SkyWest's net profits soared to $100.5 million in the first quarter of 2025, up from $60.3 million a year prior.
The US regional airline's total operating revenues were up from $803.6 million last year to $948.5 million in this year's first quarter. Operating revenues were above operating expenses, which totalled $809.1 million in the first quarter — up from $704.1 million last year. This resulted in an operating income result of $139.4 million, up from $100 million.
The company's block hour production increased by 22% in the first quarter, compared to the same period last year, and was up slightly on the fourth quarter. The company said this reflected improvements in captain availability, higher fleet utilisation, and strong demand.
The airline said during its earnings call that it expects around 12-13% increase in block hour production in 2025, supported by improved fleet utilisation and availability.
SkyWest president and CEO Chip Childs said during the company's earnings call: “We believe we are now in a place where our pilot staffing, hiring and production are well matched with a very robust pipeline. We are fully confident the measures we have put into place over the past few years will ensure staffing is stabilized over the long term, and we continue to expect block hour production to be up about 12% to 13% this year compared to 2024.”
Capital expenditure totalled $73 million in the first quarter, which related to the purchase of four CRJ550 aircraft, as well as spare engines and other fixed assets. The company also forecasts capital expenditure to total $600 million for the full year, which will support the acquisition of eight new E175s and investments in CRJ550 aircraft. The company will receive 16 new E175s over the next couple of years.
“We continue to play the long game and to invest in our fleet and future and to ensure we are in the best possible situation to respond to market demand,” said Childs.
In addition, maintenance expenses are expected to average $200 million per quarter this year. Furthermore, SkyWest expects to be in the range of $9 earnings per share (EPS) for the full year.
As of March 31, 2025, the company had $751 million in cash and marketable securities, compared to $802 million at the end of last year. The company's total debt was $2.6bn at the end of the quarter, down from $2.7bn as of the end of December 2024.
SkyWest added that it has 16 new E175s on order with 15 for United Airlines and one for Alaska. The company anticipates eight deliveries this year and eight next year.
“We do expect to see delivery delays from Embraer this year, and we now anticipate that the majority of our 2025 deliveries will be in the second half of the year,” said SkyWest chief commercial officer Wade Steel.
As of the end of 2026, the company's total E175 fleet will be 278 aircraft.