SkyWest (SKYW) 10-Q 8 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 01, 2017
Document and Entity Information
Entity Registrant Name	SKYWEST INC
Entity Central Index Key	793,733
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		51,738,274
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 95,441	$ 146,766
Marketable securities	482,764	409,898
Restricted cash	8,250	8,243
Receivables, net	38,558	46,916
Inventories, net	119,608	118,509
Prepaid aircraft rents	147,289	162,360
Other current assets	24,676	25,100
Total current assets	916,586	917,792
PROPERTY AND EQUIPMENT:
Aircraft and rotable spares	5,002,597	4,839,501
Deposits on aircraft	27,572	38,800
Buildings and ground equipment	272,800	261,704
Total property and equipment, gross	5,302,969	5,140,005
Less-accumulated depreciation and amortization	(1,374,666)	(1,318,308)
Total property and equipment, net	3,928,303	3,821,697
OTHER ASSETS
Intangible assets, net	7,686	8,249
Long-term prepaid assets	232,090	218,505
Other assets	43,691	41,723
Total other assets	283,467	268,477
Total assets	5,128,356	5,007,966
CURRENT LIABILITIES:
Current maturities of long-term debt	293,644	305,460
Accounts payable	263,532	241,215
Accrued salaries, wages and benefits	133,086	139,885
Taxes other than income taxes	15,283	15,618
Other current liabilities	44,963	45,087
Total current liabilities	750,508	747,265
OTHER LONG TERM LIABILITIES	50,387	50,844
LONG TERM DEBT, net of current maturities	2,321,271	2,240,051
DEFERRED INCOME TAXES PAYABLE	581,203	565,404
DEFERRED AIRCRAFT CREDITS	51,172	53,459
COMMITMENTS AND CONTINGENCIES (Note 6)
STOCKHOLDERS' EQUITY:
Preferred stock, 5,000,000 shares authorized; none issued
Common stock, no par value, 120,000,000 shares authorized; 80,142,697 and 79,781,305 shares issued, respectively	662,343	657,353
Retained earnings	1,135,265	1,103,751
Treasury stock, at cost, 28,404,423 and 28,015,386 shares, respectively	(423,761)	(410,090)
Accumulated other comprehensive loss	(32)	(71)
Total stockholders' equity	1,373,815	1,350,943
Total liabilities and stockholders' equity	$ 5,128,356	$ 5,007,966

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
CONSOLIDATED BALANCE SHEETS
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	120,000,000	120,000,000
Common stock, shares issued	80,142,697	79,781,305
Treasury stock, at cost, shares	28,404,423	28,015,386

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
OPERATING REVENUES:
Passenger	$ 745,411	$ 744,390
Ground handling and other	20,004	17,685
Total operating revenues	765,415	762,075
OPERATING EXPENSES:
Salaries, wages and benefits	300,039	305,557
Aircraft maintenance, materials and repairs	132,325	138,859
Depreciation and amortization	70,114	67,801
Aircraft rentals	57,709	67,124
Aircraft fuel	34,310	25,332
Ground handling services	19,535	20,984
Other operating expenses	75,088	74,609
Total operating expenses	689,120	700,266
OPERATING INCOME	76,295	61,809
OTHER INCOME (EXPENSE):
Interest income	660	430
Interest expense	(24,549)	(17,725)
Total other expense, net	(23,889)	(17,295)
INCOME BEFORE INCOME TAXES	52,406	44,514
PROVISION FOR INCOME TAXES	17,620	17,422
NET INCOME	$ 34,786	$ 27,092
BASIC EARNINGS PER SHARE (in dollars per share)	$ 0.67	$ 0.53
DILUTED EARNINGS PER SHARE (in dollars per share)	$ 0.65	$ 0.52
Weighted average common shares:
Basic (in shares)	51,820	51,218
Diluted (in shares)	53,202	52,014
COMPREHENSIVE INCOME:
Net income	$ 34,786	$ 27,092
Net unrealized appreciation on marketable securities, net of taxes	39	15
TOTAL COMPREHENSIVE INCOME	$ 34,825	$ 27,107

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CONSOLIDATED STATEMENTS OF CASH FLOWS
NET CASH PROVIDED BY OPERATING ACTIVITIES	$ 143,933	$ 34,544
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities	(455,990)	(508,562)
Sales of marketable securities	383,163	608,058
Proceeds from the sale of aircraft, property and equipment	36,512
Acquisition of property and equipment:
Aircraft and rotable spare parts	(220,916)	(94,941)
Buildings and ground equipment	(479)	(3,460)
Aircraft deposits applied towards acquired aircraft	11,228
Increase in other assets	(2,425)	(2,164)
NET CASH USED IN INVESTING ACTIVITIES	(248,907)	(1,069)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt	157,983	68,232
Principal payments on long-term debt	(88,104)	(57,196)
Net proceeds from issuance of common stock	1,481	2,006
Purchase of treasury stock	(13,671)
Increase in debt issuance cost	(1,452)	(747)
Payment of cash dividends	(2,588)	(2,040)
NET CASH PROVIDED BY FINANCING ACTIVITIES	53,649	10,255
Decrease in cash and cash equivalents	(51,325)	43,730
Cash and cash equivalents at beginning of period	146,766	203,035
CASH AND CASH EQUIVALENTS AT END OF PERIOD	95,441	246,765
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Acquisition of rotable spare parts	1,704
Cash paid during the period for:
Interest, net of capitalized amounts	24,039	16,547
Income taxes	$ 478	$ 684

