SkyWest SKYW Form 10-Q filing Q2 FY2026

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

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SKYWEST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

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ASSETS

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See accompanying notes to condensed consolidated financial statements.

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SKYWEST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Continued)

(Dollars in thousands)

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LIABILITIES AND STOCKHOLDERS’ EQUITY

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See accompanying notes to condensed consolidated financial statements.

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SKYWEST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

(In thousands, except per share amounts)

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See accompanying notes to condensed consolidated financial statements.

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SKYWEST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

(In thousands)

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See accompanying notes to condensed consolidated financial statements.

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SKYWEST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

(In thousands)

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See accompanying notes to condensed consolidated financial statements.

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See accompanying notes to condensed consolidated financial statements.

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SKYWEST, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

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(1) Condensed Consolidated Financial Statements

Basis of Presentation

The condensed consolidated financial statements of SkyWest, Inc. (“SkyWest” or the “Company”), its operating subsidiary SkyWest Airlines, Inc. (“SkyWest Airlines”), its leasing subsidiary SkyWest Leasing, Inc. (“SkyWest Leasing”) and its charter service subsidiary SkyWest Charter, LLC (“SWC”) included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal recurring nature, unless otherwise disclosed. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. The results of operations for the three and six months ended June 30, 2026, are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions.

Recent Accounting Pronouncements

In March 2024, the Financial Accounting Standards Board issued Accounting Standards Update No. 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Accounting Standards Codification (“ASC”) Subtopic 220-40) – Disaggregation of Income Statement Expenses”, which enhances the transparency and comparability of financial statements by requiring companies to disclose more granular information about expense components. The guidance is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures.

(2) Operating Revenues

The Company recognizes revenue under its flying agreements and under its lease, airport services and other service agreements when the service is provided under the applicable agreement. Under the Company’s fixed-fee agreements (referred to as “capacity purchase” agreements) with United Airlines, Inc. (“United”), Delta Air Lines, Inc. (“Delta”), American Airlines, Inc. (“American”) and Alaska Airlines, Inc. (“Alaska”) (each, a “major airline partner”), the major airline partner generally pays the Company a fixed-fee for each departure, flight hour (measured from takeoff to landing, excluding taxi time) or block hour (measured from takeoff to landing, including taxi time) incurred, and an amount per aircraft in service each month, with additional incentives based on flight completion, on-time performance or other performance metrics. The major airline partner also directly pays for or reimburses the Company for certain direct expenses incurred under the capacity purchase agreement, such as fuel, airport landing fees and airport rents. Under the capacity purchase agreements, the Company’s performance obligation is met when each flight is completed, measured in completed block hours, and is reflected in flying agreements revenue. The transaction price for the capacity purchase agreements is determined from the fixed-fee consideration, incentive consideration and directly reimbursed expenses earned as flights are completed over the agreement term. For the six months ended June 30, 2026 and 2025, capacity

purchase agreements represented approximately 81.9% and 85.5% of the Company’s flying agreements revenue, respectively.

Under the Company’s “prorate” agreements, the major airline partner and the Company negotiate a passenger fare proration formula, pursuant to which the Company receives a percentage of the ticket revenues for those passengers traveling for one portion of their trip on a Company aircraft and the other portion of their trip on the major airline partner. Under the Company’s prorate agreements, the performance obligation is met and revenue is recognized when each flight is completed based upon the portion of the prorate passenger fare the Company determines that it will receive for each completed flight. The transaction price for the prorate agreements is determined from the proration formula derived from each passenger ticket amount on each completed flight over the agreement term. Certain routes under the Company’s prorate agreements are subsidized by the U.S. Department of Transportation under the Essential Air Service (“EAS”) program, a program created to ensure small communities in the United States maintain a minimum level of scheduled air service. The EAS contracts are generally between two and three years in duration and the Company recognizes EAS revenue on a per-completed-flight basis pursuant to the terms of each contract. In the event the Company receives upfront consideration for an EAS contract, the Company recognizes the revenue on a per-completed flight basis over the EAS contract term. Under the Company’s charter operations, the Company negotiates a fare for the charter flight with the customer. The performance obligation is met and revenue is recognized upon completion of the flight. For the six months ended June 30, 2026 and 2025, prorate agreements and charter revenue represented approximately 18.1% and 14.5% of the Company’s flying agreements revenue, respectively.

The following table disaggregates the Company’s flying agreements revenue by type for the three and six months ended June 30, 2026 and 2025 (in thousands):

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The Company allocates the total consideration received under its capacity purchase agreements between lease and non-lease components based on stand-alone selling prices. A portion of the Company’s compensation under its capacity purchase agreements relates to operating the aircraft, identified as the non-lease component of the capacity purchase agreement. The Company recognizes revenue attributed to the non-lease component received as fixed-fees for each departure, flight hour or block hour on an as-completed basis for each reporting period. The Company recognizes revenue attributed to the non-lease component received as fixed monthly payments per aircraft proportionate to the number of block hours completed during each reporting period, relative to the estimated number of block hours the Company anticipates completing over the remaining contract term. Accordingly, the Company’s revenue recognition will likely vary from the timing of cash receipts under the Company’s capacity purchase agreements. The Company refers to cash received under its capacity purchase agreements prior to recognizing revenue as “deferred revenue,” and the Company refers to revenue recognized prior to billing its major airline partners under its capacity purchase agreements as “unbilled revenue” for each reporting period.

A portion of the Company’s compensation under its capacity purchase agreements is designed to reimburse the Company for certain aircraft ownership costs. The consideration for aircraft ownership costs varies by agreement but is intended to compensate the Company for providing its aircraft under the contract. The consideration received for the use of the aircraft under the Company’s capacity purchase agreements is accounted for as lease revenue, inasmuch as the agreements identify the “right of use” of a specific type and number of aircraft over a stated period of time. The lease revenue associated with the Company’s capacity purchase agreements is accounted for as an operating lease and is reflected as flying agreements revenue on the Company’s consolidated statements of comprehensive income. The Company recognizes fixed monthly lease payments as lease revenue using the straight-line basis over the capacity

purchase agreement term and variable lease payments in the period when the block hours are completed. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statement of comprehensive income because the use of the aircraft is not a separate activity of the total service provided under the capacity purchase agreements.

The following table summarizes the amount of deferred revenue, recognition of previously deferred revenue and change in unbilled revenue for revenue recognized that is in excess of (or less than) the fixed monthly non-lease and lease payments received under the Company’s capacity purchase agreements for the three and six months ended June 30, 2026 and 2025 (in thousands):

The Company's unbilled revenue and deferred revenue balances were reflected in the following balance sheet line items at June 30, 2026 and December 31, 2025 (in thousands):

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The Company’s capacity purchase and prorate agreements include weekly provisional cash payments from the respective major airline partner based on a projected level of flying each month. The Company and each major airline partner subsequently reconcile these payments to the actual completed flight activity on a monthly or quarterly basis.

In several of the Company’s agreements, the Company is eligible to receive incentive compensation upon the achievement of certain performance criteria. The incentives are defined in the agreements and are measured and determined on a monthly or annual basis. At the end of each period during the term of an agreement, the Company calculates the incentives achieved during that period and recognizes revenue attributable to that agreement accordingly, subject to the variable constraint guidance under ASC Topic 606.

As of June 30, 2026, the Company had 517 aircraft in scheduled service or under contract pursuant to code-share agreements. The Company’s fleet includes Embraer E175 regional jet aircraft (“E175”), Canadair CRJ900 regional jet aircraft (“CRJ900”), Embraer E170 regional jet aircraft (“E170”), Canadair CRJ700 regional jet aircraft (“CRJ700”), a 50-seat configuration of the CRJ700 aircraft, commonly referred to as a “CRJ550,” and Canadair CRJ200 regional jet aircraft (“CRJ200”). The following table summarizes the significant provisions of each code-share agreement the Company has with each major airline partner through SkyWest Airlines:

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* The Company’s prorate agreements are based on specific routes, not a specific aircraft count. The number of aircraft listed above for each prorate agreement approximates the number of aircraft the Company uses to serve the prorate routes.

In addition to the contractual agreements described above, as of June 30, 2026, SkyWest Airlines reached agreements with certain major airline partners to place additional aircraft under capacity purchase agreements as summarized below. The delivery timing referenced below is subject to change.

