SkyWest Reports 18% Revenue Growth and Increased Net Income in Q1 2025

SkyWest, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total operating revenues reaching $948.5 million, an 18% increase from $803.6 million in the same period last year. The company’s net income also rose to $100.6 million, or $2.42 per diluted share, compared to $60.3 million, or $1.45 per diluted share, in the prior year. This growth was primarily driven by an increase in flying agreements revenue, which accounted for approximately 97% of total operating revenues, bolstered by a higher number of completed block hours and an increase in passenger traffic.

In terms of operational metrics, SkyWest saw a 21.5% increase in block hours, rising from 289,801 hours in Q1 2024 to 352,155 hours in Q1 2025. The number of aircraft in scheduled service or under contract also grew from 475 to 488, reflecting a 2.7% increase. The company operated 201,838 departures during the quarter, a 19.1% increase from the previous year, and carried 10.4 million passengers, marking a 13.6% rise. These operational improvements were attributed to an increase in available pilots, which allowed for greater aircraft utilization.

SkyWest's operating expenses increased by 14.9% to $809.1 million, driven by higher direct operating costs associated with the increased number of flights. Notably, aircraft maintenance expenses surged by 43.8% due to increased maintenance activity on the CRJ fleet. The company also reported a decrease in depreciation and amortization expenses, primarily due to extended estimated useful lives of certain aircraft. The overall increase in operating expenses was offset by a decrease in interest expenses, which fell by 9.1% as a result of reduced outstanding debt.

Strategically, SkyWest has continued to expand its fleet, with plans to add 15 new E175 aircraft from United Airlines and one from Alaska Airlines by 2026. The company is also in the process of converting existing CRJ700s to CRJ550s to enhance operational efficiency. As of March 31, 2025, SkyWest had $750.9 million in cash and marketable securities, down from $801.6 million at the end of 2024, reflecting ongoing investments in fleet expansion and operational improvements.

Looking ahead, SkyWest anticipates continued growth driven by increased demand for regional air travel and strategic partnerships with major airlines. The company remains focused on optimizing its fleet and operational efficiency while navigating potential challenges such as inflationary pressures and labor availability. The management expressed confidence in meeting its financial obligations and capital expenditures over the next 12 months, supported by its robust liquidity position.