft fuel ​ 34,216 ​ 22,724 ​ 86,163 ​ 65,216 Other operating expenses ​ 77,708 ​ 80,236 ​ 249,864 ​ 223,537 Total operating expenses ​ 875,886 ​ 781,351 ​ 2,550,063 ​ 2,232,937 OPERATING INCOME ​ 174,143 ​ 131,435 ​ 483,648 ​ 350,581 OTHER INCOME (EXPENSE): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest income ​ 10,565 ​ 12,460 ​ 31,701 ​ 36,126 Interest expense ​ ( 25,611 ) ​ ( 27,808 ) ​ ( 79,295 ) ​ ( 86,603 ) Other income (expense), net ​ ( 1,928 ) ​ 109 ​ 4,949 ​ ( 1,567 ) Total other expense, net ​ ( 16,974 ) ​ ( 15,239 ) ​ ( 42,645 ) ​ ( 52,044 ) INCOME BEFORE INCOME TAXES ​ 157,169 ​ 116,196 ​ 441,003 ​ 298,537 PROVISION FOR INCOME TAXES ​ 40,811 ​ 26,487 ​ 103,825 ​ 72,952 NET INCOME ​ $ 116,358 ​ $ 89,709 ​ $ 337,178 ​ $ 225,585 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ BASIC EARNINGS PER SHARE ​ $ 2.89 ​ $ 2.23 ​ $ 8.34 ​ $ 5.61 DILUTED EARNINGS PER SHARE ​ $ 2.81 ​ $ 2.16 ​ $ 8.14 ​ $ 5.44 Weighted average common shares: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 40,323 ​ ​ 40,253 ​ ​ 40,410 ​ ​ 40,244 Diluted ​ 41,392 ​ ​ 41,561 ​ ​ 41,447 ​ ​ 41,495 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ COMPREHENSIVE INCOME: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 116,358 ​ $ 89,709 ​ $ 337,178 ​ $ 225,585 Net unrealized appreciation on marketable securities, net of taxes ​ 324 ​ 883 ​ 173 ​ 50 TOTAL COMPREHENSIVE INCOME ​ $ 116,682 ​ $ 90,592 ​ $ 337,351 ​ $ 225,635 ​ See accompanying notes to condensed consolidated financial statements. ​ 5 Table of Contents SKYWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other ​ ​ ​ ​ ​ Common Stock ​ Retained ​ Treasury Stock ​ Comprehensive ​ ​ ​ ​ ​ Shares ​ Amount ​ Earnings ​ Shares ​ Amount ​ Income ​ Total Balance at December 31, 2024 83,639 ​ $ 777,090 ​ $ 2,594,173 ( 43,310 ) ​ $ ( 962,650 ) ​ $ 168 ​ $ 2,408,781 Net income — ​ — ​ 100,551 — ​ — ​ — ​ ​ 100,551 Vested employee stock awards 598 ​ ​ — ​ — — ​ — ​ — ​ — Employee income tax paid on vested equity awards ​ — ​ ​ — ​ ​ — ​ ( 240 ) ​ ​ ( 27,242 ) ​ ​ — ​ ​ ( 27,242 ) Sale of common stock under employee stock purchase plan 14 ​ ​ 1,293 ​ — — ​ — ​ — ​ 1,293 Stock based compensation expense — ​ 4,665 ​ — — ​ — ​ — ​ ​ 4,665 Treasury stock purchases ​ — ​ — ​ — ( 141 ) ​ ( 13,682 ) ​ — ​ ​ ( 13,682 ) Net unrealized depreciation on marketable securities, net of tax of $ 23 ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 75 ) ​ ​ ( 75 ) Balance at March 31, 2025 ​ 84,251 ​ $ 783,048 ​ $ 2,694,724 ​ ( 43,691 ) ​ $ ( 1,003,574 ) ​ $ 93 ​ $ 2,474,291 Net income — ​ — ​ 120,269 — ​ — ​ — ​ ​ 120,269 Stock grants to Company directors ​ 6 ​ — ​ — — ​ — ​ — ​ ​ — Stock based compensation expense ​ — ​ 5,232 ​ — — ​ — ​ — ​ ​ 5,232 Treasury stock purchases ​ — ​ — ​ — ( 195 ) ​ ( 17,296 ) ​ — ​ ​ ( 17,296 ) Net unrealized depreciation on marketable securities, net of tax of $ 26 ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 76 ) ​ ​ ( 76 ) Balance at June 30, 2025 84,257 ​ $ 788,280 ​ $ 2,814,993 ( 43,886 ) ​ $ ( 1,020,870 ) ​ $ 17 ​ $ 2,582,420 Net income — ​ — ​ 116,358 — ​ — ​ — ​ ​ 116,358 Sale of common stock under employee stock purchase plan 14 ​ ​ 1,358 ​ — — ​ — ​ — ​ 1,358 Stock based compensation expense ​ — ​ 4,577 ​ — — ​ — ​ — ​ ​ 4,577 Treasury stock purchases ​ — ​ — ​ — ( 245 ) ​ ( 26,770 ) ​ — ​ ​ ( 26,770 ) Net unrealized appreciation on marketable securities, net of tax of $ 105 ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ 324 ​ ​ 324 Balance at September 30, 2025 84,271 ​ $ 794,215 ​ $ 2,931,351 ( 44,131 ) ​ $ ( 1,047,640 ) ​ $ 341 ​ $ 2,678,267 ​ See accompanying notes to condensed consolidated financial statements. ​ 6 Table of Contents SKYWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other ​ ​ ​ ​ ​ Common Stock ​ Retained ​ Treasury Stock ​ Comprehensive ​ ​ ​ ​ ​ Shares ​ Amount ​ Earnings ​ Shares ​ Amount ​ Income (Loss) ​ Total Balance at December 31, 2023 82,840 ​ $ 754,362 ​ $ 2,271,211 ( 42,615 ) ​ $ ( 912,396 ) ​ $ 325 ​ $ 2,113,502 Net income — ​ — ​ 60,298 — ​ — ​ — ​ ​ 60,298 Vested employee stock awards 269 ​ ​ — ​ — — ​ — ​ — ​ — Employee income tax paid on vested equity awards ​ — ​ ​ — ​ ​ — ​ ( 117 ) ​ ​ ( 6,930 ) ​ ​ — ​ ​ ( 6,930 ) Sale of common stock under employee stock purchase plan 29 ​ ​ 1,446 ​ — — ​ — ​ — ​ 1,446 Stock based compensation expense — ​ 5,510 ​ — — ​ — ​ — ​ ​ 5,510 Treasury stock purchases ​ — ​ — ​ — ( 136 ) ​ ( 8,750 ) ​ — ​ ​ ( 8,750 ) Net unrealized depreciation on marketable securities, net of tax of $ 56 ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 173 ) ​ ​ ( 173 ) Balance at March 31, 2024 ​ 83,138 ​ $ 761,318 ​ $ 2,331,509 ​ ( 42,868 ) ​ $ ( 928,076 ) ​ $ 152 ​ $ 2,164,903 Net income — ​ — ​ 75,578 — ​ — ​ — ​ ​ 75,578 Stock grants to Company directors ​ 1 ​ ​ — ​ ​ — — ​ — ​ — ​ ​ — Stock based compensation expense ​ — ​ 4,812 ​ — — ​ — ​ — ​ ​ 4,812 Treasury stock purchases ​ — ​ — ​ — ( 177 ) ​ ( 13,453 ) ​ — ​ ​ ( 13,453 ) Net unrealized depreciation on marketable securities, net of tax of $ 212 ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 660 ) ​ ​ ( 660 ) Balance at June 30, 2024 83,139 ​ $ 766,130 ​ $ 2,407,087 ( 43,045 ) ​ $ ( 941,529 ) ​ $ ( 508 ) ​ $ 2,231,180 Net income — ​ — ​ 89,709 — ​ — ​ — ​ ​ 89,709 Sale of common stock under employee stock purchase plan 18 ​ ​ 1,418 ​ — — ​ — ​ — ​ 1,418 Issuance of common stock upon warrant exercise, net ​ 444 ​ ​ — ​ — — ​ — ​ — ​ — Stock based compensation expense ​ — ​ 4,772 ​ — — ​ — ​ — ​ ​ 4,772 Treasury stock purchases ​ — ​ — ​ — ( 218 ) ​ ( 16,465 ) ​ — ​ ​ ( 16,465 ) Net unrealized appreciation on marketable securities, net of tax of $ 283 ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ 883 ​ ​ 883 Balance at September 30, 2024 83,601 ​ $ 772,320 ​ $ 2,496,796 ( 43,263 ) ​ $ ( 957,994 ) ​ $ 375 ​ $ 2,311,497 ​ See accompanying notes to condensed consolidated financial statements. ​ 7 Table of Contents ​ SKYWEST, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In Thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended ​ ​ September 30, ​ 2025 2024 NET CASH PROVIDED BY OPERATING ACTIVITIES ​ $ 708,860 ​ $ 506,565 ​ ​ ​ ​ ​ ​ ​ CASH FLOWS FROM INVESTING ACTIVITIES: ​ ​ ​ ​ ​ ​ Purchases of marketable securities ​ ( 980,277 ) ​ ​ ( 1,212,208 ) Sales of marketable securities ​ 845,885 ​ ​ 1,240,771 Acquisition of property and equipment: ​ ​ ​ ​ ​ ​ Aircraft and rotable spare parts ​ ( 339,265 ) ​ ​ ( 126,055 ) Buildings and ground equipment ​ ( 24,834 ) ​ ​ ( 21,685 ) Proceeds from the sale of property and equipment ​ 5,502 ​ ​ 4,117 Deposits on aircraft ​ ​ ( 31,078 ) ​ ​ — Decrease (increase) in other assets, net ​ 4,860 ​ ​ ( 3,941 ) NET CASH USED IN INVESTING ACTIVITIES ​ ( 519,207 ) ​ ( 119,001 ) ​ ​ ​ ​ ​ ​ ​ CASH FLOWS FROM FINANCING ACTIVITIES: ​ ​ ​ ​ ​ ​ Proceeds from issuance of long-term debt ​ ​ 47,099 ​ ​ 23,059 Principal payments on long-term debt ​ ( 337,055 ) ​ ​ ( 338,221 ) Payment of debt issuance cost ​ ​ ( 192 ) ​ ​ ( 336 ) Net proceeds from issuance of common stock ​ 2,651 ​ ​ 2,864 Employee income tax paid on vested equity awards ​ ​ ( 27,242 ) ​ ​ ( 6,930 ) Purchase of treasury stock and excise tax ​ ( 57,748 ) ​ ​ ( 38,668 ) NET CASH USED IN FINANCING ACTIVITIES ​ ( 372,487 ) ​ ( 358,232 ) ​ ​ ​ ​ ​ ​ ​ Increase (decrease) in cash and cash equivalents ​ ( 182,834 ) ​ ​ 29,332 Cash and cash equivalents at beginning of period ​ 227,362 ​ ​ 148,277 CASH AND CASH EQUIVALENTS AT END OF PERIOD ​ $ 44,528 ​ $ 177,609 ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: ​ ​ ​ ​ ​ ​ Non-cash investing and financing activities: ​ ​ ​ ​ ​ ​ Change in accrued capital expenditures for the period ​ $ ( 50,315 ) ​ $ 15,979 Cash paid during the period for: ​ ​ ​ ​ ​ ​ Interest, net of capitalized amounts ​ $ 81,980 ​ $ 87,072 Income taxes, net of refunds ​ $ 13,223 ​ $ 14,930 ​ See accompanying notes to condensed consolidated financial statements. ​ 8 Table of Contents SKYWEST, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) ​ ( 1) Condensed Consolidated Financial Statements Basis of Presentation The condensed consolidated financial statements of SkyWest, Inc. (“SkyWest” or the “Company”), its operating subsidiary SkyWest Airlines, Inc. (“SkyWest Airlines”), its leasing subsidiary SkyWest Leasing, Inc. (“SkyWest Leasing”) and its charter service subsidiary SkyWest Charter, LLC (“SWC”) included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal recurring nature, unless otherwise disclosed. