SkyWest (SKYW) 10-Q27 Oct 232023 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2023	Oct. 20, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	0-14719
Entity Registrant Name	SKYWEST INC
Entity Incorporation, State or Country Code	UT
Entity Tax Identification Number	87-0292166
Entity Address, Address Line One	444 South River Road
Entity Address, City or Town	St. George
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84790
City Area Code	435
Local Phone Number	634-3000
Title of 12(b) Security	Common Stock, No Par Value
Trading Symbol	SKYW
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		40,943,682
Entity Central Index Key	0000793733
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
CURRENT ASSETS:
Cash and cash equivalents	$ 125,330	$ 102,984
Marketable securities	694,171	944,231
Receivables, net	118,844	100,523
Inventories, net	127,129	123,209
Other current assets	96,522	100,334
Total current assets	1,161,996	1,371,281
PROPERTY AND EQUIPMENT:
Aircraft and rotable spares	8,254,591	8,143,614
Deposits on aircraft	79,459	23,931
Buildings and ground equipment	285,924	265,019
Total property and equipment, gross	8,619,974	8,432,564
Less-accumulated depreciation and amortization	(3,121,549)	(2,884,084)
Total property and equipment, net	5,498,425	5,548,480
OTHER ASSETS:
Operating lease right-of-use assets	85,746	151,928
Long-term receivables and other assets	312,951	342,864
Total other assets	398,697	494,792
Total assets	7,059,118	7,414,553
CURRENT LIABILITIES:
Current maturities of long-term debt	443,186	438,502
Accounts payable	486,731	422,001
Accrued salaries, wages and benefits	189,510	186,285
Current maturities of operating lease liabilities	19,225	71,726
Taxes other than income taxes	24,736	20,480
Other current liabilities	42,282	33,549
Total current liabilities	1,205,670	1,172,543
LONG-TERM DEBT, net of current maturities	2,633,707	2,941,772
DEFERRED INCOME TAXES PAYABLE	681,575	687,060
NONCURRENT OPERATING LEASE LIABILITIES	66,520	88,622
OTHER LONG-TERM LIABILITIES	334,948	176,925
COMMITMENTS AND CONTINGENCIES (Note 7)
STOCKHOLDERS' EQUITY:
Preferred stock, 5,000,000 shares authorized; none issued
Common stock, no par value, 120,000,000 shares authorized; 82,840,372 and 82,592,830 shares issued as of September 30, 2023, and December 31, 2022, respectively	750,133	734,426
Retained earnings	2,253,695	2,236,869
Treasury stock, at cost, 41,619,716 and 31,994,416 shares as of September 30, 2023, and December 31, 2022, respectively	(866,946)	(619,862)
Accumulated other comprehensive loss	(184)	(3,802)
Total stockholders' equity	2,136,698	2,347,631
Total liabilities and stockholders' equity	$ 7,059,118	$ 7,414,553

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
CONSOLIDATED BALANCE SHEETS
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	120,000,000	120,000,000
Common stock, shares issued	82,840,372	82,592,830
Treasury stock, at cost, shares	41,619,716	31,994,416

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
OPERATING REVENUES:
Total operating revenues	$ 766,171	$ 789,443	$ 2,183,645	$ 2,323,680
OPERATING EXPENSES:
Salaries, wages and benefits	333,017	307,727	990,659	896,347
Aircraft maintenance, materials and repairs	178,465	183,182	483,182	506,478
Depreciation and amortization	96,560	97,433	287,878	297,427
Aircraft fuel	23,330	28,179	62,573	85,089
Airport-related expenses	18,398	17,501	53,648	54,196
Aircraft rentals	2,099	16,089	24,055	48,109
Other operating expenses	65,011	63,756	205,203	219,808
Total operating expenses	716,880	713,867	2,107,198	2,107,454
OPERATING INCOME	49,291	75,576	76,447	216,226
OTHER INCOME (EXPENSE):
Interest income	11,234	6,348	31,761	9,332
Interest expense	(32,543)	(33,283)	(99,881)	(92,308)
Other income (loss), net	(3,631)	8,112	7,544	21,011
Total other expense, net	(24,940)	(18,823)	(60,576)	(61,965)
INCOME BEFORE INCOME TAXES	24,351	56,753	15,871	154,261
PROVISION (BENEFIT) FOR INCOME TAXES	873	8,381	(955)	34,204
NET INCOME	$ 23,478	$ 48,372	$ 16,826	$ 120,057
BASIC EARNINGS PER SHARE (in dollars per share)	$ 0.56	$ 0.96	$ 0.37	$ 2.38
DILUTED EARNINGS PER SHARE (in dollars per share)	$ 0.55	$ 0.96	$ 0.37	$ 2.37
Weighted average common shares:
Basic (in shares)	41,826	50,593	45,018	50,531
Diluted (in shares)	42,580	50,636	45,540	50,636
COMPREHENSIVE INCOME:
Net income	$ 23,478	$ 48,372	$ 16,826	$ 120,057
Net unrealized appreciation (depreciation) on marketable securities, net of taxes	624	(2,624)	3,618	(4,569)
TOTAL COMPREHENSIVE INCOME	24,102	45,748	20,444	115,488
Flying agreements
OPERATING REVENUES:
Total operating revenues	741,898	763,514	2,106,130	2,245,351
Lease, airport services and other
OPERATING REVENUES:
Total operating revenues	$ 24,273	$ 25,929	$ 77,515	$ 78,329

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss	Total
Balance at Dec. 31, 2021	$ 722,310	$ 2,163,916	$ (618,712)		$ 2,267,514
Balance (in shares) at Dec. 31, 2021	82,336		(31,956)
Increase (Decrease) in Stockholders' Equity
Net Income (loss)		17,734			17,734
Exercise of common stock options and vested employee stock awards	$ 27				27
Exercise of common stock options and vested employee stock awards (in shares)	139
Employee income tax paid on vested equity awards			$ (1,123)		(1,123)
Employee income tax paid on vested equity awards (in shares)			(37)
Sale of common stock under employee stock purchase plan	$ 1,487				1,487
Sale of common stock under employee stock purchase plan (in shares)	40
Stock based compensation expense	$ 4,076				4,076
Balance at Mar. 31, 2022	$ 727,900	2,181,650	$ (619,835)		2,289,715
Balance (in shares) at Mar. 31, 2022	82,515		(31,993)
Balance at Dec. 31, 2021	$ 722,310	2,163,916	$ (618,712)		2,267,514
Balance (in shares) at Dec. 31, 2021	82,336		(31,956)
Increase (Decrease) in Stockholders' Equity
Net Income (loss)					120,057
Net unrealized appreciation (depreciation) on marketable securities, net of tax					(4,569)
Balance at Sep. 30, 2022	$ 736,406	2,283,973	$ (619,862)	$ (4,569)	2,395,948
Balance (in shares) at Sep. 30, 2022	82,592		(31,994)
Balance at Mar. 31, 2022	$ 727,900	2,181,650	$ (619,835)		2,289,715
Balance (in shares) at Mar. 31, 2022	82,515		(31,993)
Increase (Decrease) in Stockholders' Equity
Net Income (loss)		53,951			53,951
Stock based compensation expense	$ 3,310				3,310
Net unrealized appreciation (depreciation) on marketable securities, net of tax				(1,945)	(1,945)
Balance at Jun. 30, 2022	$ 731,210	2,235,601	$ (619,835)	(1,945)	2,345,031
Balance (in shares) at Jun. 30, 2022	82,515		(31,993)
Increase (Decrease) in Stockholders' Equity
Net Income (loss)		48,372			48,372
Exercise of common stock options and vested employee stock awards	$ 115				115
Exercise of common stock options and vested employee stock awards (in shares)	11
Employee income tax paid on vested equity awards			$ (27)		(27)
Employee income tax paid on vested equity awards (in shares)			(1)
Sale of common stock under employee stock purchase plan	$ 1,329				1,329
Sale of common stock under employee stock purchase plan (in shares)	66
Stock based compensation expense	$ 3,752				3,752
Net unrealized appreciation (depreciation) on marketable securities, net of tax				(2,624)	(2,624)
Balance at Sep. 30, 2022	$ 736,406	2,283,973	$ (619,862)	(4,569)	2,395,948
Balance (in shares) at Sep. 30, 2022	82,592		(31,994)
Balance at Dec. 31, 2022	$ 734,426	2,236,869	$ (619,862)	(3,802)	2,347,631
Balance (in shares) at Dec. 31, 2022	82,593		(31,994)
Increase (Decrease) in Stockholders' Equity
Net Income (loss)		(22,071)			(22,071)
Exercise of common stock options and vested employee stock awards	$ 57				57
Exercise of common stock options and vested employee stock awards (in shares)	130
Employee income tax paid on vested equity awards			$ (585)		(585)
Employee income tax paid on vested equity awards (in shares)			(32)
Sale of common stock under employee stock purchase plan	$ 1,218				1,218
Sale of common stock under employee stock purchase plan (in shares)	78
Stock based compensation expense	$ 4,329				4,329
Treasury stock purchases			$ (100,001)		(100,001)
Treasury stock purchases (in shares)			(5,067)
Net unrealized appreciation (depreciation) on marketable securities, net of tax				1,480	1,480
Balance at Mar. 31, 2023	$ 740,030	2,214,798	$ (720,448)	(2,322)	2,232,058
Balance (in shares) at Mar. 31, 2023	82,801		(37,093)
Balance at Dec. 31, 2022	$ 734,426	2,236,869	$ (619,862)	(3,802)	2,347,631
Balance (in shares) at Dec. 31, 2022	82,593		(31,994)
Increase (Decrease) in Stockholders' Equity
Net Income (loss)					16,826
Net unrealized appreciation (depreciation) on marketable securities, net of tax					3,618
Balance at Sep. 30, 2023	$ 750,133	2,253,695	$ (866,946)	(184)	2,136,698
Balance (in shares) at Sep. 30, 2023	82,840		(41,620)
Balance at Mar. 31, 2023	$ 740,030	2,214,798	$ (720,448)	(2,322)	2,232,058
Balance (in shares) at Mar. 31, 2023	82,801		(37,093)
Increase (Decrease) in Stockholders' Equity
Net Income (loss)		15,419			15,419
Stock based compensation expense	$ 4,246				4,246
Treasury stock purchases			$ (95,998)		(95,998)
Treasury stock purchases (in shares)			(3,335)
Net unrealized appreciation (depreciation) on marketable securities, net of tax				1,514	1,514
Balance at Jun. 30, 2023	$ 744,276	2,230,217	$ (816,446)	(808)	2,157,239
Balance (in shares) at Jun. 30, 2023	82,801		(40,428)
Increase (Decrease) in Stockholders' Equity
Net Income (loss)		23,478			23,478
Sale of common stock under employee stock purchase plan	$ 1,536				1,536
Sale of common stock under employee stock purchase plan (in shares)	39
Stock based compensation expense	$ 4,321				4,321
Treasury stock purchases			$ (50,500)		(50,500)
Treasury stock purchases (in shares)			(1,192)
Net unrealized appreciation (depreciation) on marketable securities, net of tax				624	624
Balance at Sep. 30, 2023	$ 750,133	$ 2,253,695	$ (866,946)	$ (184)	$ 2,136,698
Balance (in shares) at Sep. 30, 2023	82,840		(41,620)

