SkyWest, Inc. SKYW reported impressive first-quarter 2026 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
Quarterly earnings per share of $2.21 beat the consensus mark by 2.8% but declined 8.7% year over year. Revenues of $1.01 billion beat the Zacks Consensus Estimate by 3.6% and improved 6.8% year over year.
SkyWest, Inc. Price, Consensus and EPS Surprise
SkyWest, Inc. price-consensus-eps-surprise-chart | SkyWest, Inc. Quote
Revenues from flying agreements (contributing 96.5% to the top line) rose 6.8% from the prior-year reported figure of $916 million. The airline carried 0.6% fewer passengers in the reported quarter on a year-over-year basis. Departures increased 1.1% on a year-over-year basis. The passenger load factor (percentage of seats filled by passengers) fell 0.6 points to 78%.
Concurrent with its first-quarter 2026 results, SkyWest intends to convert its CRJ200 aircraft, operating for United Airlines UAL, into 41-seat, dual-class CRJ450s, with the first aircraft entering service in fall 2026.
SkyWest had one E175 aircraft delivery for Alaska Airlines ALK in the first quarter of 2026. The company’s aircraft lease agreements for the E175 fleet, which supports Alaska’s capacity purchase agreement, are set to expire between 2030 and 2034.
By 2028-end, SkyWest anticipates having more than 300 E175 aircraft in its fleet. As previously announced, SkyWest entered into a purchase agreement with Embraer, which secures delivery positions for 44 additional E175s from 2028 through 2032 for potential future flying opportunities. SkyWest secured purchase rights on 50 additional E175s from Embraer.
Operating expenses were $889 million, up 10% year over year, owing to an expected rise in incremental direct operating costs associated with increased production in the reported quarter and higher pilot training costs.
At the first-quarter end, the company had cash and marketable securities of $627 million compared with $707 million at the prior-quarter end. Long-term debt (net of current maturities) was $1.80 billion compared with $1.85 billion reported at the end of the prior quarter.
Capital expenditures during the reported quarter were $102 million, which included the purchase of one new E175 aircraft, spare engines and other fixed assets.
SkyWest repurchased 783,000 shares for $75 million during the first quarter of 2026. As of March 31, 2026, SkyWest had $138 million available under its current share repurchase program.
Currently, SkyWest carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q1 Performances of Other Transportation Companies
Delta Air Lines DAL reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis. Revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
United Airlines Holdings, Inc. UALreported solid first-quarter 2026 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate as well as improved on a year-over-year basis.
UAL's first-quarter 2026 adjusted earnings per share (EPS) (excluding 95 cents from non-recurring items) of $1.19 surpassed the Zacks Consensus Estimate of $1.08 and increased 30.8% on a year-over-year basis. The reported figure lies within the guided range of $1.00-$1.50.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).