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. The results of operations for the three and nine months ended September 30, 2025, are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions. Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2023-09, “Income Taxes (ASC Topic 740) – Improvements to Income Tax Disclosures”, which enhances the transparency, effectiveness and comparability of income tax disclosures by requiring consistent categories and greater disaggregation of information related to income tax rate reconciliations and the jurisdictions in which income taxes are paid. The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures. In March 2024, the FASB issued ASU No. 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (ASC Subtopic 220-40) – Disaggregation of Income Statement Expenses”, which enhances the transparency and comparability of financial statements by requiring companies to disclose more granular information about expense components. The guidance is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures. (2) Operating Revenues The Company recognizes revenue under its flying agreements and under its lease, airport services and other service agreements when the service is provided under the applicable agreement. Under the Company’s fixed-fee agreements (referred to as “capacity purchase” agreements) with United Airlines, Inc. (“United”), Delta Air Lines, Inc. (“Delta”), American Airlines, Inc. (“American”) and Alaska Airlines, Inc. (“Alaska”) (each, a “major airline partner”), the major airline partner generally pays the Company a fixed-fee for each departure, flight hour (measured from takeoff to landing, excluding taxi time) or block hour (measured from takeoff to landing, including taxi time) incurred, and an amount per aircraft in service each month, with additional incentives based on flight completion, on-time performance or 9 Table of Contents other performance metrics. The major airline partner also directly pays for or reimburses the Company for certain direct expenses incurred under the capacity purchase agreement, such as fuel, airport landing fees and airport rents. Under the capacity purchase agreements, the Company’s performance obligation is met when each flight is completed, measured in completed block hours, and is reflected in flying agreements revenue. The transaction price for the capacity purchase agreements is determined from the fixed-fee consideration, incentive consideration and directly reimbursed expenses earned as flights are completed over the agreement term. For the nine months ended September 30, 2025 and 2024, capacity purchase agreements represented approximately 84.8 % and 86.8 % of the Company’s flying agreements revenue, respectively. Under the Company’s “prorate” agreements, the major airline partner and the Company negotiate a passenger fare proration formula, pursuant to which the Company receives a percentage of the ticket revenues for those passengers traveling for one portion of their trip on a Company airline and the other portion of their trip on the major airline partner. Under the Company’s prorate agreements, the performance obligation is met and revenue is recognized when each flight is completed based upon the portion of the prorate passenger fare the Company determines that it will receive for each completed flight. The transaction price for the prorate agreements is determined from the proration formula derived from each passenger ticket amount on each completed flight over the agreement term. Certain routes under the Company’s prorate agreements are subsidized by the U.S. Department of Transportation under the Essential Air Service (“EAS”) program, a program created to ensure small communities in the United States maintain a minimum level of scheduled air service. The EAS contracts are generally between two and three years in duration and the Company recognizes EAS revenue on a per-completed-flight basis pursuant to the terms of each contract. In the event the Company receives upfront consideration for an EAS contract, the Company recognizes the revenue on a per-completed flight basis over the EAS contract term. Under the Company’s charter operations, SWC, the Company negotiates a fare for the charter flight with the customer. The performance obligation is met and revenue is recognized upon completion of the flight. For the nine months ended September 30, 2025 and 2024, prorate agreements and SWC revenue represented approximately 15.2 % and 13.2 % of the Company’s flying agreements revenue, respectively. The following table represents the Company’s flying agreements revenue by type for the three and nine months ended September 30, 2025 and 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended September 30, ​ For the nine months ended September 30, ​ 2025 2024 ​ 2025 2024 Capacity purchase agreements flight operations revenue (non-lease component) ​ $ 672,559 ​ $ 624,342 ​ $ 1,994,660 ​ $ 1,763,629 Capacity purchase agreements fixed aircraft lease revenue ​ ​ 91,036 ​ ​ 75,084 ​ ​ 306,244 ​ ​ 225,374 Capacity purchase agreements variable aircraft lease revenue ​ 80,600 ​ 61,308 ​ 170,537 ​ 180,035 Prorate agreements and SWC revenue ​ 167,089 ​ 122,760 ​ 443,348 ​ 330,915 Flying agreements revenue ​ $ 1,011,284 ​ $ 883,494 ​ $ 2,914,789 ​ $ 2,499,953 ​ The Company allocates the total consideration received under its capacity purchase agreements between lease and non-lease components based on stand-alone selling prices. A portion of the Company’s compensation under its capacity purchase agreements relates to operating the aircraft, identified as the non-lease component of the capacity purchase agreement. The Company recognizes revenue attributed to the non-lease component received as fixed-fees for each departure, flight hour or block hour on an as-completed basis for each reporting period. The Company recognizes revenue attributed to the non-lease component received as fixed monthly payments per aircraft proportionate to the number of block hours completed during each reporting period, relative to the estimated number of block hours the Company anticipates completing over the remaining contract term. Accordingly, the Company’s revenue recognition will likely vary from the timing of cash receipts under the Company’s capacity purchase agreements. The Company refers to cash received under its capacity purchase agreements prior to recognizing revenue as “deferred revenue,” and the Company refers to revenue recognized prior to billing its major airline partners under its capacity purchase agreements as “unbilled revenue” for each reporting period. During the nine months ended September 30, 2025, the Company recognized $ 28.8 million of previously deferred revenue associated with the non-lease fixed monthly payments under certain agreements and increased unbilled revenue by $ 9.5 million under certain other agreements, 10 Table of Contents compared to recognizing $ 24.5 