SKYWEST INC 10-Q

Item 1. Financial Statements ​ SKYWEST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands) ​ ASSETS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ ​ December 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ (unaudited) ​ ​ ​ CURRENT ASSETS: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 65,841 ​ $ 122,673 Marketable securities ​ 561,413 ​ 584,236 Receivables, net ​ 172,797 ​ 159,803 Inventories, net ​ 173,635 ​ 168,547 Other current assets ​ 38,959 ​ 55,935 Total current assets ​ 1,012,645 ​ 1,091,194 ​ ​ ​ ​ ​ ​ ​ PROPERTY AND EQUIPMENT: ​ ​ ​ ​ ​ ​ Aircraft and rotable spares ​ 9,430,096 ​ 9,302,510 Deposits on aircraft ​ 100,000 ​ 100,000 Buildings, ground equipment and other ​ 334,075 ​ 328,401 Total property and equipment, gross ​ 9,864,171 ​ 9,730,911 Less-accumulated depreciation and amortization ​ ( 3,973,990 ) ​ ( 3,887,943 ) Total property and equipment, net ​ 5,890,181 ​ 5,842,968 ​ ​ ​ ​ ​ ​ ​ OTHER ASSETS: ​ ​ ​ ​ ​ ​ Operating lease right-of-use assets ​ ​ 82,965 ​ ​ 81,943 Long-term receivables and other assets ​ 360,547 ​ 370,144 Total other assets ​ 443,512 ​ 452,087 Total assets ​ $ 7,346,338 ​ $ 7,386,249 ​ 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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ ​ December 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ (unaudited) ​ ​ ​ CURRENT LIABILITIES: ​ ​ ​ ​ ​ ​ Current maturities of long-term debt ​ $ 598,438 ​ $ 546,812 Accounts payable and accrued liabilities ​ 652,484 ​ 633,633 Accrued salaries, wages and benefits ​ 215,234 ​ 240,954 Current maturities of operating lease liabilities ​ 20,832 ​ 19,629 Taxes other than income taxes ​ 24,030 ​ 22,694 Other current liabilities ​ 122,568 ​ 203,886 Total current liabilities ​ 1,633,586 ​ 1,667,608 ​ ​ ​ ​ ​ ​ ​ LONG-TERM DEBT, net of current maturities ​ 1,795,692 ​ 1,845,272 ​ ​ ​ ​ ​ ​ ​ DEFERRED INCOME TAXES PAYABLE ​ 915,034 ​ 910,731 ​ ​ ​ ​ ​ ​ ​ NONCURRENT OPERATING LEASE LIABILITIES ​ 62,133 ​ 62,314 ​ ​ ​ ​ ​ ​ ​ OTHER LONG-TERM LIABILITIES ​ 207,638 ​ 153,891 ​ ​ ​ ​ ​ ​ ​ 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; 85,373,814 and 84,270,723 shares issued as of March 31, 2026 and December 31, 2025, respectively ​ 804,232 ​ 798,470 Retained earnings ​ 3,124,199 ​ 3,022,507 Treasury stock, at cost, 45,612,892 and 44,399,241 shares as of March 31, 2026 and December 31, 2025, respectively ​ ( 1,195,810 ) ​ ( 1,074,822 ) Accumulated other comprehensive income (loss) ​ ​ ( 366 ) ​ ​ 278 Total stockholders’ equity ​ 2,732,255 ​ 2,746,433 Total liabilities and stockholders’ equity ​ $ 7,346,338 ​ $ 7,386,249 ​ 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 ​ ​ ​ March 31, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 OPERATING REVENUES: ​ ​ ​ ​ ​ ​ ​ Flying agreements ​ $ 977,885 ​ $ 915,994 ​ Lease, airport services and other ​ 35,292 ​ 32,461 ​ Total operating revenues ​ 1,013,177 ​ 948,455 ​ OPERATING EXPENSES: ​ ​ ​ ​ ​ ​ ​ Salaries, wages and benefits ​ 422,104 ​ 377,311 ​ Aircraft maintenance, materials and repairs ​ 213,027 ​ 209,100 ​ Depreciation and amortization ​ 90,216 ​ 89,446 ​ Airport-related expenses ​ 36,170 ​ 27,823 ​ Aircraft fuel ​ 38,904 ​ 24,488 ​ Other operating expenses ​ 89,070 ​ 80,910 ​ Total operating expenses ​ 889,491 ​ 809,078 ​ OPERATING INCOME ​ 123,686 ​ 139,377 ​ OTHER INCOME (EXPENSE): ​ ​ ​ ​ ​ ​ ​ Interest income ​ 8,597 ​ 10,086 ​ Interest expense ​ ( 24,465 ) ​ ( 27,118 ) ​ Other expense, net ​ ( 48 ) ​ ( 1,627 ) ​ Total other expense, net ​ ( 15,916 ) ​ ( 18,659 ) ​ INCOME BEFORE INCOME TAXES ​ 107,770 ​ 120,718 ​ PROVISION FOR INCOME TAXES ​ 6,078 ​ 20,167 ​ NET INCOME ​ $ 101,692 ​ $ 100,551 ​ ​ ​ ​ ​ ​ ​ ​ ​ BASIC EARNINGS PER SHARE ​ $ 2.54 ​ $ 2.48 ​ DILUTED EARNINGS PER SHARE ​ $ 2.50 ​ $ 2.42 ​ Weighted average common shares: ​ ​ ​ ​ ​ ​ ​ Basic ​ ​ 39,999 ​ ​ 40,490 ​ Diluted ​ ​ 40,668 ​ ​ 41,599 ​ ​ ​ ​ ​ ​ ​ ​ ​ COMPREHENSIVE INCOME: ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 101,692 ​ $ 100,551 ​ Net unrealized depreciation on marketable securities, net of taxes ​ ( 644 ) ​ ( 75 ) ​ TOTAL COMPREHENSIVE INCOME ​ $ 101,048 ​ $ 100,476 ​ ​ 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 (Loss) ​ Total Balance at December 31, 2025 84,271 ​ $ 798,470 ​ $ 3,022,507 ( 44,399 ) ​ $ ( 1,074,822 ) ​ $ 278 ​ $ 2,746,433 Net income — ​ — ​ 101,692 — ​ — ​ — ​ ​ 101,692 Stock issued under the long-term incentive plan 1,089 ​ ​ — ​ — — ​ — ​ — ​ — Employee income tax paid on vested equity awards ​ — ​ ​ — ​ ​ — ​ ( 431 ) ​ ​ ( 45,637 ) ​ ​ — ​ ​ ( 45,637 ) Sale of common stock under employee stock purchase plan 14 ​ ​ 1,313 ​ — — ​ — ​ — ​ 1,313 Stock-based compensation expense — ​ 4,449 ​ — — ​ — ​ — ​ ​ 4,449 Treasury stock purchases ​ — ​ — ​ — ( 783 ) ​ ( 75,351 ) ​ — ​ ​ ( 75,351 ) Net unrealized depreciation on marketable securities, net of tax of $ 208 ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 644 ) ​ ​ ( 644 ) Balance at March 31, 2026 ​ 85,374 ​ $ 804,232 ​ $ 3,124,199 ​ ( 45,613 ) ​ $ ( 1,195,810 ) ​ $ ( 366 ) ​ $ 2,732,255 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 Stock issued under the long-term incentive plan 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 and related excise tax ​ — ​ — ​ — ( 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 ​ See accompanying notes to condensed consolidated financial statements. ​ 6 Table of Contents ​ SKYWEST, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In Thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 NET CASH PROVIDED BY OPERATING ACTIVITIES ​ $ 144,477 ​ $ 171,023 ​ ​ ​ ​ ​ ​ ​ CASH FLOWS FROM INVESTING ACTIVITIES: ​ ​ ​ ​ ​ ​ Purchases of marketable securities ​ ( 169,843 ) ​ ​ ( 349,334 ) Sales of marketable securities ​ 192,022 ​ ​ 351,614 Acquisition of property and equipment: ​ ​ ​ ​ ​ ​ Aircraft and rotable spare parts ​ ( 88,109 ) ​ ​ ( 64,857 ) Buildings and ground equipment ​ ( 14,046 ) ​ ​ ( 8,453 ) Deposits on aircraft ​ ​ ( 6,457 ) ​ ​ ( 5,140 ) Proceeds from the sale of property and equipment ​ 247 ​ ​ 118 Decrease in other assets, net ​ 3,358 ​ ​ 9,943 NET CASH USED IN INVESTING ACTIVITIES ​ ( 82,828 ) ​ ( 66,109 ) ​ ​ ​ ​ ​ ​ ​ CASH FLOWS FROM FINANCING ACTIVITIES: ​ ​ ​ ​ ​ ​ Proceeds from issuance of long-term debt ​ ​ 117,565 ​ ​ — Principal payments on long-term debt ​ ( 116,196 ) ​ ​ ( 113,672 ) Payment of debt issuance cost ​ ​ ( 175 ) ​ ​ — Net proceeds from issuance of common stock ​ 1,313 ​ ​ 1,293 Employee income tax paid on vested equity awards ​ ​ ( 45,637 ) ​ ​ ( 27,242 ) Purchase of treasury stock and related excise tax ​ ( 75,351 ) ​ ​ ( 13,682 ) NET CASH USED IN FINANCING ACTIVITIES ​ ( 118,481 ) ​ ( 153,303 ) ​ ​ ​ ​ ​ ​ ​ Decrease in cash and cash equivalents ​ ( 56,832 ) ​ ​ ( 48,389 ) Cash and cash equivalents at beginning of period ​ 122,673 ​ ​ 227,362 CASH AND CASH EQUIVALENTS AT END OF PERIOD ​ $ 65,841 ​ $ 178,973 ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: ​ ​ ​ ​ ​ ​ Non-cash investing and financing activities: ​ ​ ​ ​ ​ ​ Change in accrued capital expenditures for the period ​ $ 27,974 ​ $ 45,606 Cash paid during the period for: ​ ​ ​ ​ ​ ​ Interest, net of capitalized amounts ​ $ 28,680 ​ $ 27,637 Income taxes, net of refunds ​ $ 1,080 ​ $ ( 18 ) ​ See accompanying notes to condensed consolidated financial statements. ​ 7 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, 2025. The results of operations for the three months ended March 31, 2026, are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. 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 March 2024, the Financial Accounting Standards Board issued Accounting Standards Update No. 