What SkyWest (SKYW)'s Strong Q3 Results and Delta Deals Mean For Regional Airline Investors

• On October 30, 2025, SkyWest, Inc. reported third quarter results showing quarterly revenue of US$1.05 billion and net income of US$116.36 million, both higher than the same period last year and above analyst estimates.
• An important development was SkyWest's operational reliability and new agreements, including authorization for SkyWest Charter and expanded E-175 fleet purchases with Delta, which may support future expansion despite industry headwinds.
• We’ll explore how SkyWest’s earnings surprise and high completion rates may influence its outlook for regional air travel growth and stability.

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SkyWest Investment Narrative Recap

To be a SkyWest shareholder, you need to believe that continued regional travel demand and stable carrier partnerships will drive long-term growth, even amid industry-wide risks such as pilot shortages and macroeconomic pressures. The company’s third-quarter earnings beat is a positive signal, but does not materially change the sector’s most pressing short-term catalyst, block-hour recovery, nor meaningfully reduce the ongoing risks related to labor constraints and dependence on major airline contracts.

Among recent developments, SkyWest’s agreement to purchase 16 new E175 aircraft for Delta stands out in the context of current growth catalysts. This move aligns with the push for modernizing the fleet and supporting flexible multiyear contracts, a critical step as SkyWest looks to adapt to both evolving airline relationships and anticipated capacity needs.

However, despite these agreements, investors should be aware that persistent pilot shortages could still limit the company’s ability to expand as planned if...

Read the full narrative on SkyWest (it's free!)

SkyWest's outlook calls for $4.5 billion in revenue and $456.5 million in earnings by 2028. This is based on an assumed annual revenue growth rate of 5.7% and a $48.6 million increase in earnings from the current $407.9 million.

Uncover how SkyWest's forecasts yield a $131.80 fair value, a 31% upside to its current price.

Exploring Other Perspectives

Three community investors on Simply Wall St estimate SkyWest’s fair value in a wide range from US$131.80 up to US$257.27. With pilot shortages and labor cost risk still in focus, reviewing multiple viewpoints could help you spot key issues that may impact future returns.

Explore 3 other fair value estimates on SkyWest - why the stock might be worth just $131.80!

Build Your Own SkyWest Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SkyWest research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free SkyWest research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SkyWest's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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