SkyWest Q2 profit falls on higher fuel costs

SkyWest, Inc

SkyWest, Inc

SKYW

0.00


Overview

  • U.S. regional airline's Q2 revenue rose 7% yr/yr, net income declined on higher fuel costs

  • Company approved $250 mln increase to stock repurchase program

  • SkyWest secured agreement to purchase and operate 11 new E175 aircraft for American Airlines


Outlook

  • SkyWest expects to invest in owning and operating 34 more E175s through end of 2028

  • Company anticipates having 300 E175 aircraft in its fleet by end of 2027

  • SkyWest scheduled to purchase 11 E175s for American Airlines with deliveries in 2026 and 2027


Result Drivers

  • HIGHER BLOCK HOURS - Co said Q2 block hour production rose 5% yr/yr and 9% sequentially, reflecting increased fleet utilization and demand

  • FUEL COSTS - Co said higher fuel cost per gallon in prorate business negatively impacted Q2 net income

  • INCREMENTAL OPERATING COSTS - Co attributed higher operating expenses to increased direct operating costs from higher production and increased fuel costs


Company press release: ID:nBw6PTzVsa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Operating Revenue

$1.10 bln

Q2 EPS

$2.54

Q2 Net Income

$100.70 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the airlines peer group is "buy"

  • Wall Street's median 12-month price target for SkyWest Inc is $115.00, about 20.2% above its July 22 closing price of $95.70

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • July 23 - American Airlines cuts 2026 outlook as fuel shock overwhelms revenue gains

  • July 22 - Southwest Airline lowers 2026 profit floor as fuel costs blunt pricing gains

  • July 21 - Alaska Air Q2 swings to loss on fuel cost spike, offsetting revenue gains


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