• Capacity purchase agreement with United for seven new E175 aircraft, which are scheduled for delivery in 2026. The Company anticipates financing the aircraft through debt.
• Capacity purchase agreement with American for 11 new E175 aircraft. Four new E175 aircraft are currently scheduled for delivery in 2026 and seven new E175 aircraft are scheduled for delivery in 2027. The Company anticipates financing the aircraft through debt. The Company expects to remove 11 CRJ700 aircraft from the American capacity purchase agreement on a one-for-one basis as these 11 new E175 aircraft are placed into service.
• Capacity purchase agreement with Delta for 16 new E175 aircraft. 10 new E175 aircraft are currently scheduled for delivery in 2027 and six new E175 aircraft are scheduled for delivery in 2028. The Company anticipates financing the aircraft through debt. The Company expects to remove 16 CRJ aircraft from the Delta capacity purchase agreement on a one-for-one basis as these 16 new E175 aircraft are placed into service.
• Capacity purchase agreement with United for 12 used CRJ550 aircraft that are anticipated to be placed into service by the end of 2026. Pursuant to this agreement, the Company is in the process of converting its owned CRJ700s to CRJ550s.

When an aircraft is scheduled for expiration from a capacity purchase agreement, the Company may, as practical under the circumstances, negotiate an extension with the respective major airline partner, negotiate the placement of the aircraft with another major airline partner, return the aircraft to the major airline partner when the aircraft is provided by the major airline partner, place owned aircraft for sale or pursue other uses for the aircraft. Other uses for the aircraft may include placing the aircraft in a prorate agreement, leasing the aircraft to a third party or disassembling aircraft components such as the engines and parts to be used as spare inventory.

Lease, airport services and other revenues primarily consist of revenue generated from aircraft and spare engines leased to third parties, maintenance services provided to third parties and airport customer service agreements, such as gate and ramp agent services at various airports where the Company has been contracted by third parties to provide such services. The following table represents the Company’s lease, airport services and other revenues for the three and six months ended June 30, 2026 and 2025 (in thousands):

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The following table summarizes future minimum rental income under operating leases primarily related to leased aircraft and engines that had remaining non-cancelable lease terms as of June 30, 2026 (in thousands):

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Of the Company’s $5.9 billion of property and equipment, net of accumulated depreciation, as of June 30, 2026, $233.4 million of regional jet aircraft and spare engines were leased to third parties under operating leases. The

Company’s mitigation strategy for the residual asset risks of these assets includes leasing aircraft and engine types that can be operated by the Company in the event of a default. Additionally, the operating leases typically have specified lease return condition requirements paid by the lessee to the Company and the Company typically maintains inspection rights under the leases.

The transaction price for airport customer service agreements is determined from an agreed-upon rate by location applied to the applicable number of flights handled by the Company over the agreement term.

The Company’s operating revenues could be impacted by several factors, including changes to the Company’s code-share agreements with its major airline partners, changes in flight schedules, contract modifications resulting from contract renegotiations, the Company’s ability to earn incentive payments contemplated under the Company’s code-share agreements and settlement of reimbursement disputes with the Company’s major airline partners.

Other ancillary revenues commonly associated with airlines, such as baggage fee revenue, ticket change fee revenue and the marketing component of the sale of mileage credits, are retained by the Company’s major airline partners on flights that the Company operates under its code-share agreements.

Allowance for Credit Losses

The Company has an allowance for credit losses associated with its accounts receivable, notes receivable and third-party debt guarantees. The Company monitors publicly available credit ratings for entities for which the Company has a significant receivable balance or guarantee. As of June 30, 2026, the Company had gross receivables of $192.5 million in current assets and gross receivables of $252.7 million in other long-term assets. As of December 31, 2025, the Company had gross receivables of $163.3 million in current assets and gross receivables of $266.3 million in other long-term assets. The Company has established credit loss reserves based on publicly available historic default rates issued by a third party for companies with similar credit ratings, factoring in the amount and term of the Company’s respective accounts receivable, notes receivable or guarantees. During the six months ended June 30, 2026, there were no significant changes in the outstanding accounts receivable, notes receivable, guarantees or credit ratings of the entities.

The following table summarizes the changes in allowance for credit losses (in thousands):

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(3) Capital Transactions

Stock-Based Compensation

During the six months ended June 30, 2026, the Company granted 76,648 performance shares and 32,850 restricted stock units to certain employees of the Company under the SkyWest, Inc. Amended and Restated 2019 Long-Term Incentive Plan. The performance shares have a three-year vesting period during which the recipient must remain employed with the Company. The number of performance shares awardable from the 2026 grants can range from 0% to 200% of the original amount granted depending on the Company’s performance over three one-year measurement periods against the pre-established targets. The restricted stock units granted in 2026 will vest in three equal installments, with one-third vesting each year on the grant date anniversary. Upon vesting, each performance share and restricted stock unit will be replaced with one share of common stock. The weighted average fair value of these performance shares and restricted stock units on their date of grant was $101.47 per share.

Additionally, during the six months ended June 30, 2026, the Company granted 6,095 fully vested shares of common stock and 1,219 fully vested deferred stock units to the Company’s directors at a weighted average grant date fair value of $83.22.

The Company accounts for forfeitures of restricted stock units and performance shares when forfeitures occur. The estimated fair value of the performance shares and restricted stock units is amortized over the applicable vesting periods. Stock-based compensation expense for the performance shares is based on the Company’s anticipated outcome of achieving the performance metrics. During the six months ended June 30, 2026 and 2025, the Company recorded pre-tax stock-based compensation expense of $8.3 million and $9.9 million, respectively.

**(**4) Stock Repurchase

The Company’s Board of Directors (the “Board”) adopted a stock repurchase program in May 2023, which authorizes the Company to repurchase shares of the Company’s common stock in the public market or in private transactions, from time to time, at prevailing prices. Under the stock repurchase program, the Board initially authorized up to $250.0 million for the repurchase of the Company’s common stock. In May 2025, the Board approved a $250.0 million increase to the existing stock repurchase program. At June 30, 2026, $63.2 million remained available under the stock repurchase program. In July 2026, subsequent to the end of the quarter, the Board approved an additional $250 million increase to the existing stock repurchase program.

During the six months ended June 30, 2026, the Company repurchased 1,615,756 shares of common stock for $149.9 million at a weighted average price per share of $92.76. The Company also recorded $0.8 million of excise tax related to the stock repurchases as treasury stock in the Company’s stockholders’ equity for the six months ended June 30, 2026. During the six months ended June 30, 2025, the Company repurchased 335,843 shares of common stock for $31.0 million at a weighted average price per share of $92.24. The Company did not incur excise tax related to the stock repurchases for the six months ended June 30, 2025.

(5) Net Income Per Common Share

Basic net income per common share (“Basic EPS”) excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share. During the six months ended June 30, 2026 and 2025, 155,000 and 216,000 performance shares (at target performance) were excluded from the computation of Diluted EPS because the Company had not achieved the minimum target thresholds for these shares as of June 30, 2026 and 2025, respectively.

The calculation of the weighted average number of common shares outstanding for Basic EPS and Diluted EPS are as follows for the periods indicated (in thousands, except per share data):

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(6) Segment Reporting

GAAP requires disclosures related to components of a company for which separate financial information is available to, and regularly evaluated by, the Company’s chief operating decision maker when deciding how to allocate resources and in assessing performance.

The Company’s two reportable segments consist of (1) the operations of SkyWest Airlines and SWC (collectively, “SkyWest Airlines and SWC”) and (2) SkyWest Leasing activities.

The Company’s chief operating decision maker analyzes the profitability of aircraft separately from the profitability of the Company’s capital deployed for new aircraft and the related aircraft financings, including the Company’s E175 fleet. The SkyWest Airlines and SWC segment includes revenue earned under the applicable capacity purchase agreements attributed to operating such aircraft and the respective operating costs, and revenue and operating expenses attributed to prorate agreements and airport services agreements. The SkyWest Leasing segment includes applicable revenue earned under the applicable capacity purchase agreements attributed to the ownership of new aircraft acquired through the issuance of debt and the respective depreciation and interest expense of such aircraft. The SkyWest Leasing segment also includes the activity of leasing regional jet aircraft and spare engines to third parties and other activities. The SkyWest Leasing segment’s total assets and capital expenditures include new aircraft acquired through the issuance of debt and assets leased to third parties.

The chief operating decision maker assesses performance for each segment and decides how to allocate resources based on income before income taxes. The chief operating decision maker uses the segment profit or loss measure when assessing performance of the segment and monitors budget versus actual results to allocate resources for each segment predominantly in the annual budget and forecasting process.

The following represents the Company’s segment data for the three-month periods ended June 30, 2026 and 2025 (in thousands).

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(1) Other segment items include aircraft fuel; airport related expenses; other operating expenses consisting primarily of property taxes, hull and liability insurance, simulator costs, aircraft rentals, crew per diem and crew hotel costs; interest income and other income (expense), net.

(2) Segment profit is equal to income before income taxes.

The following represents the Company’s segment data for the six-month periods ended June 30, 2026 and 2025 (in thousands).

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(1) Other segment items include aircraft fuel; airport related expenses; other operating expenses consisting primarily of property taxes, hull and liability insurance, simulator costs, aircraft rentals, crew per diem and crew hotel costs; interest income and other income (expense), net.

