SkyWest remains a Buy with strong contracts, cash flow, and growth despite low market multiples.

SkyWest is rated a Buy due to its strong contract coverage, disciplined capital allocation, and robust free cash flow, which the market currently undervalues. The company trades at low multiples despite showing double-digit EPS growth, projecting over $400 million free cash flow in 2025, and expecting mid-single-digit growth in block hours. Its revenue is becoming more diversified, reducing dependence on any single airline partner. While labor costs remain a challenge, efficient fleet use and flexible contract assignments support margin stability and potential EPS growth to $11 by 2026.