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Investing.com -- SkyWest , Inc. (NASDAQ:SKYW) reported second quarter 2025 earnings that exceeded analyst expectations, with net income of $120 million, or $2.91 per diluted share, significantly outperforming the analyst estimate of $2.36. Revenue came in at $1.03 billion, surpassing the consensus estimate of $979.38 million.
The regional airline’s strong performance was driven by a 19% increase in block hour production compared to the same quarter last year, reflecting improvements in captain availability, higher fleet utilization, and robust demand for its services. Revenue increased by 19% YoY from $867 million in the second quarter of 2024. SkyWest shares rose 1.5% following the earnings announcement.
"Demand for our product remains solid. We believe we are well-positioned to deploy our capital for long-term growth and fleet opportunities, including service expansion in smaller communities and optimizing our fleet to meet the demand for regional flying," said Chip Childs, President and CEO of SkyWest.
Operating expenses increased by 16% to $865 million compared to $747 million in the second quarter of 2024, primarily due to increased flight production, though this was partially offset by operating efficiencies from higher fleet utilization.
The company ended the quarter with $727 million in cash and marketable securities, down from $802 million at the end of 2024. Total (EPA:TTEF) debt decreased to $2.5 billion from $2.7 billion at year-end 2024.
SkyWest also highlighted its previously announced agreement to purchase and operate 16 new E175 aircraft for Delta Air Lines (NYSE:DAL), with deliveries scheduled for 2027 and 2028. These aircraft will replace 11 CRJ900s and 5 CRJ700s currently in service with Delta. By the end of 2028, SkyWest anticipates operating nearly 300 E175 aircraft.
During the quarter, the company repurchased 195,000 shares for $17.3 million at an average price of $88.61 per share, a 38% increase from the previous quarter’s repurchases.
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