Condensed Consolidated Financia

Condensed Consolidated Financial Statements	3 Months Ended
	Mar. 31, 2017
Condensed Consolidated Financial Statements
Condensed Consolidated Financial Statements	Note 1 — Condensed Consolidated Financial Statements Basis of Presentation The condensed consolidated financial statements of SkyWest, Inc. (“SkyWest” or the “Company”) and its operating subsidiaries, SkyWest Airlines, Inc. (“SkyWest Airlines”) and ExpressJet Airlines, Inc. (“ExpressJet”) included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal recurring nature, unless otherwise disclosed. The Company suggests that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results will likely differ, and may differ materially, from those estimates and assumptions. The Company reclassified certain prior period amounts to conform to the current period presentation . Recent Accounting Pronouncements Standards Effective in Future Years In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014‑09, “Revenue from Contracts with Customers” (“ASU No. 2014‑09”). Under ASU No. 2014‑09, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received for that specific good or service. In July 2015, the FASB deferred the effective date of ASU No. 2014‑09 for annual reporting periods beginning after December 15, 2017. In 2016, the FASB issued several amendments to the standard, including principal versus agent considerations when another party is involved in providing goods or services to a customer and the application of identifying performance obligations. The Company continues to assess the potential impacts of ASU No. 2014‑09 on its fixed-fee contracts, prorate flying agreements, ground handling agreements and other revenue transactions. The Company anticipates completing its review of the impact by the second quarter of 2017. Interpretations are on-going and could have a significant impact on the Company’s implementation. The Company believes the principal versus agent considerations may change how the Company presents revenue for certain directly-reimbursed expenses under its fixed-fee contracts, such as fuel expenses. The Company currently does not anticipate the adoption of ASU No. 2014‑09 will have a material impact on its net income. ASU No. 2014‑09 is required to be applied either full retrospective to each prior reporting period presented or modified retrospective with the cumulative effect of initially applying it at the date of initial application. The Company anticipates using the full retrospective method of adoption. In February 2016, the FASB issued Accounting Standards Update 2016‑02, “Leases (Topic 842)” (“ASU No. 2016-02”). ASU No. 2016‑02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU No. 2016‑02 will be effective beginning in the first quarter of 2019. Early adoption of ASU No. 2016‑02 is permitted. ASU No. 2016‑02 requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company’s management is currently evaluating the impact the adoption of ASU 2016‑02 is anticipated to have on the Company’s consolidated financial statements. In 2016, the FASB issued Accounting Standards Update 2016‑15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” and Accounting Standard Update 2016‑18, “Statement of Cash Flows (Topic 230): Restricted Cash” related to the classification of certain cash receipts and cash payments and the presentation of restricted cash within an entity’s statement of cash flows, respectively. These standards are effective for interim and annual reporting periods beginning after December 15, 2017, but early adoption is permitted. The Company does not anticipate these standards to have a material impact on our Consolidated Statement of Cash Flows. Recently Adopted Standards Pursuant to the guidelines of the recently issued Accounting Standards Update 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015‑17”), all deferred tax assets and liabilities are to be classified as non-current. As permitted under the ASU 2015‑17, the Company adopted this guidance for the quarter ended March 31, 2017. The guidance indicates that ASU 2015‑17 may be applied either prospectively or retrospectively. The Company elected to adopt ASU 2015‑17 retrospectively. Upon adoption, approximately $129.3 million of what were formerly recorded as current deferred tax assets as of December 31, 2016 were reclassified to non-current and netted against non-current deferred income taxes payable as of December 31, 2016 in the accompanying financial statements. In March 2016, the FASB issued Accounting Standards Update No. 2016‑09, “Compensation—Stock Compensation (Topic 718)” (“ASU No. 2016‑09”). ASU No. 2016‑09 makes several amendments to Topic 718, which simplified the accounting for share-based payment transactions, including the income tax consequences, the calculation of diluted earnings per share, the treatment of forfeitures and the classification on the statement of cash flows. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements and forfeitures should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments requiring the recognition of excess tax benefits and tax deficiencies in the income statement should be applied prospectively. Prior to the adoption of ASU No. 2016‑09, GAAP required tax effects of deductions for share-based payments in excess of compensation cost and tax deficiencies to be recorded in equity. Under ASU No. 2016‑09, the tax effects of awards are treated as discrete income tax expense items in the reporting period in which they occur. The Company adopted ASU No. 2016‑09 as of January 1, 2017. As a result of employee stock awards that vested and stock options that were exercised during the three months ended March 31, 2017, the Company recorded a discrete income tax benefit of $3.0 million for the same period. The discrete income tax benefit and the modification to the diluted earnings per share calculation, which increased the diluted shares outstanding under ASU No. 2016‑09, increased the Company’s earnings per diluted share by $0.05 for the three months ended March 31, 2017. The adoption of ASU No. 2016‑09 did not have a material impact on the statement of cash flows presentation, which the Company adopted prospectively. Property and Equipment Property and equipment are stated at cost and depreciated over their useful lives to their estimated residual values using the straight‑line method. The Company changed the estimated useful lives and residual values for certain long-lived assets as of January 1, 2017 as follows: Assets Current Depreciable Life Prior Policy Depreciable Life Current Residual Value Prior Policy Residual Value New Aircraft 20 - 22 years 18 years 17.5 - 20 % % Used Aircraft, rotable spares, and spare engines up to 18 years up to 18 years 0 - 20 % 0 - 30 % Ground equipment up to 10 years No Change 0 % No Change Office equipment up to 7 years No Change % No Change Leasehold improvements Shorter of 15 years or lease term No Change % No Change Buildings 20 - 39.5 years No Change % No Change The Company estimates that the impact of this change will increase depreciation expense by an additional $1.8 million on an annualized basis for 2017.