CONSOLIDATED STATEMENTS OF ST_2

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY
Net unrealized appreciation (depreciation) on marketable securities, tax	$ 201	$ 488	$ 476	$ 843	$ 628

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NET CASH PROVIDED BY OPERATING ACTIVITIES	$ 511,907	$ 343,535
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities	(982,331)	(1,758,125)
Sales of marketable securities	1,236,009	1,390,198
Acquisition of property and equipment:
Aircraft and rotable spare parts	(151,600)	(522,683)
Buildings and ground equipment	(13,978)	(11,365)
Proceeds from the sale of property and equipment	6,574	8,494
Deposits on aircraft	(55,528)	(37,100)
Aircraft deposits applied towards acquired aircraft		115,085
Decrease (increase) in other assets	21,857	(49,073)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	61,003	(864,569)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt	25,000	601,389
Principal payments on long-term debt	(331,183)	(299,785)
Payment of debt issuance cost	(108)	(1,949)
Net proceeds from issuance of common stock	2,811	2,958
Employee income tax paid on vested equity awards	(585)	(1,150)
Purchase of treasury stock	(246,499)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(550,564)	301,463
Increase (decrease) in cash and cash equivalents	22,346	(219,571)
Cash and cash equivalents at beginning of period	102,984	258,421
CASH AND CASH EQUIVALENTS AT END OF PERIOD	125,330	38,850
Non-cash investing and financing activities:
Acquisition of property and equipment	16,614	15,801
Derecognition of right of use assets	(39,247)
Derecognition of operating lease liabilities	39,247
Cash paid during the period for:
Interest, net of capitalized amounts	98,196	92,230
Income taxes	$ 9,184	$ 356

Condensed Consolidated Financia

Condensed Consolidated Financial Statements	9 Months Ended
Condensed Consolidated Financial Statements	Sep. 30, 2023
Condensed Consolidated Financial Statements
Condensed Consolidated Financial Statements	( 1) Condensed Consolidated Financial Statements Basis of Presentation The condensed consolidated financial statements of SkyWest, Inc. (“SkyWest” or the “Company”), its operating subsidiary SkyWest Airlines, Inc. (“SkyWest Airlines”), its leasing subsidiary SkyWest Leasing, Inc. (“SkyWest Leasing”) and its charter service subsidiary SkyWest Charter, LLC (“SWC”) included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The Company formed SWC in 2022, with the intent to offer on-demand charter service and public charter service to underserved communities in the United States. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal recurring nature, unless otherwise disclosed. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Due in part to the uncertain rate of recovery from workforce shortages, in addition to other factors, the results of operations for the three and nine months ended September 30, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions.

Flying Agreements Revenue and L

Flying Agreements Revenue and Lease, Airport Services and Other Revenues	9 Months Ended
	Sep. 30, 2023
Flying Agreements Revenue and Lease, Airport Services and Other Revenues
Flying Agreements Revenue and Lease, Airport Services and Other Revenues	(2) Flying Agreements Revenue and Lease, Airport Services and Other Revenues The Company recognizes revenue under its flying agreements and airport services and other service agreements when the service is provided under the applicable agreement. The Company recognizes revenue under its lease agreements ratably over the applicable lease term. Under the Company’s fixed-fee arrangements (referred to as “capacity purchase” agreements) with United Airlines, Inc. (“United”), Delta Air Lines, Inc. (“Delta”), American Airlines, Inc. (“American”) and Alaska Airlines, Inc. (“Alaska”) (each, a “major airline partner”), the major airline partner generally pays the Company a fixed-fee for each departure, flight hour (measured from takeoff to landing, excluding taxi time) or block hour (measured from takeoff to landing, including taxi time) incurred, and an amount per aircraft in service each month with additional incentives based on flight completion and on-time performance. The major airline partner also directly pays for or reimburses the Company for certain direct expenses incurred under the capacity purchase agreement, such as fuel, airport landing fees and airport rents. Under the capacity purchase agreements, the Company’s performance obligation is met when each flight is completed, measured in completed block hours, and is reflected in flying agreements revenue. The transaction price for the capacity purchase agreements is determined from the fixed-fee consideration, incentive consideration and directly reimbursed expenses earned as flights are completed over the agreement term. For the nine months ended September 30, 2023 and 2022, capacity purchase agreements represented approximately 87.2% and 88.0% of the Company’s flying agreements revenue, respectively. Under the Company’s prorate arrangements (also referred to as “prorate” or “revenue-sharing” agreements), the major airline partner and the Company negotiate a passenger fare proration formula, pursuant to which the Company receives a percentage of the ticket revenues for those passengers traveling for one portion of their trip on a Company airline and the other portion of their trip on the major airline partner. Under the Company’s prorate flying agreements, the performance obligation is met and revenue is recognized when each flight is completed based upon the portion of the prorate passenger fare the Company determines that it will receive for each completed flight. The transaction price for the prorate agreements is determined from the proration formula derived from each passenger ticket amount on each completed flight over the agreement term. Certain routes under the Company’s prorate arrangements are subsidized by the U.S. Department of Transportation under the Essential Air Service (“EAS”) program, a program created to ensure small communities in the United States maintain a minimum level of scheduled air service. The EAS contracts are generally two years in duration and the Company recognizes EAS revenue on a per-completed-flight basis pursuant to the terms of each contract. For the nine months ended September 30, 2023 and 2022, prorate flying agreements represented approximately 12.8% and 12.0% of the Company’s flying agreements revenue, respectively. The following table represents the Company’s flying agreements revenue by type for the three and nine months ended September 30, 2023 and 2022 (in thousands): For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Capacity purchase agreements flight operations revenue (non-lease component) $ 511,929 $ 534,781 $ 1,479,987 $ 1,589,128 Capacity purchase agreements fixed aircraft lease revenue 73,794 133,989 222,316 387,576 Capacity purchase agreements variable aircraft lease revenue 46,495 — 134,584 — Prorate agreements revenue 109,680 94,744 269,243 268,647 Flying agreements revenue $ 741,898 $ 763,514 $ 2,106,130 $ 2,245,351 The Company allocates the total consideration received under its capacity purchase agreements between lease and non-lease components based on stand-alone selling prices. A portion of the Company’s compensation under its capacity purchase agreements is designed to reimburse the Company for certain aircraft ownership costs. The consideration for aircraft ownership costs varies by agreement but is intended to cover either the Company’s aircraft principal and interest debt service costs, its aircraft depreciation and interest expense or its aircraft lease expense costs while the aircraft is under contract. The consideration received for the use of the aircraft under the Company’s capacity purchase agreements is accounted for as lease revenue, inasmuch as the agreements identify the “right of use” of a specific type and number of aircraft over a stated period of time. The lease revenue associated with the Company’s capacity purchase agreements is accounted for as an operating lease and is reflected as flying agreements revenue on the Company’s consolidated statements of comprehensive income. During the three months ended December 31, 2022, the Company amended certain of its capacity purchase agreements resulting in a portion of the Company’s aircraft lease revenue becoming variable beginning in the fourth quarter of 2022. Additionally, as a result of these capacity purchase agreement amendments executed in 2022, during the nine months ended September 30, 2023, the Company deferred recognizing lease revenue on $59.3 million of the allocated fixed monthly lease payments received during the nine months ended September 30, 2023, under the straight-line method. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statement of comprehensive income because the use of the aircraft is not a separate activity of the total service provided under the capacity purchase agreements. A portion of the Company’s compensation under its capacity purchase agreements relates to operating the aircraft, identified as the non-lease component of the capacity purchase agreement. The Company recognizes revenue attributed to the non-lease component received as fixed-fees for each departure, flight hour or block hour on an as-completed basis for each reporting period. The Company recognizes revenue attributed to the non-lease component received as fixed monthly payments per aircraft proportionate to the number of block hours completed during each reporting period, relative to the estimated number of block hours the Company anticipates completing over the remaining contract term. Accordingly, the Company’s revenue recognition will likely vary from the timing of cash receipts under the Company’s capacity purchase agreements. The Company refers to cash received under its capacity purchase agreements prior to recognizing revenue as “deferred revenue,” and the Company refers to revenue recognized prior to billing its major airline partners under its capacity purchase agreements as “unbilled revenue” for each reporting period. The Company’s total deferred revenue balance as of September 30, 2023 was $315.9 million, including $10.0 million in other current liabilities and $305.9 million in other long-term liabilities. The Company’s unbilled revenue balance was $11.2 million as of September 30, 2023, including $3.4 million in other current assets and $7.8 million in other long-term assets. The Company’s deferred revenue balance was $144.7 million as of December 31, 2022, including $5.2 million in other current liabilities and $139.5 million in other long-term liabilities. The Company’s unbilled revenue balance was $19.9 million as of December 31, 2022, including $9.9 million in other current assets and $10.0 million in other long-term assets. The Company’s capacity purchase and prorate agreements include weekly provisional cash payments from the respective major airline partner based on a projected level of flying each month. The Company and each major airline partner subsequently reconcile these payments to the actual completed flight activity on a monthly or quarterly basis. As of September 30, 2023, the Company had 493 aircraft in scheduled service or under contract pursuant to code-share agreements. The following table summarizes the significant provisions of each code-share agreement the Company has with each major airline partner through SkyWest Airlines: United Express Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates United Express Agreements (capacity purchase agreement) • E175 • CRJ 700 • CRJ 200 90 19 70 • Individual aircraft have scheduled removal dates from 2024 to 2029 United Express Prorate Agreement (prorate agreement) • CRJ 200 19* • Terminable with 120-days’ Total under United Express Agreements 198 Delta Connection Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates Delta Connection Agreement (capacity purchase agreement) • E175 • CRJ 900 • CRJ 700 83 35 5 • Individual aircraft have scheduled removal dates from 2024 to 2033 Delta Connection Prorate Agreement (prorate agreement) • CRJ 900 • CRJ 700 • CRJ 200 2* 4* 15* • 30-days’ Total under Delta Connection Agreements 144 American Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates American Agreement (capacity purchase agreement) • E175 • CRJ 700 20 89 • Individual aircraft have scheduled removal dates from 2024 to 2032 Total under American Agreement 109 Alaska Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates Alaska Agreement (capacity purchase agreement) • E175 42 • Individual aircraft have scheduled removal dates from 2030 to 2034 * The Company’s prorate agreements are based on specific routes, not a specific aircraft count. The number of aircraft listed above for each prorate agreement approximates the number of aircraft the Company uses to serve the prorate routes. In addition to the contractual arrangements described above, as of September 30, 2023, SkyWest Airlines has a capacity purchase agreement with Delta to place a total of three additional E175 regional jet aircraft (“E175”) from Embraer, S.A. (“Embraer”) into service, with delivery dates currently s cheduled in 2023 and 2024. SkyWest Airlines has a capacity purchase agreement with United to place 19 E175 aircraft into service with delivery dates currently scheduled in 2024, 2025 and 2026. SkyWest Airlines also has a capacity purchase agreement with Alaska to place one additional E175 aircraft into service with a delivery date currently scheduled for 2025. Final delivery and in-service dates for aircraft to be placed under contract may be adjusted based on various factors. When an aircraft is scheduled to be removed from a capacity purchase arrangement, the Company may, as practical under the circumstances, negotiate an extension with the respective major airline partner, negotiate the placement of the aircraft with another major airline partner, return the aircraft to the major airline partner when the aircraft is leased from the major airline partner, place owned aircraft for sale or pursue other uses for the aircraft. Other uses for the aircraft may include placing the aircraft in a prorate agreement, leasing the aircraft to a third party or disassembling aircraft components such as the engines and parts to be used as spare inventory or to lease the engines to a third party. Lease, airport services and other revenues primarily consist of revenue generated from aircraft and spare engines leased to third parties and airport customer services, such as gate and ramp agent services at applicable airports where the Company has agreements with third parties. The following table represents the Company’s lease, airport services and other revenues for the three and nine months ended September 30, 2023 and 2022 (in thousands): For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Operating lease revenue $ 16,091 $ 15,928 $ 49,442 $ 48,933 Airport customer service and other revenue 8,182 10,001 28,073 29,396 Lease, airport services and other $ 24,273 $ 25,929 $ 77,515 $ 78,329 The following table summarizes future minimum rental income under operating leases primarily related to leased aircraft and engines that had remaining non-cancelable lease terms as of September 30, 2023 (in thousands): October 2023 through December 2023 $ 11,405 2024 45,535 2025 40,565 2026 34,998 2027 34,977 Thereafter 86,296 Total future minimum rental income under operating leases $ 253,776 Of the Company’s $5.5 billion of net property and equipment as of September 30, 2023, $206.1 million of regional jet aircraft and spare engines were leased to third parties under operating leases. The Company’s mitigation strategy for the residual asset risks of these assets includes leasing aircraft and engine types that can be operated by the Company in the event of a default. Additionally, the operating leases typically have specified lease return condition requirements paid by the lessee to the Company and the Company typically maintains inspection rights under the leases. The transaction price for airport customer service agreements is determined from an agreed-upon rate by location applied to the applicable number of flights handled by the Company over the agreement term. The Company’s operating revenues could be impacted by several factors, including changes to the Company’s code-share agreements with its major airline partners, changes in flight schedules, contract modifications resulting from contract renegotiations, the Company’s ability to earn incentive payments contemplated under the Company’s code-share agreements and settlement of reimbursement disputes with the Company’s major airline partners. Other ancillary revenues commonly associated with airlines, such as baggage fee revenue, ticket change fee revenue and the marketing component of the sale of mileage credits, are retained by the Company’s major airline partners on flights that the Company operates under its code-share agreements. Allowance for credit losses The Company monitors publicly available credit ratings for entities for which the Company has a significant receivable balance. As of September 30, 2023, the Company had gross receivables of $136.3 million in current assets and gross receivables of $200.0 million in other long-term assets. The Company has established credit loss reserves based on publicly available historic default rates issued by a third party for companies with similar credit ratings, factoring in the term of the respective accounts receivable or notes receivable. During the nine months ended September 30, 2023, the Company wrote-off a $3.6 million receivable that was fully reserved as of December 31, 2022. There were no other significant changes in the outstanding accounts receivable, notes receivable or credit ratings of the entities. The following table summarizes the changes in allowance for credit losses: Allowance for Credit Losses Balance at December 31, 2022 $ 37,385 Adjustments to credit loss reserves (1,789) Write-offs charged against allowance (3,570) Balance at September 30, 2023 $ 32,026

