Key Highlights

  • SkyWest shares fell 14.72% on October 30, 2026.
  • The company now expects 2026 Earnings of about $10.60 per share, down from about $11.
  • Third-quarter Net Income was $119.5 million, or $3.08 per diluted share.
  • 2027 earnings are expected to be similar to 2026.

SkyWest (NASDAQ:SKYW) fell 14.72% on Friday after the airline operator trimmed its 2026 earnings-per-share outlook, citing fuel costs. The regional airline reported third-quarter results after the close on Thursday, October 29, and while profit rose from a year earlier, Revenue came in below forecasts. It also said it expects 2027 earnings to be similar to 2026, below what analysts had been modeling.

A Solid Quarter on the Surface

Net income was $119.5 million, or $3.08 per diluted share, compared with $116.4 million, or $2.81, a year earlier. Revenue rose to about $1.12 billion from $1.05 billion. Earnings Per Share narrowly topped a forecast of $3.07 while revenue missed a forecast of about $1.14 billion. The fleet stood at 276 E175 aircraft, with more than 300 expected by the end of 2027, and SkyWest repurchased 738,000 shares for about $75 million.

Fuel Drove the Cut

SkyWest flies regional jets under capacity purchase agreements with major carriers such as United, Delta, American and Alaska that normally bear fuel costs, but it also flies some routes on a prorate basis, where it pays for its own fuel. It now expects 2026 earnings of about $10.60 per share, down from about $11 set in July, with chief financial officer Rob Simmons attributing the cut "mostly on fuel." The fuel bill on prorate routes nearly doubled to $66 million. Depreciation was also $16 million lower after SkyWest extended the useful life of its E175 jets to 30 years, which helped earnings but does not reflect stronger demand.

A Lower 2027 View

For 2027 Simmons said block hour production should be up 1% to 2% with earnings similar to 2026. Analysts had expected about $12.12 earlier in October, so the guidance implies a meaningful cut to estimates. He added that each $1 per gallon below the company's $4.30 assumption for 2027 would add $1.20 per share.

Oil on the Wrong Side

Oil prices rose on Friday, keeping jet fuel expensive. The S&P 500 fell 140.32 points, or 1.8%, to 7,580.07 and the Nasdaq Composite dropped 747.73 points, or 2.9%, to 25,437.00, as Intel (NASDAQ:INTC)'s weak outlook triggered a chip rout and Amazon (NASDAQ:AMZN)'s results revived worries about AI spending. Investors will watch fuel prices, aircraft deliveries, pilot availability, contract renewals with major partners and any update to 2027 expectations.