SkyWest (SKYW) 10-Q 6 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 31, 2018
Document and Entity Information
Entity Registrant Name	SKYWEST INC
Entity Central Index Key	793,733
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		51,895,343
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	[1]
CURRENT ASSETS:
Cash and cash equivalents	$ 324,561	$ 181,792
Marketable Securities	380,242	503,503
Income tax receivable	18,118	5,316
Receivables, net	62,233	42,731
Inventories, net	124,037	119,755
Prepaid aircraft rents	89,839	115,098
Other current assets	53,042	26,938
Total current assets	1,052,072	995,133
PROPERTY AND EQUIPMENT:
Aircraft and rotable spares	6,229,941	5,335,870
Deposits on aircraft	27,579	49,000
Buildings and ground equipment	297,862	265,608
Total property and equipment, gross	6,555,382	5,650,478
Less-accumulated depreciation and amortization	(1,680,115)	(1,467,475)
Total property and equipment, net	4,875,267	4,183,003
OTHER ASSETS:
Long-term prepaid assets	189,357	230,923
Other assets	68,164	65,341
Total other assets	257,521	296,264
Total assets	6,184,860	5,474,400
CURRENT LIABILITIES:
Current maturities of long-term debt	357,327	309,678
Accounts payable	320,432	288,904
Accrued salaries, wages and benefits	150,881	154,367
Taxes other than income taxes	21,618	19,228
Other current liabilities	63,187	48,648
Total current liabilities	913,445	820,825
LONG TERM DEBT, net of current maturities	2,751,722	2,377,346
DEFERRED INCOME TAXES PAYABLE	493,562	419,020
DEFERRED AIRCRAFT CREDITS	34,580	44,225
OTHER LONG TERM LIABILITIES	62,678	58,662
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; 81,239,194 and 80,398,104 shares issued, respectively	688,168	672,593
Retained earnings	1,714,621	1,516,957
Treasury stock, at cost, 29,310,836 and 28,643,535 shares, respectively	(473,898)	(435,178)
Accumulated other comprehensive loss	(18)	(50)
Total stockholders' equity	1,928,873	1,754,322
Total liabilities and stockholders' equity	$ 6,184,860	$ 5,474,400
[1]	Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
CONDENSED 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	81,239,194	80,398,104
Treasury stock, at cost, shares	29,310,836	28,643,535

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017		Sep. 30, 2018	Sep. 30, 2017
OPERATING REVENUES:
Total operating revenues	$ 829,275	$ 812,673	[1]	$ 2,418,190	$ 2,351,351
OPERATING EXPENSES:
Salaries, wages and benefits	301,378	304,014	[1]	901,775	896,476
Depreciation and amortization	86,088	74,095	[1]	246,386	215,415
Other operating expenses	68,859	65,432	[1]	206,511	190,235
Total operating expenses	691,350	700,304	[1]	2,065,412	2,056,092
OPERATING INCOME	137,925	112,369	[1]	352,778	295,259
OTHER INCOME (EXPENSE):
Interest income	2,283	1,408	[1]	5,692	3,398
Interest expense	(31,440)	(27,101)	[1]	(86,485)	(78,713)
Other income (expense), net	1,157			3,470
Total other expense, net	(28,000)	(25,693)	[1]	(77,323)	(75,315)
INCOME BEFORE INCOME TAXES	109,925	86,676	[1]	275,455	219,944
PROVISION FOR INCOME TAXES	26,879	32,960	[1]	62,189	80,966
NET INCOME	$ 83,046	$ 53,716	[1]	$ 213,266	$ 138,978
BASIC EARNINGS PER SHARE (in dollars per share)	$ 1.60	$ 1.04	[1]	$ 4.10	$ 2.68
DILUTED EARNINGS PER SHARE (in dollars per share)	$ 1.57	$ 1.01	[1]	$ 4.03	$ 2.62
Weighted average common shares:
Basic (in shares)	52,039	51,833	[1]	52,002	51,801
Diluted (in shares)	52,981	53,080	[1]	52,976	53,087
COMPREHENSIVE INCOME:
Net income	$ 83,046	$ 53,716	[1]	$ 213,266	$ 138,978
Net unrealized appreciation (depreciation) on marketable securities, net of taxes	(2)	11	[1]	32	67
TOTAL COMPREHENSIVE INCOME	83,044	53,727	[1]	213,298	139,045
Flying agreements
OPERATING REVENUES:
Total operating revenues	816,057	800,965	[1]	2,377,659	2,317,218
Airport customer service and other
OPERATING REVENUES:
Total operating revenues	13,218	11,708	[1]	40,531	34,133
Aircraft maintenance, materials and repairs
OPERATING EXPENSES:
Total operating expenses	142,285	148,787	[1]	423,665	433,467
Aircraft rentals
OPERATING REVENUES:
Total operating revenues	208,813	213,967		599,188	621,099
OPERATING EXPENSES:
Total operating expenses	36,827	54,976	[1]	119,015	168,098
Aircraft fuel
OPERATING EXPENSES:
Other operating expenses		22,791			61,295
Total operating expenses	25,655	30,209	[1]	80,852	91,106
Airport related expenses
OPERATING EXPENSES:
Other operating expenses		30,209			91,106
Total operating expenses	$ 30,258	$ 22,791	[1]	$ 87,208	$ 61,295
[1]	Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018		Sep. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NET CASH PROVIDED BY OPERATING ACTIVITIES	$ 573,127		$ 532,289
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities	(1,575,991)		(1,002,624)
Sales of marketable securities	1,699,284		843,509
Proceeds from the sale of aircraft, property and equipment			51,079
Acquisition of property and equipment:
Aircraft and rotable spare parts	(848,723)		(563,524)
Deposits on aircraft			(46,733)