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Sep. 30, 2023
Stock-Based Compensation
Stock-Based Compensation	(3) Stock-Based Compensation During the nine months ended September 30, 2023, the Company granted 125,780 restricted stock units and 391,810 performance shares to certain employees of the Company under the SkyWest, Inc. 2019 Long-Term Incentive Plan. Both the restricted stock units and performance shares have a three-year vesting per share The Company accounts for forfeitures of restricted stock units and performance shares when forfeitures occur. The estimated fair value of the restricted stock units and performance shares is amortized over the applicable vesting periods. Stock-based compensation expense for the performance shares is based on the Company’s anticipated outcome of achieving the performance metrics. During the nine months ended September 30, 2023 and 2022, the Company recorded pre-tax stock-based compensation expense of $12.9 million and $11.1 million, respectively.

Stock Repurchase

Stock Repurchase	9 Months Ended
Stock Repurchase	Sep. 30, 2023
Stock Repurchase
Stock Repurchase	( 4) Stock Repurchase The Company’s Board of Directors has adopted stock repurchase programs in both February 2019 and May 2023, which authorize the Company to repurchase shares of the Company’s common stock in the public market or in private transactions, from time to time, at prevailing prices. The Company’s February 2019 stock repurchase During the nine months ended September 30, 2023, the Company repurchased 9.6 million shares of common stock for $244.1 million at a weighted average price per share of $25.44. The Company also recorded $2.4 million of excise tax related to the stock repurchases as Treasury Stock in the Company’s Stockholders Equity for the nine months ended September 30, 2023. The Company did not have any stock repurchases during the nine months ended September 30, 2022.

Net Income Per Common Share

Net Income Per Common Share	9 Months Ended
Net Income Per Common Share	Sep. 30, 2023
Net Income Per Common Share
Net Income Per Common Share	(5) Net Income Per Common Share Basic net income per common share (“Basic EPS”) excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share. Securities that could potentially dilute Basic EPS in the future, and which were excluded from the calculation of Diluted EPS because inclusion of such share would be anti-dilutive, are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 PSP1 and Treasury Loan Warrants (1) — 582 194 388 PSP2 Warrants (2) — 125 83 125 PSP3 Warrants (3) 78 78 78 78 Employee Stock Awards — 308 20 124 Total antidilutive securities 78 1,093 375 715 (1) Pursuant to the payroll support program established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (“PSP1”) and Loan and Guarantee Agreement with the U.S. Department of the Treasury (“U.S. Treasury”), SkyWest issued to U.S. Treasury warrants to purchase shares of SkyWest common stock for an exercise price of $28.38 per share. (2) Pursuant to the payroll support program established under the Consolidated Appropriations Act, 2021 (“PSP2”), SkyWest issued to U.S. Treasury warrants to purchase shares of SkyWest common stock for an exercise price of $40.41 per share. (3) Pursuant to the payroll support program established under the American Rescue Plan Act of 2021 (“PSP3”), SkyWest issued to U.S. Treasury warrants to purchase shares of SkyWest common stock for an exercise price of $57.47 per share. Additionally, during the nine months ended September 30, 2023 and 2022, 422,000 and 334,000 performance shares (at target performance) were excluded from the computation of Diluted EPS because the Company had not achieved the minimum target thresholds for the nine months ended September 30, 2023 and 2022, respectively. The calculation of the weighted average number of shares of common stock outstanding for Basic EPS and Diluted EPS are as follows for the periods indicated (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Numerator: Net income $ 23,478 $ 48,372 $ 16,826 $ 120,057 Denominator: Basic earnings per share weighted average shares 41,826 50,593 45,018 50,531 Dilutive effect of employee stock awards and warrants 754 43 522 105 Diluted earnings per share weighted average shares 42,580 50,636 45,540 50,636 Basic earnings per share $ 0.56 $ 0.96 $ 0.37 $ 2.38 Diluted earnings per share $ 0.55 $ 0.96 $ 0.37 $ 2.37

