| Segment Reporting |
(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 September 30, 2026 and 2025 (in thousands). | | | | | | | | | | | | Three months ended September 30, 2026 | | | SkyWest Airlines | | SkyWest | | | | | and SWC | | Leasing | | Consolidated | Operating revenues | | $ | 961,124 | | $ | 156,231 | | $ | 1,117,355 | | | | | | | | | | | Salaries, wages and benefits | | | 429,082 | | | 665 | | | 429,747 | Aircraft maintenance, materials and repairs | | | 233,736 | | | 5,691 | | | 239,427 | Depreciation and amortization | | | 40,662 | | | 35,618 | | | 76,280 | Interest expense | | | 3,805 | | | 20,830 | | | 24,635 | Other segment expense (income) items(1) | | | 194,995 | | | (7,216) | | | 187,779 | Segment profit(2) | | $ | 58,844 | | $ | 100,643 | | $ | 159,487 | | | | | | | | | | | Total assets (as of September 30, 2026) | | $ | 3,364,320 | | $ | 4,144,426 | | $ | 7,508,746 | Capital expenditures (including non-cash) | | $ | 90,435 | | $ | 82,984 | | $ | 173,419 | Deposits paid on aircraft | | $ | — | | $ | 17,535 | | $ | 17,535 |
| | | | | | | | | | | | Three months ended September 30, 2025 | | | SkyWest Airlines | | SkyWest | | | | | and SWC | | Leasing | | Consolidated | Operating revenues | | $ | 892,618 | | $ | 157,411 | | $ | 1,050,029 | | | | | | | | | | | Salaries, wages and benefits | | | 390,969 | | | 665 | | | 391,634 | Aircraft maintenance, materials and repairs | | | 236,745 | | | 11,233 | | | 247,978 | Depreciation and amortization | | | 40,778 | | | 51,696 | | | 92,474 | Interest expense | | | 2,662 | | | 22,949 | | | 25,611 | Other segment expense (income) items(1) | | | 144,963 | | | (9,800) | | | 135,163 | Segment profit(2) | | $ | 76,501 | | $ | 80,668 | | $ | 157,169 | | | | | | | | | | | Total assets (as of September 30, 2025) | | $ | 3,160,752 | | $ | 4,053,444 | | $ | 7,214,196 | Capital expenditures (including non-cash) | | $ | 39,836 | | $ | 15,559 | | $ | 55,395 | Deposits paid on aircraft | | $ | — | | $ | — | | $ | — |
| (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 nine-month periods ended September 30, 2026 and 2025 (in thousands). | | | | | | | | | | | | Nine months ended September 30, 2026 | | | SkyWest Airlines | | SkyWest | | | | | and SWC | | Leasing | | Consolidated | Operating revenues | | $ | 2,756,961 | | $ | 476,322 | | $ | 3,233,283 | | | | | | | | | | | Salaries, wages and benefits | | | 1,276,682 | | | 1,995 | | | 1,278,677 | Aircraft maintenance, materials and repairs | | | 671,349 | | | 24,033 | | | 695,382 | Depreciation and amortization | | | 118,442 | | | 140,551 | | | 258,993 | Interest expense | | | 10,298 | | | 63,728 | | | 74,026 | Other segment expense (income) items(1) | | | 537,643 | | | (17,549) | | | 520,094 | Segment profit(2) | | $ | 142,547 | | $ | 263,564 | | $ | 406,111 | | | | | | | | | | | Total assets (as of September 30, 2026) | | $ | 3,364,320 | | $ | 4,144,426 | | $ | 7,508,746 | Capital expenditures (including non-cash) | | $ | 318,983 | | $ | 125,552 | | $ | 444,535 | Deposits paid on aircraft | | $ | — | | $ | 29,837 | | $ | 29,837 |
| | | | | | | | | | | | Nine months ended September 30, 2025 | | | SkyWest Airlines | | SkyWest | | | | | and SWC | | Leasing | | Consolidated | Operating revenues | | $ | 2,563,605 | | $ | 470,106 | | $ | 3,033,711 | | | | | | | | | | | Salaries, wages and benefits | | | 1,157,193 | | | 1,995 | | | 1,159,188 | Aircraft maintenance, materials and repairs | | | 654,830 | | | 41,133 | | | 695,963 | Depreciation and amortization | | | 117,531 | | | 154,539 | | | 272,070 | Interest expense | | | 8,830 | | | 70,465 | | | 79,295 | Other segment expense (income) items(1) | | | 404,189 | | | (17,997) | | | 386,192 | Segment profit(2) | | $ | 221,032 | | $ | 219,971 | | $ | 441,003 | | | | | | | | | | | Total assets (as of September 30, 2025) | | $ | 3,160,752 | | $ | 4,053,444 | | $ | 7,214,196 | Capital expenditures (including non-cash) | | $ | 233,067 | | $ | 80,717 | | $ | 313,784 | Deposits paid on aircraft | | $ | — | | $ | 31,078 | | $ | 31,078 |
| (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. |
|