Buildings and ground equipment	(35,870)		(8,275)
Aircraft deposits applied towards acquired aircraft	21,421		36,533
Increase in other assets	(2,479)		(5,019)
NET CASH USED IN INVESTING ACTIVITIES	(742,358)		(695,054)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt	626,163		384,825
Principal payments on long-term debt	(262,923)		(245,745)
Net proceeds from issuance of common stock	5,212		3,447
Purchase of treasury stock and employee income tax paid on equity awards	(38,720)		(14,330)
Increase in debt issuance cost	(3,182)		(3,245)
Payment of cash dividends	(14,550)		(10,868)
NET CASH PROVIDED BY FINANCING ACTIVITIES	312,000		114,084
Increase (decrease) in cash and cash equivalents	142,769		(48,681)
Cash and cash equivalents at beginning of period	181,792	[1]	146,766
CASH AND CASH EQUIVALENTS AT END OF PERIOD	324,561		98,085
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Acquisition of rotable spare parts	10,346
Debt assumed on aircraft acquired off lease	59,132
Cash paid during the period for:
Interest, net of capitalized amounts	85,611		77,915
Income taxes	$ 2,382		$ 2,354
[1]	Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.

Condensed Consolidated Financia

Condensed Consolidated Financial Statements	9 Months Ended
	Sep. 30, 2018
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 (the “SEC”). 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. These condensed consolidated financial statements should 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, 2017. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. 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 and Not Yet Adopted In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2016‑02, “Leases (Topic 842)” (“Topic 842”). Topic 842 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. Topic 842 will be effective beginning in the first quarter of 2019. Early adoption of Topic 842 is permitted. In July 2018, the FASB issued ASU No. 2018-11, “Targeted Improvements - Leases (Topic 842).” This update provides an optional transition method that allows entities to elect to apply the standard prospectively at its effective date, versus recasting the prior periods presented. The Company anticipates electing this adoption method and expects to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company has not completed its assessment, but the adoption of Topic 842 will have a significant impact on its consolidated balance sheets. However, the Company does not expect the adoption to have a significant impact on the recognition, measurement or presentation of lease revenue and lease expenses within the condensed consolidated statements of operations and comprehensive income or the condensed consolidated statements of cash flows. See Note 6, “Commitments and Contingencies,” about the Company’s undiscounted future lease payments and the timing of those payments. Recently Adopted Standards In May 2014, the FASB issued Accounting Standards Update No. 2014‑09, “Revenue from Contracts with Customers, (Topic 606)” (“Topic 606”). Under Topic 606, 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 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 adopted this standard as of January 1, 2018, utilizing the full retrospective method of adoption allowed by the standard, in order to provide for comparative results in all periods presented. Under the new standard, the Company concluded that, in addition to the aircraft lease, the individual flights are distinct services and the flight services promised in a capacity purchase agreement represent a series of services that should be accounted for as a single performance obligation, recognized over time as the flights are completed. The adoption of Topic 606 did not have a material impact on recorded amounts when applied to the opening balance sheet as of January 1, 2018. The adoption of Topic 606 only affected the Company’s consolidated balance sheets and statements of comprehensive income classification, with no impact on the Company’s operating income (loss), net income (loss), earnings (loss) per share or cash flows, however the principal versus agent considerations under Topic 606 resulted in the Company recording directly reimbursed fuel expense under its fixed-fee contracts as a reduction to the applicable operating expense (net) rather than revenue (gross). This classification change resulted in a reduction to total revenue and a reduction to operating expenses by the same amount, resulting in no change to operating income. Additionally, under the nonrefundable up-front fees and contract costs considerations of Topic 606, reimbursements from the Company’s major airline partners for up-front contract costs will be deferred and amortized over the contract term. The related up-front costs to obtain the contract will also be capitalized and amortized over the contract term. As the amount of the up-front reimbursement is determined from the Company’s actual costs to fulfill the