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Accounting Standards Codification (“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 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 three months ended March 31, 2026 and 2025, capacity 8 Table of Contents purchase agreements represented approximately 82.8 % and 85.7 % 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 aircraft 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 three months ended March 31, 2026 and 2025, prorate agreements and SWC revenue represented approximately 17.2 % and 14.3 % of the Company’s flying agreements revenue, respectively. The following table disaggregates the Company’s flying agreements revenue by type for the three months ended March 31, 2026 and 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Capacity purchase agreements flight operations revenue (non-lease component) ​ $ 633,869 ​ $ 639,153 Capacity purchase agreements fixed aircraft lease revenue ​ ​ 104,455 ​ ​ 110,988 Capacity purchase agreements variable aircraft lease revenue ​ 71,373 ​ 35,039 Prorate agreements and SWC revenue ​ 168,188 ​ 130,814 Flying agreements revenue ​ $ 977,885 ​ $ 915,994 ​ 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. 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 compensate the Company for providing its aircraft under the 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 has not separately stated aircraft rental income and aircraft rental expense in the consolidated statement of 9 Table of Contents comprehensive income because the use of the aircraft is not a separate activity of the total service provided under the capacity purchase agreements. The following table summarizes the amount of deferred revenue, recognition of previously deferred revenue and change in unbilled revenue for revenue recognized that is in excess of (or less than) the fixed monthly non-lease and lease payments received under the Company’s capacity purchase agreements for the three months ended March 31, 2026 and 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ 2026 ​ ​ ​ 2025 Non-lease fixed monthly payments: ​ ​ ​ ​ ​ ​ ​ ​ Revenue deferred on fixed monthly payments received ​ $ — ​ $ — Revenue recognized that was deferred in a prior period ​ 17,491 ​ 9,460 Increase (decrease) in unbilled revenue ​ ​ ( 1,942 ) ​ ​ 88 Total non-lease revenue recognized in excess of fixed monthly payments received during the period ​ $ 15,549 ​ $ 9,548 Lease fixed monthly payments: ​ ​ ​ ​ ​ ​ Revenue deferred on fixed monthly payments received ​ $ — ​ $ — Revenue recognized that was deferred in a prior period ​ ​ 7,257 ​ ​ 2,235 Increase in unbilled revenue ​ 1,108 ​ 1,127 Total lease revenue recognized in excess of fixed monthly payments received during the period ​ $ 8,365 ​ $ 3,362 Total revenue recognized in excess of fixed monthly payments received during the period ​ $ 23,914 ​ $ 12,910 The Company's unbilled revenue and deferred revenue balances were reflected in the following balance sheet line items at March 31, 2026 and December 31, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ ​ December 31, ​ ​ 2026 ​ ​ ​ 2025 Unbilled revenue - other current assets ​ $ 1,133 ​ $ 1,133 Unbilled revenue - other long-term assets ​ ​ 25,827 ​ ​ 26,661 Total unbilled revenue ​ $ 26,960 ​ $ 27,794 ​ ​ ​ ​ ​ ​ ​ Deferred revenue - other current liabilities ​ ​ 85,785 ​ ​ 163,894 Deferred revenue - other long-term liabilities ​ ​ 181,870 ​ ​ 128,509 Total deferred revenue ​ $ 267,655 ​ $ 292,403 Net deferred revenue balance ​ $ 240,695 ​ $ 264,609 ​ 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 March 31, 2026, the Company had 500 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”), a 50-seat configuration of the CRJ700 aircraft, commonly referred to as a “CRJ550,” and Canadair CRJ200 regional jet aircraft (“CRJ200”). The following 10 Table of Contents 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 ​ 121 ​ Individual aircraft have scheduled (capacity purchase agreements) ​ • CRJ700 ​ 8 ​ removal dates under the agreements ​ ​ • CRJ550 ​ 30 ​ between 2026 and 2035 ​ ​ • CRJ200 ​ 34 ​ ​ ​ ​ ​ ​ ​ ​ ​ United Express Prorate Agreement ​ • CRJ200 ​ 33 * ​ Terminable