Segment Reporting

Segment Reporting	9 Months Ended
Segment Reporting	Sep. 30, 2023
Segment Reporting
Segment Reporting	(6) Segment Reporting The Company’s two reporting 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 charter flight services. 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 following represents the Company’s segment data for the three-month periods ended September 30, 2023 and 2022 (in thousands): Three months ended September 30, 2023 SkyWest Airlines SkyWest and SWC Leasing Consolidated Operating revenues (1) $ 626,780 $ 139,391 $ 766,171 Operating expense 652,599 64,281 716,880 Depreciation and amortization expense 37,320 59,240 96,560 Interest expense 4,450 28,093 32,543 Segment profit (loss) (2) (30,269) 47,017 16,748 Total assets (as of September 30, 2023) 2,557,850 4,501,268 7,059,118 Capital expenditures (including non-cash) 33,436 14,816 48,252 Three months ended September 30, 2022 SkyWest Airlines SkyWest and SWC Leasing Consolidated Operating revenues (1) $ 651,494 $ 137,949 $ 789,443 Operating expense 649,466 64,401 713,867 Depreciation and amortization expense 43,787 53,646 97,433 Interest expense 4,067 29,216 33,283 Segment profit (loss) (2) (2,039) 44,332 42,293 Total assets (as of September 30, 2022) 2,973,223 4,480,981 7,454,204 Capital expenditures (including non-cash) 12,419 208,667 221,086 (1) Prorate revenue and airport customer service revenue are included in the SkyWest Airlines and SWC segment. (2) Segment profit (loss) is equal to operating income less interest expense. The following represents the Company’s segment data for the nine-month periods ended September 30, 2023 and 2022 (in thousands): Nine months ended September 30, 2023 SkyWest Airlines SkyWest and SWC Leasing Consolidated Operating revenues (1) $ 1,781,429 $ 402,216 $ 2,183,645 Operating expense 1,910,481 196,717 2,107,198 Depreciation and amortization expense 113,544 174,334 287,878 Interest expense 13,207 86,674 99,881 Segment profit (loss) (2) (142,259) 118,825 (23,434) Total assets (as of September 30, 2023) 2,557,850 4,501,268 7,059,118 Capital expenditures (including non-cash) 80,156 102,036 182,192 Nine months ended September 30, 2022 SkyWest Airlines SkyWest and SWC Leasing Consolidated Operating revenues (1) $ 1,918,746 $ 404,934 $ 2,323,680 Operating expense 1,906,739 200,715 2,107,454 Depreciation and amortization expense 136,463 160,964 297,427 Interest expense 8,506 83,802 92,308 Segment profit (2) 3,501 120,417 123,918 Total assets (as of September 30, 2022) 2,973,223 4,480,981 7,454,204 Capital expenditures (including non-cash) 65,125 484,724 549,849 (1) Prorate revenue and airport customer service revenue are included in the SkyWest Airlines and SWC segment. (2) Segment profit (loss) is equal to operating income less interest expense.

Leases, Commitments, Guarantees

Leases, Commitments, Guarantees and Contingencies	9 Months Ended
Leases, Commitments, Guarantees and Contingencies	Sep. 30, 2023
Leases, Commitments, Guarantees and Contingencies
Leases, Commitments, Guarantees and Contingencies	(7) Leases, Commitments, Guarantees and Contingencies The Company leases property and equipment under operating leases. For leases with durations longer than 12 months, the Company recorded the related operating lease right-of-use asset and operating lease liability at the present value of lease payments over the term. The Company used its incremental borrowing rate to discount the lease payments based on information available at lease commencement. Aircraft During the nine months ended September 30, 2023, the Company acquired 35 CRJ aircraft under early lease buyout arrangements with the lessors for $142.4 million, which included three CRJ aircraft acquired during the three months ended September 30, 2023. The aircraft were in the Company’s operating fleet when the lease buyouts occurred. As of September 30, 2023, excluding aircraft financed by the Company’s major airline partners that the Company operates for them under contract, the Company leased eight aircraft under long-term lease agreements with remaining terms ranging from six Airport facilities The Company has operating leases for facility space including airport terminals, office space, cargo warehouses and maintenance facilities. The Company generally leases this space from government agencies that control the use of the various airports. The remaining lease terms for facility space vary from one month to 33 years. The Company’s operating leases with lease rates that are variable based on airport operating costs, use of the facilities or other variable factors are excluded from the Company’s right-of-use assets and operating lease liabilities in accordance with accounting guidance. Leases As of September 30, 2023, the Company’s right-of-use assets were $85.7 million, the Company’s current maturities of operating lease liabilities were $19.2 million, and the Company’s noncurrent lease liabilities were $66.5 million. During the nine months ended September 30, 2023, the Company paid $26.2 million under operating leases reflected as a reduction from operating cash flows. The table below presents lease related terms and discount rates as of September 30, 2023: Weighted-average remaining lease term for operating leases 10 years Weighted-average discount rate for operating leases 6.1% The Company’s lease costs for the three and nine months ended September 30, 2023 and 2022 included the following components (in thousands): For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Operating lease cost $ 7,959 $ 21,697 $ 40,764 $ 65,360 Variable and short-term lease cost 868 765 2,205 2,588 Sublease income (1,350) (1,845) (4,051) (5,492) Total lease cost $ 7,477 $ 20,617 $ 38,918 $ 62,456 As of September 30, 2023, the Company leased aircraft, airport facilities, office space and other property and equipment under non-cancelable operating leases, which are generally on a long-term, triple-net lease basis pursuant to which the Company pays taxes, maintenance, insurance and certain other operating expenses applicable to the leased property. The Company expects that, in the normal course of business, such operating leases that expire may be renewed or replaced by other leases, or the property may be purchased rather than leased. The following table summarizes future minimum rental payments required under operating leases that had initial or remaining non-cancelable lease terms as of September 30, 2023 (in thousands): October 2023 through December 2023 $ 5,044 2024 19,553 2025 16,240 2026 13,511 2027 12,316 Thereafter 54,367 Total future minimum operating lease payments $ 121,031 As of September 30, 2023, the Company had a firm purchase commitment for 23 E175 aircraft from Embraer with anticipated delivery dates through 2026. The following table summarizes the Company’s commitments and obligations as noted for each of the next five years and thereafter (in thousands): Total Oct - Dec 2023 2024 2025 2026 2027 Thereafter Operating lease payments for aircraft and facility obligations $ 121,031 $ 5,044 $ 19,553 $ 16,240 $ 13,511 $ 12,316 $ 54,367 Firm aircraft and spare engine commitments 676,802 66,170 143,513 230,709 236,410 — — Interest commitments (1) 489,412 29,818 116,197 96,080 76,496 54,848 115,973 Principal maturities on long-term debt 3,102,315 116,693 444,128 529,014 507,787 461,378 1,043,315 Total commitments and obligations $ 4,389,560 $ 217,725 $ 723,391 $ 872,043 $ 834,204 $ 528,542 $ 1,213,655 (1) At September 30, 2023, the Company’s long-term debt had fixed interest rates. Guarantees In 2022, the Company agreed to guarantee $19.8 million of debt for a 14 CFR Part 135 air carrier. The debt is secured by the Part 135 air carrier’s aircraft and engines and has a five-year term. The purpose of the arrangement is to increase the potential number of commercial pilots in the Company’s hiring pipeline. In exchange for providing the guarantee, the Company received 6.5% of the guaranteed amount as consideration, payable in the estimated value of common stock of the Part 135 air carrier. During the three months ended September 30, 2023, the Company sold all of its shares of common stock of the Part 135 air carrier and recorded a gain of $0.5 million in “Other income (loss), net” on the Company’s consolidated statements of comprehensive income. The Company also recorded the estimated credit loss associated with the guarantee based on publicly available historical default rates issued by a third party for companies with similar credit ratings, factoring the collateral and guarantee term.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
Fair Value Measurements	Sep. 30, 2023
Fair Value Measurements
Fair Value Measurements	(8) Fair Value Measurements The Company holds certain assets that are required to be measured at fair value in accordance with GAAP. The Company determined the fair value of these assets based on the following three levels of inputs: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Some of the Company’s marketable securities primarily utilize broker quotes in a non-active market for valuation of these securities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, therefore requiring an entity to develop its own assumptions. As of September 30, 2023, and December 31, 2022, the Company held certain assets that are required to be measured at fair value on a recurring basis. The Company’s assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements as of September 30, 2023 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 633,538 $ — $ 633,538 $ — Commercial paper 60,633 — 60,633 — $ 694,171 $ — $ 694,171 $ — Investments in Other Companies 18,465 4,380 — 14,085 Cash and Cash Equivalents 125,330 125,330 — — Total Assets Measured at Fair Value $ 837,966 $ 129,710 $ 694,171 $ 14,085 Fair Value Measurements as of December 31, 2022 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 624,254 $ — $ 624,254 $ — Commercial paper 319,977 — 319,977 — $ 944,231 $ — $ 944,231 $ — Investments in Other Companies 21,380 7,200 — 14,180 Cash and Cash Equivalents 102,984 102,984 — — Total Assets Measured at Fair Value $ 1,068,595 $ 110,184 $ 944,231 $ 14,180 The Company’s “marketable securities” classified as Level 2 securities primarily utilize broker quotes in a non-active market for valuation of these securities. See Note 10 “Investments in Other Companies” regarding the Company’s investment in other companies, for the nine months ended September 30, 2023. The Company did not make any significant transfers of securities between Level 1, Level 2 and Level 3 during the nine months ended September 30, 2023. The Company’s policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period. As of September 30, 2023, and December 31, 2022, the Company classified $694.2 million and $944.2 million of marketable securities, respectively, as short-term because it had the intent to maintain a liquid portfolio and the ability to redeem the securities within one year. As of September 30, 2023, and December 31, 2022, the cost of the Company’s marketable securities was $694.4 million and $949.3 million, respectively. As of September 30, 2023, the Company had $56.7 million in held-for-sale assets included in “Other current assets” on the Company’s consolidated balance sheet related to 14 CRJ700 aircraft. The fair values were based upon observable and unobservable inputs, including a third-party valuation, market trends and conditions of the airframes and engines, considered Level 3 within the fair value hierarchy. The assumptions used to determine the fair value of the assets held for sale are subject to inherent uncertainty and could produce a wide range of outcomes, which the Company will continue to monitor in future periods as new information becomes available. The Company did not record a gain or loss associated with its assets held for sale during the nine months ended September 30, 2023.