contract, this change is not expected to impact the Company’s operating income (loss) as the amount of deferred revenue and the amount of capitalized costs will be recognized over the same period. This change also resulted in a deferred revenue liability and a capitalized contract cost on the balance sheet of the same amount. Prior to the Company’s adoption of Topic 606, the Company segregated its revenue into two categories: “Passenger revenue” and “Ground handling and other revenue.” “Passenger revenue” included revenue from fixed-fee contracts, prorate flying agreements and airport customer service agreements for flights operated by the Company. “Ground handling and other revenue” included revenue from airport customer service agreements for flights operated by third parties and other revenue. Under the disaggregated revenue disclosure considerations in Topic 606, the Company segregated its revenue into the following categories: “Flying agreements revenue” and “Airport customer service and other revenues.” “Flying agreements revenue” includes revenue from fixed-fee contracts, prorate flying agreements and other revenue, primarily lease revenue for the use of the aircraft. “Airport customer service and other revenues” includes revenue from airport customer services agreements. This change reclassifies amounts previously reported as “Passenger revenue” and “Ground handling and other revenue”. Additionally, in connection with the Company’s adoption of Topic 606, the Company renamed the operating expense “Ground handling services” to “Airport-related expenses.” Certain airport-related expenses, such as landing fees and airport facility rents, were previously reported as “Other operating expenses” and have been reclassified as “Airport-related expenses.” 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. The Company adopted this standard in the first quarter of 2018 and modified the presentation to include changes in restricted cash in the Company’s Consolidated Statement of Cash Flows, which had an immaterial impact. Impact of Recently Adopted Standards The Company recast certain prior period amounts to conform with the adoption of Topic 606, as shown in the tables below (in thousands): Three months ended September 30, 2017 Income Statement: Previously Reported Adjustments Current Presentation OPERATING REVENUES: Flying agreements (1) $ $ (11,330) $ 800,965 Airport customer service and other (2) (7,933) 11,708 Total operating revenues $ $ (19,263) $ 812,673 OPERATING EXPENSES: Salaries, wages and benefits $ 303,997 $ 17 $ 304,014 Aircraft fuel 42,071 (19,280) 22,791 Airport-related expenses (3) 16,693 13,516 30,209 Other operating expenses 78,948 (13,516) 65,432 Total operating expenses 719,567 (19,263) 700,304 OPERATING INCOME $ $ — $ 1. In previously reported periods, this line item was presented as passenger revenue. 2. In previously reported periods, this line item was presented as ground handling and other. 3. In previously reported periods, this line item was presented as ground handling services. Nine months ended September 30, 2017 Income Statement: Previously Reported Adjustments Current Presentation OPERATING REVENUES: Flying agreements (1) $ 2,349,047 $ (31,829) $ 2,317,218 Airport customer service and other (2) 58,063 (23,930) 34,133 Total operating revenues $ 2,407,110 $ (55,759) $ 2,351,351 OPERATING EXPENSES: Salaries, wages and benefits $ 899,966 $ (3,490) $ 896,476 Aircraft fuel 113,564 (52,269) 61,295 Airport-related expenses (3) 52,130 38,976 91,106 Other operating expenses 229,211 (38,976) 190,235 Total operating expenses 2,111,851 (55,759) 2,056,092 OPERATING INCOME $ $ — $ 1. In previously reported periods, this line item was presented as passenger revenue. 2. In previously reported periods, this line item was presented as ground handling and other. 3. In previously reported periods, this line item was presented as ground handling services. Balance Sheet: Previously Reported December 31, 2017 Adjustments Current Presentation December 31, 2017 ASSETS: Other long-term assets $ $ $ LIABILITIES: Other long-term liabilities $ $ $ The $16.1 million adjustment to other long-term assets and other long-term liabilities reflects the amount of capitalized up-front contract costs and the amount of deferred revenue for up-front reimbursements as of December 31, 2017. The $16.1 million capitalized contract costs and deferred revenue is expected to be amortized over the applicable remaining contract term. For the nine months ended September 30, 2018 and 2017, the Company recognized $1.4 million and $1.1 million, respectively, of revenue associated with the amortization of the up-front contract reimbursements. As of September 30, 2018, the Company had $62.2 million in accounts receivable of which $56.4 million related to flying agreements. As of December 31, 2017, the Company had $42.7 million in accounts receivable of which $33.9 million related to flying agreements.