(2) Segment profit is equal to income before income taxes.

(7) Leases, Commitments, Guarantees and Contingencies

The Company leases property and equipment under operating leases. For leases with durations longer than 12 months, the Company recorded the related operating lease right-of-use asset and operating lease liability at the present value of lease payments over the term. The Company used its incremental borrowing rate to discount the lease payments based on information available at lease commencement.

Aircraft

As of June 30, 2026, excluding aircraft financed by the Company’s major airline partners that the Company operates for them under contract, the Company leased eight aircraft under long-term lease agreements with remaining terms ranging from three to four years. The Company is subleasing these eight aircraft to a third party.

Airport facilities

The Company has operating leases for facility space including airport terminals, office space, cargo warehouses and maintenance facilities. The Company generally leases this space from government agencies that control the use of the various airports. The remaining lease terms for facility space vary from one month to 30 years. The Company’s operating leases with lease rates that are variable based on airport operating costs, use of the facilities or other variable factors are excluded from the Company’s right-of-use assets and operating lease liabilities in accordance with accounting guidance.

Leases

As of June 30, 2026, the Company’s right-of-use assets were $87.0 million, the Company’s current maturities of operating lease liabilities were $21.9 million, and the Company’s noncurrent lease liabilities were $65.8 million. During the six months ended June 30, 2026, the Company paid $21.6 million under operating leases reflected as a reduction from operating cash flows.

The table below presents lease related terms and discount rates as of June 30, 2026:

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Weighted-average remaining lease term for operating leases 9.8 years

Weighted-average discount rate for operating leases 6.3%

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The Company’s lease costs for the three and six months ended June 30, 2026 and 2025 included the following components (in thousands):

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As of June 30, 2026, the Company leased aircraft, airport facilities, office space and other property and equipment under non-cancelable operating leases, which are generally under long-term agreements pursuant to which the Company pays taxes, maintenance, insurance and certain other operating expenses applicable to the leased property. The Company expects that, in the normal course of business, such operating leases that expire will be renewed or replaced by other leases.

As of June 30, 2026, the Company had a firm purchase commitment for 67 E175 aircraft from Embraer with anticipated delivery dates through 2031. Under this commitment, the Company expects to purchase and place into service seven E175 aircraft with United, 11 E175 aircraft with American and 16 E175 aircraft with Delta. Additionally, the Company secured delivery positions for 33 additional E175 aircraft between 2028 and 2031.

The following table summarizes the Company’s commitments and obligations for future minimum rental payments required under operating leases that had initial or remaining non-cancelable lease terms as of June 30, 2026, firm aircraft and spare engine commitments, interest commitments and principal maturities on long-term debt as noted for each of the next five years and thereafter (in thousands):

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In addition to the table above, in 2024, the Company entered into a master equipment purchase agreement with another airline to acquire certain airframes and engines and lease the assets back to the airline under a five-year term. The Company accounted for the transaction as a failed sale-leaseback in accordance with ASC 842 as the criteria for a sale were not met. At June 30, 2026, the Company estimated the remaining financing obligation under the agreement will be between $15.0 million and $18.0 million and anticipated closing on the remaining financings between 2026 and 2027.

Guarantees

In 2022, the Company agreed to guarantee $19.8 million of debt for a 14 CFR Part 135 air carrier. The debt is secured by the Part 135 air carrier’s aircraft and engines and has a five-year term. In exchange for providing the guarantee, the Company received 6.5% of the guaranteed amount as consideration, payable in the estimated value of common stock of the Part 135 air carrier, all of which was sold in 2023. The purpose of this guarantee is to help reduce the financing costs of aircraft for the third party in an effort to increase the potential number of commercial pilots in the Company’s hiring pipeline. The balance of the debt under the guarantee was $11.8 million as of June 30, 2026.

The Company recorded the estimated credit loss associated with the guarantees based on publicly available historical default rates issued by a third party for companies with similar credit ratings, factoring the collateral and guarantee term.

(8) Fair Value Measurements

The Company holds certain assets that are required to be measured at fair value in accordance with GAAP. The Company determined the fair value of these assets based on the following three levels of inputs:

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Level 1 ​ — ​ Quoted prices in active markets for identical assets or liabilities.

Level 2 ​ — ​ Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Some of the Company’s marketable securities primarily utilize broker quotes in a non-active market for valuation of these securities.

Level 3 ​ — ​ Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, therefore requiring an entity to develop its own assumptions.

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As of June 30, 2026, and December 31, 2025, the Company held certain assets that are required to be measured at fair value on a recurring basis. Assets measured at fair value on a recurring basis are summarized below (in thousands):

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The Company’s “Marketable Securities” classified as Level 2 securities primarily utilize broker quotes in a non-active market for valuation of these securities.

The Company did not make any significant transfers of securities between Level 1, Level 2 and Level 3 during the six months ended June 30, 2026. The Company’s policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period.

As of June 30, 2026, and December 31, 2025, the Company classified $519.6 million and $584.2 million of marketable securities, respectively, as short-term because it had the intent to maintain a liquid portfolio and the ability to redeem the securities within one year. At the time of sale, any realized appreciation or depreciation, calculated by the

specific identification method, is recognized in other income (expense), net. As of June 30, 2026, and December 31, 2025, the cost of the Company’s marketable securities was $520.1 million and $583.9 million, respectively.

(9) Long-term Debt

Long-term debt consisted of the following as of June 30, 2026, and December 31, 2025 (in thousands):

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As of June 30, 2026, the Company had $2.3 billion of total long-term debt, which consisted of $2.1 billion of debt used to finance aircraft and spare engines and $200.6 million of unsecured debt payable to the U.S. Department of the Treasury (“Treasury”). As of June 30, 2026, the unsecured debt payable to Treasury had a variable interest rate of Secured Overnight Financing Rate (“SOFR”) plus 2.0%. The average effective interest rate on the Company’s debt was approximately 4.4% at June 30, 2026.

During the six months ended June 30, 2026, the Company took delivery of two new E175 aircraft that the Company financed through $47.7 million of long-term debt. The debt associated with the E175 aircraft has a 12-year term, is due in quarterly installments, and is secured by the E175 aircraft.

During the six months ended June 30, 2026, the Company executed promissory notes for $94.0 million. The promissory notes have four-year terms, are due in monthly installments, and are secured by spare engines.

As of June 30, 2026 and December 31, 2025, the Company had $44.0 million and $47.2 million, respectively, in letters of credit and surety bonds outstanding with various banks and surety institutions.

As of June 30, 2026, SkyWest Airlines had a $100.0 million line of credit. The line of credit includes minimum liquidity and profitability covenants and is secured by certain assets. As of June 30, 2026, SkyWest Airlines had no amounts outstanding under the line of credit facility. However, at June 30, 2026, SkyWest Airlines had $21.0 million in letters of credit issued under the facility, which reduced the amount available under the facility to $79.0 million. The line of credit expires March 25, 2028 and has a variable interest rate of 3.5% plus the one month SOFR.

The Company’s debt agreements are not traded on an active market and are recorded at carrying value on the Company’s consolidated balance sheet. The fair value of the Company’s long-term debt is estimated based on current rates offered to the Company for similar debt. The fair value of debt is estimated using inputs classified as Level 2 within the fair value hierarchy. The carrying value and fair value of the Company’s long-term debt as of June 30, 2026 and December 31, 2025, were as follows (in thousands):

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(10) Investments in Other Companies

Equity Method Investments

During 2019, the Company created a joint venture with Regional One, Inc. (“Regional One”) and, as of June 30, 2026, has invested a total of $26.6 million for a 75% ownership interest in Aero Engines, LLC. (“Aero Engines”). The primary purpose of Aero Engines is to lease engines to third parties. Aero Engines requires unanimous approval from the Company and Regional One for all material transactions. Although the Company determined Aero Engines is a variable interest entity, Aero Engines has no primary beneficiary as no one party has power over Aero Engines. Accordingly, the Company accounts for its investment in Aero Engines under the equity method. The Company’s exposure in its investment in Aero Engines primarily consists of the Company’s portion of income or loss from Aero Engines’ engine lease agreements with third parties and the Company’s ownership percentage in Aero Engines’ engines book value. Aero Engines had no debt outstanding as of June 30, 2026. During 2025, the Company received a $12.0 million distribution from Aero Engines, and during the six months ended June 30, 2026, the Company received a $5.5 million distribution from Aero Engines, which reduced the Company’s investment balance in Aero Engines. As of June 30, 2026 and December 31, 2025, the Company’s investment balance in Aero Engines was $8.7 million and $12.8 million, respectively, and was recorded in “Other Assets” on the Company’s consolidated balance sheet. The Company’s portion of Aero Engines’ results for the three months ended June 30, 2026 and 2025, was income of $0.8 million and a loss $0.4 million, respectively, which was recorded in “Other income (expense), net” on the Company’s consolidated statements of comprehensive income. The Company’s portion of income generated by Aero Engines for the six months ended June 30, 2026 and 2025, was $1.3 million and $0.1 million, respectively, which was recorded in “Other income (expense), net” on the Company’s consolidated statements of comprehensive income.