Long-term Debt

Long-term Debt	9 Months Ended
Long-term Debt	Sep. 30, 2023
Long-term Debt
Long-term Debt	(9) Long-term Debt Long-term debt consisted of the following as of September 30, 2023, and December 31, 2022 (in thousands): September 30, 2023 December 31, 2022 Current portion of long-term debt $ 446,924 $ 442,360 Current portion of unamortized debt issue cost, net (3,738) (3,858) Current portion of long-term debt, net of debt issue costs $ 443,186 $ 438,502 Long-term debt, net of current maturities $ 2,655,391 $ 2,966,951 Long-term portion of unamortized debt issue cost, net (21,684) (25,179) Long-term debt, net of current maturities and debt issue costs $ 2,633,707 $ 2,941,772 Total long-term debt (including current portion) $ 3,102,315 $ 3,409,311 Total unamortized debt issue cost, net (25,422) (29,037) Total long-term debt, net of debt issue costs $ 3,076,893 $ 3,380,274 As of September 30, 2023, the Company had $3.1 billion of total long-term debt, which consisted of $2.9 billion of debt used to finance aircraft and spare engines and $200.6 million of unsecured debt payable to U.S. Treasury. The average effective interest rate on the Company’s debt was approximately 4.1% at September 30, 2023. During nine months ended September 30, 2023, the Company executed a promissory note for $25.0 million. The promissory note has an eight term, is due in monthly installments, has a fixed annual interest rate of 5.6% and is secured by spare engines. As of September 30, 2023 and December 31, 2022, the Company had $50.8 million and $59.2 million, respectively, in letters of credit and surety bonds outstanding with various banks and surety institutions. As of September 30, 2023, 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 September 30, 2023, SkyWest Airlines had no amounts outstanding under the facility. However, at September 30, 2023, SkyWest Airlines had $29.9 million in letters of credit issued under the facility, which reduced the amount available under the facility to $70.1 million. The line of credit expires March 25, 2025 and has a variable interest rate of 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. Debt is primarily classified as Level 2 within the fair value hierarchy. The carrying value and fair value of the Company’s long-term debt as of September 30, 2023 and December 31, 2022, were as follows (in thousands): September 30, 2023 December 31, 2022 Carrying value $ 3,102,315 $ 3,409,311 Fair value $ 2,940,851 $ 3,264,704

Investments in Other Companies

Investments in Other Companies	9 Months Ended
Investments in Other Companies	Sep. 30, 2023
Investments in Other Companies
Investments in Other Companies	( 10) Investments in Other Companies Equity Method Investment During 2019, the Company created a joint venture with Regional One, Inc. and, as of September 30, 2023, has invested a total of $26.6 million for an ownership interest in Aero Engines, LLC. (“Aero Engines”). The primary purpose of Aero Engines is to lease engines to third parties. The Company accounts for its investment in Aero Engines under the equity method. The Company’s exposure in its investment in Aero Engines primarily consists of the Company’s portion of income or loss from Aero Engines’ engine lease agreements with third parties and the Company’s ownership percentage in Aero Engines’ engines book value. Aero Engines had no debt outstanding as of September 30, 2023. As of September 30, 2023, the Company’s investment balance in Aero Engines was $25.0 million and has been recorded in “Other Assets” on the Company’s consolidated balance sheet. The Company’s portion of income generated by Aero Engines for the nine months ended September 30, 2023, was $0.1 million, which is recorded in “Other income (loss), net” on the Company’s consolidated statements of comprehensive income. Fair Value Method Investments In 2021, the Company entered into a strategic partnership with Eve UAM, LLC (“Eve UAM”), to develop a network of deployment for Eve UAM’s electric vertical takeoff and landing (eVTOL) aircraft. In 2022, the Company acquired 1,000,000 shares of common stock of Eve Holding, Inc. (“Eve”) and a warrant giving the Company the right to acquire 1,500,000 shares of common stock of Eve at an exercise price of $0.01 per share. The Company also received a put option from an Eve shareholder for the 1,000,000 shares of common stock of Eve payable in aircraft parts credits. The intent of the put option is to reduce the Company’s investment risk in Eve, and the put option expires in December 2031. The Company is restricted from selling the shares underlying the warrant until May 2025, and the warrant expires in May 2032. The Company acquired the shares of common stock, warrant and put option (collectively the “Eve Investments”) for $10.0 million. The Company evaluated the Eve Investments under Accounting Standard Codification (“ASC”) Topic 321, “Investments – Equity Securities” and ASC Topic 815, “Derivatives and Hedging,” and recorded the Eve Investments based on their pro rata share of the consideration paid using the fair value of the Eve Investments on the acquisition date, with subsequent changes in the fair value reported in earnings. During the three months ended September 30, 2023, the Company sold 471,654 shares of common stock of Eve, which concurrently forfeited the number of shares subject to the put option from the Eve shareholder by 471,654 shares. The Company’s sale of the Eve shares, net of the forfeited put options, resulted in a realized gain of $1.7 million and was included (loss) The shares of common stock of Eve are classified as Level 1 within the fair value hierarchy as Eve stock is actively traded on the New York Stock Exchange, and the value is determined using quoted market prices for the equity security. The warrant and put option are classified as Level 3 within the fair value hierarchy (“Eve Level 3 Investments”), and the Company used the Black Scholes Option Pricing Model to determine the estimated fair market value of the , including an expected volatility of 50% , which is a derived from historical volatility of comparable companies. The table below shows the reconciliation of the Eve Level 3 Investments (in thousands): Eve Level 3 Investments: Balance at December 31, 2022 $ 14,180 Purchases — Realized loss on forfeiture of put options (649) Unrealized gains 554 Balance at September 30, 2023 $ 14,085 The Company recognized unrealized losses of $0.6 million in “Other income (loss)

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2023
Income Taxes
Income Taxes	(11) Income Taxes The Company’s effective tax rate for the nine months ended September 30, 2023 was (6.0)%. The Company’s effective tax rate for the nine months ended September 30, 2023 varied from the federal statutory rate of 21.0% primarily due to a benefit from the release of $7.6 million of a previously recorded uncertain tax position liability and a benefit from a partial release of the valuation allowance on state net operating losses anticipated to be utilized prior to expiration. These benefits were partially offset by the provision for state income taxes, the impact of non-deductible expenses and a discrete tax expense on employee equity transactions that occurred during the nine months ended September 30, 2023. The Company’s effective tax rate for the nine months ended September 30, 2022 was 22.2%. The Company’s effective tax rate for the nine months ended September 30, 2022 varied from the federal statutory rate of 21.0% primarily due to a benefit from the release of $7.4 million of a previously recorded uncertain tax position liability with the benefit partially offset by the provision for state income taxes, the impact of non-deductible expenses and the recording of a valuation allowance on state net operating losses anticipated to expire prior to utilization.

Legal Matters

Legal Matters	9 Months Ended
Legal Matters	Sep. 30, 2023
Legal Matters
Legal Matters	(12) Legal Matters The Company is subject to certain legal actions which it considers routine to its business activities. As of September 30, 2023, the Company’s management believed, after consultation with legal counsel, that the ultimate outcome of such legal matters was not likely to have a material adverse effect on the Company’s financial position, liquidity or results of operations.

Condensed Consolidated Financ_2

Condensed Consolidated Financial Statements (Policies)	9 Months Ended
Condensed Consolidated Financial Statements (Policies)	Sep. 30, 2023
Condensed Consolidated Financial Statements
Basis of Presentation	Basis of Presentation The condensed consolidated financial statements of SkyWest, Inc. (“SkyWest” or the “Company”), its operating subsidiary SkyWest Airlines, Inc. (“SkyWest Airlines”), its leasing subsidiary SkyWest Leasing, Inc. (“SkyWest Leasing”) and its charter service subsidiary SkyWest Charter, LLC (“SWC”) included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The Company formed SWC in 2022, with the intent to offer on-demand charter service and public charter service to underserved communities in the United States. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal recurring nature, unless otherwise disclosed. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Due in part to the uncertain rate of recovery from workforce shortages, in addition to other factors, the results of operations for the three and nine months ended September 30, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions.

Flying Agreements Revenue and_2

Flying Agreements Revenue and Lease, Airport Services and Other Revenues (Tables)	9 Months Ended
	Sep. 30, 2023
Agreements with other airlines
Schedule of revenue by type	The following table represents the Company’s flying agreements revenue by type for the three and nine months ended September 30, 2023 and 2022 (in thousands): For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Capacity purchase agreements flight operations revenue (non-lease component) $ 511,929 $ 534,781 $ 1,479,987 $ 1,589,128 Capacity purchase agreements fixed aircraft lease revenue 73,794 133,989 222,316 387,576 Capacity purchase agreements variable aircraft lease revenue 46,495 — 134,584 — Prorate agreements revenue 109,680 94,744 269,243 268,647 Flying agreements revenue $ 741,898 $ 763,514 $ 2,106,130 $ 2,245,351
Schedule of aircraft and agreements with major airline partners	United Express Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates United Express Agreements (capacity purchase agreement) • E175 • CRJ 700 • CRJ 200 90 19 70 • Individual aircraft have scheduled removal dates from 2024 to 2029 United Express Prorate Agreement (prorate agreement) • CRJ 200 19* • Terminable with 120-days’ Total under United Express Agreements 198 Delta Connection Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates Delta Connection Agreement (capacity purchase agreement) • E175 • CRJ 900 • CRJ 700 83 35 5 • Individual aircraft have scheduled removal dates from 2024 to 2033 Delta Connection Prorate Agreement (prorate agreement) • CRJ 900 • CRJ 700 • CRJ 200 2* 4* 15* • 30-days’ Total under Delta Connection Agreements 144 American Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates American Agreement (capacity purchase agreement) • E175 • CRJ 700 20 89 • Individual aircraft have scheduled removal dates from 2024 to 2032 Total under American Agreement 109 Alaska Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates Alaska Agreement (capacity purchase agreement) • E175 42 • Individual aircraft have scheduled removal dates from 2030 to 2034
Schedule of future minimum rental payments for operating leases	October 2023 through December 2023 $ 5,044 2024 19,553 2025 16,240 2026 13,511 2027 12,316 Thereafter 54,367 Total future minimum operating lease payments $ 121,031
Schedule of allowance for credit losses	The following table summarizes the changes in allowance for credit losses: Allowance for Credit Losses Balance at December 31, 2022 $ 37,385 Adjustments to credit loss reserves (1,789) Write-offs charged against allowance (3,570) Balance at September 30, 2023 $ 32,026
Airport customer service and other
Agreements with other airlines
Schedule of revenue by type	For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Operating lease revenue $ 16,091 $ 15,928 $ 49,442 $ 48,933 Airport customer service and other revenue 8,182 10,001 28,073 29,396 Lease, airport services and other $ 24,273 $ 25,929 $ 77,515 $ 78,329
Aircraft
Agreements with other airlines
Schedule of future minimum rental payments for operating leases	For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Operating lease revenue $ 16,091 $ 15,928 $ 49,442 $ 48,933 Airport customer service and other revenue 8,182 10,001 28,073 29,396 Lease, airport services and other $ 24,273 $ 25,929 $ 77,515 $ 78,329

