Long-term Debt |
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| Long-term Debt | (9) Long-term Debt Long-term debt consisted of the following as of June 30, 2026, and December 31, 2025 (in thousands):
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 (“”) 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 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 . 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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