In December 2023, the Company invested $9.9 million for a 9.9% ownership interest in Corporate Flight Management, Inc. d/b/a Contour Airlines (“Contour”), a 14 CFR Part 135 air carrier. In January 2024, the Company invested an additional $15.1 million in Contour. The Company had a 25% ownership interest in Contour at June 30, 2026 and held one of five seats, or 20%, on Contour’s board of directors. The Contour arrangement also includes an asset provisioning agreement under which the Company will provide CRJ airframes, engines and rotable parts to Contour. The Company accounts for its investment in Contour under the equity method where the investment is reported at cost and adjusted each period for the Company’s share of Contour’s income or loss, recorded on a one quarter lag. For the three months ended June 30, 2026 and 2025, the Company recorded a loss of $1.8 million and $0.2 million, respectively, related to its Contour investment, reflecting its portion of results generated by Contour, which was recorded in “Other income (expense), net” on the Company’s consolidated statements of comprehensive income. For the six months ended June 30, 2026 and 2025, the Company recorded a loss of $1.0 million and income of $0.7 million, respectively, related to its Contour investment, reflecting its portion of results generated by Contour, which was recorded in “Other income (expense), net” on the Company’s consolidated statements of comprehensive income. As of June 30, 2026 and December 31, 2025, the Company’s investment balance in Contour was $21.7 million and $22.8 million, respectively, and was recorded in “Other Assets” on the Company’s consolidated balance sheet. At June 30, 2026, the Company had $7.0 million in notes receivable from Contour related to the sale of aircraft under the asset provisioning agreement. The notes are secured by aircraft and collectible within three years.

The Company assesses investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment may not be recoverable.

Fair Value Method Investment

In 2021, the Company entered into a strategic arrangement with Eve Holding, Inc. (“Eve”), to develop a network of deployment for Eve’s electric vertical takeoff and landing aircraft. As of June 30, 2026 and December 31, 2025, the Company held 1.1 million common shares of Eve. During the three months ended June 30, 2026 and 2025, the Company recorded an unrealized gain of $0.1 million and $5.3 million, respectively in “Other income (expense), net” on the Company’s consolidated statements of comprehensive income related to its investment in Eve. During the six months ended June 30, 2026 and 2025, the Company recorded an unrealized loss of $1.6 million and an unrealized gain of $2.1 million, respectively, in “Other income (expense), net” on the Company’s consolidated statements of comprehensive income related to its investment in Eve. As of June 30, 2026 and December 31, 2025, the fair value of the Company’s investment in Eve was $2.7 million and $4.3 million, respectively, and was recorded in “Other Assets” on the Company’s consolidated balance sheet.

(11) Income Taxes

The Company’s effective tax rate for the six months ended June 30, 2026 and 2025 was 17.9% and 22.2%, respectively. The Company’s effective tax rate for the six months ended June 30, 2026 and 2025 varied from the federal statutory rate of 21.0% primarily due to the impact of a discrete tax benefit from additional tax deductions generated from employee equity awards that vested at a stock price above the grant date price during the six months ended June 30, 2026 and 2025, offset by the provision for state income taxes and the impact of non-deductible expenses.

(12) Legal Matters

The Company is subject to certain legal actions which it considers routine to its business activities. As of June 30, 2026, the Company’s management believed, after consultation with legal counsel, that the ultimate outcome of such legal matters was not likely to have a material adverse effect on the Company’s financial position, liquidity or results of operations.

ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis presents factors that had a material effect on the results of operations of SkyWest, Inc. (“SkyWest,” “we” or “us”) during the three- and six-month periods ended June 30, 2026 and 2025. Also discussed is our financial condition as of June 30, 2026, and December 31, 2025. You should read this discussion in conjunction with our condensed consolidated financial statements for the three and six months ended June 30, 2026, including the notes thereto, appearing elsewhere in this Report. This discussion and analysis contains forward-looking statements. Please refer to the section of this Report entitled “Cautionary Statement Concerning Forward-Looking Statements” for discussion of uncertainties, risks and assumptions associated with these statements.

Overview

We have the largest regional airline operation in the United States through our operating subsidiary SkyWest Airlines, Inc. (“SkyWest Airlines”). As of June 30, 2026, we offered scheduled passenger and air freight service with approximately 2,510 total daily departures to destinations in the United States, Canada and Mexico. Our fleet of Embraer E175 regional jet aircraft (“E175”), Canadair CRJ900 regional jet aircraft (“CRJ900”), Embraer E170 regional jet aircraft (“E170”) and Canadair CRJ700 regional jet aircraft (“CRJ700”), including a 50-seat configuration of the CRJ700 aircraft, commonly referred to as a “CRJ550,” have a multiple-class seat configuration, whereas our Canadair CRJ200 regional jet aircraft (“CRJ200”) have a single-class seat configuration. SWC offers on-demand charter services using CRJ200 aircraft in a 30-seat configuration. As of June 30, 2026, we had 642 total aircraft in our fleet, including 517 aircraft in scheduled service or under contract pursuant to our code-share agreements, summarized as follows:

(1) Includes supplemental spare aircraft supporting our code-share agreements or aircraft undergoing cabin reconfigurations.

(2) Aircraft in storage may be available for future flying opportunities.

Our business model is based on providing scheduled regional airline service under code-share agreements (commercial agreements between airlines that, among other things, allow one airline to use another airline’s flight designator codes on its flights) with our major airline partners. In exchange for such services, our major airline partners pay us either fixed fees to operate the flight, referred to as “capacity purchase agreement,” or we receive a percentage of applicable passenger ticket revenues on the designated flights we operate, referred to as “prorate agreement.” Our success is principally centered on our ability to meet the needs of our major airline partners by providing a reliable and safe operation at attractive economics. From June 30, 2025, to June 30, 2026, we made changes to our fleet, including the addition of seven new E175 aircraft.

We anticipate our fleet will continue to evolve, as we are scheduled to add a total of seven new E175 aircraft with United in 2026, 11 new E175 aircraft with American between 2026 and 2027 (which are expected to replace 11 CRJ700s we are currently flying under contract with American) and 16 new E175 aircraft with Delta between 2027 and

2028 (which are expected to replace 16 CRJs we are currently flying under contract with Delta). We also have multiple agreements with United to place 12 used CRJ550 aircraft into service in 2026. Timing of placing these additional aircraft into service, including delivery timing on acquired aircraft, may be subject to change. As of June 30, 2026, we operated 19 CRJ900s owned by Delta, and we anticipate returning these 19 aircraft to Delta over the next two years. Our primary objective in the fleet changes is to improve our profitability by adding new E175 aircraft and used CRJ700, CRJ550, CRJ900 and E175 aircraft, commonly referred to as “dual-class aircraft” due to the first-class seat offerings, to our capacity purchase agreements or prorate agreements, and potentially removing older aircraft from service that typically require higher maintenance costs. Additionally, during the six months ended June 30, 2026, we announced a new configuration of the CRJ200 aircraft that will have 41 seats, including seven first-class seats (referred to as a “CRJ450” aircraft). We anticipate operating the first CRJ450 in scheduled service by the end of 2026. We anticipate completing the conversion of approximately 50 CRJ200s to the CRJ450 configuration by 2028.

As of June 30, 2026, approximately 46.2% of our aircraft in scheduled service or under contract were operated for United, approximately 26.9% were operated for Delta, approximately 18.6% were operated for American and approximately 8.3% were operated for Alaska.

Historically, multiple contractual relationships with major airlines have enabled us to reduce our reliance on any single major airline code and to enhance and stabilize operating results through a mix of our capacity purchase agreements and our prorate agreements. For the six months ended June 30, 2026, our capacity purchase revenue represented approximately 81.9% of our total flying agreements revenue and our prorate and charter revenue, combined, represented approximately 18.1% of our total flying agreements revenue. On capacity purchase routes, the major airline partner controls scheduling, ticketing, pricing and seat inventories and we are compensated by the major airline partner at contracted rates based on completed block hours (measured from takeoff to landing, including taxi time), flight departures, the number of aircraft under contract and other operating measures. We control scheduling, pricing and seat inventories on certain prorate routes, and we share passenger fares with our major airline partners according to prorate formulas. We are also responsible for the operating costs of the prorate flights, including fuel and airport costs.