Passenger and Ground Handling R

Passenger and Ground Handling Revenue	3 Months Ended
	Mar. 31, 2017
Passenger and Ground Handling Revenues
Passenger and Ground Handling Revenue	Note 2 — Passenger and Ground Handling Revenue The Company recognizes passenger and ground handling revenues when the service is provided under its code-share agreements. Under the Company’s fixed-fee arrangements (referred to as “fixed-fee arrangements,” “fixed-fee contracts” or “capacity purchase agreements”) with Delta Air Lines, Inc. (“Delta”), United Airlines, Inc. (“United”), American Airlines, Inc. (“American”) and Alaska Airlines, Inc. (“Alaska”) (each, a “major airline partner”), the major airline partner generally pays the Company a fixed-fee for each departure, flight hour (measured from takeoff to landing, excluding taxi time) or block hour (measured from takeoff to landing, including taxi time) incurred, and an amount per aircraft in service each month with additional incentives based on flight completion and on-time performance. The major airline partner also directly reimburses the Company for certain direct expenses incurred under the fixed-fee arrangement, such as fuel expenses and landing fee expenses. Under the fixed-fee arrangements, revenue is earned when each flight is completed and is reflected in passenger revenues. For the three months ended March 31, 2017, approximately 95.9% of the Company’s available seat miles (“ASMs”) were flown under fixed-fee arrangements. ASMs are a common industry metric generally used to measure an airline’s passenger carrying capacity. Ground handling revenue primarily consists of customer service functions, such as gate and ramp agent services at applicable airports where the Company provides such services to other airlines. Under the Company’s revenue-sharing arrangements (referred to as a “revenue-sharing” or “prorate” arrangement), the major airline partner and the Company negotiate a passenger fare proration formula, pursuant to which the Company receives a percentage of the ticket revenues for those passengers traveling for one portion of their trip on a Company airline and the other portion of their trip on the major airline partner. Revenue is recognized under the Company’s prorate flying agreements when each flight is completed based upon the portion of the prorate passenger fare the Company anticipates that it will receive for each completed flight. For the three months ended March 31, 2017, approximately 4.1% of the Company’s ASMs were flown under prorate arrangements. Other ancillary revenues commonly associated with airlines, such as baggage fee revenue, ticket change fee revenue and the marketing component of the sale of mileage credits, are retained by the Company’s major airline partners on flights that the Company operates under its code‑share agreements. In the event that the contractual rates under the Company’s flying agreements have not been finalized at quarterly or annual financial statement dates, the Company records revenues based on the lower of the prior period’s approved rates, as adjusted to reflect any contract negotiations, and the Company’s estimate of rates that will be implemented in accordance with revenue recognition guidelines. In the event the Company has a reimbursement dispute with a major airline partner, the Company evaluates the dispute under its established revenue recognition criteria and, provided the revenue recognition criteria have been met, the Company recognizes revenue based on management’s estimate of the resolution of the dispute. In several of the Company’s agreements, the Company is eligible to receive incentive compensation upon the achievement of certain performance criteria. The incentives are defined in the agreements and are measured and determined on a monthly, quarterly or semi‑annual basis. At the end of each period during the term of an agreement, the Company calculates the incentives achieved during that period and recognizes revenue attributable to that agreement accordingly. The following table summarizes the significant provisions of each code share agreement the Company has with each major airline partner: Delta Connection Agreements Agreement Aircraft type Number of Term / Termination SkyWest Airlines Delta Connection Agreement (fixed-fee arrangement) • • • • 51 27 36 13 • ExpressJet Delta Connection Agreement (fixed-fee arrangement) • • • 32 35 28 • SkyWest Airlines Delta Connection Prorate Agreement (revenue-sharing arrangement) • 24 • United Express Agreements Agreement Aircraft type Number of Term / Termination SkyWest Airlines United Express Agreements (fixed-fee arrangement) • • • 42 29 60 • ExpressJet United ERJ Agreement (fixed-fee arrangement) • • 5 126 • SkyWest Airlines United Express Prorate Agreement (revenue-sharing arrangement) • 22 • Alaska Capacity Purchase Agreement Agreement Aircraft type Number of Term / Termination SkyWest Airlines Alaska Agreement (fixed-fee arrangement) • • 1 20 • American Agreements Agreement Aircraft type Number of Term / Termination SkyWest Airlines American Agreement (fixed-fee arrangement) • • 22 28 • SkyWest Airlines American Prorate Agreement (revenue-sharing arrangement) • 6 • ExpressJet American Agreement (fixed-fee arrangement) • • • 6 6 10 • ExpressJet American Prorate Agreement (revenue-sharing arrangement) • 3 • When an aircraft is scheduled to be removed from a fixed-fee arrangement, the Company may, as practical under the circumstances, negotiate an extension with the respective major airline partner, negotiate the placement of the aircraft with another major airline partner, return the aircraft to the lessor if the aircraft is leased and the lease is expiring, place owned aircraft for sale, or pursue other uses for the aircraft, including placing the aircraft in a prorate arrangement. In addition to the contractual arrangements described above, SkyWest Airlines has entered into agreements with United and Delta to place additional Embraer E175 dual-class regional jet aircraft (“E175”) into service for those major airline partners. As of March 31, 2017, the Company anticipated placing an additional five E175 aircraft with United and six E175 aircraft with Delta. The delivery dates for the new aircraft are expected to take place through the end of 2017. The Company’s passenger and ground handling revenues could be impacted by a number of factors, including changes to the Company’s code-share agreements with its major airline partners, contract modifications resulting from contract renegotiations, the Company’s ability to earn incentive payments contemplated under the Company’s code-share agreements and settlement of reimbursement disputes with the Company’s major airline partners.

Share-Based Compensation and St

Share-Based Compensation and Stock Repurchases	3 Months Ended
	Mar. 31, 2017
Share-Based Compensation and Stock Repurchases
Share-Based Compensation and Stock Repurchases	Note 3 — Share-Based Compensation and Stock Repurchases During the three months ended March 31, 2017, the Company granted 22,617 fully-vested shares of common stock to the Company’s directors. Additionally, during the three months ended March 31, 2017, the Company granted 160,137 restricted stock units and 119,315 performance shares to certain employees of the Company and its subsidiaries under the SkyWest, Inc. 2010 Long-Term Incentive Plan. Both the restricted stock units and performance shares have a three-year vesting period, during which the recipient must remain employed with the Company or one of the Company’s subsidiaries. In addition to the three-year vesting period, certain performance metrics of the Company must be met before the recipient will receive any shares of stock attributable to the restricted stock units and performance shares. Upon vesting, each restricted stock unit and performance share will be replaced with one share of common stock. The fair value of the restricted stock units and performance shares on the date of grant was $35.81 per share. During the three months ended March 31, 2017, the Company did not grant any options to purchase shares of common stock. With the adoption of ASU No. 2016‑09, the Company will account for forfeitures of restricted stock unit and performance share grants in 2017 when forfeitures occur. The estimated fair value of the stock options, restricted stock units and performance shares is amortized over the applicable vesting periods. During the three months ended March 31, 2017 and 2016, the Company recorded pre-tax share-based compensation expense of $3.5 million and $2.3 million, respectively. The Company repurchased 281,000 shares of its common stock for $10.0 million during the three months ended March 31, 2017. Additionally, during the three months ended March 31, 2017, the Company also repurchased 108,000 shares of its common stock through a net settlement of the income tax obligation on employee equity awards of $3.8 million. The Company did not repurchase any shares of its common stock during the three months ended March 31, 2016.

