Skywest Inc (NASDAQ: SKYW)

SkyWest provides scheduled passenger service to destinations in the United States Canada and Mexico through its primary operating entity SkyWest Airlines. Substantially all flights are operated as United Express Delta Connection American Eagle or Alaska Airlines flights under code share agreements with those carriers. These arrangements are typically long term fixed fee contracts where partners pay based on completed flights flight time and aircraft under contract.

Revenue is generated primarily through fixed fees paid by major airline partners under capacity purchase agreements for each completed flight flight hour and aircraft in service. Additional revenue comes from prorate agreements where the company shares ticket revenue on certain routes and from leasing aircraft and engines to third parties. The company also earns income from its charter subsidiary which offers on demand flights.

The company operates through the following segments: SkyWest Leasing and SkyWest Charter.

• SkyWest Leasing: This segment finances new E175 aircraft under capacity purchase agreements and records the associated depreciation and interest expense. It also generates revenue from leasing aircraft and engines to third parties including 40 CRJ700 aircraft five CRJ900 aircraft and various regional jet engines as of December 31 2025.

• SkyWest Charter provides on demand charter service using CRJ200 aircraft configured with 30 seats and had 11 aircraft available for such service as of December 31 2025. In September 2025 the U S Department of Transportation granted SkyWest Charter authorization to operate as a commuter air carrier.

SkyWest is the largest regional airline in the United States by number of flights and aircraft in service. It competes with other regional carriers such as CommuteAir Endeavor Envoy PSA Piedmont Horizon GoJet and Republic. Its competitive advantages include long term fixed fee contracts with major airlines strong operational reliability and a fleet composed of Embraer and Bombardier regional jets.

The company's primary customers are the major airlines United Delta American and Alaska for whom it operates flights under code share agreements. In addition SkyWest Leasing serves third party lessees of aircraft and engines and SkyWest Charter serves on demand charter clients.