Flying Agreements Revenue and A

Flying Agreements Revenue and Airport Customer Service and Other Revenue	9 Months Ended
	Sep. 30, 2018
Flying Agreements Revenue and Airport Customer Service and Other Revenue
Flying Agreements Revenue and Airport Customer Service and Other Revenue	Note 2 — Flying Agreements Revenue and Airport Customer Service and Other Revenues The Company recognizes flying agreements revenue and airport customer service and other 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 airport landing fees and airport rents. Under the fixed-fee arrangements, revenue is earned when each flight is completed and is reflected in flying agreements revenue. The transaction price for the fixed-fee agreements is determined from the fixed-fee consideration, incentive consideration and directly reimbursed expenses earned as flights are completed over the agreement term. For the nine months ended September 30, 2018, fixed-fee arrangements represented approximately 84.3% of the Company’s flying agreements revenue. 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. The transaction price for the prorate agreements is determined from the proration formula derived from each passenger ticket amount on each completed flight over the agreement term. For the nine months ended September 30, 2018, prorate flying arrangements represented approximately 15.7% of the Company’s flying agreements revenue. Airport customer service and other revenues primarily consist of ground handling functions, such as gate and ramp agent services at applicable airports where the Company provides such services. The transaction price for airport customer service agreements is determined from an agreed-upon rate by location applied to the applicable number of flights handled by the Company over the agreement term. 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. The following table represents the Company’s flying agreements revenue by type for the three and nine-month periods ended September 30, 2018 and 2017 (in thousands): For the three months ended September 30, For the nine months ended September 30, 2018 2017 2018 2017 Capacity purchase agreements revenue: flight operations $ 472,952 $ 462,832 $ 1,404,801 $ 1,367,901 Capacity purchase agreements revenue: aircraft lease revenue 208,813 213,967 599,188 621,099 Prorate agreements revenue 134,292 124,166 373,670 328,218 Flying agreements revenue $ 816,057 $ 800,965 $ 2,377,659 $ 2,317,218 A portion of the Company’s compensation under its fixed-fee agreements is designed to reimburse the Company for certain aircraft ownership costs. The aircraft compensation structure varies by agreement, but is intended to cover either the Company’s aircraft principal and interest debt service costs, its aircraft depreciation and interest expense or its aircraft lease expense costs while the aircraft is under contract. The consideration associated with the use of the aircraft under the Company’s fixed-fee agreements is deemed to be lease revenue, inasmuch as the agreements identify the “right of use” of a specific type and number of aircraft over a stated period of time. The lease revenue associated with the Company’s fixed-fee agreements is accounted for as an operating lease and is reflected as flying agreements revenue on the Company’s consolidated statements of comprehensive income. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statement of comprehensive income since the use of the aircraft is not a separate activity of the total service provided. The Company’s fixed-fee and prorate agreements include weekly provisional cash payments from the respective major airline partner based on a projected level of flying each month. The Company and each major airline partner subsequently reconcile these payments to the actual completed flight activity on a monthly or quarterly basis. In the event a flying agreement includes a mid-term rate reset to adjust rates prospectively and the contractual rates under the Company’s flying agreements have not been finalized at quarterly or annual financial statement dates, the Company applies the variable constraint guidance under Topic 606, where the Company records revenue to the extent it believes that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. 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, subject to the variable constraint guidance under Topic 606. 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) • • • • 65 25 37 41 • ExpressJet Delta Connection Agreement (fixed-fee arrangement) • 12 • SkyWest Airlines Delta Connection Prorate Agreement (revenue-sharing arrangement) • 29 • United Express Agreements Agreement Aircraft type Number of Term / Termination SkyWest Airlines United Express Agreements (fixed-fee arrangement) • • • 61 19 65 • ExpressJet United ERJ Agreement (fixed-fee arrangement) • 100 • SkyWest Airlines United Express Prorate Agreement (revenue-sharing arrangement) • 23 • American Agreements Agreement Aircraft type Number of Term / Termination SkyWest Airlines American Agreement (fixed-fee arrangement) • 42 • SkyWest Airlines American Prorate Agreement (revenue-sharing arrangement) • 7 • ExpressJet American Agreement (fixed-fee arrangement) • 16 • Alaska Capacity Purchase Agreement Agreement Aircraft type Number of Term / Termination SkyWest Airlines Alaska Agreement (fixed-fee arrangement) • 32 • In addition to the contractual arrangements described above, SkyWest Airlines has entered into agreements with Alaska and Delta to place additional Embraer E175 dual-class regional jet aircraft (which are typically configured with 76 or 70 seats) (“E175”) into service for those major airline partners. As of September 30, 2018, the Company anticipated placing an additional three E175 aircraft with Alaska and eight E175 aircraft with Delta. The delivery dates for the new E175 aircraft are expected to take place by the end of 2018 or early 2019 with the exception of three E175 aircraft with Alaska that have been deferred until 2021. Final delivery dates may be adjusted based on various factors. SkyWest Airlines also entered into