Segment Reporting

12 Months Ended

Dec. 31, 2025

Segment Reporting

Segment Reporting

(2) 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 chief operating decision maker is the chief executive officer.

The Company’s two reportable segments consist of (1) the operations of SkyWest Airlines and SWC and (2) SkyWest Leasing activities.

The Company’s chief operating decision maker analyzes the profitability of operating 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 years ended December 31, 2025, 2024, and 2023 (in thousands). As required by the adoption of ASC 2023-07 for the year ended December 31, 2024, the Company recast the 2023 segment disclosures to conform to the 2025 and 2024 presentation.

	Year ended December 31, 2025
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues	$	3,415,066	$	643,136	$	4,058,202
Salaries, wages and benefits		1,556,695		2,661		1,559,356
Aircraft maintenance, materials and repairs		877,369		66,410		943,779
Depreciation and amortization		157,560		206,937		364,497
Interest expense		11,698		92,747		104,445
Other segment expense (income) items(1)		548,776		(28,242)		520,534
Segment profit(2)	$	262,968	$	302,623	$	565,591
Total assets (as of December 31, 2025)	$	3,244,166	$	4,142,083	$	7,386,249
Capital expenditures (including non-cash)	$	366,362	$	182,622	$	548,984

	Year ended December 31, 2024
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues	$	2,905,339	$	622,581	$	3,527,920
Salaries, wages and benefits		1,461,271		2,661		1,463,932
Aircraft maintenance, materials and repairs		684,805		27,837		712,642
Depreciation and amortization		145,052		238,828		383,880
Interest expense		12,916		101,424		114,340
Other segment expense (income) items(1)		462,404		(41,421)		420,983
Segment profit(2)	$	138,891	$	293,252	$	432,143
Total assets (as of December 31, 2024)	$	2,810,521	$	4,329,346	$	7,139,867
Capital expenditures (including non-cash)	$	310,636	$	128,584	$	439,220

	Year ended December 31, 2023
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues	$	2,392,174	$	543,258	$	2,935,432
Salaries, wages and benefits		1,319,954		2,661		1,322,615
Aircraft maintenance, materials and repairs		657,392		16,061		673,453
Depreciation and amortization		149,264		233,851		383,115
Interest expense		17,053		113,877		130,930
Other segment expense (income) items(1)		413,722		(28,712)		385,010
Segment profit (loss)(2)	$	(165,211)	$	205,520	$	40,309
Total assets (as of December 31, 2023)	$	2,537,834	$	4,488,459	$	7,026,293
Capital expenditures (including non-cash)	$	113,783	$	150,126	$	263,909

(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, net.

(2) Segment profit (loss) is equal to income before income taxes. As a result of adopting ASC 2023-07, the Company included interest income and other income in the recast segment profit (loss) for each segment during the year ended December 31, 2023.