Long-term Debt

6 Months Ended

Jun. 30, 2025

Long-term Debt

Long-term Debt

(9) Long-term Debt

Long-term debt consisted of the following as of June 30, 2025, and December 31, 2024 (in thousands):

		June 30, 2025		December 31, 2024
Current portion of long-term debt	$	493,874	$	539,061
Current portion of unamortized debt issue cost, net		(3,338)		(3,472)
Current portion of long-term debt, net of debt issue costs	$	490,536	$	535,589
Long-term debt, net of current maturities	$	2,020,771	$	2,153,558
Long-term portion of unamortized debt issue cost, net		(14,737)		(16,772)
Long-term debt, net of current maturities and debt issue costs	$	2,006,034	$	2,136,786
Total long-term debt (including current portion)	$	2,514,645	$	2,692,619
Total unamortized debt issue cost, net		(18,075)		(20,244)
Total long-term debt, net of debt issue costs	$	2,496,570	$	2,672,375

As of June 30, 2025, the Company had $2.5 billion of total long-term debt, which consisted of $2.3 billion of debt used to finance aircraft and spare engines and $200.6 million of unsecured debt payable to the U.S. Department of the Treasury (“Treasury”). As of June 30, 2025, $138.6 million of the debt payable to Treasury had a fixed annual interest rate of 1% and $62.0 million had a variable interest rate of the Secured Overnight Financing Rate ("SOFR") plus 2.0%. The interest rate under the $138.6 million unsecured loans is scheduled to increase to the applicable SOFR rate plus 2.0% upon the fifth anniversary of each disbursement. The Company received disbursements under these unsecured loans from July 2020 through April 2021. The average effective interest rate on the Company’s debt was approximately 4.3% at June 30, 2025.

During the six months ended June 30, 2025, the Company took delivery of two new E175 aircraft that the Company financed through $47.1 million of long-term debt. The debt associated with the two E175 aircraft has a 12-year term, is due in quarterly installments, and is secured by the E175 aircraft.

As of June 30, 2025 and December 31, 2024, the Company had $49.1 million and $47.1 million, respectively, in letters of credit and surety bonds outstanding with various banks and surety institutions.

As of June 30, 2025, SkyWest Airlines had a $100.0 million line of credit. The line of credit includes minimum liquidity and profitability covenants and is secured by certain assets. As of June 30, 2025, SkyWest Airlines had no amounts outstanding under the line of credit facility. However, at June 30, 2025, SkyWest Airlines had $25.0 million in letters of credit issued under the facility, which reduced the amount available under the facility to $75.0 million. The line of credit expires March 25, 2028 and has a variable interest rate of 3.5% plus the one month SOFR rate.

The Company’s debt agreements are not traded on an active market and are recorded at carrying value on the Company’s consolidated balance sheet. The fair value of the Company’s long-term debt is estimated based on current rates offered to the Company for similar debt. The fair value of debt is estimated using inputs classified as Level 2 within

the fair value hierarchy. The carrying value and fair value of the Company’s long-term debt as of June 30, 2025 and December 31, 2024, were as follows (in thousands):

	June 30, 2025		December 31, 2024
Carrying value	$	2,514,645	$	2,692,619
Fair value	$	2,457,771	$	2,612,838