an agreement with Delta in the second quarter of 2018 to operate 20 new Canadair CRJ900 regional jet aircraft. The aircraft will be acquired by Delta with delivery dates beginning in 2018 that are expected to continue through the end of 2020. These aircraft will replace 20 Canadair CRJ700 regional jet aircraft (“CRJ700”) scheduled to expire under SkyWest’s flying contracts with Delta. SkyWest Airlines also reached an agreement with American in the second quarter of 2018 to place 20 used CRJ700 aircraft into service under a four-year contract. The 20 CRJ700 aircraft are being sourced from within the Company’s fleet. SkyWest Airlines began transitioning the CRJ700 aircraft into service during the second and third quarters of 2018 and all 20 aircraft are expected to be in service by early 2019. Additionally, in the second quarter of 2018, SkyWest Airlines and United agreed to extend the flying contract for 19 CRJ700 aircraft. These aircraft previously had expirations scheduled for mid-2019, which were extended to mid-2022. During the third quarter of 2018, ExpressJet began transitioning 20 Canadair CRJ200 regional jet aircraft (“CRJ200s”) into service under a previously announced three-year agreement with United. The aircraft are being sourced from within the Company’s existing fleet through other contract expirations. The first aircraft was placed into service in October 2018 and all 20 CRJ200 aircraft are scheduled to be placed into service with United by early 2019. 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. Other uses for the aircraft may include placing the aircraft in a prorate arrangement, leasing the aircraft to a third party or parting out the aircraft to use the engines and parts as spare inventory or to lease the engine to a third party. The Company’s operating 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	9 Months Ended
	Sep. 30, 2018
Share-Based Compensation and Stock Repurchases
Share-Based Compensation and Stock Repurchases	Note 3 — Share-Based Compensation and Stock Repurchases During the nine months ended September 30, 2018, the Company granted 15,165 fully-vested shares of common stock to the Company’s directors at a grant date fair value of $53.40. Additionally, during the nine months ended September 30, 2018, the Company granted 114,856 restricted stock units and 89,982 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. The number of performance shares awardable from the 2018 grants can range from 0% to 200% of the original amount granted depending on the Company’s performance over the three-year vesting period against the pre-established targets. 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 $53.40 per share. During the nine months ended September 30, 2018, the Company did not grant any options to purchase shares of common stock. The Company accounts for forfeitures of stock options, restricted stock units and performance share grants in 2018 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 nine months ended September 30, 2018 and 2017, the Company recorded pre-tax share-based compensation expense of $10.4 million and $8.2 million, respectively. The Company repurchased 427,869 shares of its common stock for $25.2 million, and paid $13.6 million for the income tax obligation on vested employee equity awards and issued the net, after-tax shares to employees during the nine months ended September 30, 2018. The Company repurchased 281,000 shares of its common stock for $10.0 million and paid $4.3 million for the income tax obligation on vested employee equity awards and issued the net, after-tax shares to employees during the nine months ended September 30, 2017.

Net Income Per Common Share

Net Income Per Common Share	9 Months Ended
	Sep. 30, 2018
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 nine months ended September 30, 2018, 207,000 performance shares (at target performance) were excluded from the computation of Diluted EPS since the Company had not achieved the minimum target thresholds as of September 30, 2018. During the nine months ended September 30, 2017, 284,000 performance shares (at target performance) were excluded from the computation of Diluted EPS since the Company had not achieved the minimum target thresholds as of September 30, 2017. 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 Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Numerator: Net Income $ 83,046 $ 53,716 $ 213,266 $ Denominator: Weighted average number of common shares outstanding 52,039 51,833 52,002 51,801 Effect of outstanding share-based awards 942 1,247 974 1,286 Weighted average number of shares for diluted net income per common share 52,981 53,080 52,976 53,087 Basic earnings per share $ 1.60 $ 1.04 $ $ 2.68 Diluted earnings per share $ 1.57 $ 1.01 $ $ 2.62

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2018
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, ExpressJet and SkyWest Leasing. 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 aircraft lease revenue attributed to the Company’s E175 aircraft ownership related revenues 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 ownership and activity of four CRJ200 aircraft leased to a third party. The following represents the Company’s segment data for the three-month periods ended September 30, 2018 and 2017 (in thousands): Three months ended September 30, 2018 SkyWest SkyWest Airlines ExpressJet Leasing Consolidated Operating revenues (1) $ 607,052 $ 140,155 $ 82,068 $ 829,275 Operating expense 512,278 139,736 39,336 691,350 Depreciation and amortization expense 39,651 8,683 37,754 86,088 Interest expense 4,044 649 26,747 31,440 Segment profit (loss) (2) 90,730 (230) 15,985 106,485 Identifiable intangible assets, other than goodwill — 1,224 — 1,224 Total assets (as of September 30, 2018) 565,266 3,368,031 6,184,860 Capital expenditures (including non-cash) 44,689 3,069 273,808 321,566 Three months ended September 30, 2017 SkyWest SkyWest Airlines ExpressJet Leasing Consolidated Operating revenues (1) (3) $ 558,994 $ 191,368 $ 62,311 $ 812,673 Operating expense (3) 472,000 200,344 