SkyWest Adds 11 E175s for American Airlines as Costs Squeeze Earnings

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Summary · why it matters

SkyWest announced an agreement in July 2026 to purchase and operate 11 new E175 aircraft for American Airlines, with four deliveries scheduled for 2026 and seven for 2027, replacing 11 CRJ700s currently flying for American. The regional carrier also expects eight additional E175 deliveries for United Airlines in the second half of 2026 and 16 E175 deliveries for Delta Air Lines across 2027 and 2028, and anticipates nearly 300 E175 aircraft in its fleet by the end of 2027. SkyWest has separately secured delivery positions for 33 additional E175s from Embraer from 2028 through 2032, plus purchase rights on 50 more. Flying-agreement revenues rose 7.8% year over year to $1.06 billion in second-quarter 2026 as block hours grew 5.4%, but operating expenses surged 9% to $947 million, outpacing the 7% revenue increase, with aircraft fuel expense more than doubling to $60.6 million. Operating income fell 8.4% and net income declined 16.3% from second-quarter 2025, while the company repurchased 833,000 shares for nearly $75 million in the quarter and its board approved a $250 million increase to the existing buyback program.

Impact on assets 5

Industrials▲ · 4 stocks
SkyWest Inc
SKYW
± MixedDemandCapitalrelevance

SkyWest signed agreements to purchase and operate 11 E175s for American plus additional E175 deliveries for United and Delta, expanding its contracted flying.

American Airlines Group
AAL
± MixedSupplyrelevance

SkyWest will operate 11 new E175s for American, replacing CRJ700s, a fleet/supply arrangement but no clear financial impact stated for American.

Aerospace & Aviation▲ · 1 stocks
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