Second Quarter Summary

We had total operating revenues of $1.1 billion for the three months ended June 30, 2026, a 6.5% increase compared to total operating revenues of $1.0 billion for the three months ended June 30, 2025. We had net income of $100.7 million, or $2.54 per diluted share, for the three months ended June 30, 2026, compared to net income of $120.3 million, or $2.91 per diluted share, for the three months ended June 30, 2025. The significant items affecting our revenue and operating expenses during the three months ended June 30, 2026, are outlined below:

Revenue

The number of aircraft we have in scheduled service or under contract pursuant to our code-share agreements and the number of block hours we incur on our flights are primary drivers of our flying agreements revenue under our capacity purchase agreements. The number of flights we operate and the corresponding number of passengers we carry are the primary drivers of our revenue under our prorate agreements. The number of aircraft we have in scheduled service or under contract pursuant to our code-share agreements increased from 502 as of June 30, 2025 to 517 as of June 30, 2026, or by 3.0%; and the number of block hours increased from 376,269 for the three months ended June 30, 2025 to 396,696 for the three months ended June 30, 2026, or by 5.4%, primarily due to an increase in the number of aircraft operating under our capacity purchase agreements and higher scheduled utilization of our aircraft under contract.

Our capacity purchase revenue increased $21.6 million, or 2.6%, for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, primarily as a result of an increase in completed block hours for the comparable periods. Our prorate and charter revenue increased $55.4 million, or 38.1%, for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, primarily as a result of an increase in the number of passengers carried on our prorate routes, a higher average revenue per passenger and an increase in the number of prorate and charter flights operated year-over-year.

Operating Expenses

Our total operating expenses increased $81.8 million, or 9.5%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The increase in operating expenses was primarily due to an increase in our direct operating expenses associated with the increase in the number of flights we operated, higher fuel costs and higher pilot training costs for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. Departures increased from 222,874 for the three months ended June 30, 2025 to 227,960 for the three months ended June 30, 2026, or by 2.3%, and our total block hours increased 5.4% for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. Additional details regarding the increase in our operating expenses are described in the section of this Report entitled “Results of Operations.”

Fleet Activity

The following table summarizes our fleet scheduled for service or under contract as of:

Critical Accounting Policies and Estimates

Our significant accounting policies are summarized in Note 1 to our consolidated financial statements for the year ended December 31, 2025, and Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which are presented in our Annual Report on Form 10-K for the year ended December 31, 2025. Critical accounting policies are those policies that are most important to the preparation of our consolidated financial statements and require management’s subjective and complex judgments due to the need to make estimates about the effect of matters that are inherently uncertain. Our critical accounting policies relate to revenue recognition, long-lived assets, and income tax. The application of these accounting policies involves the exercise of judgment and the use of assumptions as to future uncertainties and, as a result, actual results will likely differ, and may differ materially, from such estimates. There have been no significant changes in our critical accounting estimates during the six months ended June 30, 2026.

Recent Accounting Pronounceme****nts

See Note 1 to the condensed consolidated financial statements for a description of recent accounting pronouncements.

Results of Operations

Three Months Ended June 30, 2026 and 2025

Operational Statistics

The following table sets forth our major operational statistics and the associated percentage changes for the periods identified below. The increase in block hours and departures during the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily due to additional aircraft operating under our capacity purchase agreements, additional routes operated under our prorate agreements and an increase in the number of block hours incurred per aircraft due to the higher scheduled utilization of our aircraft during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Operating Revenues

The following table summarizes our operating revenue for the periods indicated (dollar amounts in thousands):

Flying agreements revenue primarily consists of revenue earned on flights we operate under our capacity purchase agreements and prorate agreements with our major airline partners and on-demand charter flights. Lease, airport services and other revenues consist of revenue earned from leasing aircraft and spare engines to third parties separate from our capacity purchase agreements, providing maintenance services to other airlines and providing airport counter, gate and ramp services.

We disaggregate our flying agreements revenue into the following categories (dollar amounts in thousands):

Combined “Capacity purchase agreements flight operations revenue” and “Capacity purchase agreements aircraft lease revenue” increased 2.6% for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, driven primarily by a 5.4% increase in block hour production during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The increase in aircraft lease revenue and decrease in flight operations revenue was primarily due to a reallocation of variable consideration between non-lease and lease components based on relative standalone selling prices as a result of capacity purchase agreement contract amendments entered into since June 30, 2025.

The increase in prorate agreements and charter revenue of $55.4 million, or 38.1%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily due to an increase in prorate departures, passengers and passenger revenue we received on routes we operated under our prorate agreements during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

The decrease in lease, airport services and other revenues of $9.5 million, or 19.9%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily due to a decrease in revenue from

maintenance services provided to third parties during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Operating Expenses

Individual expense components attributable to our operations are set forth in the following table (dollar amounts in thousands):

Salaries, wages and benefits. The $36.6 million, or 9.4%, increase in salaries, wages and benefits for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily due to an increase in direct labor costs supporting the higher number of flights we operated during the three months ended June 30, 2026, compared to the three months ended June 30, 2025, and due to an increase in pilot training costs associated with higher pilot attrition rates since June 30, 2025*.*

Aircraft maintenance, materials and repairs. The $4.0 million, or 1.7%, increase in aircraft maintenance expense for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily due to an increase in our flight volume, which increased our maintenance activity and related expenses for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, partially offset by a reduction in maintenance services provided to third parties for the comparable periods.

Depreciation and amortization. The $2.3 million, or 2.6%, increase in depreciation and amortization expense for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily due to an increase in depreciation expense related to the acquisition of seven new E175 aircraft and spare engines since June 30, 2025.

Aircraft fuel. The $33.1 million, or 120.6%, increase in fuel cost for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily due to an increase in the number of flights we operated under our prorate agreements and charter operations and the corresponding increase in gallons of fuel we purchased and an increase in our average fuel cost per gallon from $2.88 for the three months ended June 30, 2025 to $4.45 for the three months ended June 30, 2026. We purchase and incur expense for all fuel on flights operated under our prorate agreements and charter operations. All fuel costs incurred under our capacity purchase agreements are either purchased directly by our major airline partner, or if purchased by us, we record the direct reimbursement as a reduction to our fuel expense. The following table summarizes the gallons of fuel we purchased under our prorate agreements and charter operations, for the periods indicated:

Airport-related expenses. Airport-related expenses include airport-related customer service costs such as outsourced airport gate and ramp agent services, airport security fees, passenger interruption costs, deicing, landing fees and station rents. The $5.5 million, or 20.2%, increase in airport-related expenses for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily due to an increase in subcontracted airport services, station rents and landing fees as a result of an increase in the number of flights we operated under our prorate

agreements. For clarity, our employee airport customer service labor costs are reflected in salaries, wages and benefits and customer service labor costs we outsource to third parties are included in airport-related expenses.

Other operating expenses. Other operating expenses primarily consist of aircraft rentals, property taxes, hull and liability insurance, simulator costs, crew per diem, crew hotel costs and credit loss reserves. The $0.3 million, or 0.3%, increase in other operating expenses for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025 was primarily due to higher training‑related hotel costs, driven by pilot training, and an increase in other operating costs as a result of the higher number of flights we operated during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. These increases were partially offset by a decrease in our credit loss reserve expense during the three months ended June 30, 2026, reflecting the elevated credit loss reserve expense recognized during the three months ended June 30, 2025 from our assessment of higher credit risk losses of certain outstanding receivables.

Summary of interest expense, interest income, other income (expense), net and provision for income taxes

Interest expense. The $1.6 million, or 6.2%, decrease in interest expense for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 was primarily related to a decrease in outstanding debt. At June 30, 2026 we had $2.3 billion of outstanding debt, compared to $2.5 billion at June 30, 2025. Our average effective interest rate for the three months ended June 30, 2026 and 2025, was 4.4% and 4.3%, respectively.

Interest income. Interest income decreased $2.3 million, or 20.4%, for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. The decrease in interest income was primarily related to a decrease in our marketable securities from June 30, 2025 to June 30, 2026.

Other income (expense), net. Other income (expense), net decreased $9.3 million for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. Other income (expense), net primarily consists of the unrealized and realized gains and losses on our investments in other companies, income or loss related to our equity method investments and gains or losses on the sale of assets. The decrease in other income (expense), net was primarily the result of a decrease in the fair value of our investments in other companies and a decrease in the gain on the sale of assets for the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

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Provision for income taxes. For the three months ended June 30, 2026 and 2025, our effective income tax rates were 27.5% and 26.3%, respectively, which included the statutory federal income tax rate of 21% and other reconciling income tax items, including state income taxes, and the impact of non-deductible expenses. The increase in the effective tax rate was primarily generated from greater non-deductible expense for the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Net income. Primarily due to the factors described above, we generated net income of $100.7 million, or $2.54 per diluted share, for the three months ended June 30, 2026, compared to net income of $120.3 million, or $2.91 per diluted share, for the three months ended June 30, 2025.