million of previously deferred revenue and decreasing unbilled revenue by $ 0.9 million during the nine months ended September 30, 2024. A portion of the Company’s compensation under its capacity purchase agreements is designed to reimburse the Company for certain aircraft ownership costs. The consideration for aircraft ownership costs varies by agreement but is intended to cover either the Company’s aircraft principal and interest debt service costs, its aircraft depreciation and interest expense or its aircraft lease expense costs while the aircraft is under contract. The consideration received for the use of the aircraft under the Company’s capacity purchase agreements is accounted for as lease revenue, inasmuch as the agreements identify the “right of use” of a specific type and number of aircraft over a stated period of time. The lease revenue associated with the Company’s capacity purchase agreements is accounted for as an operating lease and is reflected as flying agreements revenue on the Company’s consolidated statements of comprehensive income. The Company recognizes fixed monthly lease payments as lease revenue using the straight-line basis over the capacity purchase agreement term and variable lease payments in the period when the block hours are completed. The Company recognized $ 10.5 million of previously deferred lease revenue and increased unbilled lease revenue by $ 4.2 million during the nine months ended September 30, 2025, whereas the Company recognized $ 1.5 million of deferred lease revenue during the nine months ended September 30, 2024, under the straight-line basis. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statement of comprehensive income because the use of the aircraft is not a separate activity of the total service provided under the capacity purchase agreements. The Company’s total deferred revenue balance as of September 30, 2025 was $ 297.1 million, including $ 133.8 million in other current liabilities and $ 163.3 million in other long-term liabilities. The Company’s unbilled revenue balance was $ 27.7 million as of September 30, 2025, including $ 1.1 million in other current assets and $ 26.6 million in other long-term assets. The Company’s total deferred revenue balance was $ 337.5 million as of December 31, 2024, including $ 54.8 million in other current liabilities and $ 282.7 million in other long-term liabilities. The Company’s unbilled revenue balance was $ 15.1 million as of December 31, 2024, including $ 1.1 million in other current assets and $ 14.0 million in other long-term assets. The Company’s capacity purchase and prorate agreements include weekly provisional cash payments from the respective major airline partner based on a projected level of flying each month. The Company and each major airline partner subsequently reconcile these payments to the actual completed flight activity on a monthly or quarterly basis. In several of the Company’s agreements, the Company is eligible to receive incentive compensation upon the achievement of certain performance criteria. The incentives are defined in the agreements and are measured and determined on a monthly or annual basis. At the end of each period during the term of an agreement, the Company calculates the incentives achieved during that period and recognizes revenue attributable to that agreement accordingly, subject to the variable constraint guidance under ASC Topic 606. As of September 30, 2025, the Company had 498 aircraft in scheduled service or under contract pursuant to code-share agreements. The Company’s fleet includes Embraer E175 regional jet aircraft (“E175”), Canadair CRJ900 regional jet aircraft (“CRJ900”), Canadair CRJ700 regional jet aircraft (“CRJ700”), including a 50 -seat configuration of the CRJ700 aircraft, commonly referred to as a “CRJ550,” and Canadair CRJ200 regional jet aircraft (“CRJ200”). The following table summarizes the significant provisions of each code-share agreement the Company has with each major airline partner through SkyWest Airlines: ​ ​ ​ ​ ​ ​ ​ ​ United Express Agreements ​ ​ ​ ​ ​ ​ Agreement ​ Aircraft type ​ Number of Aircraft ​ Term / Termination Dates United Express Agreements ​ • E175 ​ 116 ​ Individual aircraft have scheduled (capacity purchase agreements) ​ • CRJ700/CRJ550 ​ 34 ​ removal dates under the agreement ​ ​ • CRJ200 ​ 42 ​ between 2025 and 2033 ​ ​ ​ ​ ​ ​ ​ United Express Prorate Agreement ​ • CRJ200 ​ 31 * ​ Terminable with 120-day notice Total under United Express Agreements ​ ​ ​ 223 ​ ​ ​ ​ ​ ​ ​ ​ ​ 11 Table of Contents Delta Connection Agreements ​ ​ ​ ​ ​ ​ Agreement ​ Aircraft type ​ Number of Aircraft ​ Term / Termination Dates Delta Connection Agreement ​ • E175 ​ 87 ​ Individual aircraft have scheduled (capacity purchase agreement) ​ • CRJ900 ​ 34 ​ removal dates under the agreement ​ ​ • CRJ700 ​ 5 ​ between 2025 and 2034 ​ ​ ​ ​ ​ ​ ​ Delta Connection Prorate Agreement ​ • CRJ550 ​ 15 * ​ Terminable with 30-day notice Total under Delta Connection Agreements ​ ​ ​ 141 ​ ​ ​ ​ ​ ​ ​ ​ ​ American Agreements ​ ​ ​ ​ ​ ​ Agreement ​ Aircraft type ​ Number of Aircraft ​ Term / Termination Dates American Agreement ​ • E175 ​ 20 ​ Individual aircraft have scheduled (capacity purchase agreement) ​ • CRJ700 ​ 68 ​ removal dates under the agreement ​ ​ ​ ​ ​ ​ between 2027 and 2032 ​ ​ ​ ​ ​ ​ ​ American Prorate Agreement ​ • CRJ900 ​ 4 * ​ Terminable with 180-day notice Total under American Agreements ​ ​ ​ 92 ​ ​ ​ ​ ​ ​ ​ ​ ​ Alaska Agreement ​ ​ ​ ​ ​ ​ Agreement ​ Aircraft type ​ Number of Aircraft ​ Term / Termination Dates Alaska Agreement ​ • E175 ​ 42 ​ Individual aircraft have scheduled (capacity purchase agreement) ​ ​ ​ ​ ​ removal dates under the agreement ​ ​ ​ ​ ​ ​ between 2030 and 2034 * The Company’s prorate agreements are based on specific routes, not a specific aircraft count. The number of aircraft listed above for each prorate agreement approximates the number of aircraft the Company uses to serve the prorate routes. In addition to the contractual agreements described above, as of September 30, 2025, SkyWest Airlines reached agreements with certain major airline partners to place additional aircraft under capacity purchase agreements as summarized below. The Company is coordinating with its major airline partners regarding the timing of upcoming fleet deliveries and the delivery timing referenced below is subject to change. ● Capacity purchase agreement with United for 13 new E175 aircraft. Three new E175 aircraft are currently scheduled for delivery in the fourth quarter of 2025 and ten new E175 aircraft are scheduled for delivery in 2026. The Company anticipates financing the aircraft through debt. ● Capacity purchase agreement with Alaska for one new E175 aircraft. The delivery date for the new E175 aircraft is currently scheduled for 2026. The Company anticipates financing the aircraft through debt. ● Capacity purchase agreement with Delta for 16 new E175 aircraft. 