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	9 Months Ended
Net Income Per Common Share (Tables)	Sep. 30, 2023
Net Income Per Common Share
Schedule of antidilutive securities excluded from calculation of diluted EPS	The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share. Securities that could potentially dilute Basic EPS in the future, and which were excluded from the calculation of Diluted EPS because inclusion of such share would be anti-dilutive, are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 PSP1 and Treasury Loan Warrants (1) — 582 194 388 PSP2 Warrants (2) — 125 83 125 PSP3 Warrants (3) 78 78 78 78 Employee Stock Awards — 308 20 124 Total antidilutive securities 78 1,093 375 715 (1) Pursuant to the payroll support program established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (“PSP1”) and Loan and Guarantee Agreement with the U.S. Department of the Treasury (“U.S. Treasury”), SkyWest issued to U.S. Treasury warrants to purchase shares of SkyWest common stock for an exercise price of $28.38 per share. (2) Pursuant to the payroll support program established under the Consolidated Appropriations Act, 2021 (“PSP2”), SkyWest issued to U.S. Treasury warrants to purchase shares of SkyWest common stock for an exercise price of $40.41 per share. (3) Pursuant to the payroll support program established under the American Rescue Plan Act of 2021 (“PSP3”), SkyWest issued to U.S. Treasury warrants to purchase shares of SkyWest common stock for an exercise price of $57.47 per share.
Schedule of Basic EPS and Diluted EPS	The calculation of the weighted average number of shares of common stock outstanding for Basic EPS and Diluted EPS are as follows for the periods indicated (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Numerator: Net income $ 23,478 $ 48,372 $ 16,826 $ 120,057 Denominator: Basic earnings per share weighted average shares 41,826 50,593 45,018 50,531 Dilutive effect of employee stock awards and warrants 754 43 522 105 Diluted earnings per share weighted average shares 42,580 50,636 45,540 50,636 Basic earnings per share $ 0.56 $ 0.96 $ 0.37 $ 2.38 Diluted earnings per share $ 0.55 $ 0.96 $ 0.37 $ 2.37

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
Segment Reporting (Tables)	Sep. 30, 2023
Segment Reporting
Schedule of Company's segment data	The following represents the Company’s segment data for the three-month periods ended September 30, 2023 and 2022 (in thousands): Three months ended September 30, 2023 SkyWest Airlines SkyWest and SWC Leasing Consolidated Operating revenues (1) $ 626,780 $ 139,391 $ 766,171 Operating expense 652,599 64,281 716,880 Depreciation and amortization expense 37,320 59,240 96,560 Interest expense 4,450 28,093 32,543 Segment profit (loss) (2) (30,269) 47,017 16,748 Total assets (as of September 30, 2023) 2,557,850 4,501,268 7,059,118 Capital expenditures (including non-cash) 33,436 14,816 48,252 Three months ended September 30, 2022 SkyWest Airlines SkyWest and SWC Leasing Consolidated Operating revenues (1) $ 651,494 $ 137,949 $ 789,443 Operating expense 649,466 64,401 713,867 Depreciation and amortization expense 43,787 53,646 97,433 Interest expense 4,067 29,216 33,283 Segment profit (loss) (2) (2,039) 44,332 42,293 Total assets (as of September 30, 2022) 2,973,223 4,480,981 7,454,204 Capital expenditures (including non-cash) 12,419 208,667 221,086 (1) Prorate revenue and airport customer service revenue are included in the SkyWest Airlines and SWC segment. (2) Segment profit (loss) is equal to operating income less interest expense. The following represents the Company’s segment data for the nine-month periods ended September 30, 2023 and 2022 (in thousands): Nine months ended September 30, 2023 SkyWest Airlines SkyWest and SWC Leasing Consolidated Operating revenues (1) $ 1,781,429 $ 402,216 $ 2,183,645 Operating expense 1,910,481 196,717 2,107,198 Depreciation and amortization expense 113,544 174,334 287,878 Interest expense 13,207 86,674 99,881 Segment profit (loss) (2) (142,259) 118,825 (23,434) Total assets (as of September 30, 2023) 2,557,850 4,501,268 7,059,118 Capital expenditures (including non-cash) 80,156 102,036 182,192 Nine months ended September 30, 2022 SkyWest Airlines SkyWest and SWC Leasing Consolidated Operating revenues (1) $ 1,918,746 $ 404,934 $ 2,323,680 Operating expense 1,906,739 200,715 2,107,454 Depreciation and amortization expense 136,463 160,964 297,427 Interest expense 8,506 83,802 92,308 Segment profit (2) 3,501 120,417 123,918 Total assets (as of September 30, 2022) 2,973,223 4,480,981 7,454,204 Capital expenditures (including non-cash) 65,125 484,724 549,849 (1) Prorate revenue and airport customer service revenue are included in the SkyWest Airlines and SWC segment. (2) Segment profit (loss) is equal to operating income less interest expense.

Leases, Commitments, Guarante_2

Leases, Commitments, Guarantees and Contingencies (Tables)	9 Months Ended
Leases, Commitments, Guarantees and Contingencies (Tables)	Sep. 30, 2023
Leases, Commitments, Guarantees and Contingencies
Summary of related terms and discount rates	Weighted-average remaining lease term for operating leases 10 years Weighted-average discount rate for operating leases 6.1%
Summary of lease costs	For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Operating lease cost $ 7,959 $ 21,697 $ 40,764 $ 65,360 Variable and short-term lease cost 868 765 2,205 2,588 Sublease income (1,350) (1,845) (4,051) (5,492) Total lease cost $ 7,477 $ 20,617 $ 38,918 $ 62,456
Schedule of future minimum rental payments for operating leases	October 2023 through December 2023 $ 5,044 2024 19,553 2025 16,240 2026 13,511 2027 12,316 Thereafter 54,367 Total future minimum operating lease payments $ 121,031
Summary of commitments and obligations	The following table summarizes the Company’s commitments and obligations as noted for each of the next five years and thereafter (in thousands): Total Oct - Dec 2023 2024 2025 2026 2027 Thereafter Operating lease payments for aircraft and facility obligations $ 121,031 $ 5,044 $ 19,553 $ 16,240 $ 13,511 $ 12,316 $ 54,367 Firm aircraft and spare engine commitments 676,802 66,170 143,513 230,709 236,410 — — Interest commitments (1) 489,412 29,818 116,197 96,080 76,496 54,848 115,973 Principal maturities on long-term debt 3,102,315 116,693 444,128 529,014 507,787 461,378 1,043,315 Total commitments and obligations $ 4,389,560 $ 217,725 $ 723,391 $ 872,043 $ 834,204 $ 528,542 $ 1,213,655 (1) At September 30, 2023, the Company’s long-term debt had fixed interest rates.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
Fair Value Measurements (Tables)	Sep. 30, 2023
Fair Value Measurements
Schedule of assets measured at fair value on a recurring basis	The Company’s assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements as of September 30, 2023 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 633,538 $ — $ 633,538 $ — Commercial paper 60,633 — 60,633 — $ 694,171 $ — $ 694,171 $ — Investments in Other Companies 18,465 4,380 — 14,085 Cash and Cash Equivalents 125,330 125,330 — — Total Assets Measured at Fair Value $ 837,966 $ 129,710 $ 694,171 $ 14,085 Fair Value Measurements as of December 31, 2022 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 624,254 $ — $ 624,254 $ — Commercial paper 319,977 — 319,977 — $ 944,231 $ — $ 944,231 $ — Investments in Other Companies 21,380 7,200 — 14,180 Cash and Cash Equivalents 102,984 102,984 — — Total Assets Measured at Fair Value $ 1,068,595 $ 110,184 $ 944,231 $ 14,180

Long-term Debt (Tables)

Long-term Debt (Tables)	9 Months Ended
Long-term Debt (Tables)	Sep. 30, 2023
Long-term Debt
Schedule of long-term debt	Long-term debt consisted of the following as of September 30, 2023, and December 31, 2022 (in thousands): September 30, 2023 December 31, 2022 Current portion of long-term debt $ 446,924 $ 442,360 Current portion of unamortized debt issue cost, net (3,738) (3,858) Current portion of long-term debt, net of debt issue costs $ 443,186 $ 438,502 Long-term debt, net of current maturities $ 2,655,391 $ 2,966,951 Long-term portion of unamortized debt issue cost, net (21,684) (25,179) Long-term debt, net of current maturities and debt issue costs $ 2,633,707 $ 2,941,772 Total long-term debt (including current portion) $ 3,102,315 $ 3,409,311 Total unamortized debt issue cost, net (25,422) (29,037) Total long-term debt, net of debt issue costs $ 3,076,893 $ 3,380,274
Carrying value and fair value of long-term debt	The carrying value and fair value of the Company’s long-term debt as of September 30, 2023 and December 31, 2022, were as follows (in thousands): September 30, 2023 December 31, 2022 Carrying value $ 3,102,315 $ 3,409,311 Fair value $ 2,940,851 $ 3,264,704