with 120-day notice Total under United Express Agreements ​ ​ ​ 226 ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ 2 ​ between 2026 and 2035 ​ ​ ​ ​ ​ ​ ​ Delta Connection Prorate Agreement ​ • CRJ550 ​ 16 * ​ Terminable with 30-day notice Total under Delta Connection Agreements ​ ​ ​ 139 ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ 43 ​ Individual aircraft have scheduled (capacity purchase agreement) ​ ​ ​ ​ ​ removal dates under the agreement ​ ​ ​ ​ ​ ​ between 2030 and 2038 * 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 March 31, 2026, 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 eight new E175 aircraft, which are scheduled for delivery in 2026. The Company anticipates financing the aircraft through debt. 11 Table of Contents ● 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 agreement with United for 18 used CRJ550 aircraft that are anticipated to be placed into service by 2027. Pursuant to this agreement, the Company is in the process of converting its owned 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 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 months ended March 31, 2026 and 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Operating lease fixed revenue ​ $ 17,742 ​ $ 16,065 Operating lease variable revenue ​ ​ 7,445 ​ ​ 7,009 Airport customer service and other revenue ​ ​ 10,105 ​ ​ 9,387 Lease, airport services and other ​ $ 35,292 ​ $ 32,461 ​ 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 March 31, 2026 (in thousands): ​ ​ ​ ​ April 2026 - December 2026 ​ ​ ​ $ 36,703 2027 ​ 45,159 2028 ​ 44,276 2029 ​ 42,748 2030 ​ 26,459 Thereafter ​ 2,723 Total future minimum rental income under operating leases ​ $ 198,068 ​ Of the Company’s $ 5.9 billion of property and equipment, net of accumulated depreciation, as of March 31, 2026, $ 240.8 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. 12 Table of Contents 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 March 31, 2026, the Company had gross receivables of $ 176.6 million in current assets and gross receivables of $ 256.7 million in other long-term assets. As of December 31, 2025, the Company had gross receivables of $ 163.3 million in current assets and gross receivables of $ 266.3 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 respective accounts receivable, notes receivable or guarantees. During the three months ended March 31, 2026, there were no significant changes in the outstanding accounts receivable, notes receivable, guarantees or credit ratings of the entities. The following table summarizes the changes in allowance for credit losses (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ Allowance for Credit Losses Balance at December 31, 2025 ​ $ 22,509 Adjustments to credit loss reserves ​ ​ ( 45 ) Write-offs charged against allowance ​ ​ ( 94 ) Balance at March 31, 2026 ​ $ 22,370 ​ ​ (3) Capital Transactions Stock-Based Compensation During the three months ended March 31, 2026, the Company granted 76,648 performance shares and 32,850 restricted stock units to certain employees of the Company under the SkyWest, Inc. Amended and Restated 2019 Long-Term Incentive Plan. The 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 2026 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. The restricted stock units granted in 2026 will vest in three equal installments, with one -third vesting each year on the grant date anniversary. Upon vesting, each performance share and restricted stock unit will be replaced with one share of common stock. The weighted average fair value of these performance shares and restricted stock units on their date of grant was $ 101.47 per share. The Company accounts for forfeitures of restricted stock units and performance shares when forfeitures occur. The estimated fair value of the performance shares and restricted stock units 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 three months ended March 31, 2026 and 2025, the