1. Think of SkyWest as the Foxconn for airlines. It operates regional flights with its own planes and pilots for major carriers like Delta, United, and American, much like Foxconn manufactures devices for Apple under Apple's brand.

2. It's like the Uber or Lyft of the regional airline world, providing the planes and pilots that fly under the brands of major airlines like Delta, United, and American, instead of selling tickets directly under its own name.

• Regional Air Transportation Services: Operating flights under contract for major airline partners (e.g., Delta Connection, United Express, American Eagle, Alaska SkyWest), providing essential connectivity to various markets.

SkyWest (SKYW) - Major Customers

SkyWest, Inc. (SKYW) is a regional airline company that primarily provides contract air service to major airlines. Therefore, it sells primarily to other companies, not directly to individual passengers.

The major customer companies of SkyWest, Inc. are:

• Delta Air Lines, Inc. (Symbol: DAL)
• United Airlines, Inc. (part of United Airlines Holdings, Inc.) (Symbol: UAL)
• American Airlines, Inc. (part of American Airlines Group Inc.) (Symbol: AAL)
• Alaska Airlines, Inc. (part of Alaska Air Group, Inc.) (Symbol: ALK)

According to SkyWest's most recent filings, Delta, United, and American collectively accounted for the vast majority of its operating revenues, with Alaska representing a smaller but still significant portion.

• Embraer S.A. (ERJ)
• Bombardier Inc. (BBD.B)
• GE Aerospace (GE)
• RTX Corporation (RTX)

Russell "Chip" Childs, President and Chief Executive Officer

Russell "Chip" Childs has served as President and Chief Executive Officer of SkyWest, Inc. since January 2016, and as President since 2014. He joined SkyWest in 2001 as Vice President – Controller and was President and COO of SkyWest Airlines from 2007-2014. Chip has over 20 years of leadership experience with SkyWest. He holds a bachelor's degree in economics and a master's degree in accounting from Brigham Young University.

Robert J. Simmons, Chief Financial Officer

Robert J. Simmons was named Chief Financial Officer of SkyWest, Inc. in 2014. He oversees all financial controls, capital management, financing, and accounting processes. Prior to SkyWest, he gained extensive experience in corporate finance and public companies, including serving as a Partner at Bendigo Partners and Founding Partner at CrowdClear. His previous roles include Chief Financial Officer at E*TRADE Financial and Treasurer at Iomega.

Wade Steel, Chief Commercial Officer

Wade Steel is the Chief Commercial Officer of SkyWest, Inc. He joined the SkyWest leadership team in 2007, serving as Vice President – Controller of SkyWest Airlines from 2011-2014, and Executive Vice President of SkyWest, Inc. in 2014 before assuming his current role. Before joining SkyWest, he spent seven years in public accounting, providing audit and advisory services to various industries. He is a certified public accountant with bachelor's and master's degrees in accounting from Brigham Young University.

Greg Wooley, Executive Vice President – Operations

Greg Wooley serves as Executive Vice President – Operations for SkyWest Airlines, overseeing InFlight, Airport Operations, Flight Operations, Safety, and Operations Control divisions. He previously held the position of Vice President of Airport Operations for SkyWest. Wooley began his aviation career as a first officer and has over 25 years of experience in aviation operations.

Eric Woodward, Chief Accounting Officer

Eric Woodward is the Chief Accounting Officer of SkyWest, Inc., a role he has held since 2011. He joined SkyWest in 2004 as Director - Financial Planning and Analysis and was named Vice President - Controller in 2007. He is responsible for the company's accounting, reporting, SEC compliance, financial analysis, corporate taxation, and internal controls. Before SkyWest, Woodward worked in public accounting for seven years, providing audit and advisory services.

Key Risks:

1. Financial Leverage and Liquidity Position: SkyWest carries a significant amount of long-term debt, with approximately $2.7 billion in total long-term debt obligations as of December 31, 2024. The company's debt-to-equity ratio, which stood at 1.45, indicates substantial financial leverage. Furthermore, SkyWest's liquidity position has shown a weakening trend, with its current ratio declining from 1.17 in 2022 to 0.73 in the second quarter of 2025, raising concerns about its ability to meet short-term obligations. This high level of fixed obligations could constrain its capacity to secure additional financing for expansion or divert cash flows from operations to debt servicing.
2. Rising Operating Expenses: The company is experiencing significant challenges from surging operating expenses, particularly labor and maintenance costs. In the second quarter of 2025, total operating expenses increased by 15.7% year over year. Labor costs, which constitute a substantial portion of total expenses (45.1%), climbed 9.9% from the prior year, while maintenance expenses jumped 30.3% year over year. These escalating costs are exerting considerable pressure on SkyWest's profitability and overall financial health.
3. Dependence on Major Airline Partners and Pilot Availability: SkyWest largely operates under capacity purchase agreements with major airline partners. While these agreements often transfer risks like fuel price fluctuations to the partners, SkyWest remains susceptible to changes in these contracts or its reliance on a limited number of large customers. Additionally, labor availability, specifically the shortage of regional airline pilots, is a direct risk factor that can impact operations and financial performance. Revenue generated from prorate agreements can also be terminated with as little as 120 days' notice and is not guaranteed to increase.