Investments in Other Companies

Investments in Other Companies (Tables)	9 Months Ended
Investments in Other Companies (Tables)	Sep. 30, 2023
Investments in Other Companies
Schedule of reconciliation of Eve Level 3 investments	The table below shows the reconciliation of the Eve Level 3 Investments (in thousands): Eve Level 3 Investments: Balance at December 31, 2022 $ 14,180 Purchases — Realized loss on forfeiture of put options (649) Unrealized gains 554 Balance at September 30, 2023 $ 14,085

Flying Agreements Revenue and_3

Flying Agreements Revenue and Lease, Airport Services and Other Revenues (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) aircraft	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Agreements with other airlines
Percentage of ASMs flown under fixed-fee arrangements			87.20%	88%
Percentage of ASMs flown under pro-rate arrangements			12.80%	12%
Rental income under operating leases
Operating lease revenue	$ 16,091	$ 15,928	$ 49,442	$ 48,933
Total operating revenues	766,171	789,443	2,183,645	2,323,680
Future minimum rental income
October 2023 through December 2023	11,405		11,405
2024	45,535		45,535
2025	40,565		40,565
2026	34,998		34,998
2027	34,977		34,977
Thereafter	86,296		86,296
Total future minimum rental income under operating leases	253,776		253,776
Deferred revenue recognized			111,900	25,800
Unbilled revenue recognized			8,700	14,400
Deferred revenue	315,900		315,900		$ 144,700
Deferred revenue in other current liabilities	10,000		10,000		5,200
Deferred revenue in other long-term liabilities	305,900		305,900		139,500
Unbilled revenue	11,200		11,200		19,900
Property and equipment and related assets	5,498,425		5,498,425		5,548,480
Gross receivables current	136,300		136,300
Gross receivables Non-current	200,000		200,000
Balance			37,385
Adjustments to credit loss reserves			(1,789)
Write-offs charged against allowance			(3,570)
Balance	32,026		32,026
Other Current Assets
Future minimum rental income
Unbilled revenue	3,400		3,400		9,900
Other Noncurrent Assets
Future minimum rental income
Unbilled revenue	7,800		7,800		$ 10,000
Other Noncurrent Liabilities
Future minimum rental income
Deferred lease revenue	59,300		$ 59,300
Aircraft in schedule service or under contract
Future minimum rental income
Number of aircraft \| aircraft			493
United
Future minimum rental income
Number of aircraft \| aircraft			198
United \| United Express Prorate Agreement
Future minimum rental income
Agreement term			120 days
Delta
Future minimum rental income
Number of aircraft \| aircraft			144
Delta \| Delta Connection Prorate Agreement
Future minimum rental income
Agreement term			30 days
American
Future minimum rental income
Number of aircraft \| aircraft			109
Jet aircraft and spare engines leased to third parties
Future minimum rental income
Property and equipment and related assets	206,100		$ 206,100
CRJ 200 \| United \| United Express Agreements
Future minimum rental income
Number of aircraft \| aircraft			70
CRJ 200 \| United \| United Express Prorate Agreement
Future minimum rental income
Number of aircraft \| aircraft			19
CRJ 200 \| Delta \| Delta Connection Prorate Agreement
Future minimum rental income
Number of aircraft \| aircraft			15
CRJ 700 \| United \| United Express Agreements
Future minimum rental income
Number of aircraft \| aircraft			19
CRJ 700 \| Delta \| Delta Connection Prorate Agreement
Future minimum rental income
Number of aircraft \| aircraft			4
CRJ 700 \| Delta \| Delta Connection Agreements
Future minimum rental income
Number of aircraft \| aircraft			5
CRJ 700 \| American \| American Capacity Purchase Agreement
Future minimum rental income
Number of aircraft \| aircraft			89
CRJ 900 \| Delta \| Delta Connection Prorate Agreement
Future minimum rental income
Number of aircraft \| aircraft			2
CRJ 900 \| Delta \| Delta Connection Agreements
Future minimum rental income
Number of aircraft \| aircraft			35
E175
Future minimum rental income
Number of aircraft under purchase agreement \| aircraft			23
E175 \| Sky West Airlines Inc. \| Alaska Capacity Purchase Agreement
Future minimum rental income
Number of aircraft \| aircraft			42
E175 \| United
Future minimum rental income
Number of aircraft under purchase agreement \| aircraft			19
E175 \| United \| United Express Agreements
Future minimum rental income
Number of aircraft \| aircraft			90
E175 \| Delta
Future minimum rental income
Number of aircraft under purchase agreement \| aircraft			3
E175 \| Delta \| Delta Connection Agreements
Future minimum rental income
Number of aircraft \| aircraft			83
E175 \| American \| American Capacity Purchase Agreement
Future minimum rental income
Number of aircraft \| aircraft			20
E175 \| Alaska
Future minimum rental income
Number of aircraft under purchase agreement \| aircraft			1
Flying agreements
Rental income under operating leases
Total operating revenues	741,898	763,514	$ 2,106,130	2,245,351
Flight operations revenue
Rental income under operating leases
Total operating revenues	511,929	534,781	1,479,987	1,589,128
Capacity purchase agreements fixed aircraft lease revenue
Rental income under operating leases
Total operating revenues	73,794	133,989	222,316	387,576
Capacity purchase agreements variable aircraft lease revenue
Rental income under operating leases
Total operating revenues	46,495		134,584
Prorate agreements revenue
Rental income under operating leases
Total operating revenues	109,680	94,744	269,243	268,647
Airport customer service and other revenue
Rental income under operating leases
Total operating revenues	8,182	10,001	28,073	29,396
Lease, airport services and other.
Rental income under operating leases
Total operating revenues	$ 24,273	$ 25,929	$ 77,515	$ 78,329

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($) item $ / shares shares	Sep. 30, 2022 USD ($)
Share-Based Compensation
Upon vesting, each restricted stock unit and performance share replaced with common stock	1
Stock based compensation expense \| $	$ 12.9	$ 11.1
Restricted Stock Units (RSUs)
Share-Based Compensation
Granted (in dollars per share) \| $ / shares	$ 18.65
Restricted Stock Units (RSUs) \| Long Term Incentive Plan 2019
Share-Based Compensation
Granted (in shares)	125,780
Vesting period	3 years
Performance Share Units (PSUs)
Share-Based Compensation
Granted (in dollars per share) \| $ / shares	$ 18.65
Performance Share Units (PSUs) \| Long Term Incentive Plan 2019
Share-Based Compensation
Granted (in shares)	391,810
Vesting period	3 years
Number of performance period \| item	3
Performance period	1 year
Performance Share Units (PSUs) \| Minimum \| Long Term Incentive Plan 2019
Share-Based Compensation
Award percentage	0%
Performance Share Units (PSUs) \| Maximum \| Long Term Incentive Plan 2019
Share-Based Compensation
Award percentage	250%
Director
Share-Based Compensation
Granted (in shares)	37,534
Granted (in dollars per share) \| $ / shares	$ 18.65

Stock Repurchase (Details)

Stock Repurchase (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	9 Months Ended
	Sep. 30, 2023	May 31, 2023
Stock Repurchase
Common stock authorized for repurchase, maximum	$ 250	$ 250
Common stock remaining number of shares authorized to repurchase	135.9
Stock repurchased (shares)	9.6
Stock repurchased during period (value)	$ 244.1
Weighted average price per share of common stock (in dollars per share)	$ 25.44
Excise tax related to the stock repurchases as treasury stock	$ 2.4

Net Income Per Common Share - A

Net Income Per Common Share - Antidilutive securities (Details) - $ / shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net Income Per Common Share
Total antidilutive securities (in shares)	78	1,093	375	715
Warrants PSP1
Net Income Per Common Share
Warrants exercise price (in dollars per share)	$ 28.38		$ 28.38
Warrants PSP2
Net Income Per Common Share
Warrants exercise price (in dollars per share)	40.41		40.41
Warrants PSP3
Net Income Per Common Share
Warrants exercise price (in dollars per share)	$ 57.47		$ 57.47
Warrants PSP1
Net Income Per Common Share
Total antidilutive securities (in shares)		582	194	388
Warrants PSP2
Net Income Per Common Share
Total antidilutive securities (in shares)		125	83	125
Warrants PSP3
Net Income Per Common Share
Total antidilutive securities (in shares)	78	78	78	78
Employee Stock Awards
Net Income Per Common Share
Total antidilutive securities (in shares)		308	20	124

Net Income Per Common Share (De

Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Number of outstanding units not included in computation of Diluted EPS (in shares)	78,000			1,093,000			375,000	715,000
Numerator:
Net income	$ 23,478	$ 15,419	$ (22,071)	$ 48,372	$ 53,951	$ 17,734	$ 16,826	$ 120,057
Denominator:
Basic earnings per share weighted average shares	41,826,000			50,593,000			45,018,000	50,531,000
Dilutive effect of employee stock awards and warrants	754,000			43,000			522,000	105,000
Diluted earnings per share weighted average shares	42,580,000			50,636,000			45,540,000	50,636,000
Basic earnings per share (in dollars per share)	$ 0.56			$ 0.96			$ 0.37	$ 2.38
Diluted earnings per share (in dollars per share)	$ 0.55			$ 0.96			$ 0.37	$ 2.37
Performance Share Units (PSUs)
Number of outstanding units not included in computation of Diluted EPS (in shares)							422,000	334,000