Company recorded pre-tax stock-based compensation expense of $ 4.4 million and $ 4.7 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 $ 250.0 million increase to the existing repurchase program. At March 31, 2026, $ 137.8 million remained available under the repurchase program. During the three months ended March 31, 2026, the Company repurchased 782,900 shares of common stock for $ 75.3 million at a weighted average price per share of $ 96.18 . The Company also recorded $ 0.1 million of excise tax 13 Table of Contents related to the stock repurchases as treasury stock in the Company’s stockholders’ equity for the three months ended March 31, 2026. During the three months ended March 31, 2025, the Company repurchased 140,658 shares of common stock for $ 13.7 million at a weighted average price per share of $ 97.27 . The Company did no t record excise tax related to the stock repurchases for the three months ended March 31, 2025 . (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 (“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 three months ended March 31, 2026 and 2025, 155,000 and 268,000 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 March 31, 2026 and 2025, 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 ​ ​ March 31, ​ ​ 2026 ​ 2025 Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 101,692 ​ $ 100,551 Denominator: ​ ​ ​ ​ ​ ​ Basic earnings per share weighted average shares ​ 39,999 ​ 40,490 Dilution due to employee equity awards ​ 669 ​ 1,109 Diluted earnings per share weighted average shares ​ 40,668 ​ 41,599 ​ ​ ​ ​ ​ ​ ​ Basic earnings per share ​ $ 2.54 ​ $ 2.48 Diluted earnings per share ​ $ 2.50 ​ $ 2.42 ​ ​ (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 aircraft separately from the profitability of the Company’s capital deployed for new aircraft and the related aircraft financings, including the Company’s E175 fleet. 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. 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 14 Table of Contents 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 March 31, 2026 and 2025 (in thousands). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, 2026 ​ ​ SkyWest Airlines ​ SkyWest ​ ​ ​ ​ ​ ​ and SWC ​ ​ ​ Leasing ​ ​ ​ Consolidated Operating revenues ​ $ 855,182 ​ $ 157,995 ​ $ 1,013,177 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Salaries, wages and benefits ​ ​ 421,439 ​ ​ 665 ​ ​ 422,104 Aircraft maintenance, materials and repairs ​ ​ 206,492 ​ ​ 6,535 ​ ​ 213,027 Depreciation and amortization ​ ​ 37,346 ​ ​ 52,870 ​ ​ 90,216 Interest expense ​ ​ 2,735 ​ ​ 21,730 ​ ​ 24,465 Other segment expense (income) items (1) ​ ​ 161,660 ​ ​ ( 6,065 ) ​ ​ 155,595 Segment profit (2) ​ $ 25,510 ​ $ 82,260 ​ $ 107,770 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets (as of March 31, 2026) ​ $ 3,227,598 ​ $ 4,118,740 ​ $ 7,346,338 Capital expenditures (including non-cash) ​ $ 110,680 ​ $ 19,449 ​ $ 130,129 Deposits on aircraft ​ $ — ​ $ 6,457 ​ $ 6,457 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, 2025 ​ ​ SkyWest Airlines ​ SkyWest ​ ​ ​ ​ ​ ​ and SWC ​ ​ ​ Leasing ​ ​ ​ Consolidated Operating revenues ​ $ 801,651 ​ $ 146,804 ​ $ 948,455 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Salaries, wages and benefits ​ ​ 376,646 ​ ​ 665 ​ ​ 377,311 Aircraft maintenance, materials and repairs ​ ​ 201,476 ​ ​ 7,624 ​ ​ 209,100 Depreciation and amortization ​ ​ 37,748 ​ ​ 51,698 ​ ​ 89,446 Interest expense ​ ​ 2,981 ​ ​ 24,137 ​ ​ 27,118 Other segment expense (income) items (1) ​ ​ 128,530 ​ ​ ( 3,768 ) ​ ​ 124,762 Segment profit (2) ​ $ 54,270 ​ $ 66,448 ​ $ 120,718 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets (as of March 31, 2025) ​ $ 3,040,242 ​ $ 4,074,024 ​ $ 7,114,266 Capital expenditures (including non-cash) ​ $ 118,916 ​ $ — ​ $ 118,916 Deposits on aircraft ​ $ — ​ $ 5,140 ​ $ 5,140 (1) Other segment items include aircraft fuel; airport related expenses; other operating expenses consisting primarily of property taxes, hull and liability insurance, simulator costs, aircraft rentals, crew per diem and crew hotel costs; interest income and other expense , net. (2) Segment profit is equal to income before income taxes. (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 March 31, 2026, 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 three to four years . The Company is subleasing these eight aircraft to a third party. 