SKYWEST INC Segments Disclosure
(2) Segment Reporting
GAAP requires disclosures related to components of a company for which separate financial information is available to, and regularly evaluated by, the Company’s chief operating decision maker when deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the chief executive officer.
The Company’s two reportable segments consist of (1) the operations of SkyWest Airlines and SWC and (2) SkyWest Leasing activities.
The Company’s chief operating decision maker analyzes the profitability of operating aircraft separately from the profitability of the Company’s capital deployed for new aircraft and the related aircraft financings, including the Company’s E175 fleet. The SkyWest Airlines and SWC segment includes revenue earned under the applicable capacity purchase agreements attributed to operating such aircraft and the respective operating costs, and revenue and operating expenses attributed to prorate agreements and airport services agreements. The SkyWest Leasing segment includes applicable revenue earned under the applicable capacity purchase agreements attributed to the ownership of new aircraft acquired through the issuance of debt and the respective depreciation and interest expense of such aircraft. The SkyWest Leasing segment also includes the activity of leasing regional jet aircraft and spare engines to third parties and other activities. The SkyWest Leasing segment’s total assets and capital expenditures include new aircraft acquired through the issuance of debt and assets leased to third parties.
The chief operating decision maker assesses performance for each segment and decides how to allocate resources based on income before income taxes. The chief operating decision maker uses the segment profit or loss measure when assessing performance of the segment and monitors budget versus actual results to allocate resources for each segment predominantly in the annual budget and forecasting process.
The following represents the Company’s segment data for the years ended December 31, 2025, 2024, and 2023 (in thousands). As required by the adoption of ASC 2023-07 for the year ended December 31, 2024, the Company recast the 2023 segment disclosures to conform to the 2025 and 2024 presentation.
Year ended December 31, 2025 | |||||||||
SkyWest Airlines | SkyWest | ||||||||
| and SWC | | Leasing | | Consolidated | ||||
Operating revenues | $ | 3,415,066 | $ | 643,136 | $ | 4,058,202 | |||
Salaries, wages and benefits | 1,556,695 | 2,661 | 1,559,356 | ||||||
Aircraft maintenance, materials and repairs | 877,369 | 66,410 | 943,779 | ||||||
Depreciation and amortization | 157,560 | 206,937 | 364,497 | ||||||
Interest expense | 11,698 | 92,747 | 104,445 | ||||||
Other segment expense (income) items(1) | 548,776 | (28,242) | 520,534 | ||||||
Segment profit(2) | $ | 262,968 | $ | 302,623 | $ | 565,591 | |||
Total assets (as of December 31, 2025) | $ | 3,244,166 | $ | 4,142,083 | $ | 7,386,249 | |||
Capital expenditures (including non-cash) | $ | 366,362 | $ | 182,622 | $ | 548,984 | |||
Year ended December 31, 2024 | |||||||||
SkyWest Airlines | SkyWest | ||||||||
| and SWC | | Leasing | | Consolidated | ||||
Operating revenues | $ | 2,905,339 | $ | 622,581 | $ | 3,527,920 | |||
Salaries, wages and benefits | 1,461,271 | 2,661 | 1,463,932 | ||||||
Aircraft maintenance, materials and repairs | 684,805 | 27,837 | 712,642 | ||||||
Depreciation and amortization | 145,052 | 238,828 | 383,880 | ||||||
Interest expense | 12,916 | 101,424 | 114,340 | ||||||
Other segment expense (income) items(1) | 462,404 | (41,421) | 420,983 | ||||||
Segment profit(2) | $ | 138,891 | $ | 293,252 | $ | 432,143 | |||
Total assets (as of December 31, 2024) | $ | 2,810,521 | $ | 4,329,346 | $ | 7,139,867 | |||
Capital expenditures (including non-cash) | $ | 310,636 | $ | 128,584 | $ | 439,220 | |||
Year ended December 31, 2023 | |||||||||
SkyWest Airlines | SkyWest | ||||||||
| and SWC | | Leasing | | Consolidated | ||||
Operating revenues | $ | 2,392,174 | $ | 543,258 | $ | 2,935,432 | |||
Salaries, wages and benefits | 1,319,954 | 2,661 | 1,322,615 | ||||||
Aircraft maintenance, materials and repairs | 657,392 | 16,061 | 673,453 | ||||||
Depreciation and amortization | 149,264 | 233,851 | 383,115 | ||||||
Interest expense | 17,053 | 113,877 | 130,930 | ||||||
Other segment expense (income) items(1) | 413,722 | (28,712) | 385,010 | ||||||
Segment profit (loss)(2) | $ | (165,211) | $ | 205,520 | $ | 40,309 | |||
Total assets (as of December 31, 2023) | $ | 2,537,834 | $ | 4,488,459 | $ | 7,026,293 | |||
Capital expenditures (including non-cash) | $ | 113,783 | $ | 150,126 | $ | 263,909 | |||
| (1) | Other segment items include aircraft fuel; airport related expenses; other operating expenses consisting primarily of property taxes, hull and liability insurance, simulator costs, aircraft rentals, crew per diem and crew hotel costs; interest income and other income, net. |
| (2) | Segment profit (loss) is equal to income before income taxes. As a result of adopting ASC 2023-07, the Company included interest income and other income in the recast segment profit (loss) for each segment during the year ended December 31, 2023. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.