Six Months Ended June 30, 2026 and 2025

Operational Statistics

The following table sets forth our major operational statistics and the associated percentage changes for the periods identified below. The increase in block hours and departures during the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to additional aircraft operating under our capacity purchase agreements, additional routes operated under our prorate agreements and an increase in the number of block hours incurred per aircraft due to the higher scheduled utilization of our aircraft during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Operating Revenues

The following table summarizes our operating revenue for the periods indicated (dollar amounts in thousands):

Flying agreements revenue primarily consists of revenue earned on flights we operate under our capacity purchase agreements and prorate agreements with our major airline partners and on-demand charter flights. Lease, airport services and other revenues consist of revenue earned from leasing aircraft and spare engines to third parties separate from our capacity purchase agreements, providing maintenance services to other airlines and providing airport counter, gate and ramp services.

We disaggregate our flying agreements revenue into the following categories (dollar amounts in thousands):

Combined “Capacity purchase agreements flight operations revenue” and “Capacity purchase agreements aircraft lease revenue” increased 2.8% for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, driven primarily by a 4.3% increase in block hour production during the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The increase in aircraft lease revenue and decrease in flight operations revenue was primarily due to a reallocation of variable consideration between non-lease and lease components based on relative standalone selling prices as a result of capacity purchase agreement contract amendments entered into since June 30, 2025.

The increase in prorate agreements and charter revenue of $92.8 million, or 33.6%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to an increase in prorate departures, passengers and passenger revenue we received on routes we operated under our prorate agreements during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

The decrease in lease, airport services and other revenues of $6.7 million, or 8.3%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to a decrease in revenue from

maintenance services provided to third parties during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Operating Expenses

Individual expense components attributable to our operations are set forth in the following table (dollar amounts in thousands):

Salaries, wages and benefits. The $81.4 million, or 10.6%, increase in salaries, wages and benefits for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to an increase in direct labor costs supporting the higher number of flights we operated during the six months ended June 30, 2026, compared to the six months ended June 30, 2025, and due to an increase in pilot training costs associated with higher pilot attrition rates since June 30, 2025*.*

Aircraft maintenance, materials and repairs. The $8.0 million, or 1.8%, increase in aircraft maintenance expense for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to an increase in our flight volume, which increased our maintenance activity and related expenses for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, partially offset by a reduction in maintenance services provided to third parties for the comparable periods.

Depreciation and amortization. The $3.1 million, or 1.7%, increase in depreciation and amortization expense for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to an increase in depreciation expense related to the acquisition of seven new E175 aircraft and spare engines since June 30, 2025.

Aircraft fuel. The $47.5 million, or 91.5%, increase in fuel cost for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to an increase in the number of flights we operated under our prorate agreements and charter operations and the corresponding increase in gallons of fuel we purchased and an increase in our average fuel cost per gallon from $2.95 for the six months ended June 30, 2025 to $3.97 for the six months ended June 30, 2026. We purchase and incur expense for all fuel on flights operated under our prorate agreements and charter operations. All fuel costs incurred under our capacity purchase agreements are either purchased directly by our major airline partner, or if purchased by us, we record the direct reimbursement as a reduction to our fuel expense. The following table summarizes the gallons of fuel we purchased under our prorate agreements and charter operations, for the periods indicated:

Airport-related expenses. Airport-related expenses include airport-related customer service costs such as outsourced airport gate and ramp agent services, airport security fees, passenger interruption costs, deicing, landing fees and station rents. The $13.8 million, or 25.2%, increase in airport-related expenses for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to an increase in subcontracted airport services, station rents and landing fees as a result of an increase in the number of flights we operated under our prorate

agreements. For clarity, our employee airport customer service labor costs are reflected in salaries, wages and benefits and customer service labor costs we outsource to third parties are included in airport-related expenses.

Other operating expenses. Other operating expenses primarily consist of aircraft rentals, property taxes, hull and liability insurance, simulator costs, crew per diem, crew hotel costs and credit loss reserves. The $8.4 million, or 4.9%, increase in other operating expenses for the six months ended June 30, 2026, compared to the six months ended June 30, 2025 was primarily due to higher training‑related hotel costs, driven by pilot training, and an increase in other operating costs as a result of the higher number of flights we operated during the six months ended June 30, 2026, compared to the six months ended June 30, 2025. These increases were partially offset by a decrease in our credit loss reserve expense during the six months ended June 30, 2026, reflecting the elevated credit loss reserve expense recognized during the six months ended June 30, 2025 from our assessment of higher credit risk losses of certain outstanding receivables.

Summary of interest expense, interest income, other income (expense), net and provision for income taxes

Interest expense. The $4.3 million, or 8.0%, decrease in interest expense for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 was primarily related to a decrease in outstanding debt. At June 30, 2026 we had $2.3 billion of outstanding debt, compared to $2.5 billion at June 30, 2025. Our average effective interest rate for the six months ended June 30, 2026 and 2025, was 4.4% and 4.3%, respectively.

Interest income. Interest income decreased $3.7 million, or 17.7%, for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. The decrease in interest income was primarily related to a decrease in our marketable securities from June 30, 2025 to June 30, 2026.

Other income (expense), net. Other income (expense), net decreased $7.8 million for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. Other income (expense), net primarily consists of the unrealized and realized gains and losses on our investments in other companies, income or loss related to our equity method investments and gains or losses on the sale of assets. The decrease in other income (expense), net was primarily the result of a decrease in the fair value of our investments in other companies and a decrease in the gain on the sale of assets for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

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Provision for income taxes. For the six months ended June 30, 2026 and 2025, our effective income tax rates were 17.9% and 22.2%, respectively, which included the statutory federal income tax rate of 21% and other reconciling income tax items, including state income taxes, the impact of non-deductible expenses and a discrete tax benefit on employee equity awards that vested during the period. The decrease in the effective tax rate was primarily related to a higher discrete tax benefit from additional tax deductions generated from employee equity awards that vested for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Net income. Primarily due to the factors described above, we generated net income of $202.4 million, or $5.04 per diluted share, for the six months ended June 30, 2026, compared to net income of $220.8 million, or $5.32 per diluted share, for the six months ended June 30, 2025.

Our Business Segments

Three Months Ended June 30, 2026 and 2025

For the three months ended June 30, 2026, our reportable segments, which were the basis of our internal financial reporting, consisted of (1) the operations of SkyWest Airlines and SWC (collectively, “SkyWest Airlines and SWC”) and (2) SkyWest Leasing activities. Our segment disclosure relates to components of our business for which separate financial information is available to, and regularly evaluated by, our chief operating decision maker.

The following table sets forth our SkyWest Airlines and SWC segment data for the three months ended June 30, 2026 and 2025 (in thousands):

(1) Other segment items for SkyWest Airlines and SWC include aircraft fuel; airport related expenses; other operating expenses consisting primarily of property taxes, hull and liability insurance, simulator costs, crew per diem and crew hotel costs and credit loss reserves; interest income and other income (expense), net.

(2) Segment profit is equal to income before income taxes.

SkyWest Airlines and SWC Segment Profit. SkyWest Airlines and SWC segment profit was $58.2 million for the three months ended June 30, 2026, compared to $90.3 million for the three months ended June 30, 2025.

SkyWest Airlines and SWC block hour production increased 5.4%, from 376,269 for the three months ended June 30, 2025 to 396,696 for the three months ended June 30, 2026, primarily due to additional aircraft operating under our capacity purchase agreements and prorate agreements, and an increase in the utilization of our aircraft. Significant items contributing to the SkyWest Airlines and SWC segment profit for the three months ended June 30, 2026 are set forth below.

SkyWest Airlines and SWC operating revenues increased $71.3 million, or 8.2%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily due to an increase in block hour production and higher prorate revenue during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

SkyWest Airlines and SWC’s salaries, wages and benefits expense increased $36.6 million, or 9.4%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily due to an increase in direct labor costs that resulted from the higher number of flights we operated during the three months ended June 30, 2026, compared to the three months ended June 30, 2025, and due to an increase in pilot training costs associated with higher pilot attrition rates since June 30, 2025.

SkyWest Airlines and SWC’s aircraft maintenance, materials and repairs expense increased $14.5 million, or 6.7%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily due to higher flight volume, which increased the maintenance activity and related expenses, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

SkyWest Airlines and SWC’s depreciation and amortization expense increased $1.4 million, or 3.7%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily due to an increase in depreciation from the acquisition of additional assets, including engines and used CRJ900 airframes, since June 30, 2025.

SkyWest Airlines and SWC’s interest expense increased $0.6 million, or 17.9%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily due to higher interest rates on new debt for engine financings since June 30, 2025.