10 new E175 aircraft are currently scheduled for delivery in 2027 and six new E175 aircraft are scheduled for delivery in 2028. The Company anticipates financing the aircraft through debt. ● Capacity purchase agreements with United for 29 CRJ550 aircraft that are anticipated to be placed into service between the fourth quarter of 2025 and the end of 2026. Pursuant to these agreements, the Company is in the process of converting its CRJ700s to CRJ550s. When an aircraft is scheduled for expiration from a capacity purchase agreement, the Company may, as practical under the circumstances, negotiate an extension with the respective major airline partner, negotiate the placement of the aircraft with another major airline partner, return the aircraft to the major airline partner when the aircraft is provided by the major airline partner, place owned aircraft for sale or pursue other uses for the aircraft. Other 12 Table of Contents uses for the aircraft may include placing the aircraft in a prorate agreement, leasing the aircraft to a third party or disassembling aircraft components such as the engines and parts to be used as spare inventory. Lease, airport services and other revenues primarily consist of revenue generated from aircraft and spare engines leased to third parties, maintenance services provided to third parties and airport customer service agreements, such as gate and ramp agent services at various airports where the Company has been contracted by third parties to provide such services. The following table represents the Company’s lease, airport services and other revenues for the three and nine months ended September 30, 2025 and 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended September 30, ​ For the nine months ended September 30, ​ 2025 2024 ​ 2025 2024 Operating lease fixed revenue ​ $ 16,267 ​ $ 14,880 ​ $ 49,029 ​ $ 40,550 Operating lease variable revenue ​ ​ 9,139 ​ ​ 7,254 ​ ​ 24,674 ​ ​ 20,368 Airport customer service and other revenue ​ ​ 13,339 ​ ​ 7,158 ​ ​ 45,219 ​ ​ 22,647 Lease, airport services and other ​ $ 38,745 ​ $ 29,292 ​ $ 118,922 ​ $ 83,565 ​ The following table summarizes future minimum rental income under operating leases primarily related to leased aircraft and engines that had remaining non-cancelable lease terms as of September 30, 2025 (in thousands): ​ ​ ​ ​ October 2025 through December 2025 $ 12,839 2026 ​ 44,879 2027 ​ 41,565 2028 ​ 40,687 2029 ​ 39,164 Thereafter ​ 24,180 Total future minimum rental income under operating leases ​ $ 203,314 ​ Of the Company’s $ 5.7 billion of property and equipment, net of accumulated depreciation, as of September 30, 2025, $ 241.7 million of regional jet aircraft and spare engines were leased to third parties under operating leases. The Company’s mitigation strategy for the residual asset risks of these assets includes leasing aircraft and engine types that can be operated by the Company in the event of a default. Additionally, the operating leases typically have specified lease return condition requirements paid by the lessee to the Company and the Company typically maintains inspection rights under the leases. The transaction price for airport customer service agreements is determined from an agreed-upon rate by location applied to the applicable number of flights handled by the Company over the agreement term. The Company’s operating revenues could be impacted by several factors, including changes to the Company’s code-share agreements with its major airline partners, changes in flight schedules, contract modifications resulting from contract renegotiations, the Company’s ability to earn incentive payments contemplated under the Company’s code-share agreements and settlement of reimbursement disputes with the Company’s major airline partners. Other ancillary revenues commonly associated with airlines, such as baggage fee revenue, ticket change fee revenue and the marketing component of the sale of mileage credits, are retained by the Company’s major airline partners on flights that the Company operates under its code-share agreements. Allowance for Credit Losses The Company has an allowance for credit losses associated with its accounts receivable, notes receivable and third-party debt guarantees. The Company monitors publicly available credit ratings for entities for which the Company has a significant receivable balance or guarantee. As of September 30, 2025, the Company had gross receivables of $ 149.5 million in current assets and gross receivables of $ 257.8 million in other long-term assets. As of December 31, 2024, the Company had gross receivables of $ 125.9 million in current assets and gross receivables of $ 225.2 million in other long-term assets. The Company has established credit loss reserves based on publicly available historic default rates issued by a third party for companies with similar credit ratings, factoring in the amount and term of the Company’s 13 Table of Contents respective accounts receivable, notes receivable or guarantees. During the nine months ended September 30, 2025, the Company increased its credit loss reserve as a result of the Company’s assessment of higher credit risk of certain outstanding receivables. The following table summarizes the changes in allowance for credit losses (in thousands): ​ ​ ​ ​ ​ Allowance for Credit Losses Balance at December 31, 2024 ​ $ 15,071 Adjustments to credit loss reserves ​ ​ 6,750 Write-offs charged against allowance ​ ​ ( 82 ) Balance at September 30, 2025 ​ $ 21,739 ​ ​ (3) Capital Transactions Stock-Based Compensation During the nine months ended September 30, 2025, the Company granted 25,359 restricted stock units and 59,165 performance shares to certain employees of the Company under the SkyWest, Inc. Amended and Restated 2019 Long-Term Incentive Plan. Both the restricted stock units and performance shares have a three-year vesting period, during which the recipient must remain employed with the Company. The number of performance shares awardable from the 2025 grants can range from 0 % to 200 % of the original amount granted depending on the Company’s performance over three one-year measurement periods against the pre-established targets. Upon vesting, each restricted stock unit and performance share will be replaced with one share of common stock. The weighted average fair value of these restricted stock units and performance shares on their date of grant was $ 118.96 per share. A dditionally, during the nine months ended September 30, 2025, the Company granted 6,275 fully vested shares of common stock and 1,255 fully vested restricted stock units to the Company’s directors at a weighted average grant date fair value of $ 97.02 . The Company accounts for forfeitures of restricted stock units and performance shares when forfeitures occur. The estimated fair value of the restricted stock units and performance shares is amortized over the applicable vesting periods. Stock-based compensation expense for the performance shares is based on the Company’s anticipated outcome of achieving the performance metrics. During the nine months ended September 30, 2025 and 2024, the Company recorded pre-tax stock-based compensation expense of $ 14.5 million and $ 15.1 million, respectively. ( 4) Stock Repurchase The Company’s Board of Directors (the “Board”) adopted a stock repurchase program in May 2023, which authorizes the Company to repurchase shares of the Company’s common stock in the public market or in private transactions, from time to time, at prevailing prices. Under the repurchase program, the Board initially authorized up to $ 250.0 million for the repurchase of the Company’s common stock. In May 2025, the Board approved a $ 250 million increase to the existing repurchase program. Following such increase, at September 30, 2025, $ 240.0 million remained available under the repurchase program. During the nine months ended September 30, 2025, the Company repurchased 580,257 shares of common stock for $ 57.6 million at a weighted average price per share of $ 99.23 . The Company also recorded $ 0.2 million of excise tax related to the stock repurchases as treasury stock in the Company’s Stockholders’ Equity for the nine months ended September 30, 2025. During the nine months ended September 30, 2024, the Company repurchased 530,812 shares of common stock for $ 38.4 million at a weighted average price per share of $ 72.30 and recorded $ 0.3 million of excise tax related to the stock repurchases