SkyWest posts strong Q1 revenue growth despite cost pressures, trades attractively with contract visibility through 2028.

SkyWest reported Q1 2026 revenue of $1.01 billion, up 7% year-over-year, and earnings per share of $2.50, beating expectations. The company benefits from multi-year capacity purchase agreements with major carriers, providing earnings visibility and insulation from demand risk. Profitability was challenged by higher labor and fuel costs, but SkyWest's net cash position and aggressive share buybacks support a compelling valuation at 4.9x EV/EBITDA and 7.4x P/E. Contract extensions through 2028 and a flexible fleet plan underpin a positive outlook despite near-term risks from fuel prices and partner concentration.