Nature of Operations and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Condensed Consolidated Financial Statements

Schedule of details of aircraft and agreements with other airlines

As of December 31, 2014, the Company had a combined fleet of 749 aircraft consisting of the following:

	CRJ200		CRJ700		CRJ900		ERJ135		ERJ145		E175		EMB120		Total
United		89		70		—		9		216		20		21		425
Delta		113		60		60		—		—		—		6		239
American		29		—		—		—		—		—		—		29
US Airways		11		—		4		—		—		—		—		15
Alaska		—		9		—		—		—		—		—		9
Subleased to an un-affiliated entity		2		—		—		—		—		—		—		2
Other		4		—		—		—		10		—		16		30
Total		248		139		64		9		226		20		43		749

Schedule of the Company's position in marketable securities

The Company's position in marketable securities as of December 31, 2014 and 2013 was as follows (in thousands):

At December 31, 2014	Amortized Cost		Gross unrealized holding gains		Gross unrealized holding losses			Fair market value
Total cash and cash equivalents	$	132,275	$	—	$	—		$	132,275
Available-for-sale securities:
Bond and bond funds	$	410,618	$	9	$	(464	)	$	410,163
Asset backed securities		5,108		3		(1	)		5,110
Total available-for-sale securities	$	415,726	$	12	$	(465	)	$	415,273
Total cash and cash equivalents and available for sale securities	$	548,001	$	12	$	(465	)	$	547,548

At December 31, 2013	Amortized Cost		Gross unrealized holding gains		Gross unrealized holding losses			Fair market value
Total cash and cash equivalents	$	170,636	$	—	$	—		$	170,636
Available-for-sale securities:
Bond and bond funds	$	486,571	$	487	$	(9	)	$	487,049
Asset backed securities		182		8		—			190
Total available-for-sale securities		486,753		495	$	(9	)		487,239
Total cash and cash equivalents and available for sale securities	$	657,389	$	495	$	(9	)	$	657,875

Schedule of maturities of marketable securities

        Marketable securities had the following maturities as of December 31, 2014 (in thousands):

Maturities	Amount
Year 2015	$	233,858
Years 2016 through 2019		181,406
Years 2020 through 2027		—
Thereafter		2,317

Schedule of property and equipment

Assets	Depreciable Life	Residual Value
Aircraft and rotable spares	10 - 18 years	0 - 30%
Ground equipment	5 - 10 years	0%
Office equipment	5 - 7 years	0%
Leasehold improvements	Shorter of 15 years or lease term	0%
Buildings	20 - 39.5 years	0%

Net income with per share data and comprehensive income

Schedule of net income (loss) per common share

	Year Ended December 31,
	2014			2013		2012
Numerator:
Net Income (Loss)	$	(24,154	)	$	58,956	$	51,157
Denominator:
Denominator for basic earnings per-share weighted average shares		51,237			51,688		51,090
Dilution due to stock options and restricted stock		—			734		656
Denominator for diluted earnings per-share weighted average shares		51,237			52,422		51,746
Basic earnings (loss) per-share	$	(0.47	)	$	1.14	$	1.00
Diluted earnings (loss) per-share	$	(0.47	)	$	1.12	$	0.99

Schedule of comprehensive income (loss)

	Year Ended December 31,
	2014			2013			2012
Net Income (Loss)	$	(24,154	)	$	58,956			51,157
Proportionate share of other companies foreign currency translation adjustment, net of tax		(1,129	)		66			(251	)
Unrealized appreciation (depreciation) on marketable securities, net of tax		(719	)		(13	)		316
Comprehensive income (loss)	$	(26,002	)	$	59,009		$	51,222

Delta Connection Agreements

Agreements with other airlines

Schedule of details of agreements with other airlines

Agreement	Number of aircraft under contract	Term / Termination Dates	Pass-through costs or costs paid directly by major partner	Performance Incentive Structure	Payment Structure
SkyWest Airlines Delta Connection Agreement (fixed-fee arrangement)	• CRJ 200—44 • CRJ 700—19 • CRJ 900—32	• The contract expires on an individual aircraft basis with expirations commencing in 2015 • The final aircraft expires in 2022 • The average remaining term of the aircraft under contract is 4.8 years • Upon expiration, aircraft may be renewed or extended	• Fuel • Engine Maintenance • Landing fees, Station Rents, Deice • Insurance	• No financial performance based incentives	• Rate per block hour, per departure and per aircraft under contract
ExpressJet Delta Connection Agreement (fixed-fee arrangement)	• CRJ 200—59 • CRJ 700—41 • CRJ 900—28	• The contract expires on an individual aircraft basis with expirations scheduled in 2015 • The final aircraft expires in 2022 • The average remaining term of the aircraft under contract is 4.1 years • Upon expiration, aircraft may be renewed or extended	• Fuel • Engine Maintenance • Landing fees, Station Rents, Deice Insurance	• Performance based financial incentives	• Rate per block hour, per departure and per aircraft under contract
SkyWest Airlines Pro-rate Agreement (revenue-sharing agreement)	• EMB 120—6 • CRJ 200—10	• Terminates with 30-day notice	• None	• None	• Pro-rata sharing of the passenger fare revenue