15 Table of Contents 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 30 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 March 31, 2026, the Company’s right-of-use assets were $ 82.9 million, the Company’s current maturities of operating lease liabilities were $ 20.8 million, and the Company’s noncurrent lease liabilities were $ 62.1 million. During the three months ended March 31, 2026, the Company paid $ 11.9 million under operating leases reflected as a reduction from operating cash flows. The table below presents lease related terms and discount rates as of March 31, 2026: ​ ​ Weighted-average remaining lease term for operating leases 10.0 years Weighted-average discount rate for operating leases 6.2 % ​ The Company’s lease costs for the three months ended March 31, 2026 and 2025 included the following components (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Operating lease cost ​ $ 10,862 ​ $ 8,250 Variable and short-term lease cost ​ 505 ​ 489 Sublease income ​ ​ ( 940 ) ​ ​ ( 1,115 ) Total lease cost ​ $ 10,427 ​ $ 7,624 ​ As of March 31, 2026, the Company leased aircraft, airport facilities, office space and other property and equipment under non-cancelable operating leases, which are generally under long-term agreements 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 March 31, 2026, the Company had a firm purchase commitment for 68 E175 aircraft from Embraer with anticipated delivery dates through 2032. Under this commitment, the Company expects to purchase and place into service eight E175 aircraft with United and 16 E175 aircraft with Delta. Additionally, the Company secured delivery positions for 44 additional E175 aircraft between 2028 and 2032. 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 March 31, 2026, 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): 16 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ Apr - Dec 2026 ​ ​ ​ 2027 ​ ​ ​ 2028 ​ ​ ​ 2029 ​ ​ ​ 2030 ​ ​ ​ Thereafter Operating lease payments for aircraft and facility obligations ​ $ 119,358 ​ $ 16,250 ​ $ 21,112 ​ $ 15,467 ​ $ 13,093 ​ $ 6,297 ​ $ 47,139 Firm aircraft and spare engine commitments ​ 2,240,083 ​ ​ 375,433 ​ ​ 323,580 ​ ​ 330,370 ​ ​ 316,363 ​ ​ 336,020 ​ ​ 558,317 Interest commitments ​ 360,708 ​ ​ 73,092 ​ ​ 77,090 ​ ​ 58,069 ​ ​ 43,420 ​ ​ 31,104 ​ ​ 77,933 Principal maturities on long-term debt ​ 2,409,467 ​ ​ 449,933 ​ ​ 530,036 ​ ​ 362,288 ​ ​ 261,068 ​ ​ 288,097 ​ ​ 518,045 Total commitments and obligations ​ $ 5,129,616 ​ $ 914,708 ​ $ 951,818 ​ $ 766,194 ​ $ 633,944 ​ $ 661,518 ​ $ 1,201,434 ​ 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 March 31, 2026, the Company estimated the remaining financing obligation under the agreement will be between $ 20.0 million and $ 25.0 million and anticipated closing on the remaining financings during 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 purpose of this guarantee is to help reduce the financing costs of aircraft for the third party in an effort to increase the potential number of commercial pilots in the Company’s hiring pipeline. The balance of the debt under the guarantee was $ 12.2 million as of March 31, 2026. The Company 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. 