Key Highlights

● SkyWest earned $3.08 per diluted share in the third quarter on Revenue of $1.12 billion.

● Aircraft fuel expense nearly doubled to $66.3 million from $34.2 million a year earlier.

● Most flying is under capacity purchase agreements where the major carrier typically covers fuel.

● SkyWest expects more than 300 E175s by the end of 2027.

SkyWest (NASDAQ:SKYW), the largest US regional airline, reported higher third-quarter Earnings after Thursday's close, and investors will weigh those results on Friday against a fresh jump in oil prices. A pre-market move for the stock could not be confirmed, so no direction is described.

The quarter

SkyWest reported Net Income of $120 million, or $3.08 per diluted share, for the third quarter of 2026, according to its release. That compares with $2.81 a share a year earlier and $2.54 in the second quarter. Revenue rose 6% to $1.12 billion. One data provider listed the result as a beat of one cent per share versus estimates.

Operating expenses grew faster than revenue, up 7% to $941 million. The company said results were hurt by "higher fuel cost per gallon in SkyWest's prorate business." Aircraft fuel expense nearly doubled to $66.3 million from $34.2 million a year earlier. Depreciation fell after SkyWest extended the estimated useful life of its E175 fleet to 30 years, which helped earnings.

Block hours rose to 401,727 from 384,247, and departures increased about 1.5%. Passengers carried slipped about 3.6% to roughly 12 million, and load Factor fell three points to 81%. The company repurchased about $75 million of stock in the quarter. Cash and marketable securities were $569 million, down from $707 million at the end of 2025, and total Debt was $2.4 billion.

"Our results reflect the value we provide to our customers," CEO Chip Childs said in the release, adding that SkyWest is "well positioned to continue the growth of our E175 fleet in the coming years."

Why fuel matters less, and more

Most of SkyWest's flying is done under capacity purchase agreements with United (NASDAQ:UAL), Delta (NYSE:DAL), American (NASDAQ:AAL) and Alaska (NYSE:ALK), in which the major carrier typically covers fuel. That structure shields much of the Business from oil swings. The exposure sits in its prorate flying, where SkyWest shares ticket revenue and bears its own costs, which is where the fuel hit showed up this quarter.

That matters on Friday. WTI crude was up 2.18% at $104.20 a barrel and Brent up 2.5% at $117.80 as of about 7:41 a.m. ET, according to market data, after Iran said four tankers struck mines in the Strait of Hormuz and Houthis claimed strikes on Saudi oil sites. Higher oil hurts SkyWest's partners directly, which could influence how much regional flying they buy over time.

On the fleet side, SkyWest took delivery of four new E175s for United in the quarter and expects to have more than 300 E175s by the end of 2027. It operated 522 aircraft in service or under contract at September 30, and it has secured Embraer (NYSE:ERJ) delivery positions for 33 more E175s from 2028 through 2031.

The stock trades on the Nasdaq and is part of the Nasdaq Composite. Thursday's close was $95.27, with a Market Value of about $3.7 billion, per market data. The wider market is mixed before the open: Dow futures were flat while S&P 500 futures were down about 1.1% and Nasdaq-100 futures about 2.6% around 8 a.m. ET, per market data, as Amazon (NASDAQ:AMZN) and Intel (NASDAQ:INTC) results hit technology stocks. Airlines and other fuel-sensitive transport names face their own headwind from crude.

Risks and what to watch

Key risks are higher fuel in the prorate business, pilot availability, partner decisions on regional capacity and the cost of financing new aircraft with long-term yields near 5%. Investors will watch whether oil stays above $100 into next week, when attention turns to the November 3 midterms and the Middle East, and how major airline partners adjust their 2027 schedules.