United Express Agreements

Agreements with other airlines

Schedule of details of agreements with other airlines

Agreement	Number of aircraft under contract	Term / Termination Dates	Pass-through costs or costs paid directly by major partner	Performance Incentive Structure	Payment Structure
SkyWest Airlines United Express Agreements (fixed-fee arrangement)	• CRJ 200—61 • CRJ 700—70 • E175—20 • EMB 120—9	• The contract expires on an individual aircraft basis with expirations scheduled in 2015 • The final aircraft expires in 2026 • The average remaining term of the aircraft under contract is 3.4 years • Upon expiration, aircraft may be renewed or extended	• Fuel • Landing fees, Station Rents, Deice • Insurance	• Performance based incentives	• Rate per block hour, per departure and per aircraft under contract
ExpressJet United ERJ Agreement (fixed-fee arrangement)	• ERJ 135—9 • ERJ 145—216	• The contract expires on an individual aircraft basis with expirations scheduled in 2015 • The final aircraft expires in 2017 • The average remaining term of the aircraft under contract is 1.9 years • Upon expiration, aircraft may be renewed or extended	• Fuel • Engine Maintenance • Landing fees, Station Rents, Deice • Insurance	• Performance based incentives or penalties	• Rate per block hour, per departure and per aircraft under contract
ExpressJet United CRJ Agreement (fixed-fee arrangement)	• CRJ 200—7	• The contract expires on an individual basis with final aircraft terminating in March 2015 • Upon termination, leased aircraft are expected to be returned to lessors	• Fuel • Landing fees, Station Rents, Deice • Insurance	• Performance based incentives	• Rate per block hour, per departure and per aircraft under contract
SkyWest Airlines United Express Pro-rate Agreement (revenue-sharing arrangement)	• CRJ 200—21 • EMB 120—12	• Terminates with 120-day notice	• None	• None	• Pro-rata sharing of the passenger fare revenue

Alaska Capacity Purchase Agreement

Agreements with other airlines

Schedule of details of agreements with other airlines

Agreement	Number of aircraft under contract	Term / Termination Dates	Pass-through costs or costs paid directly by major partner	Incentive Structure	Payment Structure
SkyWest Airlines Alaska Agreement (fixed-fee arrangement)	• CRJ 700—9	• Terminates 2018 • Upon expiration, aircraft may be renewed or extended	• Fuel • Landing fees, Station Rents, Deice • Insurance	• Performance based incentives	• Rate per block hour, per departure and per aircraft under contract

US Airways Express Agreement

Agreements with other airlines

Schedule of details of agreements with other airlines

Agreement	Number of aircraft under contract	Term / Termination Dates	Pass-through costs or costs paid directly by major partner	Incentive Structure	Payment Structure
SkyWest Airlines US Airways Agreement (fixed-fee arrangement)	• CRJ 200—10 • CRJ 900—4	• Terminates 2015 • Upon expiration, aircraft may be renewed or extended	• Fuel • Landing fees, Station Rents, Deice • Insurance	• Performance based incentives	• Rate per block hour, per departure and per aircraft under contract
SkyWest Airlines US Airways Pro-rate Agreement (revenue-sharing agreement)	• CRJ 200—1	• Terminates with 120- day notice	• None	• None	• Pro-rata sharing of the passenger fare revenue

American Agreements [Member]

Agreements with other airlines

Schedule of details of agreements with other airlines

Agreement	Number of aircraft under contract	Term / Termination Dates	Pass-through costs or costs paid directly by major partner	Incentive Structure	Payment Structure
SkyWest Airlines American Agreement (fixed-fee agreement)	• CRJ 200—12	• Terminates 2016 • Upon expiration, aircraft may be renewed or extended	• Fuel • Landing fees, Station Rents, Deice • Insurance	• Performance based incentives	• Rate per block hour, per departure and per aircraft under contract
SkyWest Airlines American Pro-rate Agreement (revenue-sharing agreement)	• CRJ 200—4	• Terminates with 120- day notice	• None	• None	• Pro-rata sharing of the passenger fare revenue
ExpressJet American Agreement (fixed-fee agreement)	• CRJ 200—11	• Terminates 2017 • Upon expiration, aircraft may be renewed or extended	• Fuel • Landing fees, Station Rents, Deice • Insurance	• Performance based incentives	• Rate per block hour, per departure and per aircraft under contract
ExpressJet American Pro-rate Agreement (revenue-sharing agreement)	• CRJ 200—2	• Terminates with 120- day notice	• None	• None	• Pro-rata sharing of the passenger fare revenue