The intensifying pilot shortage within the regional airline sector presents a clear emerging threat. This shortage directly impacts SkyWest's ability to staff flights, fulfill existing contracts with major airlines, and secure new business. Major airlines are actively recruiting pilots from regional carriers, leading to increased attrition and higher recruitment and training costs for SkyWest. This structural challenge in pilot supply is forcing operational reductions and threatening the long-term viability of the regional airline business model, which relies on a consistent pipeline of qualified pilots.

• The North America Regional Jet Market was valued at approximately USD 4.46 billion in 2024. This market is projected to grow to nearly USD 6.09 billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 3.95% from 2025 to 2032. In 2023, North America held a dominant share of 36.13% of the global regional jet market, with a market size of USD 4.56 billion.

SkyWest (SKYW) is anticipated to experience future revenue growth over the next two to three years, driven by several key factors:

1. Fleet Modernization and Expansion with E175 Aircraft: SkyWest is actively investing in and expanding its fleet of new, fuel-efficient E175 aircraft, with plans to operate nearly 300 E175s by 2028. This includes new agreements to purchase and operate additional E175s under multi-year contracts with major airline partners such as United, Delta, and Alaska. This modernization strategy is expected to improve cost structure, enhance asset utilization, and support long-term agreements.

2. Strong Partnerships and Contracted Flying Agreements: A significant portion of SkyWest's revenue is generated through capacity purchase agreements with major airlines like United, American, and Delta. The company has secured multi-year contract extensions, including one with United for CRJ200 jets, which ensures stable, fee-based revenue. New agreements for E175s further solidify these long-term partnerships.

3. Increased Air Travel Demand: SkyWest is benefiting from a robust recovery in air travel demand, particularly in the leisure sector and for small and mid-sized community air services. This increase in passenger numbers directly contributes to the company's revenue growth.

4. Growth in Prorate and Charter Services: The company has seen growth in its prorate and charter revenue, with the tentative Department of Transportation (DOT) approval for SkyWest Charter opening up new revenue streams through flexible, non-scheduled flight services. This expansion into diversified service offerings is a key growth area.

5. Improved Pilot Staffing Dynamics: Industry-wide challenges, such as production delays at Boeing, have led major airlines to slow or pause pilot hiring. This has, in turn, moderated the migration of pilots from regional carriers to mainline airlines. Consequently, SkyWest is experiencing enhanced pilot staffing and fleet utilization, which is expected to boost revenues.

Share Repurchases

• SkyWest repurchased 10.7 million shares for $298 million from 2023 through Q1 2024.
• In May 2025, the Board of Directors approved a $250 million increase to its existing share repurchase plan, bringing the total remaining authorized amount to approximately $272 million.
• SkyWest repurchased 244,000 shares for $26.6 million in Q3 2025, and as of September 30, 2025, had $240 million remaining under its current repurchase program.

Share Issuance

• No significant share issuances beyond employee stock awards have been identified in the last 3-5 years.

Outbound Investments

• In early 2024, SkyWest acquired a 25% ownership stake in Contour Airlines to help with pilot supply and CRJ asset monetization.
• In September 2025, SkyWest made a strategic equity investment in Maeve Aerospace, a European innovator in sustainable aircraft design, securing exclusive launch customer rights and enhancing its long-term fleet replacement strategy.

Capital Expenditures

• Capital expenditures were $681 million in 2021, $683 million in 2022, and $252 million in 2023.
• Anticipated capital expenditures for 2024 were between $275 million and $325 million, including the acquisition of five new Embraer 175 (E175) aircraft.
• Expected capital expenditures for 2025 are approximately $550 million to $625 million, focusing on funding growth initiatives such as the purchase of new E175s, CRJ900 airframes, and aircraft and engines supporting CRJ550 opportunities. Expected capital expenditures for 2026 are also between $550 million and $625 million.