Net Income Per Common Share

Net Income Per Common Share	3 Months Ended
	Mar. 31, 2017
Net Income Per Common Share
Net Income Per Common Share	Note 4 — Net Income Per Common Share Basic net income per common share (“Basic EPS”) excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share. During the three months ended March 31, 2017 and 2016, options to acquire zero shares and 6,000 shares, respectively, were excluded from the computation of Diluted EPS as their impact was anti-dilutive. The calculation of the weighted average number of shares of common stock outstanding for Basic EPS and Diluted EPS for the periods indicated (in thousands, except per share data) is as follows: Three Months Ended March 31, 2017 2016 Numerator: Net Income $ 34,786 $ 27,092 Denominator: Weighted average number of common shares outstanding 51,820 51,218 Effect of outstanding share-based awards 1,382 796 Weighted average number of shares for diluted net income per common share 53,202 52,014 Basic earnings per-share $ $ 0.53 Diluted earnings per-share $ 0.65 $ 0.52

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2017
Segment Reporting
Segment Reporting	Note 5 - Segment Reporting The Company’s three reporting segments consist of the operations of SkyWest Airlines, ExpressJet and SkyWest Leasing activities. Corporate overhead expenses incurred by the Company are allocated to the operating expenses of SkyWest Airlines and ExpressJet. The Company’s chief operating decision maker analyzes the profitability of operating the E175 aircraft (including operating costs and associated revenue) separately from the profitability of the Company’s ownership, financing costs and associated revenue of the Company’s E175 aircraft (including depreciation expense, interest expense and associated revenue). The SkyWest Leasing segment includes revenue attributed to the Company’s E175 aircraft ownership cost earned under the applicable fixed-fee contracts and the depreciation and interest expense of the Company’s E175 aircraft. The SkyWest Leasing segment’s total assets and capital expenditures include the acquired E175 aircraft. The SkyWest Leasing segment additionally includes the activity of four CRJ200 aircraft leased to a third party. The following represents the Company’s segment data for the three-month periods ended March 31, 2017 and 2016 (in thousands). Three months ended March 31, 2017 SkyWest SkyWest Airlines ExpressJet Leasing Consolidated Operating revenues $ 482,954 $ 228,658 $ 53,803 $ 765,415 Operating expense 435,368 229,493 24,259 689,120 Depreciation and amortization expense 31,817 14,525 23,772 70,114 Interest expense 5,799 1,114 17,636 24,549 Segment profit (loss) (1) 41,787 (1,949) 11,908 51,746 Identifiable intangible assets, other than goodwill — 7,686 — 7,686 Total assets 2,224,407 565,839 2,338,110 5,128,356 Capital expenditures (including non-cash) 33,431 5,654 184,014 223,099 Three months ended March 31, 2016 SkyWest SkyWest Airlines ExpressJet Leasing Consolidated Operating revenues $ 466,296 $ 267,807 $ 27,972 $ 762,075 Operating expense 414,084 273,619 12,563 700,266 Depreciation and amortization expense 34,331 21,267 12,203 67,801 Interest expense 6,659 2,123 8,943 17,725 Segment profit (loss) (1) 45,553 (7,935) 6,466 44,084 Identifiable intangible assets, other than goodwill — 9,936 — 9,936 Total assets 2,213,958 1,277,361 1,218,935 4,710,254 Capital expenditures (including non-cash) 13,073 5,048 80,280 98,401 (1) Segment profit (loss) is equal to operating income less interest expense

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies
Commitments and Contingencies	Note 6 — Commitments and Contingencies As of March 31, 2017, the Company leased aircraft, airport facilities, office space, and other property and equipment under non-cancelable operating leases which are generally on a long-term, triple net lease basis pursuant to which the Company pays taxes, maintenance, insurance and certain other operating expenses applicable to the leased property. The Company expects that, in the normal course of business, such operating leases that expire will be renewed or replaced by other leases, or the property may be purchased rather than leased. The following table summarizes future minimum rental payments required under operating leases that had initial or remaining non-cancelable lease terms as of March 31, 2017 (in thousands): March through December 2017 $ 2018 2019 2020 2021 Thereafter $ 888,530 As of March 31, 2017, the Company had a firm purchase commitment for eleven E175 aircraft with scheduled delivery dates throughout 2017.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Measurements
Fair Value Measurements	Note 7 — Fair Value Measurements The Company holds certain assets that are required to be measured at fair value in accordance with GAAP. The Company determined the fair value of these assets based on the following three levels of inputs: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Some of the Company’s marketable securities primarily utilize broker quotes in a non-active market for valuation of these securities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, therefore requiring an entity to develop its own assumptions. As of March 31, 2017 and December 31, 2016, the Company held certain assets that are required to be measured at fair value on a recurring basis. Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements as of March 31, 2017 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 420,812 $ — $ 420,812 $ — Commercial paper 61,952 — 61,952 — Asset backed securities $ 482,764 $ — $ 482,764 $ — Cash, Cash Equivalents and Restricted Cash 103,691 103,691 — — Total Assets Measured at Fair Value $ 586,455 $ 103,691 $ 482,764 $ — Fair Value Measurements as of December 31, 2016 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ $ — $ $ — Commercial paper — — Asset backed securities $ $ — $ $ — Cash, Cash Equivalents and Restricted Cash — — Total Assets Measured at Fair Value $ $ $ $ — The Company’s “Marketable Securities” classified as Level 2 securities primarily utilize broker quotes in a non-active market for valuation of these securities. The Company did not make any significant transfers of securities between Level 1, Level 2 and Level 3 during the three months ended March 31, 2017. The Company’s policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period. As of March 31, 2017 and December 31, 2016, the Company classified $482.8 million and $409.9 million of marketable securities, respectively, as short-term since it had the intent to maintain a liquid portfolio and the ability to redeem the securities within one year. As of March 31, 2017 and December 31, 2016, the cost of the Company’s total cash and cash equivalents and available for sale securities (excluding restricted cash) was $578.3 million and $556.8 million, respectively. As of March 31, 2017 and December 31, 2016, the fair value of the Company’s total cash and cash equivalents and available for sale securities (excluding restricted cash) was $578.2 million and $556.7 million, respectively. The fair value of the Company’s long-term debt classified as Level 2 debt was estimated using discounted cash flow analyses, based on the Company’s current estimated incremental borrowing rates for similar types of borrowing arrangements. The fair value of the Company’s long-term debt is estimated based on current rates offered to the Company for similar debt and was estimated to be $2.64 billion as of March 31, 2017 and $2.57 billion as of December 31, 2016, as compared to the carrying amount of $2.64 billion as of March 31, 2017 and $2.57 billion as of December 31, 2016.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2017
Long-Term Debt
Long-Term Debt	Note 8 — Long-Term Debt Long-term debt consisted of the following as of March 31, 2017 and December 31, 2016 (in thousands). March 31, 2017 December 31, 2016 Current portion long-term debt $ $ Long-term debt net of current maturities Total long-term debt (including current portion) $ $ Unamortized debt issue cost, net Total long-term debt, net of debt issue costs $ $ During the three months ended March 31, 2017, the Company took delivery of seven E175 aircraft, which the Company financed through $158.0 million of long-term debt. The debt associated with the E175 aircraft delivered during the three months ended March 31, 2017 has a twelve-year term, is due in quarterly installments with a fixed annual interest rate ranging from 4.5% to 4.7% and is secured by the E175 aircraft. As of March 31, 2017 and December 31, 2016, the Company had $87.7 million in letters of credit and surety bonds outstanding with various banks and surety institutions.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Taxes
Income Taxes	Note 9 — Income Taxes The Company’s estimated effective tax rate for the three months ended March 31, 2017 was 33.6%. The Company’s effective tax rate for the three months ended March 31, 2017 varied from the federal statutory rate of 35% primarily due to a $3.0 million discrete tax benefit from excess tax deductions generated from employee equity transactions that occurred during the three months ended March 31, 2017 pursuant to ASU 2016‑09, the provision for state income taxes and the impact of non-deductible crew per diem meal expenses.