as treasury stock in the Company’s Stockholders’ Equity . (5) Net Income Per Common Share Basic net income per common share (“Basic EPS”) excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share 14 Table of Contents (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share. During the nine months ended September 30, 2025 and 2024, 161,000 and 336,000 performance shares (at target performance) were excluded from the computation of Diluted EPS because the Company had not achieved the minimum target thresholds for these shares as of September 30, 2025 and 2024, respectively. The calculation of the weighted average number of common shares outstanding for Basic EPS and Diluted EPS are as follows for the periods indicated (in thousands, except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ 2025 ​ 2024 2025 ​ 2024 Numerator: ​ ​ ​ ​ ​ Net income ​ $ 116,358 ​ $ 89,709 ​ $ 337,178 ​ $ 225,585 Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings per share weighted average shares ​ 40,323 ​ 40,253 ​ 40,410 ​ 40,244 Dilution due to employee equity awards and warrants ​ 1,069 ​ 1,308 ​ 1,037 ​ 1,251 Diluted earnings per share weighted average shares ​ 41,392 ​ 41,561 ​ 41,447 ​ 41,495 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings per share ​ $ 2.89 ​ $ 2.23 ​ $ 8.34 ​ $ 5.61 Diluted earnings per share ​ $ 2.81 ​ $ 2.16 ​ $ 8.14 ​ $ 5.44 ​ ​ (6) Segment Reporting GAAP requires disclosures related to components of a company for which separate financial information is available to, and regularly evaluated by, the Company’s chief operating decision maker when deciding how to allocate resources and in assessing performance. The Company’s two reportable segments consist of (1) the operations of SkyWest Airlines and SWC (collectively, “SkyWest Airlines and SWC”) and (2) SkyWest Leasing activities. The Company’s chief operating decision maker analyzes the profitability of operating new aircraft financed through the issuance of debt, including the Company’s E175 fleet, separately from the profitability of the Company’s capital deployed for ownership and financing of such aircraft. The SkyWest Airlines and SWC segment includes revenue earned under the applicable capacity purchase agreements attributed to operating such aircraft and the respective operating costs, and revenue and operating expenses attributed to prorate agreements and airport services agreements. The SkyWest Leasing segment includes applicable revenue earned under the applicable capacity purchase agreements attributed to the ownership of new aircraft acquired through the issuance of debt and the respective depreciation and interest expense of such aircraft. The SkyWest Leasing segment also includes the activity of leasing regional jet aircraft and spare engines to third parties and other activities. The SkyWest Leasing segment’s total assets and capital expenditures include new aircraft acquired through the issuance of debt and assets leased to third parties. Additionally, aircraft removed from SkyWest Airlines’ operations and held for sale are included in the SkyWest Leasing segment. The chief operating decision maker assesses performance for each segment and decides how to allocate resources based on income before income taxes. The chief operating decision maker uses the segment profit or loss measure when assessing performance of the segment and monitors budget versus actual results to allocate resources for each segment predominantly in the annual budget and forecasting process. The following represents the Company’s segment data for the three-month periods ended September 30, 2025 and 2024 (in thousands). As required by the adoption of ASC 2023-07, “Segment Reporting (ASC Topic 280) – Improvements to Reportable Segment Disclosures,” the Company recast the segment disclosures for the three and nine months ended September 30, 2024 to conform to the current year presentation. 15 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, 2025 ​ ​ SkyWest Airlines ​ SkyWest ​ ​ ​ and SWC Leasing Consolidated Operating revenues ​ $ 892,618 ​ $ 157,411 ​ $ 1,050,029 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Salaries, wages and benefits ​ 390,969 ​ 665 ​ 391,634 Aircraft maintenance, materials and repairs ​ 236,745 ​ 11,233 ​ 247,978 Depreciation and amortization ​ 40,778 ​ 51,696 ​ 92,474 Interest expense ​ 2,662 ​ 22,949 ​ 25,611 Other segment expense (income) items (1) ​ ​ 144,963 ​ ​ ( 9,800 ) ​ ​ 135,163 Segment profit (2) ​ $ 76,501 ​ $ 80,668 ​ $ 157,169 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets (as of September 30, 2025) ​ $ 3,160,752 ​ $ 4,053,444 ​ $ 7,214,196 Capital expenditures (including non-cash) ​ $ 39,836 ​ $ 15,559 ​ $ 55,395 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, 2024 ​ ​ SkyWest Airlines ​ SkyWest ​ ​ ​ and SWC Leasing Consolidated Operating revenues ​ $ 758,425 ​ $ 154,361 ​ $ 912,786 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Salaries, wages and benefits ​ ​ 376,770 ​ 665 ​ ​ 377,435 Aircraft maintenance, materials and repairs ​ ​ 173,745 ​ 7,907 ​ ​ 181,652 Depreciation and amortization ​ ​ 37,105 ​ 59,557 ​ ​ 96,662 Interest expense ​ ​ 2,864 ​ 24,944 ​ ​ 27,808 Other segment expense (income) items (1) ​ ​ 123,356 ​ ​ ( 10,323 ) ​ ​ 113,033 Segment profit (2) ​ $ 44,585 ​ $ 71,611 ​ $ 116,196 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets (as of September 30, 2024) ​ $ 2,673,084 ​ $ 4,283,516 ​ $ 6,956,600 Capital expenditures (including non-cash) ​ $ 59,331 ​ $ 24,956 ​ $ 84,287 (1) Other segment items include aircraft fuel; airport related expenses; other operating expenses consisting primarily of property taxes, hull and liability insurance, simulator costs, crew per diem and crew hotel costs; aircraft rentals; interest income and other income (expense) , net. (2) Segment profit is equal to income before income taxes. As a result of adopting ASC 2023-07 in 2024, the Company included interest income and other income (expense), net in the recast segment profit for each segment for the three months ended September 30, 2024, consistent with the presentation for the three months ended September 30, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, 2025 ​ ​ SkyWest Airlines ​ SkyWest ​ ​ ​ and SWC Leasing Consolidated Operating revenues ​ $ 2,563,605 ​ $ 470,106 ​ $ 3,033,711 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Salaries, wages and benefits ​ ​ 1,157,193 ​ ​ 1,995 ​ ​ 1,159,188 Aircraft maintenance, materials and repairs ​ ​ 654,830 ​ ​ 41,133 ​ ​ 695,963 Depreciation and amortization ​ ​ 117,531 ​ ​ 154,539 ​ ​ 272,070 Interest expense ​ ​ 8,830 ​ ​ 70,465 ​ ​ 79,295 Other segment expense (income) items (1) ​ ​ 404,189 ​ ​ ( 17,997 ) ​ ​ 386,192 Segment profit (2) ​ $ 221,032 ​ $ 219,971 ​ $ 441,003 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets (as of September 30, 2025) ​ $ 3,160,752 ​ $ 4,053,444 ​ $ 7,214,196 Capital expenditures (including non-cash) ​ $ 233,067 ​ $ 80,717 ​ $ 313,784 ​ 16 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, 2024 ​ ​ SkyWest Airlines ​ SkyWest ​ ​ ​ and SWC Leasing Consolidated Operating revenues ​ $ 2,117,018 ​ $ 466,500 ​ $ 2,583,518 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Salaries, wages and benefits ​ ​ 1,081,444 ​ ​ 1,995 ​ ​ 1,083,439 Aircraft maintenance, materials and repairs ​ ​ 490,397 ​ ​ 19,937 ​ ​ 510,334 Depreciation and amortization ​ ​ 110,217 ​ ​ 179,129 ​ ​ 289,346 Interest expense ​ ​ 9,595 ​ ​ 77,008 ​ ​ 86,603 Other segment expense (income) items (1) ​ ​ 343,807 ​ ​ ( 28,548 ) ​ ​ 315,259 Segment profit (2) ​ $ 81,558 ​ $ 216,979 ​ $ 298,537 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets (as of September 30, 2024) ​ $ 2,673,084 ​ $ 4,283,516 ​ $ 6,956,600 Capital expenditures (including non-cash) ​ $ 144,588 ​ $ 24,956 ​ $ 169,544 (1) Other segment items include aircraft fuel; airport related expenses; other operating expenses consisting primarily of property taxes, hull and liability insurance, simulator costs, crew per diem and crew hotel costs; aircraft rentals; interest income and other income (expense) , net. (2) Segment profit is equal to income before income taxes. As a result of adopting ASC 2023-07 in 2024, the Company included interest income and other income (expense), net in the recast segment profit for each segment for the nine months ended September 30, 2024, consistent with the presentation for the nine months ended September 30, 2025. (7) Leases, Commitments, Guarantees and Contingencies The Company leases property and equipment under operating leases. For leases with durations longer than 12 months, the Company recorded the related operating lease right-of-use asset and operating lease liability at the present value of lease payments over the term. The Company used its incremental borrowing rate to discount the lease payments based on information available at lease commencement. Aircraft As of September 30, 2025, excluding aircraft financed by the Company’s major airline partners that the Company operates for them under contract, the Company leased eight aircraft under long-term lease agreements with remaining terms ranging from four to five years . The Company is subleasing these eight aircraft to a third party. Airport facilities The Company has operating leases for facility space including airport terminals, office space, cargo warehouses and maintenance facilities. The Company generally leases this space from government agencies that control the use of the various airports. The remaining lease terms for facility space vary from one month to 31 years . The Company’s operating leases with lease rates that are variable based on airport operating costs, use of the facilities or other variable factors are excluded from the Company’s right-of-use assets and operating lease liabilities in accordance with accounting guidance. Leases As of September 30, 2025, the Company’s right-of-use assets were $ 84.8 million, the Company’s current maturities of operating lease liabilities were $ 20.0 million, and the Company’s noncurrent lease liabilities were $ 64.8 million. During the nine months ended September 30, 2025, the Company paid $ 25.4 million under operating leases reflected as a reduction from operating cash flows. The table below presents lease related terms and discount rates as of September 30, 2025: ​ ​ ​ ​ ​ Weighted-average remaining lease term for operating leases 10.3 years Weighted-average discount rate for operating leases 6.2 % ​ 17 Table of Contents The Company’s lease costs for the three and nine months ended September 30, 2025 and 2024 included the following components (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended September 30, ​ For the nine months ended September 30, ​ 2025 2024 2025 2024 Operating lease cost ​ $ 10,086 ​ $ 6,583 ​ $ 27,282 ​ $ 20,500 Variable and short-term lease cost ​ 635 ​ 453 ​ 1,763 ​ 2,029 Sublease income ​ ​ ( 956 ) ​ ​ ( 1,268 ) ​ ​ ( 3,075 ) ​ ​ ( 3,782 ) Total lease cost ​ $ 9,765 ​ $ 5,768 $ 25,970 ​ $ 18,747 ​ As of September 30, 2025, the Company leased aircraft, airport facilities, office space and other property and equipment under non-cancelable operating leases, which are generally on a long-term, triple-net lease basis pursuant to which the Company pays taxes, maintenance, insurance and certain other operating expenses applicable to the leased property. The Company expects that, in the normal course of business, such operating leases that expire will be renewed or replaced by other leases. As of September 30, 2025, the Company had a firm purchase commitment for 74 E175 aircraft from Embraer with anticipated delivery dates through 2032, including a purchase agreement the Company entered into with Embraer during the second quarter of 2025. Under this commitment, the Company expects to purchase and place into service 13 E175 aircraft with United, one E175 aircraft with Alaska and 16 E175 aircraft with Delta. Additionally, the Company has secured delivery positions for 44 additional E175 aircraft from 2028 through 2032. The Company also had a purchase agreement to acquire 12 used CRJ900 airframes with anticipated closing dates in 2025. The following table summarizes the Company’s commitments and obligations for future minimum rental payments required under operating leases that had initial or remaining non-cancelable lease terms as of September 30, 2025, firm aircraft and spare engine commitments, interest commitments and principal maturities on long-term debt as noted for each of the next five years and thereafter (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Oct - Dec 2025 2026 2027 2028 2029 Thereafter Operating lease payments for aircraft and facility obligations ​ $ 122,981 ​ $ 5,243 ​ $ 20,115 ​ $ 19,057 ​ $ 13,649 ​ $ 11,953 ​ $ 52,964 Firm aircraft and spare engine commitments ​ 2,417,029 ​ ​ 98,400 ​ ​ 320,557 ​ ​ 323,267 ​ ​ 329,050 ​ ​ 309,213 ​ ​ 1,036,542 Interest commitments ​ 350,321 ​ ​ 23,427 ​ ​ 89,342 ​ ​ 66,074 ​ ​ 49,244 ​ ​ 36,917 ​ ​ 85,317 Principal maturities on long-term debt ​ 2,401,753 ​ ​ 154,500 ​ ​ 535,083 ​ ​ 490,204 ​ ​ 320,265 ​ ​ 216,724 ​ ​ 684,977 Total commitments and obligations ​ $ 5,292,084 ​ $ 281,570 ​ $ 965,097 ​ $ 898,602 ​ $ 712,208 ​ $ 574,807 ​ $ 1,859,800 ​ In addition to the table above, in 2024, the Company entered into a master equipment purchase agreement with another airline to acquire certain airframes and engines and lease the assets back to the airline under a five -year term. The Company accounted for the transaction as a failed sale-leaseback in accordance with ASC 842 as the criteria for a sale were not met. At September 30, 2025, the Company estimated the remaining financing obligation under the agreement will be between $ 40.0 million and $ 50.0 million and anticipated closing on the remaining financings through 2026. Guarantees In 2022, the Company agreed to guarantee $ 19.8 million of debt for a 14 CFR Part 135 air carrier. The debt is secured by the Part 135 air carrier’s aircraft and engines and has a five-year term. In exchange for providing the guarantee, the Company received 6.5 % of the guaranteed amount as consideration, payable in the estimated value of common stock of the Part 135 air carrier, all of which was sold in 2023. The balance of the debt under the guarantee was $ 13.0 million as of September 30, 2025. 