Segment Reporting

6 Months Ended

Jun. 30, 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 June 30, 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 and six months ended June 30, 2024 to conform to the current year presentation.

	Three months ended June 30, 2025
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues	$	869,336	$	165,891	$	1,035,227
Salaries, wages and benefits		389,578		665		390,243
Aircraft maintenance, materials and repairs		216,609		22,276		238,885
Depreciation and amortization		39,005		51,145		90,150
Interest expense		3,187		23,379		26,566
Other segment items(1)		130,696		(4,429)		126,267
Segment profit(2)	$	90,261	$	72,855	$	163,116
Total assets (as of June 30, 2025)	$	3,086,209	$	4,087,874	$	7,174,083
Capital expenditures (including non-cash)	$	74,315	$	65,158	$	139,473

	Three months ended June 30, 2024
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues	$	711,784	$	155,334	$	867,118
Salaries, wages and benefits		354,340		665		355,005
Aircraft maintenance, materials and repairs		175,562		7,705		183,267
Depreciation and amortization		37,004		59,810		96,814
Interest expense		3,255		25,711		28,966
Other segment items(1)		109,646		(8,746)		100,900
Segment profit(2)	$	31,977	$	70,189	$	102,166
Total assets (as of June 30, 2024)	$	2,644,446	$	4,317,993	$	6,962,439
Capital expenditures (including non-cash)	$	40,907	$	—	$	40,907

(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 income (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 (expense), net in the recast segment profit for each segment for the three months ended June 30, 2024, consistent with the presentation for the three months ended June 30, 2025.

	Six months ended June 30, 2025
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues	$	1,670,987	$	312,695	$	1,983,682
Salaries, wages and benefits		766,224		1,330		767,554
Aircraft maintenance, materials and repairs		418,085		29,900		447,985
Depreciation and amortization		76,753		102,843		179,596
Interest expense		6,168		47,516		53,684
Other segment items(1)		259,226		(8,197)		251,029
Segment profit(2)	$	144,531	$	139,303	$	283,834
Total assets (as of June 30, 2025)	$	3,086,209	$	4,087,874	$	7,174,083
Capital expenditures (including non-cash)	$	193,231	$	65,158	$	258,389

	Six months ended June 30, 2024
	SkyWest Airlines		SkyWest
	and SWC		Leasing		Consolidated
Operating revenues	$	1,358,593	$	312,139	$	1,670,732
Salaries, wages and benefits		704,674		1,330		706,004
Aircraft maintenance, materials and repairs		316,652		12,030		328,682
Depreciation and amortization		73,112		119,572		192,684
Interest expense		6,731		52,064		58,795
Other segment items(1)		220,451		(18,225)		202,226
Segment profit(2)	$	36,973	$	145,368	$	182,341
Total assets (as of June 30, 2024)	$	2,644,446	$	4,317,993	$	6,962,439
Capital expenditures (including non-cash)	$	85,257	$	—	$	85,257

(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 income (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 (expense), net in the recast segment profit for each segment for the six months ended June 30, 2024, consistent with the presentation for the six months ended June 30, 2025.