27,960 700,304 Depreciation and amortization expense 34,049 12,573 27,473 74,095 Interest expense 5,276 1,017 20,808 27,101 Segment profit (loss) (2) 81,718 (9,993) 13,543 85,268 Identifiable intangible assets, other than goodwill — 6,121 — 6,121 Total assets (as of September 30, 2017) (3) 2,072,597 721,939 2,579,459 5,373,995 Capital expenditures (including non-cash) 27,118 2,259 24,122 53,499 (1) Prorate revenue, Airport customer service and other revenues is primarily reflected in the SkyWest Airlines segment. (2) Segment profit (loss) is equal to operating income less interest expense. (3) Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) . See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information. The following represents the Company’s segment data for the nine-month periods ended September 30, 2018 and 2017 (in thousands): Nine months ended September 30, 2018 SkyWest SkyWest Airlines ExpressJet Leasing Consolidated Operating revenues (1) $ $ 444,943 $ 222,420 $ Operating expense 455,084 105,030 Depreciation and amortization expense 115,979 30,044 100,363 246,386 Interest expense 12,722 2,264 71,499 86,485 Segment profit (loss) (2) 232,807 (12,405) 45,891 266,293 Identifiable intangible assets, other than goodwill — 1,224 — 1,224 Total assets (as of September 30, 2018) 565,266 Capital expenditures (including non-cash) 121,010 5,996 827,065 954,071 Nine months ended September 30, 2017 SkyWest SkyWest Airlines ExpressJet Leasing Consolidated Operating revenues (1) (3) $ $ 631,634 $ 176,099 $ Operating expense (3) 644,490 79,671 Depreciation and amortization expense 98,396 38,808 78,211 215,415 Interest expense 16,811 3,219 58,683 78,713 Segment profit (loss) (2) 194,876 (16,075) 37,745 216,546 Identifiable intangible assets, other than goodwill — 6,121 — 6,121 Total assets (as of September 30, 2017) (3) 721,939 Capital expenditures (including non-cash) 85,895 12,414 474,091 572,400 (1) Prorate revenue, Airport customer service and other revenues is primarily reflected in the SkyWest Airlines segment. (2) Segment profit (loss) is equal to operating income less interest expense. (3) Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) . See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies
Commitments and Contingencies	Note 6 — Commitments and Contingencies As of September 30, 2018, 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 primarily related to aircraft required under operating leases that had initial or remaining non-cancelable lease terms as of September 30, 2018 (in thousands): October 2018 through December 2018 $ 25,327 2019 83,268 2020 98,790 2021 90,378 2022 72,438 Thereafter 125,570 $ 495,771 As of September 30, 2018, the Company had a firm purchase commitment for eleven E175 aircraft from Embraer, S.A. with scheduled delivery dates through the end of 2018 or early 2019 with the exception of three E175 aircraft that have been deferred until 2021. The following table summarizes the Company’s commitments and obligations as noted for each of the next five years and thereafter (in thousands): Total Oct - Dec 2018 2019 2020 2021 2022 Thereafter Operating lease payments for aircraft and facility obligations $ 495,771 $ 25,327 $ 83,268 $ 98,790 $ 90,378 $ 72,438 $ 125,570 Firm aircraft and spare engine commitments 352,925 211,485 27,500 27,500 86,440 — — Interest commitments (1) 600,413 60,498 111,075 96,051 82,139 69,227 181,423 Principal maturities on long-term debt 3,134,768 90,653 360,599 342,080 336,897 342,439 1,662,100 Total commitments and obligations $ 4,583,877 $ 387,963 $ 582,442 $ 564,421 $ 595,854 $ 484,104 $ 1,969,093 (1) At September 30, 2018, the Company had variable rate notes representing only 1.0% of its total long-term debt.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2018
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 Compa ny 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 September 30, 2018 and December 31, 2017, 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 September 30, 2018 Total Level 1 Level 2 Level 3 Cash, Cash Equivalents $ 324,561 $ 324,561 $ — $ — Marketable Securities Bonds and bond funds $ $ — $ $ — Commercial paper — — — — Total Assets Measured at Fair Value $ $ $ $ — Fair Value Measurements as of December 31, 2017 Total Level 1 Level 2 Level 3 Cash, Cash Equivalents $ $ $ — $ — Marketable Securities Bonds and bond funds $ 344,251 $ — $ 344,251 $ — Commercial paper — — — — Total Assets Measured at Fair Value $ 685,295 $ $ 503,503 $ — 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 nine months ended September 30, 2018. 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 September 30, 2018 and December 31, 2017, the Company classified $380.2 million and $503.5 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 September 30, 2018 and December 31, 2017, the cost of the Company’s total cash and cash equivalents and available for sale securities was $704.8 million and $685.5 million, respectively. As of September 30, 2018 and December 31, 2017, the fair value of the Company’s total cash and cash equivalents and available for sale securities was $704.8 million and $685.3 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 $3.15 billion as of September 30, 2018 and $2.70 billion as of December 31, 2017, as compared to the carrying amount of $3.13 billion as of September 30, 2018 and $2.71 billion as of December 31, 2017.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2018
Long-Term Debt