18 Table of Contents In 2023, the Company agreed to guarantee up to $ 12.0 million of debt for an aviation school. The debt was secured by the school’s aircraft and engines and had a five-year term. In exchange for providing the guarantee, the Company received 2.0 % of the guaranteed amount annually as consideration in cash. In June 2025, the aviation school fully repaid the debt under the guarantee agreement. As a result, the Company was no longer a guarantor at September 30, 2025. The purpose of these guarantees is to help reduce the financing costs of aircraft for the third parties in an effort to increase the potential number of commercial pilots in the Company’s hiring pipeline. The Company also recorded the estimated credit loss associated with the guarantees based on publicly available historical default rates issued by a third party for companies with similar credit ratings, factoring the collateral and guarantee term. (8) Fair Value Measurements The Company holds certain assets that are required to be measured at fair value in accordance with GAAP. The Company determined the fair value of these assets based on the following three levels of inputs: ​ ​ ​ ​ ​ Level 1 ​ — ​ Quoted prices in active markets for identical assets or liabilities. Level 2 ​ — ​ Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Some of the Company’s marketable securities primarily utilize broker quotes in a non-active market for valuation of these securities. Level 3 ​ — ​ Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, therefore requiring an entity to develop its own assumptions. ​ As of September 30, 2025, and December 31, 2024, the Company held certain assets that are required to be measured at fair value on a recurring basis. Assets measured at fair value on a recurring basis are summarized below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements as of September 30, 2025 ​ Total Level 1 Level 2 Level 3 Marketable Securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bonds and bond funds ​ $ 467,865 ​ $ — ​ $ 467,865 ​ $ — Commercial paper ​ 240,966 ​ — ​ 240,966 ​ — ​ ​ ​ 708,831 ​ ​ — ​ ​ 708,831 ​ ​ — Investments in Other Companies ​ ​ 5,669 ​ ​ 5,669 ​ ​ — ​ ​ — Cash and Cash Equivalents ​ ​ 44,528 ​ ​ 44,528 ​ ​ — ​ ​ — Total Assets Measured at Fair Value ​ $ 759,028 ​ $ 50,197 ​ $ 708,831 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements as of December 31, 2024 ​ ​ Total ​ Level 1 ​ Level 2 ​ Level 3 Marketable Securities ​ ​ ​ ​ Bonds and bond funds ​ $ 462,333 ​ $ — ​ $ 462,333 ​ $ — Commercial paper ​ 111,933 ​ — ​ 111,933 ​ — ​ ​ ​ 574,266 ​ ​ — ​ ​ 574,266 ​ ​ — Investments in Other Companies ​ ​ 8,160 ​ ​ — ​ — ​ 8,160 Cash and Cash Equivalents ​ ​ 227,362 ​ ​ 227,362 ​ ​ — ​ ​ — Total Assets Measured at Fair Value ​ $ 809,788 ​ $ 227,362 ​ $ 574,266 ​ $ 8,160 ​ The Company’s “Marketable Securities” classified as Level 2 securities primarily utilize broker quotes in a non-active market for valuation of these securities. 19 Table of Contents During the three months ended September 30, 2025, the Company exercised its warrant to purchase 1,500,000 shares of common stock of Eve Holding, Inc. (“Eve”) through a cashless exercise and received shares of common stock of Eve. See Note 10 “Investments in Other Companies” for additional information regarding the Company’s investment in Eve. The warrant was classified as Level 3 within the fair value hierarchy as of June 30, 2025. The Company’s shares of Eve’s common stock are actively traded and are valued using quoted market prices and are classified as Level 1 within the fair value hierarchy as of September 30, 2025. The Company’s policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period. As of September 30, 2025, and December 31, 2024, the Company classified $ 708.8 million and $ 574.3 million of marketable securities, respectively, as short-term because it had the intent to maintain a liquid portfolio and the ability to redeem the securities within one year . At the time of sale, any realized appreciation or depreciation, calculated by the specific identification method, is recognized in other income (expense), net. As of September 30, 2025, and December 31, 2024, the cost of the Company’s marketable securities was $ 708.4 million and $ 574.0 million, respectively. (9) Long-term Debt Long-term debt consisted of the following as of September 30, 2025, and December 31, 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ ​ December 31, 2024 Current portion of long-term debt $ 522,797 ​ $ 539,061 Current portion of unamortized debt issue cost, net ​ ( 3,286 ) ​ ​ ( 3,472 ) Current portion of long-term debt, net of debt issue costs $ 519,511 ​ $ 535,589 ​ ​ ​ ​ ​ ​ Long-term debt, net of current maturities $ 1,878,956 ​ $ 2,153,558 Long-term portion of unamortized debt issue cost, net ​ ( 13,673 ) ​ ​ ( 16,772 ) Long-term debt, net of current maturities and debt issue costs $ 1,865,283 ​ $ 2,136,786 ​ ​ ​ ​ ​ ​ Total long-term debt (including current portion) $ 2,401,753 ​ $ 2,692,619 Total unamortized debt issue cost, net ​ ( 16,959 ) ​ ​ ( 20,244 ) Total long-term debt, net of debt issue costs $ 2,384,794 ​ $ 2,672,375 ​ As of September 30, 2025, the Company had $ 2.4 billion of total long-term debt, which consisted of $ 2.2 billion of debt used to finance aircraft and spare engines and $ 200.6 million of unsecured debt payable to the U.S. Department of the Treasury (“Treasury”). As of September 30, 2025, $ 95.4 million of the debt payable to Treasury had a fixed annual interest rate of 1 % and $ 105.2 million had a variable interest rate of the Secured Overnight Financing Rate (" SOFR ") plus 2.0 % . The interest rate under the $ 95.4 million unsecured loans is scheduled to increase to the applicable SOFR rate plus 2.0 % upon the fifth anniversary of each disbursement. The Company received disbursements under these unsecured loans from January 2021 through April 2021. The average effective interest rate on the Company’s debt was approximately 4.3 % at September 30, 2025. During the nine months ended September 30, 2025, the Company took delivery of two new E175 aircraft that the Company financed through $ 47.1 million of long-term debt. The debt associated with the two E175 aircraft has a 12-year term, is due in quarterly installments, and is secured by the E175 aircraft. As of September 30, 2025 and December 31, 2024, the Company had $ 47.3 million and $ 47.1 million, respectively, in letters of credit and surety bonds outstanding with various banks and surety institutions. As of September 30, 2025, SkyWest Airlines had a $ 100.0 million line of credit. The line of credit includes minimum liquidity and profitability covenants and is secured by certain assets. As of September 30, 2025, SkyWest Airlines had no amounts outstanding under the line of credit facility. However, at September 30, 2025, SkyWest Airlines had $ 24.5 million in letters of credit issued under the facility, which reduced the amount available under the facility to $ 75.5 million. The line of credit expires March 25, 2028 and has a variable interest rate of 3.5 % plus the one month SOFR rate. 20 Table of Contents The Company’s debt agreements are not traded on an active market and are recorded at carrying value on the Company’s consolidated balance sheet. The fair value of the Company’s long-term debt is estimated based on current rates offered to the Company for similar debt. The fair value of debt is estimated using inputs classified as Level 2 within the fair value hierarchy. The carrying value and fair value of the Company’s long-term debt as of September 30, 2025 and December 31, 2024, were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ December 31, 2024 Carrying value ​ $ 2,401,753 ​ $ 2,692,619 Fair value ​ $ 2,346,236 ​ $ 2,612,838 ​ ( 10) Investments in Other Companies Equity Method Investments During 2019, the Company created a joint venture with Regional One, Inc. (“Regional One”) and, as of September 30, 2025, has invested a total of $ 26.6 million for a 75 % ownership interest in Aero Engines, LLC. (“Aero Engines”). The primary purpose of Aero Engines is to lease engines to third parties. Aero Engines requires unanimous approval from the Company and Regional One for all material transactions. Although the Company determined Aero Engines is a variable interest entity, Aero Engines has no primary beneficiary as no one party has power over Aero Engines. Accordingly, the Company accounts for its investment in Aero Engines under the equity method. The Company’s exposure in its investment in Aero Engines primarily consists of the Company’s portion of income or loss from Aero Engines’ engine lease agreements with third parties and the Company’s ownership percentage in Aero Engines’ engines book value. Aero Engines had no debt