SkyWest Airlines and SWC’s other segment items increased $50.3 million, or 38.5%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily related to an increase in fuel costs of $33.1 million, including an increase in the cost per gallon of fuel, airport-related expenses, such as subcontracted airport services, station rents and landing fees and other operating costs, such as crew per diem and crew hotel costs, as a result of the higher number of flights we operated during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

The following table sets forth our SkyWest Leasing segment data for the three months ended June 30, 2026 and 2025 (in thousands):

(1) Other segment items for SkyWest Leasing include other operating expenses consisting primarily of property taxes and credit loss reserves; aircraft rentals; interest income and other income (expense), net.

(2) Segment profit is equal to income before income taxes.

SkyWest Leasing Segment Profit. SkyWest Leasing profit increased $7.8 million, or 10.7%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily due to an increase in revenue earned under our capacity purchase agreements attributed to the ownership of new E175 aircraft acquired since June 30, 2025, a decrease in incremental maintenance services provided to third parties, which offset the increase in operating revenue and contributed to the reduction in aircraft maintenance, materials and repair expense, and a decrease in interest expense due to a decrease in outstanding debt from June 30, 2025 to June 30, 2026.

Six Months Ended June 30, 2026 and 2025

For the six months ended June 30, 2026, our reportable segments, which were the basis of our internal financial reporting, consisted of (1) the operations of SkyWest Airlines and SWC (collectively, “SkyWest Airlines and SWC”) and (2) SkyWest Leasing activities. Our segment disclosure relates to components of our business for which separate financial information is available to, and regularly evaluated by, our chief operating decision maker.

The following table sets forth our SkyWest Airlines and SWC segment data for the six months ended June 30, 2026 and 2025 (in thousands):

(1) Other segment items for SkyWest Airlines and SWC include aircraft fuel; airport related expenses; other operating expenses consisting primarily of property taxes, hull and liability insurance, simulator costs, crew per diem and crew hotel costs and credit loss reserves; interest income and other income (expense), net.

(2) Segment profit is equal to income before income taxes.

SkyWest Airlines and SWC Segment Profit. SkyWest Airlines and SWC segment profit was $83.7 million for the six months ended June 30, 2026, compared to $144.5 million for the six months ended June 30, 2025.

SkyWest Airlines and SWC block hour production increased 4.3%, from 728,424 for the six months ended June 30, 2025 to 759,629 for the six months ended June 30, 2026, primarily due to additional aircraft operating under our capacity purchase agreements and prorate agreements, and an increase in the utilization of our aircraft. Significant items contributing to the SkyWest Airlines and SWC segment profit for the six months ended June 30, 2026 are set forth below.

SkyWest Airlines and SWC operating revenues increased $124.9 million, or 7.5%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily due to an increase in block hour production and higher prorate revenue during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

SkyWest Airlines and SWC’s salaries, wages and benefits expense increased $81.4 million, or 10.6%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily due to an increase in direct labor costs that resulted from the higher number of flights we operated during the six months ended June 30, 2026, compared to the six months ended June 30, 2025, and due to an increase in pilot training costs associated with higher pilot attrition rates since June 30, 2025.

SkyWest Airlines and SWC’s aircraft maintenance, materials and repairs expense increased $19.5 million, or 4.7%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily due to higher flight volume, which increased the maintenance activity and related expenses, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

SkyWest Airlines and SWC’s depreciation and amortization expense increased $1.0 million, or 1.3%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily due to an increase in depreciation from the acquisition of additional assets, including engines and used CRJ900 airframes, since June 30, 2025, offset by certain CRJ aircraft and engines that were depreciated to their estimated residual value since June 30, 2025.

SkyWest Airlines and SWC’s interest expense increased $0.3 million, or 5.3%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily due to higher interest rates on new debt for engine financings since June 30, 2025.

SkyWest Airlines and SWC’s other segment items increased $83.4 million, or 32.2%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily related to an increase in fuel costs of $47.5 million, including an increase in the cost per gallon of fuel, airport-related expenses, such as subcontracted airport services, station rents and landing fees and other operating costs, such as crew per diem and crew hotel costs, as a result of the higher number of flights we operated during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

The following table sets forth our SkyWest Leasing segment data for the six months ended June 30, 2026 and 2025 (in thousands):

(1) Other segment items for SkyWest Leasing include other operating expenses consisting primarily of property taxes and credit loss reserves; aircraft rentals; interest income and other income (expense), net.

(2) Segment profit is equal to income before income taxes.

SkyWest Leasing Segment Profit. SkyWest Leasing profit increased $23.6 million, or 17.0%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily due to an increase in revenue earned under our capacity purchase agreements attributed to the ownership of new E175 aircraft acquired since June 30, 2025, a decrease in incremental maintenance services provided to third parties, which partially offset the increase in operating revenue and contributed to the reduction in aircraft maintenance, materials and repair expense, and a decrease in interest expense due to a decrease in outstanding debt from June 30, 2025 to June 30, 2026.

Liquidity and Capital Resources

As of June 30, 2026, we had $601.0 million in cash and cash equivalents and marketable securities. As of June 30, 2026, we had $79.0 million available for borrowings under our line of credit. Given our available liquidity as of June 30, 2026, we believe the working capital currently available to us will be sufficient to meet our present financial requirements, including planned capital expenditures, scheduled lease payments and debt service obligations for at least the next 12 months.

Our total cash, cash equivalents and marketable securities decreased from $706.9 million as of December 31, 2025 to $601.0 million as of June 30, 2026, or by $105.9 million. Our total long-term debt, including current maturities, decreased from $2.4 billion as of December 31, 2025 to $2.3 billion as of June 30, 2026. Additionally, during the six months ended June 30, 2026, we repurchased 1,615,756 shares of our common stock for $149.9 million under a stock repurchase program authorized by our Board of Directors. At June 30, 2026, our total capital mix (measured as a ratio of total stockholder equity and total long-term debt, including current maturities) was 54.6% equity and 45.4% total long-term debt, compared to 53.4% equity and 46.6% total long-term debt at December 31, 2025.

As of June 30, 2026, and December 31, 2025, we had $44.0 million and $47.2 million, respectively, in letters of credit and surety bonds outstanding with various banks and surety institutions. We had no restricted cash as of June 30, 2026, and December 31, 2025.

Sources and Uses of Cash

Cash Position and Liquidity. The following table provides a summary of the net cash provided by or used in our operating, investing and financing activities for the six months ended June 30, 2026 and 2025, and our total cash and marketable securities positions as of June 30, 2026, and December 31, 2025 (in thousands):

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Cash Flows provided by Operating Activities

Our cash flows provided by operating activities was $436.3 million for the six months ended June 30, 2026, compared to $428.1 million for the six months ended June 30, 2025. Our operating cash flows are typically impacted by various factors including our net income, adjusted for non-cash expenses and gains such as depreciation expense, stock-based compensation expense and gains or losses on the disposal of assets; and timing of cash payments and cash receipts attributed to our various current asset and liability accounts, such as accounts receivable, inventory, accounts payable, income taxes, accrued liabilities, deferred revenue and unbilled revenue.

The increase in our cash flow from operations for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily driven by an increase in accounts payable due to the timing of cash payments for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, partially offset by a decrease in income before income taxes for the comparable periods.

Cash Flows used in Investing Activities

Our cash flows used in investing activities was $185.3 million for the six months ended June 30, 2026, compared to cash flows used in investing activities of $372.7 million for the six months ended June 30, 2025. Our investing cash flows are typically impacted by various factors including our capital expenditures, such as the acquisition of aircraft and spare engines; deposit payments and refunds of previously made deposits on new aircraft; purchase and sales of marketable securities; proceeds from the sale of assets; and timing of cash payments and cash receipts attributed to our various long-term asset and long-term liability accounts.

Excluding the purchase and sale of marketable securities, which results in the transfer of dollars between our investments in marketable securities and our cash accounts, our cash used in investing activities decreased from $268.1 million for the six months ended June 30, 2025, to $249.3 million for the six months ended June 30, 2026. Excluding the transfer of dollars between our investments in marketable securities and our cash accounts, the remaining decrease in cash used in investing activities was primarily due to a reduction in the cash used for capital expenditures, including aircraft deposits for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Cash Flows used in Financing Activities

Our cash flows used in financing activities was $292.3 million for the six months ended June 30, 2026, compared to cash used in financing activities of $234.5 million for the six months ended June 30, 2025. Our financing cash flows are typically impacted by various factors including proceeds from issuance of debt, principal payments on debt obligations and repurchases of our common stock.

The $57.8 million increase in cash used in financing activities for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to an increase of $119.7 million in cash used to purchase treasury stock and an increase of $18.4 million in cash used for employee income taxes paid on vested equity awards in lieu of shares, offset by an increase of $80.5 million in proceeds from the issuance of long-term debt, net of principal payments on long-term debt, during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Significant Commitments and Obligations

General

See Note 7, “Leases, Commitments, Guarantees and Contingencies,” to the condensed consolidated financial statements for our commitments and obligations for each of the next five years and thereafter.