Legal Matters

Legal Matters	3 Months Ended
	Mar. 31, 2017
Legal Matters
Legal Matters	Note 10 — Legal Matters The Company is subject to certain legal actions which it considers routine to its business activities. As of March 31, 2017, the Company’s management believed, after consultation with legal counsel, that the ultimate outcome of such legal matters was not likely to have a material adverse effect on the Company’s financial position, liquidity or results of operations.

Condensed Consolidated Financ16

Condensed Consolidated Financial Statements (Policies)	3 Months Ended
	Mar. 31, 2017
Condensed Consolidated Financial Statements
Basis of Presentation	Basis of Presentation The condensed consolidated financial statements of SkyWest, Inc. (“SkyWest” or the “Company”) and its operating subsidiaries, SkyWest Airlines, Inc. (“SkyWest Airlines”) and ExpressJet Airlines, Inc. (“ExpressJet”) included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal recurring nature, unless otherwise disclosed. The Company suggests that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results will likely differ, and may differ materially, from those estimates and assumptions. The Company reclassified certain prior period amounts to conform to the current period presentation .
Recent Accounting Pronouncements	Recent Accounting Pronouncements Standards Effective in Future Years In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014‑09, “Revenue from Contracts with Customers” (“ASU No. 2014‑09”). Under ASU No. 2014‑09, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received for that specific good or service. In July 2015, the FASB deferred the effective date of ASU No. 2014‑09 for annual reporting periods beginning after December 15, 2017. In 2016, the FASB issued several amendments to the standard, including principal versus agent considerations when another party is involved in providing goods or services to a customer and the application of identifying performance obligations. The Company continues to assess the potential impacts of ASU No. 2014‑09 on its fixed-fee contracts, prorate flying agreements, ground handling agreements and other revenue transactions. The Company anticipates completing its review of the impact by the second quarter of 2017. Interpretations are on-going and could have a significant impact on the Company’s implementation. The Company believes the principal versus agent considerations may change how the Company presents revenue for certain directly-reimbursed expenses under its fixed-fee contracts, such as fuel expenses. The Company currently does not anticipate the adoption of ASU No. 2014‑09 will have a material impact on its net income. ASU No. 2014‑09 is required to be applied either full retrospective to each prior reporting period presented or modified retrospective with the cumulative effect of initially applying it at the date of initial application. The Company anticipates using the full retrospective method of adoption. In February 2016, the FASB issued Accounting Standards Update 2016‑02, “Leases (Topic 842)” (“ASU No. 2016-02”). ASU No. 2016‑02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU No. 2016‑02 will be effective beginning in the first quarter of 2019. Early adoption of ASU No. 2016‑02 is permitted. ASU No. 2016‑02 requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company’s management is currently evaluating the impact the adoption of ASU 2016‑02 is anticipated to have on the Company’s consolidated financial statements. In 2016, the FASB issued Accounting Standards Update 2016‑15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” and Accounting Standard Update 2016‑18, “Statement of Cash Flows (Topic 230): Restricted Cash” related to the classification of certain cash receipts and cash payments and the presentation of restricted cash within an entity’s statement of cash flows, respectively. These standards are effective for interim and annual reporting periods beginning after December 15, 2017, but early adoption is permitted. The Company does not anticipate these standards to have a material impact on our Consolidated Statement of Cash Flows. Recently Adopted Standards Pursuant to the guidelines of the recently issued Accounting Standards Update 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015‑17”), all deferred tax assets and liabilities are to be classified as non-current. As permitted under the ASU 2015‑17, the Company adopted this guidance for the quarter ended March 31, 2017. The guidance indicates that ASU 2015‑17 may be applied either prospectively or retrospectively. The Company elected to adopt ASU 2015‑17 retrospectively. Upon adoption, approximately $129.3 million of what were formerly recorded as current deferred tax assets as of December 31, 2016 were reclassified to non-current and netted against non-current deferred income taxes payable as of December 31, 2016 in the accompanying financial statements. In March 2016, the FASB issued Accounting Standards Update No. 2016‑09, “Compensation—Stock Compensation (Topic 718)” (“ASU No. 2016‑09”). ASU No. 2016‑09 makes several amendments to Topic 718, which simplified the accounting for share-based payment transactions, including the income tax consequences, the calculation of diluted earnings per share, the treatment of forfeitures and the classification on the statement of cash flows. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements and forfeitures should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments requiring the recognition of excess tax benefits and tax deficiencies in the income statement should be applied prospectively. Prior to the adoption of ASU No. 2016‑09, GAAP required tax effects of deductions for share-based payments in excess of compensation cost and tax deficiencies to be recorded in equity. Under ASU No. 2016‑09, the tax effects of awards are treated as discrete income tax expense items in the reporting period in which they occur. The Company adopted ASU No. 2016‑09 as of January 1, 2017. As a result of employee stock awards that vested and stock options that were exercised during the three months ended March 31, 2017, the Company recorded a discrete income tax benefit of $3.0 million for the same period. The discrete income tax benefit and the modification to the diluted earnings per share calculation, which increased the diluted shares outstanding under ASU No. 2016‑09, increased the Company’s earnings per diluted share by $0.05 for the three months ended March 31, 2017. The adoption of ASU No. 2016‑09 did not have a material impact on the statement of cash flows presentation, which the Company adopted prospectively.
Property and Equipment	Property and Equipment Property and equipment are stated at cost and depreciated over their useful lives to their estimated residual values using the straight‑line method. The Company changed the estimated useful lives and residual values for certain long-lived assets as of January 1, 2017 as follows: Assets Current Depreciable Life Prior Policy Depreciable Life Current Residual Value Prior Policy Residual Value New Aircraft 20 - 22 years 18 years 17.5 - 20 % % Used Aircraft, rotable spares, and spare engines up to 18 years up to 18 years 0 - 20 % 0 - 30 % Ground equipment up to 10 years No Change 0 % No Change Office equipment up to 7 years No Change % No Change Leasehold improvements Shorter of 15 years or lease term No Change % No Change Buildings 20 - 39.5 years No Change % No Change The Company estimates that the impact of this change will increase depreciation expense by an additional $1.8 million on an annualized basis for 2017.