17 Table of Contents ​ As of March 31, 2026, and December 31, 2025, 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 March 31, 2026 ​ ​ ​ ​ Total ​ ​ ​ Level 1 ​ ​ ​ Level 2 ​ ​ ​ Level 3 Marketable Securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bonds and bond funds ​ $ 521,186 ​ $ — ​ $ 521,186 ​ $ — Commercial paper ​ 40,227 ​ — ​ 40,227 ​ — ​ ​ ​ 561,413 ​ ​ — ​ ​ 561,413 ​ ​ — Investments in Other Companies ​ ​ 2,643 ​ ​ 2,643 ​ ​ — ​ ​ — Cash and Cash Equivalents ​ ​ 65,841 ​ ​ 65,841 ​ ​ — ​ ​ — Total Assets Measured at Fair Value ​ $ 629,897 ​ $ 68,484 ​ $ 561,413 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements as of December 31, 2025 ​ ​ Total ​ Level 1 ​ Level 2 ​ Level 3 Marketable Securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bonds and bond funds ​ $ 487,699 ​ $ — ​ $ 487,699 ​ $ — Commercial paper ​ 96,537 ​ — ​ 96,537 ​ — ​ ​ ​ 584,236 ​ ​ — ​ ​ 584,236 ​ ​ — Investments in Other Companies ​ ​ 4,253 ​ ​ 4,253 ​ — ​ — Cash and Cash Equivalents ​ ​ 122,673 ​ ​ 122,673 ​ ​ — ​ ​ — Total Assets Measured at Fair Value ​ $ 711,162 ​ $ 126,926 ​ $ 584,236 ​ $ — ​ The Company’s “Marketable Securities” classified as Level 2 securities primarily utilize broker quotes in a non-active market for valuation of these securities. The Company did not make any significant transfers of securities between Level 1, Level 2 and Level 3 during the three months ended March 31, 2026. 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 March 31, 2026, and December 31, 2025, the Company classified $ 561.4 million and $ 584.2 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 expense, net. As of March 31, 2026, and December 31, 2025, the cost of the Company’s marketable securities was $ 561.9 million and $ 583.9 million, respectively. (9) Long-term Debt Long-term debt consisted of the following as of March 31, 2026, and December 31, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ December 31, 2025 Current portion of long-term debt $ 601,592 ​ $ 550,028 Current portion of unamortized debt issue cost, net ​ ( 3,154 ) ​ ​ ( 3,216 ) Current portion of long-term debt, net of debt issue costs $ 598,438 ​ $ 546,812 ​ ​ ​ ​ ​ ​ Long-term debt, net of current maturities $ 1,807,875 ​ $ 1,858,341 Long-term portion of unamortized debt issue cost, net ​ ( 12,183 ) ​ ​ ( 13,069 ) Long-term debt, net of current maturities and debt issue costs $ 1,795,692 ​ $ 1,845,272 ​ ​ ​ ​ ​ ​ Total long-term debt (including current portion) $ 2,409,467 ​ $ 2,408,369 Total unamortized debt issue cost, net ​ ( 15,337 ) ​ ​ ( 16,285 ) Total long-term debt, net of debt issue costs $ 2,394,130 ​ $ 2,392,084 ​ 18 Table of Contents As of March 31, 2026, 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 March 31, 2026, $ 55.5 million of the unsecured debt payable to Treasury had a fixed annual interest rate of 1.0 % , which increased to the applicable Secured Overnight Financing Rate ("SOFR") plus 2.0 % in April 2026. The remaining $ 145.1 million had a variable interest rate of SOFR plus 2.0 % . The average effective interest rate on the Company’s debt was approximately 4.4 % at March 31, 2026. During the three months ended March 31, 2026, the Company took delivery of one new E175 aircraft that the Company financed through $ 23.6 million of long-term debt. The debt associated with the E175 aircraft has a 12 -year term, is due in quarterly installments, and is secured by the E175 aircraft. During the three months ended March 31, 2026, the Company executed promissory notes for $ 94.0 million. The promissory notes have four-year terms, are due in monthly installments, and are secured by spare engines. As of March 31, 2026 and December 31, 2025, the Company had $ 47.5 million and $ 47.2 million, respectively, in letters of credit and surety bonds outstanding with various banks and surety institutions. As of March 31, 2026, 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 March 31, 2026, SkyWest Airlines had no amounts outstanding under the line of credit facility. However, at March 31, 2026, SkyWest Airlines had $ 24.6 million in letters of credit issued under the facility, which reduced the amount available under the facility to $ 75.4 million. The line of credit expires March 25, 2028 and has a variable interest rate of 3.5 % plus the one month SOFR rate. 