outstanding as of September 30, 2025. As of September 30, 2025 and December 31, 2024, the Company’s investment balance in Aero Engines was $ 12.5 million and $ 23.9 million, respectively, and has been recorded in “Other Assets” on the Company’s consolidated balance sheet. During the nine months ended September 30, 2025, the Company received a $ 12.0 million distribution from Aero Engines, which reduced the Company’s investment balance in Aero Engines from December 31, 2024. The Company’s portion of income generated by Aero Engines for the nine months ended September 30, 2025, was $ 0.6 million, which is recorded in “Other income (expense), net” on the Company’s consolidated statements of comprehensive income. In December 2023, the Company invested $ 9.9 million for a 9.9 % ownership interest in Corporate Flight Management, Inc. d/b/a C ontour Airlines (“Contour”), a 14 CFR Part 135 air carrier. In January 2024, the Company invested an additional $ 15.1 million in Contour. The Company has a 25 % ownership interest in Contour at September 30, 2025 and holds one of five seats, or 20 % , on Contour’s board of directors. The Contour arrangement also includes an asset provisioning agreement under which the Company will provide CRJ airframes, engines and rotable parts to Contour. The Company accounts for its investment in Contour under the equity method where the investment is reported at cost and adjusted each period for the Company’s share of Contour’s income or loss, recorded on a one quarter lag. For the nine months ended September 30, 2025, the Company recorded income of $ 1.4 million, its portion of income generated by Contour, which was recorded in “Other income (expense), net” on the Company’s consolidated statements of comprehensive income. As of September 30, 2025, the Company’s investment balance in Contour of $ 22.8 million was recorded in “Other Assets” on the Company’s consolidated balance sheet. At September 30, 2025, the Company had $ 8.7 million in notes receivable from Contour related to the sale of aircraft under the asset provisioning agreement. The notes are secured by aircraft and collectible within four years . The Company assesses investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment may not be recoverable. Fair Value Method Investment In 2021, the Company entered into a strategic partnership with Eve, to develop a network of deployment for Eve’s electric vertical takeoff and landing aircraft. In 2022, the Company acquired 1,000,000 shares of common stock of Eve and a warrant giving the Company the right to acquire 1,500,000 shares of common stock of Eve at an exercise price of $ 0.01 per share. The Company also received a put option from an Eve shareholder for the 1,000,000 shares of common stock of Eve payable in aircraft parts credits. The intent of the put option was to reduce the Company’s investment risk in Eve. The Company is restricted 21 Table of Contents from selling the shares underlying the warrant until May 2025, and the warrant expires in May 2032. The Company acquired the shares of common stock, warrant and put option (collectively the “Eve Investments”) for $ 10.0 million. The Company evaluated the Eve Investments under ASC Topic 321, “Investments – Equity Securities” and ASC Topic 815, “Derivatives and Hedging,” and recorded the Eve Investments based on their pro rata share of the consideration paid using the fair value of the Eve Investments on the acquisition date, with subsequent changes in the fair value report ed in earnings. During the year ended December 31, 2023, the Company sold 600,411 shares of common stock of Eve, which concurrently forfeited 600,411 shares subject to the put option from the Eve shareholder. During the year ended December 31, 2024, the Company exercised the remainder of the put option and received aircraft parts credits in exchange for the 399,589 shares of common stock. During the three months ended September 30, 2025, the Company exercised its warrant to purchase 1,500,000 shares of common stock of Eve. The Company received 1,497,635 shares of common stock of Eve resulting from a cashless exercise. The warrant was classified as Level 3 within the fair value hierarchy (“Eve Level 3 Investment”) as of June 30, 2025. The Company used the Black Scholes Option Pricing Model to determine the estimated fair market value of the Eve Level 3 Investment . Upon exercise, the Company’s shares of common stock of Eve were classified as Level 1 within the fair value hierarchy as Eve’s common shares are actively traded and are valued using quoted market prices. The table below shows the reconciliation of the Eve Level 3 Investment (in thousands): ​ ​ ​ ​ ​ Eve Level 3 Investment: ​ ​ Balance at December 31, 2024 ​ $ 8,160 Unrealized loss ​ ​ ( 2,445 ) Exercise of warrant to common stock (level 1) ​ ​ ( 5,715 ) Balance at September 30, 2025 $ — ​ During the nine months ended September 30, 2025, the Company recorded an unrealized loss of $ 2.4 million in “Other income (expense), net” on the Company’s consolidated statements of comprehensive income related to the Eve Investments. During the nine months ended September 30, 2024, the Company recorded a net loss of $ 6.6 million in “Other income (expense), net” on the Company’s consolidated statements of comprehensive income, including a realized gain of $ 3.4 million from the exercise of the put option, a realized loss of $ 1.4 million from the forfeited shares of Eve common stock and unrealized losses of $ 8.6 million related to the Eve Investments. As of September 30, 2025 and December 31, 2024, the fair value of the Eve Investments was $ 5.7 million and $ 8.2 million, respectively, and was recorded in “Other Assets” on the Company’s consolidated balance sheet. (11) Income Taxes The Company’s effective tax rate for the nine months ended September 30, 2025 was 23.5 %. The Company’s effective tax rate for the nine months ended September 30, 2025 varied from the federal statutory rate of 21.0 % primarily due to the provision for state income taxes and the impact of non-deductible expense, partially offset by a discrete tax benefit from additional tax deductions generated from employee equity awards that vested during the nine months ended September 30, 2025. The Company’s effective tax rate for the nine months ended September 30, 2024 was 24.4 %. The Company’s effective tax rate for the nine months ended September 30, 2024 varied from the federal statutory rate of 21.0 % primarily due to the provision for state income taxes and the impact of non-deductible expenses. This was partially offset by a discrete tax benefit from additional tax deductions generated from employee equity awards that vested during the nine months ended September 30, 2024, a discrete tax benefit from the release of a previously recorded uncertain tax position liability and a discrete tax benefit from a release of the valuation allowance on state net operating losses anticipated to be utilized prior to expiration. On July 4, 2025, the One Big Beautiful Bill Act was signed into law. The legislation did not have a material impact on our income tax expense for the quarter ended September 30, 2025, and we do not expect it to materially change our effective income tax rate for the year ending December 31, 2025. 22 Table of Contents (12) Legal Matters The Company is subject to certain legal actions which it considers routine to its business activities. As of September 30, 2025, the Company’s management believed, after consultation with legal counsel, that the ultimate outcome of such legal matters was not likely to have a material adverse effect on the Company’s financial position, liquidity or results of operations. 23 Table of Contents