Condensed Consolidated Financ17

Condensed Consolidated Financial Statements (Tables)	3 Months Ended
	Mar. 31, 2017
Condensed Consolidated Financial Statements
Schedule of property and equipment	Assets Current Depreciable Life Prior Policy Depreciable Life Current Residual Value Prior Policy Residual Value New Aircraft 20 - 22 years 18 years 17.5 - 20 % % Used Aircraft, rotable spares, and spare engines up to 18 years up to 18 years 0 - 20 % 0 - 30 % Ground equipment up to 10 years No Change 0 % No Change Office equipment up to 7 years No Change % No Change Leasehold improvements Shorter of 15 years or lease term No Change % No Change Buildings 20 - 39.5 years No Change % No Change

Passenger and Ground Handling18

Passenger and Ground Handling Revenue (Tables)	3 Months Ended
	Mar. 31, 2017
Passenger and Ground Handling Revenues
Schedule of details of agreements with other airlines	Delta Connection Agreements Agreement Aircraft type Number of Term / Termination SkyWest Airlines Delta Connection Agreement (fixed-fee arrangement) • • • • 51 27 36 13 • ExpressJet Delta Connection Agreement (fixed-fee arrangement) • • • 32 35 28 • SkyWest Airlines Delta Connection Prorate Agreement (revenue-sharing arrangement) • 24 • United Express Agreements Agreement Aircraft type Number of Term / Termination SkyWest Airlines United Express Agreements (fixed-fee arrangement) • • • 42 29 60 • ExpressJet United ERJ Agreement (fixed-fee arrangement) • • 5 126 • SkyWest Airlines United Express Prorate Agreement (revenue-sharing arrangement) • 22 • Alaska Capacity Purchase Agreement Agreement Aircraft type Number of Term / Termination SkyWest Airlines Alaska Agreement (fixed-fee arrangement) • • 1 20 • American Agreements Agreement Aircraft type Number of Term / Termination SkyWest Airlines American Agreement (fixed-fee arrangement) • • 22 28 • SkyWest Airlines American Prorate Agreement (revenue-sharing arrangement) • 6 • ExpressJet American Agreement (fixed-fee arrangement) • • • 6 6 10 • ExpressJet American Prorate Agreement (revenue-sharing arrangement) • 3 •

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2017
Net Income Per Common Share
Schedule of net income per common share	The calculation of the weighted average number of shares of common stock outstanding for Basic EPS and Diluted EPS for the periods indicated (in thousands, except per share data) is as follows: Three Months Ended March 31, 2017 2016 Numerator: Net Income $ 34,786 $ 27,092 Denominator: Weighted average number of common shares outstanding 51,820 51,218 Effect of outstanding share-based awards 1,382 796 Weighted average number of shares for diluted net income per common share 53,202 52,014 Basic earnings per-share $ $ 0.53 Diluted earnings per-share $ 0.65 $ 0.52

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting
Schedule of Company's segment data	The following represents the Company’s segment data for the three-month periods ended March 31, 2017 and 2016 (in thousands). Three months ended March 31, 2017 SkyWest SkyWest Airlines ExpressJet Leasing Consolidated Operating revenues $ 482,954 $ 228,658 $ 53,803 $ 765,415 Operating expense 435,368 229,493 24,259 689,120 Depreciation and amortization expense 31,817 14,525 23,772 70,114 Interest expense 5,799 1,114 17,636 24,549 Segment profit (loss) (1) 41,787 (1,949) 11,908 51,746 Identifiable intangible assets, other than goodwill — 7,686 — 7,686 Total assets 2,224,407 565,839 2,338,110 5,128,356 Capital expenditures (including non-cash) 33,431 5,654 184,014 223,099 Three months ended March 31, 2016 SkyWest SkyWest Airlines ExpressJet Leasing Consolidated Operating revenues $ 466,296 $ 267,807 $ 27,972 $ 762,075 Operating expense 414,084 273,619 12,563 700,266 Depreciation and amortization expense 34,331 21,267 12,203 67,801 Interest expense 6,659 2,123 8,943 17,725 Segment profit (loss) (1) 45,553 (7,935) 6,466 44,084 Identifiable intangible assets, other than goodwill — 9,936 — 9,936 Total assets 2,213,958 1,277,361 1,218,935 4,710,254 Capital expenditures (including non-cash) 13,073 5,048 80,280 98,401 Segment profit (loss) is equal to operating income less interest expense

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies
Schedule of Future Minimum Rental Payments for Operating Leases	The following table summarizes future minimum rental payments required under operating leases that had initial or remaining non-cancelable lease terms as of March 31, 2017 (in thousands): March through December 2017 $ 2018 2019 2020 2021 Thereafter $ 888,530

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Measurements
Schedule of assets measured at fair value on a recurring basis	As of March 31, 2017 and December 31, 2016, the Company held certain assets that are required to be measured at fair value on a recurring basis. Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements as of March 31, 2017 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 420,812 $ — $ 420,812 $ — Commercial paper 61,952 — 61,952 — Asset backed securities $ 482,764 $ — $ 482,764 $ — Cash, Cash Equivalents and Restricted Cash 103,691 103,691 — — Total Assets Measured at Fair Value $ 586,455 $ 103,691 $ 482,764 $ — Fair Value Measurements as of December 31, 2016 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ $ — $ $ — Commercial paper — — Asset backed securities $ $ — $ $ — Cash, Cash Equivalents and Restricted Cash — — Total Assets Measured at Fair Value $ $ $ $ —

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2017
Long-Term Debt
Schedule of long-term debt	Long-term debt consisted of the following as of March 31, 2017 and December 31, 2016 (in thousands). March 31, 2017 December 31, 2016 Current portion long-term debt $ $ Long-term debt net of current maturities Total long-term debt (including current portion) $ $ Unamortized debt issue cost, net Total long-term debt, net of debt issue costs $ $