Long-Term Debt	Note 8 — Long-Term Debt Long-term debt consisted of the following as of September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Current portion of long-term debt $ 361,131 $ 313,243 Current portion of unamortized debt issue cost, net (3,804) (3,565) Current portion of long-term debt, net of debt issue costs $ 357,327 $ 309,678 Long-term debt, net of current maturities $ 2,773,637 $ 2,399,107 Long-term portion of unamortized debt issue cost, net (21,915) (21,761) Long-term debt, net of current maturities and debt issue costs $ 2,751,722 $ 2,377,346 Total long-term debt (including current portion) $ 3,134,768 $ 2,712,350 Total unamortized debt issue cost, net (25,719) (25,326) Total long-term debt, net of debt issue costs $ 3,109,049 $ 2,687,024 During the nine months ended September 30, 2018, the Company took delivery of 31 E175 aircraft and purchased nine previously-leased aircraft, which the Company financed through $626.2 million of long-term debt. The debt associated with the 31 E175 aircraft has a 12-year term, is due in quarterly installments with a fixed annual interest rate ranging from 4.6% to 5.0% and is secured by the E175 aircraft. The Company acquired nine aircraft off a lease during the nine months ended September 30, 2018. The debt associated with the nine previously-leased aircraft has a term ranging from three to four years, is due in semi-annual installments with a fixed annual interest rate of 6.45% and is secured by the previously-leased aircraft. As of September 30, 2018 and December 31, 2017, the Company had $84.8 million and $87.4 million, respectively, in letters of credit and surety bonds outstanding with various banks and surety institutions.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Taxes
Income Taxes	Note 9 — Income Taxes The Company’s effective tax rate for the three months ended September 30, 2018 was 24.5%. The Company’s effective tax rate for the three months ended September 30, 2018 varied from the federal statutory rate of 21.0% primarily due to the provision for state income taxes and the impact of non-deductible expenses. The Company’s effective tax rate for the nine months ended September 30, 2018 was 22.6%. The Company’s effective tax rate for the nine months ended September 30, 2018 varied from the federal statutory rate of 21.0% primarily due to the provision for state income taxes and the impact of non-deductible expenses, partially offset by a $4.6 million discrete tax benefit from excess tax deductions generated from employee equity transactions that occurred during the nine months ended September 30, 2018 pursuant to Accounting Standards Update No. 2016‑09, “Compensation—Stock Compensation (Topic 718) and a $0.9 million discrete tax benefit from a capital loss carryforward valuation allowance resulting from a gain on sale of capital assets during the nine months ended September 30, 2018. In connection with the Tax Cuts and Jobs Act of 2017 (“Tax Act”) enacted in December 2017, the Company recorded a provisional amount of income tax benefit of $246.8 million related to the re-measurement of deferred tax balances for the year ended December 31, 2017. In accordance with relevant SEC guidance, the effects of the Tax Act may be adjusted within a one-year measurement period from the enactment date for the items that were previously reported as provisional, or where a provisional estimate could not be made. The income tax provision for the nine months ended September 30, 2018 did not reflect any adjustments to the provisional amounts as of December 31, 2017. The Company is still analyzing the impacts of the Tax Act on $13.9 million of alternative minimum tax credits that may be refundable as of September 30, 2018. The Company will continue to assess forthcoming guidance and accounting interpretations on the effects of the Tax Act and expects to complete its analysis within the measurement period in accordance with SEC guidance.

Legal Matters

Legal Matters	9 Months Ended
	Sep. 30, 2018
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 September 30, 2018, 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 Financ_2

Condensed Consolidated Financial Statements (Policies)	9 Months Ended
	Sep. 30, 2018
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 (the “SEC”). 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. These condensed consolidated financial statements should 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, 2017. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. 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 and Not Yet Adopted In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2016‑02, “Leases (Topic 842)” (“Topic 842”). Topic 842 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. Topic 842 will be effective beginning in the first quarter of 2019. Early adoption of Topic 842 is permitted. In July 2018, the FASB issued ASU No. 2018-11, “Targeted Improvements - Leases (Topic 842).” This update provides an optional transition method that allows entities to elect to apply the standard prospectively at its effective date, versus recasting the prior periods presented. The Company anticipates electing this adoption method and expects to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company has not completed its assessment, but the adoption of Topic 842 will have a significant impact on its consolidated balance sheets. However, the Company does not expect the adoption to have a significant impact on the recognition, measurement or presentation of lease revenue and lease expenses within the condensed consolidated statements of operations and comprehensive income or the condensed consolidated statements of cash flows. See Note 6, “Commitments and Contingencies,” about the Company’s undiscounted future lease payments and the timing of those payments. Recently Adopted Standards In May 2014, the FASB issued Accounting Standards Update No. 2014‑09, “Revenue from Contracts with Customers, (Topic 606)” (“Topic 606”). Under Topic 606, 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 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 adopted this standard as of January 1, 2018, utilizing the full retrospective method of adoption allowed by the standard, in order to provide for comparative results in all periods presented. Under the new standard, the Company concluded that, in addition to the aircraft lease, the individual flights are distinct services and the flight services promised in a capacity purchase agreement represent a series of services that should be accounted for as a single performance obligation, recognized over time as the flights are completed. The adoption of Topic 606 did not have a material impact on