SkyWest Inc. (NASDAQ: SKYW) continues to be a focus for investors as the regional airline operator reports strong growth driven by operational improvements, rising demand, and significant fleet expansion initiatives. Analyses from Wall Street and industry observers underscore the company’s robust financial and operational momentum, positioning SkyWest as a standout performer in the transportation sector.
Solid Financial Performance and Stock Trends
SkyWest’s financial trajectory has attracted significant investor interest. In the third quarter of 2025, the company posted earnings per share (EPS) of $2.81, outpacing the Zacks Consensus Estimate of $2.56. This result marked a 30% increase over the same period the previous year, when EPS was $2.16. Revenues reached $1.05 billion, reflecting a year-over-year growth of 15% and surpassing expectations by 3.52%.
Consistent with these financial results, SkyWest has demonstrated an impressive track record of earnings surprises, exceeding market expectations in each of the last four quarters with an average surprise of 51.7%. The company's stock has surged more than 60% over the past two years, outperforming broader market indices. As of November 28, 2025, SKYW shares were trading at $101.52 on U.S. equity markets, having seen an intraday high of $102.5 and low of $100.87, with a volume of 140,900. The previous close was $101.27, and trading took place at 14:15 PST.
Analyst Sentiment and Recommendations
Market analysts have reinforced the positive outlook on SkyWest. TD Cowen raised its price target to $132 from $124, while maintaining a “Buy” rating. Raymond James upgraded SkyWest to a “Strong Buy” and set a $140 price target, citing the airline's operational resilience amid industry-wide challenges.
Operational Growth and Expansion Initiatives
SkyWest's operational performance has also been robust. In the third quarter of 2023, total block hours climbed 6%, supported by improved captain hiring, higher fleet utilization, and strong regional travel demand. Across all aircraft types, fleet utilization increased, departures rose, and passenger volumes grew, reflecting continued market strength. The airline maintained an adjusted flight completion rate of 99.8% and enhanced its raw completion factor to 99.5%.
A cornerstone of SkyWest's current strategy is the expansion of its Embraer E175 jet fleet. By the end of 2026, the company plans to operate nearly 240 E175 aircraft, with multiple new jets scheduled for delivery through 2026. These acquisitions are underpinned by partnerships with major carriers such as United Airlines and American Airlines. Notably, SkyWest has secured a multi-year contract extension with American Airlines for 74 CRJ700 aircraft, and recently took delivery of four new E175 jets under a United Airlines agreement.
The airline is also investing in innovation through a partnership with Maeve Aerospace, positioning itself as the exclusive launch customer for the MAEVE Jet. This reflects its broad commitment to sustainability and future-ready solutions in regional aviation.
Shareholder Value and Industry Comparison
Demonstrating management's confidence in its financial position, SkyWest recently expanded its share repurchase authorization by $250 million. This move aims to further enhance shareholder value as the company continues to grow.
Within the broader transportation sector, other noteworthy stocks include Air Transport Services Group (ATSG) and Copa Holdings (CPA), ranked as Zacks Rank #2 (Buy) equities. ATSG is forecast to deliver 17.1% earnings growth this year, while CPA also posts strong earnings projections. Nonetheless, SkyWest's consistent operational and financial outperformance sets it apart from its peers and justifies its Zacks Rank #1 (Strong Buy) designation.
Outlook
With rising earnings forecasts, expanding capacity, and new partnerships, SkyWest appears well-positioned for continued growth. Analysts suggest that the combination of strong financials, consistent operational delivery, and strategic expansion into sustainable aviation mark SkyWest as a compelling option for investors seeking exposure to the regional airline sector.