Condensed Consolidated Financ24

Condensed Consolidated Financial Statements - Recent Accounting Pronouncements (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Recent Accounting Pronouncements
Long-term deferred income taxes payable	$ 581,203		$ 565,404
Diluted earnings per-share (in dollars per share)	$ 0.65	$ 0.52
Adjustment | Accounting Standards Update 2015-17
Recent Accounting Pronouncements
Deferred tax assets, current			(129,300)
Long-term deferred income taxes payable			$ (129,300)
Scenario, adjustment | Accounting Standards Update 2016-09
Recent Accounting Pronouncements
Income tax benefit	$ 3,000
Diluted earnings per-share (in dollars per share)	$ 0.05

Condensed Consolidated Financ25

Condensed Consolidated Financial Statements - Property and Equipment (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Forecast
Property and Equipment
Depreciation		$ 1.8
New aircraft
Property and Equipment
Depreciable Life			18 years
Residual Value (as a percent)			30.00%
New aircraft | Minimum
Property and Equipment
Depreciable Life	20 years
Residual Value (as a percent)	17.50%
New aircraft | Maximum
Property and Equipment
Depreciable Life	22 years
Residual Value (as a percent)	20.00%
Used Aircraft, rotable spares, and spare engines
Property and Equipment
Depreciable Life	18 years		18 years
Used Aircraft, rotable spares, and spare engines | Minimum
Property and Equipment
Residual Value (as a percent)	0.00%		0.00%
Used Aircraft, rotable spares, and spare engines | Maximum
Property and Equipment
Residual Value (as a percent)	20.00%		30.00%
Ground equipment
Property and Equipment
Depreciable Life	10 years
Residual Value (as a percent)	0.00%
Office equipment
Property and Equipment
Depreciable Life	7 years
Residual Value (as a percent)	0.00%
Leasehold improvements
Property and Equipment
Depreciable Life	15 years
Residual Value (as a percent)	0.00%
Buildings
Property and Equipment
Residual Value (as a percent)	0.00%
Buildings | Minimum
Property and Equipment
Depreciable Life	20 years
Buildings | Maximum
Property and Equipment
Depreciable Life	39 years 6 months

Passenger and Ground Handling26

Passenger and Ground Handling Revenue (Details) - aircraft	3 Months Ended	9 Months Ended
	Mar. 31, 2017	Dec. 31, 2017
Agreements with other airlines
Percentage of ASMs flown under fixed-fee arrangements	95.90%
Percentage of ASMs flown under pro-rate arrangements	4.10%
Sky West Airlines Inc | Delta Connection Prorate Agreement
Agreements with other airlines
Term of agreement	30 days
Sky West Airlines Inc | United Express Prorate Agreement
Agreements with other airlines
Term of agreement	120 days
Sky West Airlines Inc | American Prorate Agreement
Agreements with other airlines
Term of agreement	120 days
ExpressJet | American Prorate Agreement
Agreements with other airlines
Term of agreement	120 days
CRJ 200 | Sky West Airlines Inc | Delta Connection Agreements
Agreements with other airlines
Number of aircraft under contract	51
CRJ 200 | Sky West Airlines Inc | Delta Connection Prorate Agreement
Agreements with other airlines
Number of aircraft under contract	24
CRJ 200 | Sky West Airlines Inc | United Express Agreements
Agreements with other airlines
Number of aircraft under contract	42
CRJ 200 | Sky West Airlines Inc | Alaska Capacity Purchase Agreement
Agreements with other airlines
Number of aircraft under contract	22
CRJ 200 | Sky West Airlines Inc | American Capacity Purchase Agreement
Agreements with other airlines
Number of aircraft under contract	22
CRJ 200 | Sky West Airlines Inc | American Prorate Agreement
Agreements with other airlines
Number of aircraft under contract	6
CRJ 200 | ExpressJet | Delta Connection Agreements
Agreements with other airlines
Number of aircraft under contract	32
CRJ 200 | ExpressJet | American Capacity Purchase Agreement
Agreements with other airlines
Number of aircraft under contract	6
CRJ 200 | ExpressJet | American Prorate Agreement
Agreements with other airlines
Number of aircraft under contract	3
CRJ 700 | Sky West Airlines Inc | Delta Connection Agreements
Agreements with other airlines
Number of aircraft under contract	27
CRJ 700 | Sky West Airlines Inc | United Express Agreements
Agreements with other airlines
Number of aircraft under contract	29
CRJ 700 | Sky West Airlines Inc | Alaska Capacity Purchase Agreement
Agreements with other airlines
Number of aircraft under contract	1
CRJ 700 | Sky West Airlines Inc | American Capacity Purchase Agreement
Agreements with other airlines
Number of aircraft under contract	28
CRJ 700 | ExpressJet | Delta Connection Agreements
Agreements with other airlines
Number of aircraft under contract	35
CRJ 700 | ExpressJet | American Capacity Purchase Agreement
Agreements with other airlines
Number of aircraft under contract	10
CRJ 900 | Sky West Airlines Inc | Delta Connection Agreements
Agreements with other airlines
Number of aircraft under contract	36
CRJ 900 | ExpressJet | Delta Connection Agreements
Agreements with other airlines
Number of aircraft under contract	28
E 175 | Forecast | Delta Connection Agreements
Agreements with other airlines
Number of aircraft under contract		6
E 175 | Forecast | United Express Agreements
Agreements with other airlines
Number of aircraft under contract		5
E 175 | Sky West Airlines Inc | Delta Connection Agreements
Agreements with other airlines
Number of aircraft under contract	13
E 175 | Sky West Airlines Inc | United Express Agreements
Agreements with other airlines
Number of aircraft under contract	60
E 175 | Sky West Airlines Inc | Alaska Capacity Purchase Agreement
Agreements with other airlines
Number of aircraft under contract	20
ERJ 145 | ExpressJet | United Express Agreements
Agreements with other airlines
Number of aircraft under contract	126
ERJ 145 | ExpressJet | American Capacity Purchase Agreement
Agreements with other airlines
Number of aircraft under contract	6
ERJ 135 | ExpressJet | United Express Agreements
Agreements with other airlines
Number of aircraft under contract	5

