Skywest

Q2 FY2026 EarningsQ2 FY26 results missed consensus on the top and bottom lines: revenue $1.10B vs. $1.12B expected, and diluted EPS $2.54 vs. $2.78 expected. Operating income fell 8.4% YoY to $155.8M as significant increases in fuel costs (+120.6% YoY) and salary expenses (+9.4% YoY) outpaced a 6.5% rise in total revenue. Despite strong growth in the Prorate and Charter segments (+38.1% YoY), elevated pilot training costs and higher fuel prices at $4.45/gallon pressured margins. Management announced an additional $250M stock repurchase authorization in July, although the current liquidity position decreased by $105.9M year-to-date.