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 March 31, 2026 and December 31, 2025, were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ December 31, 2025 Carrying value ​ $ 2,409,467 ​ $ 2,408,369 Fair value ​ $ 2,385,905 ​ $ 2,376,943 ​ ( 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 March 31, 2026, 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 March 31, 2026. During 2025, the Company received a $ 12.0 million distribution from Aero Engines, which reduced the Company’s investment balance in Aero Engines. As of March 31, 2026 and December 31, 2025, the Company’s investment balance in Aero Engines was $ 13.4 million and $ 12.8 million, respectively, and was recorded in “Other Assets” on the Company’s consolidated balance sheet. The Company’s portion of income generated by Aero Engines for the three months ended March 31, 2026 and 2025, was $ 0.5 million and $ 0.6 million, respectively, which was recorded in “Other 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 had a 25 % ownership interest in Contour at March 31, 19 Table of Contents 2026 and held 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 three months ended March 31, 2026 and 2025, the Company recorded income of $ 0.7 million and $ 0.9 million, respectively, related to its Contour investment, its portion of income generated by Contour, which was recorded in “Other expense, net” on the Company’s consolidated statements of comprehensive income. As of March 31, 2026 and December 31, 2025, the Company’s investment balance in Contour was $ 23.5 million and $ 22.8 million, respectively, and was recorded in “Other Assets” on the Company’s consolidated balance sheet. At March 31, 2026, the Company had $ 7.9 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 three 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 arrangement with Eve Holding, Inc. (“Eve”), to develop a network of deployment for Eve’s electric vertical takeoff and landing aircraft. As of March 31, 2026 and December 31, 2025, the Company held 1.1 million common shares of Eve. During the three months ended March 31, 2026, the Company recorded an unrealized loss of $ 1.6 million in “Other expense, net” on the Company’s consolidated statements of comprehensive income related to its investment in Eve. During the three months ended March 31, 2025, the Company recorded an unrealized loss of $ 3.2 million in “Other expense, net” on the Company’s consolidated statements of comprehensive income related to its investment in Eve. As of March 31, 2026 and December 31, 2025, the fair value of the Company’s investment in Eve was $ 2.6 million and $ 4.3 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 three months ended March 31, 2026 was 5.6 %. The Company’s effective tax rate for the three months ended March 31, 2026 varied from the federal statutory rate of 21.0 % primarily due to the impact of a discrete tax benefit from additional tax deductions generated from employee equity awards that vested at a stock price above the grant date price during the three months ended March 31, 2026, offset by the provision for state income taxes and the impact of non-deductible expenses. The Company’s effective tax rate for the three months ended March 31, 2025 was 16.7 %. The Company’s effective tax rate for the three months ended March 31, 2025 varied from the federal statutory rate of 21.0 % primarily due to the impact of a discrete tax benefit from additional tax deductions generated from employee equity awards that vested during the three months ended March 31, 2025, offset by the provision for state income taxes and the impact of non-deductible expenses. (12) Legal Matters The Company is subject to certain legal actions which it considers routine to its business activities. As of March 31, 2026, 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. 20 Table of Contents