Share-Based Compensation and 27

Share-Based Compensation and Stock Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-Based Compensation
Upon vesting, each restricted stock unit and performance share replaced with common stock	1.00%
Common stock repurchased (in shares)	281,000	0
Common stock repurchased, value	$ 10
Employee stock option
Share-Based Compensation
Common stock repurchased (in shares)	108,000
Common stock repurchased, value	$ 3.8
Options granted (in shares)	0
Restricted Stock Units (RSUs)
Share-Based Compensation
Granted (in dollars per share)	$ 35.81
Restricted Stock Units (RSUs) | Long Term Incentive Plan 2010
Share-Based Compensation
Granted (in shares)	160,137
Vesting period	3 years
Performance share units | Long Term Incentive Plan 2010
Share-Based Compensation
Granted (in shares)	119,315
Vesting period	3 years
Director | Restricted Stock Units (RSUs)
Share-Based Compensation
Granted (in shares)	22,617
Accounting Standards Update 2016-09
Share-Based Compensation
Stock based compensation expense	$ 3.5	$ 2.3

Net Income Per Common Share (De

Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net Income Per Common Share
Number of outstanding options not included in computation of Diluted EPS (in shares)	0	6,000
Numerator
Net income	$ 34,786	$ 27,092
Denominator
Weighted average number of common shares outstanding	51,820,000	51,218,000
Effect of outstanding share-based awards	1,382,000	796,000
Weighted average number of shares for diluted net income per common share	53,202,000	52,014,000
Basic earnings per-share (in dollars per share)	$ 0.67	$ 0.53
Diluted earnings per-share (in dollars per share)	$ 0.65	$ 0.52

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)segmentaircraft	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Segment Reporting
Number of operating segments | segment	3
Operating revenues	$ 765,415	$ 762,075
Operating expense	689,120	700,266
Depreciation and amortization expense	70,114	67,801
Interest expense	24,549	17,725
Segment profit (loss)	52,406	44,514
Identifiable intangible assets, other than goodwill	7,686	9,936	$ 8,249
Total assets	5,128,356	4,710,254	$ 5,007,966
Capital expenditures (including non-cash)	223,099	98,401
Segments
Segment Reporting
Segment profit (loss)	51,746	44,084
SkyWest Airlines
Segment Reporting
Operating revenues	482,954	466,296
Operating expense	435,368	414,084
Depreciation and amortization expense	31,817	34,331
Interest expense	5,799	6,659
Total assets	2,224,407	2,213,958
Capital expenditures (including non-cash)	33,431	13,073
SkyWest Airlines | Segments
Segment Reporting
Segment profit (loss)	41,787	45,553
ExpressJet Airlines Inc
Segment Reporting
Operating revenues	228,658	267,807
Operating expense	229,493	273,619
Depreciation and amortization expense	14,525	21,267
Interest expense	1,114	2,123
Identifiable intangible assets, other than goodwill	7,686	9,936
Total assets	565,839	1,277,361
Capital expenditures (including non-cash)	5,654	5,048
ExpressJet Airlines Inc | Segments
Segment Reporting
Segment profit (loss)	(1,949)	(7,935)
SkyWest Leasing
Segment Reporting
Operating revenues	53,803	27,972
Operating expense	24,259	12,563
Depreciation and amortization expense	23,772	12,203
Interest expense	17,636	8,943
Total assets	2,338,110	1,218,935
Capital expenditures (including non-cash)	$ 184,014	80,280
SkyWest Leasing | CRJ 200
Segment Reporting
Number of aircraft under contract | aircraft	4
SkyWest Leasing | Segments
Segment Reporting
Segment profit (loss)	$ 11,908	$ 6,466

Commitments and Contingencies30

Commitments and Contingencies (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)aircraft
Future minimum rental payments required under operating leases
March through December 2017	$ 124,707
2,018	156,039
2,019	123,359
2,020	135,386
2,021	112,536
Thereafter	236,503
Total future lease obligations	$ 888,530
E 175
Future minimum rental payments required under operating leases
Number of aircraft under firm purchase commitment | aircraft	11

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value Measurements
Marketable securities	$ 482,764	$ 409,898
Fair Value of Financial Instruments
Carrying amount of long-term debt	2,614,915	2,545,511
Recurring
Fair Value Measurements
Cash, Cash Equivalents and Restricted Cash	103,691	155,009
Total Assets Measured at Fair Value	586,455	564,907
Cost of cash and cash equivalents and available for sale securities	578,300	556,800
Fair value of cash and cash equivalents and available for sale securities	578,200	556,700
Recurring | Bonds and bond funds
Fair Value Measurements
Marketable securities	420,812	409,885
Recurring | Asset-backed securities
Fair Value Measurements
Marketable securities	482,764	409,898
Recurring | Commercial paper
Fair Value Measurements
Marketable securities	61,952	13
Recurring | Level 1
Fair Value Measurements
Cash, Cash Equivalents and Restricted Cash	103,691	155,009
Total Assets Measured at Fair Value	103,691	155,009
Recurring | Level 2
Fair Value Measurements
Total Assets Measured at Fair Value	482,764	409,898
Fair Value of Financial Instruments
Fair value of long-term debt	2,640,000	2,570,000
Carrying amount of long-term debt	2,640,000	2,570,000
Recurring | Level 2 | Bonds and bond funds
Fair Value Measurements
Marketable securities	420,812	409,885
Recurring | Level 2 | Asset-backed securities
Fair Value Measurements
Marketable securities	482,764	409,898
Recurring | Level 2 | Commercial paper
Fair Value Measurements
Marketable securities	$ 61,952	$ 13

Long-term Debt (Details)

Long-term Debt (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)aircraft	Dec. 31, 2016USD ($)
Long-term Debt
Current portion long-term debt	$ 297,119	$ 308,945
Long-term debt, net of current maturities	2,343,678	2,261,959
Total long-term debt	2,640,797	2,570,904
Unamortized debt issue cost, net	(25,882)	(25,393)
Total long-term debt, net of debt issue costs	2,614,915	2,545,511
Letter of credit
Long-term Debt
Amount outstanding	$ 87,700	$ 87,700
E 175
Long-term Debt
Number of aircraft delivered | aircraft	7
Debt issued to purchase of aircraft	$ 158,000
Debt instrument, term	12 years
Minimum | E 175
Long-term Debt
Interest rate (as a percent)	4.50%
Maximum | E 175
Long-term Debt
Interest rate (as a percent)	4.70%

Income Taxes (Details)

Income Taxes (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)
Effective tax rate (as a percent)	33.60%
Statutory Federal income tax rate (as a percent)	35.00%
Scenario, adjustment | Accounting Standards Update 2016-09
Income tax benefit	$ 3