Purchase Commitments and Options

As of June 30, 2026, we had a firm purchase commitment for 67 new E175 aircraft from Embraer with delivery dates anticipated into 2031.

At the time of each aircraft acquisition, we evaluate the financing alternatives available to us, and select one or more of these methods to fund the acquisition. In recent years, we have issued long-term debt to finance our new aircraft. At present, we intend to fund our aircraft purchase commitments through a combination of cash on hand and debt financing. Based on current market conditions and discussions with prospective leasing organizations and financial institutions, we currently believe that we will be able to obtain financing for our committed acquisitions, as well as additional aircraft. We intend to finance the firm purchase commitment for 67 E175 aircraft with approximately 75-85% debt and the remaining balance with cash.

Aircraft Lease and Facility Obligations

We also have long-term lease obligations, primarily relating to our facilities, aircraft and engines. Excluding aircraft financed by our major airline partners that we operate for them under contract, we had eight aircraft under lease with remaining terms ranging from three years to four years as of June 30, 2026. These eight leased aircraft are subleased to a third party. Future minimum lease payments due under all long-term operating leases were approximately $125.1 million at June 30, 2026. Assuming a 6.3% discount rate, which is the average incremental borrowing rate we anticipate we would have incurred on debt obtained over a similar term to acquire these assets, the present value of these lease obligations would have been equal to approximately $87.7 million at June 30, 2026.

Long-term Debt Obligations

As of June 30, 2026, we had $2.3 billion of long-term debt, which consisted of $2.1 billion of debt used to finance aircraft and spare engines and $200.6 million of unsecured debt payable to the U.S. Department of the Treasury (“Treasury”). The average effective interest rate on our debt obligations was approximately 4.4% at June 30, 2026.

Under our capacity purchase agreements, our major airline partners compensate us for our costs of the aircraft on a monthly basis. The consideration for aircraft ownership costs we receive varies by agreement but is intended to compensate us for our ownership of the aircraft while the aircraft is under contract.

Guarantees

We have guaranteed the obligations of SkyWest Airlines under the United Express Agreement and the Delta Connection Agreement for the E175 aircraft. In addition, we have guaranteed certain other obligations under our aircraft financing and leasing agreements.

We have guaranteed $11.8 million in promissory notes of a third party in the event the third party defaults on its payments. The third party’s loans are secured by aircraft and engines.

Seasonality

Our results of operations for any interim period are not necessarily indicative of those for an entire year, because the airline industry is subject to seasonal fluctuations and general economic conditions. Our operations are somewhat favorably affected by increased travel on our prorate routes, historically occurring during the summer months, and unfavorably affected by decreased travel during the months of November through February and by inclement weather, which may occasionally or frequently, depending on the severity of the inclement weather in any given winter, result in cancelled flights during the winter months.

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in market risk from the information provided in Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk, in our Annual Report on Form 10-K for the year ended December 31, 2025, except as follows:

Aircraft Fuel

In the past, we have not experienced sustained material difficulties with fuel availability, and we currently expect to be able to obtain fuel at prevailing prices in quantities sufficient to meet our future needs. Pursuant to our capacity purchase agreements, United, Delta, American and Alaska have agreed to bear the economic risk of fuel price fluctuations on our contracted flights. We bear the economic risk of fuel price fluctuations on our prorate and charter operations. For the three months ended June 30, 2026, approximately 18.9% of our total flying agreements revenue was derived from prorate agreements and charter operations. For the three months ended June 30, 2026, the average price per gallon of aircraft fuel was $4.45. For illustrative purposes only, we have estimated the impact of the market risk of fuel price fluctuations on our prorate and charter operations using a hypothetical increase of 25% in the price per gallon we purchase. Based on this hypothetical assumption, we would have incurred an additional $15.1 million in fuel expense for the three months ended June 30, 2026.

ITEM 4. CONTROLS AND PROCEDURES

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Disclosure Controls and Procedures

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Our management, including our Chief Executive Officer and Chief Financial Officer, performed an evaluation of our disclosure controls and procedures, which have been designed to ensure that information we are required to disclose in the reports we file or submit under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported, accurately and within the time periods specified in the rules and forms of the SEC. Our management, including our Chief Executive Officer and Chief Financial Officer, concluded that, as of June 30, 2026, those controls and procedures were effective to ensure that information we are required to disclose in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

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Changes in Internal Control

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During the six months ended June 30, 2026, there were no changes in our internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) under the Exchange Act).

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are subject to certain legal actions which we consider routine to our business activities. As of June 30, 2026, our management believed, after consultation with legal counsel, that the ultimate outcome of such legal matters was not likely to have a material adverse effect on our financial position, liquidity or results of operations.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this Report, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, and in our other filings with the SEC, which factors could materially affect our business, financial condition and results of operations. The risks described in our reports filed with the SEC are not the only risks facing our company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and results of operations.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Our Board of Directors has adopted a stock repurchase program which authorizes us to repurchase shares of our common stock in the public market or in private transactions, from time to time, at prevailing prices. Our stock repurchase program adopted in May 2023 authorized the repurchase of up to $250.0 million of our common stock. The Board approved a $250.0 million increase to the existing stock repurchase program in May 2025 and an additional $250 million increase to the existing stock repurchase program in July 2026. Following such increase, we are authorized to repurchase up to approximately $313 million of our common stock. The following table summarizes the repurchases under our stock repurchase program during the three months ended June 30, 2026:

(1) In May 2023, our Board of Directors approved a stock repurchase program and authorized us to repurchase up to $250.0 million of our common stock. In May 2025, the Board approved a $250.0 million increase to the existing stock repurchase program. Purchases are made at management’s discretion based on market conditions and financial resources. As of June 30, 2026, we had repurchased 7,291,575 shares of our common stock for $436.8 million and had $63.2 million remaining availability under the stock repurchase program. In July 2026, subsequent to the end of the quarter, the Board approved an additional $250 million increase to the existing stock repurchase program. The July 2026 increase is not reflected in the “Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program” column in the able above, which reflects only amount available as of the end of each month during the quarter ended June 30, 2026.

ITEM 5. OTHER INFORMATION

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During the three months ended June 30, 2026, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

ITEM 6. EXHIBITS

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3.1 Restated Articles of Incorporation (incorporated by reference to Exhibit 3.1 of the Company’s Registration Statement on Form S-3 filed on November 18, 2005). 3.2 Amended and Restated Bylaws of SkyWest Inc., effective August 6, 2024 (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on August 8, 2024). *†10.1 Amendment No. 21, dated April 1, 2026, to Capacity Purchase Agreement, dated May 16, 2013, between United Airlines, Inc. and SkyWest Airlines, Inc. *†10.2 Amendment No. 1, dated May 21, 2026, to Amended and Restated Capacity Purchase Agreement, dated November 3, 2025, between American Airlines, Inc. and SkyWest Airlines, Inc. *†10.3 Amendment No. 2, dated June 25, 2026, to Amended and Restated Capacity Purchase Agreement, dated November 3, 2025, between American Airlines, Inc. and SkyWest Airlines, Inc. *†10.4 Amendment No. 2, dated May 22, 2026, to Purchase Agreement COM0247-25, dated June 17, 2025, between Embraer S.A. and SkyWest Inc. *†10.5 Amendment No. 1, dated May 22, 2026, to Letter Agreement COM0250-25, dated June 17, 2025, between Embraer S.A. and SkyWest Inc. related to that certain Purchase Agreement COM0247-25, dated June 17, 2025, between Embraer S.A. and SkyWest Inc. *†10.6 Amendment No. 2, dated June 22, 2026, to Letter Agreement COM0250-25, dated June 17, 2025, between Embraer S.A. and SkyWest Inc. related to that certain Purchase Agreement COM0247-25, dated June 17, 2025, between Embraer S.A. and SkyWest Inc. 31.1 Certification of Chief Executive Officer 31.2 Certification of Chief Financial Officer 32.1 Certification of Chief Executive Officer 32.2 Certification of Chief Financial Officer 101.INS Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. 101.SCH Inline XBRL Taxonomy Extension Schema Document 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document (104) Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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* Pursuant to Item 601(a)(5) of Regulation S-K promulgated by the Securities and Exchange Commission, certain exhibits and schedules to this agreement have been omitted. Such exhibits and schedules are described in the referenced agreement. The Company hereby agrees to furnish to the Securities and Exchange Commission, upon its request, any or all of such omitted exhibits or schedules.

† Certain portions of this exhibit (indicated by asterisks) have been omitted pursuant to Item 601(b)(10) of Regulation S-K promulgated by the Securities and Exchange Commission.

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​ SKYWEST, INC.

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​ By /s/ Robert J. Simmons

​ ​ Robert J. Simmons

​ ​ Chief Financial Officer

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