Segment Reporting

3 Months Ended

Mar. 31, 2025

Segment Reporting

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 operating new aircraft financed through the issuance of debt, including the Company’s E175 fleet, separately from the profitability of the Company’s capital deployed for ownership and financing of such aircraft. 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. Additionally, aircraft removed from SkyWest Airlines’ operations and held for sale are included in the SkyWest Leasing segment.

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 March 31, 2025 and 2024 (in thousands). As required by the adoption of ASC 2023-07, “Segment Reporting (ASC Topic 280) – Improvements to Reportable Segment Disclosures,” the Company recast the segment disclosures for the three months ended March 31, 2024 to conform to the current year presentation.

	Three months ended March 31, 2025
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues	$	801,651	$	146,804	$	948,455
Salaries, wages and benefits		376,646		665		377,311
Aircraft maintenance, materials and repairs		201,476		7,624		209,100
Depreciation and amortization		37,748		51,698		89,446
Interest expense		2,981		24,137		27,118
Other segment items(1)		128,530		(3,768)		124,762
Segment profit(2)	$	54,270	$	66,448	$	120,718
Total assets (as of March 31, 2025)	$	3,040,242	$	4,074,024	$	7,114,266
Capital expenditures (including non-cash)	$	118,916	$	—	$	118,916

	Three months ended March 31, 2024
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues	$	646,809	$	156,805	$	803,614
Salaries, wages and benefits		350,334		665		350,999
Aircraft maintenance, materials and repairs		141,090		4,325		145,415
Depreciation and amortization		36,108		59,762		95,870
Interest expense		3,476		26,353		29,829
Other segment items(1)		110,805		(9,479)		101,326
Segment profit(2)	$	4,996	$	75,179	$	80,175
Total assets (as of March 31, 2024)	$	2,608,104	$	4,374,639	$	6,982,743
Capital expenditures (including non-cash)	$	44,350	$	—	$	44,350

(1) Other segment items include aircraft fuel; airport related expenses; other operating expenses consisting primarily of property taxes, hull and liability insurance, simulator costs, crew per diem and crew hotel costs; aircraft rentals; interest income and other expense, net.

(2) Segment profit is equal to income before income taxes. As a result of adopting ASC 2023-07 in 2024, the Company included interest income and other income in the recast segment profit for each segment for the three months ended March 31, 2024 and 2025.