(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 nine months ended September 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.

Change in Accounting Estimate

Effective July 1, 2026, the Company revised the estimated useful lives of its Embraer E175 regional jet aircraft (“E175”), spare engines supporting the Company’s E175 fleet and related rotable spare parts from 22 years to 30 years. The Company concurrently revised the estimated residual value of its E175 aircraft from 20% to 18% of original acquisition cost. The revisions were based on recent extensions of the Company’s E175 flying contracts, the Company’s experience with previous contract extensions on its CRJ fleet, the operating longevity of the Company’s older CRJ fleet, the absence of an alternative 76-seat regional jet currently in production and the Company’s overall experience operating regional jet aircraft. These revisions represent changes in accounting estimates and were applied prospectively beginning July 1, 2026.

For the three and nine months ended September 30, 2026, these estimate revisions reduced depreciation expense by approximately $18.5 million. As a result, income from continuing operations before income taxes increased by approximately $18.5 million, net income increased by approximately $14.0 million, and diluted earnings per share increased by approximately $0.36 for the three months ended September 30, 2026 and approximately $0.35 for the nine months ended September 30, 2026.