SKYWEST INC (SKYW) FY2025 10-K Annual Report

Filed: Feb 17, 2026
Industrials
Air Transportation, ScheduledSEC EDGAR

SKYWEST INC (SKYW) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 17, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

SKYWEST INC FY2025 10-K Analysis

Business Overview

  • Core business: regional airline operations under long-term fixed-fee code-share agreements with United, Delta, American, Alaska
  • New segment: SkyWest Charter (SWC) launched in 2023 with 11 CRJ200s for on-demand charter, DOT authorized as commuter air carrier in Sep 2025
  • Strategic shift: converting owned CRJ700s to CRJ550s, with 23 used CRJ550s to enter service by end 2026
  • Fleet: total 637 aircraft including 487 in service/contracts, adding 25 new E175s through 2028; full return to partner schedule operations by end 2025 after pilot attrition easing
  • Workforce: 15,775 employees with 89.6% union representation, no work stoppages; ongoing labor relations under Railway Labor Act with potential union organization risks

Management Discussion & Analysis

  • Revenue $4.06B, up 15.0% YoY from $3.53B; capacity purchase revenue increased $319.3M (10.8%), prorate and SWC revenue up $153.0M (33.5%)
  • Net income $428.3M, vs $323.0M; operating expenses $3.44B, up 13.4% with increased flights and block hours; aircraft maintenance +32.4%, fuel +37.7%
  • Best performing segment SkyWest Airlines & SWC: operating revenue $3.42B (+17.5%), segment profit $263M (+89.3%); worst segment not separately quantified
  • Capital allocation: Outstanding debt down from $2.7B to $2.4B; interest expense decreased 8.7% to $104.5M (total interest not fully explicit); no buybacks or dividends detailed
  • Forward outlook: Fleet expansion planned with 8 new E175 aircraft for United in 2026, 16 for Delta 2027-28, plus used CRJ550s; risks include labor availability and timing of aircraft service entry

Risk Factors

  • US tariffs on aircraft parts increased costs, especially non-US components for E175 jets imported from Brazil, impacting financial condition
  • Ongoing Russia-Ukraine, Israel-Hamas, and Israel-Iran conflicts contributing to macroeconomic uncertainty and potential travel demand reductions
  • Delays and labor shortages among key third-party maintenance providers risk disrupting fleet readiness and reactivation of stored CRJ aircraft
  • Code-share reliance on United and Delta with 353 of 487 aircraft under agreements; termination could materially harm revenue and operations
  • Pilot attrition and FAA regulatory limits constrain flight schedules, risking revenue loss and penalties under capacity purchase agreements

SKYWEST INC FY2025 Key Financial Metrics
XBRL

Revenue

$4.1B

+15.0% YoY

Net Income

$428M

+32.6% YoY

Operating Margin

15.2%

+120bp YoY

Net Margin

10.6%

+140bp YoY

ROE

15.6%

+219bp YoY

Total Assets

$7.4B

+3.5% YoY

EPS (Diluted)

$10.35

+33.2% YoY

Operating Cash Flow

$940M

+35.8% YoY

Source: XBRL data from SKYWEST INC FY2025 10-K filing on SEC EDGAR. All figures in USD.

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