SkyWest, Inc. (SKYW) Stock

SkyWest, Inc. (SKYW) is a Industrials stock trading at $96.03 (as of 2026-09-15), with a market capitalization of $3.73B and a trailing P/E of 11.7. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

SkyWest, Inc. operates a regional airline in the United States through its SkyWest Airlines and SkyWest Leasing segments. It provides scheduled passenger and air freight service and offers aircraft and spare engine leasing to third parties, as well as airport customer and ground handling services for other airlines.

Understand SkyWest, Inc.: how it makes money

SkyWest flies regional routes under contract for United and Delta, earning a fixed fee per seat-mile while the hub carrier handles branding, route planning, and ticketing. Nearly all revenue comes from these flying agreements, with a small aircraft and engine leasing side, making SkyWest a fixed-price capacity provider that absorbs fuel and maintenance cost swings.

Major airlines pay SkyWest a fixed per-seat-mile fee for capacity, but SkyWest bears 100% of fuel, crew, and MRO cost swings, so any spike that cannot be fully passed through into fares lands directly on the operating margin.

Revenue by segment (latest quarter)
Flying Agreements$1.0B
Lease and Other$0.0B

Business quality (Mixed): A 14% operating margin is respectable for a regional carrier, but the fixed-price contract model means margins ride directly on fuel and MRO cost management rather than pricing power. The 9.6x P/E (44% below the 17x industry average) reflects that structural vulnerability.

Valuation: At 10× earnings, SKYW trades 44% below the Transportation average (17×). Note: the low multiple may reflect one-time earnings items.

Bull case

  • Partner demand fuels volume growth: Quarterly revenue reached $1.1B, up 7% year over year, supported by strong partner and prorate demand that management says underpins continued production growth.
  • Fleet runway stretches to 2028: The E175 pipeline expands the dual-class fleet through 2028, and CRJ-450/550 conversions add seat flexibility, giving SkyWest a multi-year path for capacity and yield improvement without major capex gaps.
  • Deep valuation discount to peers: SkyWest trades at 9.6x earnings versus the 17x Transportation industry average, a 44% discount that bakes in significant operational risk and leaves room for re-rating if margins stabilize.

Bear case

  • Fuel spike outruns fare pass-through: Prorate fuel expense more than doubled year over year, and fare increases offset only about 60% of that inflation, leaving a growing unpassed cost that compresses the 14% operating margin.
  • MRO shortages cap delivery: Third-party maintenance, repair, and overhaul shortages could constrain aircraft availability, meaning SkyWest may be unable to meet contracted production levels even if demand is strong.
  • Delta fleet dilutes unit economics: Returning lower-margin Delta aircraft partially offset the productivity gains from newer, higher-yielding jet additions, capping the margin improvement that fleet renewal was expected to deliver.
Valuation — source: SEC EDGAR (first-party)
Price$96.03
Market Cap$3.73B
P/E Ratio11.7
EV / EBITDA6.2
Price / Book1.35
Price / Sales0.89
FCF Yield28.0%
DCF Value (model)$107.51
DCF Upside vs Price12.0%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$4.06B
Net Margin10.6%
Return on Equity11.5%
Debt / Equity0.83
Current Ratio0.57
Revenue Growth (YoY)6.5%
EPS Growth (YoY)-14.4%
FCF Growth (YoY)141.4%
Financial Health — source: SEC EDGAR
Altman Z-Score1.81 (grey)
Valuation vs Sector & Industry
Stock P/E11.7
Sector P/E (Industrials)26.1
Industry P/E (Transportation)21.8
vs Sector-55.2%
vs Industry-46.3%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($682.53M)
Institutional Holders Tracked10
Company
SectorIndustrials
IndustryTransportation
CEORussell A. Childs
Employees12,876
CountryUS
IPO Date1986-06-26

SkyWest, Inc. earnings call transcripts

  • SKYW Q2 FY26 earnings call transcript (reported 2026-07-23) · analysis
  • SKYW Q4 FY25 earnings call transcript (reported 2026-01-29) · analysis
  • SKYW Q2 FY25 earnings call transcript (reported 2025-07-24) · analysis

All SKYW earnings calls

Related Companies (Transportation; 8 comparable transport companies)

  • Republic Airways Holdings Inc. (RJET)
  • Frontier Group Holdings, Inc. (ULCC)
  • Allegiant Travel Company (ALGT)
  • JetBlue Airways Corporation (JBLU)
  • Southwest Airlines Company (LUV)
  • Alaska Air Group, Inc. (ALK)
  • United Airlines Holdings, Inc. (UAL)
  • American Airlines Group, Inc. (AAL)
SKYW earnings history · SKYW institutional & insider holders · SKYW KPIs & operating metrics · SKYW financials · SKYW filings, presentations & press releases · SKYW investor presentations & press releases · SKYW SEC filings · SKYW peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-15.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.