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended		9 Months Ended
Segment Reporting (Details) $ in Thousands	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) segment	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Segment Reporting
Number of reporting segments \| segment			2
Operating revenues	$ 766,171	$ 789,443	$ 2,183,645	$ 2,323,680
Operating expense	716,880	713,867	2,107,198	2,107,454
Depreciation and amortization expense	96,560	97,433	287,878	297,427
Interest expense	32,543	33,283	99,881	92,308
Segment profit (loss)	16,748	42,293	(23,434)	123,918
Total assets	7,059,118	7,454,204	7,059,118	7,454,204	$ 7,414,553
Capital expenditures (including non-cash)	48,252	221,086	182,192	549,849
SkyWest Airlines and SWC
Segment Reporting
Operating revenues	626,780	651,494	1,781,429	1,918,746
Operating expense	652,599	649,466	1,910,481	1,906,739
Depreciation and amortization expense	37,320	43,787	113,544	136,463
Interest expense	4,450	4,067	13,207	8,506
Segment profit (loss)	(30,269)	(2,039)	(142,259)	3,501
Total assets	2,557,850	2,973,223	2,557,850	2,973,223
Capital expenditures (including non-cash)	33,436	12,419	80,156	65,125
SkyWest Leasing
Segment Reporting
Operating revenues	139,391	137,949	402,216	404,934
Operating expense	64,281	64,401	196,717	200,715
Depreciation and amortization expense	59,240	53,646	174,334	160,964
Interest expense	28,093	29,216	86,674	83,802
Segment profit (loss)	47,017	44,332	118,825	120,417
Total assets	4,501,268	4,480,981	4,501,268	4,480,981
Capital expenditures (including non-cash)	$ 14,816	$ 208,667	$ 102,036	$ 484,724

Leases, Commitments, Guarante_3

Leases, Commitments, Guarantees and Contingencies (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($) aircraft	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) aircraft	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 85,746		$ 85,746		$ 151,928
Current maturities of lease liabilities	19,225		19,225		71,726
Noncurrent operating leases	$ 66,520		66,520		$ 88,622
Operating leases			$ 26,200
Weighted-average remaining lease term for operating leases	10 years		10 years
Weighted-average discount rate for operating leases	6.10%		6.10%
Lease costs
Operating lease cost	$ 7,959	$ 21,697	$ 40,764	$ 65,360
Variable and short-term lease cost	868	765	2,205	2,588
Sublease income	(1,350)	(1,845)	(4,051)	(5,492)
Total lease cost	$ 7,477	$ 20,617	$ 38,918	$ 62,456
CRJ Aircraft
Lessee, Lease, Description [Line Items]
Number of aircraft acquired \| aircraft	3		35
Lease liability payable due	$ 142,400		$ 142,400
Aircraft
Lessee, Lease, Description [Line Items]
Number of aircraft acquired \| aircraft			8
Aircraft \| Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	6 years		6 years
Aircraft \| Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	7 years		7 years
Airport Facilities \| Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 month		1 month
Airport Facilities \| Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	33 years		33 years

Leases, Commitments, Guarante_4

Leases, Commitments, Guarantees and Contingencies - Operating Leases (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($) aircraft
Future minimum rental payments required under operating leases
October 2023 through December 2023	$ 5,044
2024	19,553
2025	16,240
2026	13,511
2027	12,316
Thereafter	54,367
Total future minimum operating lease payments	$ 121,031
E175
Future minimum rental payments required under operating leases
Number of aircraft under purchase agreement \| aircraft	23

Leases, Commitments, Guarante_5

Leases, Commitments, Guarantees and Contingencies - Commitments and Obligations (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Operating lease payments for aircraft and facility obligations
Oct - Dec 2023	$ 5,044
2024	19,553
2025	16,240
2026	13,511
2027	12,316
Thereafter	54,367
Total future minimum operating lease payments	121,031
Firm aircraft and spare engine commitments
Oct - Dec 2023	66,170
2024	143,513
2025	230,709
2026	236,410
Total	676,802
Interest commitments
Oct - Dec 2023	29,818
2024	116,197
2025	96,080
2026	76,496
2027	54,848
Thereafter	115,973
Total	489,412
Principal maturities on long-term debt
Oct - Dec 2023	116,693
2024	444,128
2025	529,014
2026	507,787
2027	461,378
Thereafter	1,043,315
Total	3,102,315	$ 3,409,311
Total commitments and obligations
Oct - Dec 2023	217,725
2024	723,391
2025	872,043
2026	834,204
2027	528,542
Thereafter	1,213,655
Total	$ 4,389,560

Leases, Commitments, Guarante_6

Leases, Commitments, Guarantees and Contingencies - Guarantees (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Leases, Commitments, Guarantees and Contingencies
Guaranteed amount received as consideration, percentage		6.50%
Other income, net
Leases, Commitments, Guarantees and Contingencies
Gain on sale of common stock	$ 0.5
Debt \| Aircraft and engines
Leases, Commitments, Guarantees and Contingencies
Guaranteed amount		$ 19.8
Term of guarantee obligations		5 years

Fair Value Measurements (Detail

Fair Value Measurements (Details) $ in Thousands	9 Months Ended	12 Months Ended
Fair Value Measurements (Details) $ in Thousands	Sep. 30, 2023 USD ($) aircraft	Dec. 31, 2022 USD ($)
Fair Value Measurements
Marketable Securities	$ 694,171	$ 944,231
Maximum period for redemption	1 year	1 year
Marketable securities at cost	$ 694,400	$ 949,300
Held for sale \| CRJ 700
Fair Value Measurements
Number of aircraft held-for-sale \| aircraft	14
Assets held for sale	$ 56,700
Recurring \| Estimate of Fair Value Measurement
Fair Value Measurements
Marketable Securities	694,171	944,231
Investments in Other Companies	18,465	21,380
Cash and Cash Equivalents	125,330	102,984
Total Assets Measured at Fair Value	837,966	1,068,595
Recurring \| Estimate of Fair Value Measurement \| Bonds and bond funds
Fair Value Measurements
Marketable Securities	633,538	624,254
Recurring \| Estimate of Fair Value Measurement \| Commercial Paper
Fair Value Measurements
Marketable Securities	60,633	319,977
Recurring \| Level 1
Fair Value Measurements
Investments in Other Companies	4,380	7,200
Cash and Cash Equivalents	125,330	102,984
Total Assets Measured at Fair Value	129,710	110,184
Recurring \| Level 2
Fair Value Measurements
Marketable Securities	694,171	944,231
Total Assets Measured at Fair Value	694,171	944,231
Recurring \| Level 2 \| Bonds and bond funds
Fair Value Measurements
Marketable Securities	633,538	624,254
Recurring \| Level 2 \| Commercial Paper
Fair Value Measurements
Marketable Securities	60,633	319,977
Recurring \| Level 3
Fair Value Measurements
Investments in Other Companies	14,085	14,180
Total Assets Measured at Fair Value	$ 14,085	$ 14,180

Long-term Debt (Details)

Long-term Debt (Details) - USD ($) $ in Thousands	9 Months Ended
Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Current portion of long-term debt	$ 446,924	$ 442,360
Current portion of unamortized debt issue cost, net	(3,738)	(3,858)
Current portion of long-term debt, net of debt issue costs	443,186	438,502
Long-term debt, net of current maturities	2,655,391	2,966,951
Long-term portion of unamortized debt issue cost, net	(21,684)	(25,179)
Long-term debt, net of current maturities and debt issue costs	2,633,707	2,941,772
Total long-term debt (including current portion)	3,102,315	3,409,311
Total unamortized debt issue cost, net	(25,422)	(29,037)
Total long-term debt, net of debt issue costs	$ 3,076,893	3,380,274
Effective interest rate (as a percent)	4.10%
Letters of credit and surety bonds
Debt Instrument [Line Items]
Letters of credit and surety bonds outstanding with various banks and surety institutions	$ 50,800	$ 59,200
Letters of credit
Debt Instrument [Line Items]
Amount outstanding	29,900
Current borrowing capacity	$ 70,100
Basis spread on variable rate	3.50%
Promissory note
Debt Instrument [Line Items]
Debt instrument, term	8 years
Interest rate (as a percent)	5.60%
Principal amount	$ 25,000
Unsecured debt payable to U.S. Treasury
Debt Instrument [Line Items]
Total long-term debt, net of debt issue costs	200,600
Line of credit
Debt Instrument [Line Items]
Amount outstanding	0
Maximum borrowing capacity	100,000
Primarily related to acquisition of aircraft and certain spare engines
Debt Instrument [Line Items]
Total long-term debt (including current portion)	3,100,000
Total long-term debt, net of debt issue costs	$ 2,900,000

Long-term Debt - Carrying Value

Long-term Debt - Carrying Value and Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Carrying value	$ 3,076,893	$ 3,380,274
Recurring \| Level 2
Debt Instrument [Line Items]
Carrying value	3,102,315	3,409,311
Fair value	$ 2,940,851	$ 3,264,704

Investments in Other Companie_2

Investments in Other Companies (Details) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023 USD ($) shares	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($) $ / shares shares
Long-term debt	$ 3,076,893	$ 3,076,893	$ 3,380,274
Aero Engines, LLC. ("Aero Engines")
Payments to acquire interest in joint venture		26,600
Long-term debt	0	0
Investment balance in other companies	$ 25,000	25,000
Aero Engines, LLC. ("Aero Engines") \| Other income (loss), net
Company's portion of income generated by other companies		100
Eve Holdings, Inc. ("Eve")
Warrants to purchase shares \| shares			1,500,000
Warrants exercise price (in dollars per share) \| $ / shares			$ 0.01
Initial investment			$ 10,000
Shares sold \| shares	471,654
Eve Holdings, Inc. ("Eve") \| Level 3
Beginning balance		14,180
Realized loss on forfeiture of put options		(649)
Unrealized gains		554
Ending balance	$ 14,085	14,085	$ 14,180
Eve Holdings, Inc. ("Eve") \| Level 3 \| Black Scholes Option Pricing Model \| Volatility
Measurement input			0.50
Eve Holdings, Inc. ("Eve") \| Put option
Shares obtained \| shares			1,000,000
Shares reduced \| shares	471,654
Eve Holdings, Inc. ("Eve") \| Other Assets
Investment balance in other companies	$ 18,500	18,500
Eve Holdings, Inc. ("Eve") \| Other income (loss), net
Net realized gain from sale of shares	$ 1,700
Company's portion of income generated by other companies		$ 600
Eve Holdings, Inc. ("Eve") \| Class A common stock
Number of shares acquired \| shares			1,000,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	9 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Sep. 30, 2023	Sep. 30, 2022
Income Taxes
Effective tax rate (as a percent)	(6.00%)	22.20%
Statutory Federal income tax rate (as a percent)	21%	21%
Benefit from release of uncertain tax position	$ 7.6	$ 7.4