recorded amounts when applied to the opening balance sheet as of January 1, 2018. The adoption of Topic 606 only affected the Company’s consolidated balance sheets and statements of comprehensive income classification, with no impact on the Company’s operating income (loss), net income (loss), earnings (loss) per share or cash flows, however the principal versus agent considerations under Topic 606 resulted in the Company recording directly reimbursed fuel expense under its fixed-fee contracts as a reduction to the applicable operating expense (net) rather than revenue (gross). This classification change resulted in a reduction to total revenue and a reduction to operating expenses by the same amount, resulting in no change to operating income. Additionally, under the nonrefundable up-front fees and contract costs considerations of Topic 606, reimbursements from the Company’s major airline partners for up-front contract costs will be deferred and amortized over the contract term. The related up-front costs to obtain the contract will also be capitalized and amortized over the contract term. As the amount of the up-front reimbursement is determined from the Company’s actual costs to fulfill the contract, this change is not expected to impact the Company’s operating income (loss) as the amount of deferred revenue and the amount of capitalized costs will be recognized over the same period. This change also resulted in a deferred revenue liability and a capitalized contract cost on the balance sheet of the same amount. Prior to the Company’s adoption of Topic 606, the Company segregated its revenue into two categories: “Passenger revenue” and “Ground handling and other revenue.” “Passenger revenue” included revenue from fixed-fee contracts, prorate flying agreements and airport customer service agreements for flights operated by the Company. “Ground handling and other revenue” included revenue from airport customer service agreements for flights operated by third parties and other revenue. Under the disaggregated revenue disclosure considerations in Topic 606, the Company segregated its revenue into the following categories: “Flying agreements revenue” and “Airport customer service and other revenues.” “Flying agreements revenue” includes revenue from fixed-fee contracts, prorate flying agreements and other revenue, primarily lease revenue for the use of the aircraft. “Airport customer service and other revenues” includes revenue from airport customer services agreements. This change reclassifies amounts previously reported as “Passenger revenue” and “Ground handling and other revenue”. Additionally, in connection with the Company’s adoption of Topic 606, the Company renamed the operating expense “Ground handling services” to “Airport-related expenses.” Certain airport-related expenses, such as landing fees and airport facility rents, were previously reported as “Other operating expenses” and have been reclassified as “Airport-related expenses.” 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. The Company adopted this standard in the first quarter of 2018 and modified the presentation to include changes in restricted cash in the Company’s Consolidated Statement of Cash Flows, which had an immaterial impact. Impact of Recently Adopted Standards The Company recast certain prior period amounts to conform with the adoption of Topic 606, as shown in the tables below (in thousands): Three months ended September 30, 2017 Income Statement: Previously Reported Adjustments Current Presentation OPERATING REVENUES: Flying agreements (1) $ $ (11,330) $ 800,965 Airport customer service and other (2) (7,933) 11,708 Total operating revenues $ $ (19,263) $ 812,673 OPERATING EXPENSES: Salaries, wages and benefits $ 303,997 $ 17 $ 304,014 Aircraft fuel 42,071 (19,280) 22,791 Airport-related expenses (3) 16,693 13,516 30,209 Other operating expenses 78,948 (13,516) 65,432 Total operating expenses 719,567 (19,263) 700,304 OPERATING INCOME $ $ — $ 1. In previously reported periods, this line item was presented as passenger revenue. 2. In previously reported periods, this line item was presented as ground handling and other. 3. In previously reported periods, this line item was presented as ground handling services. Nine months ended September 30, 2017 Income Statement: Previously Reported Adjustments Current Presentation OPERATING REVENUES: Flying agreements (1) $ 2,349,047 $ (31,829) $ 2,317,218 Airport customer service and other (2) 58,063 (23,930) 34,133 Total operating revenues $ 2,407,110 $ (55,759) $ 2,351,351 OPERATING EXPENSES: Salaries, wages and benefits $ 899,966 $ (3,490) $ 896,476 Aircraft fuel 113,564 (52,269) 61,295 Airport-related expenses (3) 52,130 38,976 91,106 Other operating expenses 229,211 (38,976) 190,235 Total operating expenses 2,111,851 (55,759) 2,056,092 OPERATING INCOME $ $ — $ 1. In previously reported periods, this line item was presented as passenger revenue. 2. In previously reported periods, this line item was presented as ground handling and other. 3. In previously reported periods, this line item was presented as ground handling services. Balance Sheet: Previously Reported December 31, 2017 Adjustments Current Presentation December 31, 2017 ASSETS: Other long-term assets $ $ $ LIABILITIES: Other long-term liabilities $ $ $ The $16.1 million adjustment to other long-term assets and other long-term liabilities reflects the amount of capitalized up-front contract costs and the amount of deferred revenue for up-front reimbursements as of December 31, 2017. The $16.1 million capitalized contract costs and deferred revenue is expected to be amortized over the applicable remaining contract term. For the nine months ended September 30, 2018 and 2017, the Company recognized $1.4 million and $1.1 million, respectively, of revenue associated with the amortization of the up-front contract reimbursements. As of September 30, 2018, the Company had $62.2 million in accounts receivable of which $56.4 million related to flying agreements. As of December 31, 2017, the Company had $42.7 million in accounts receivable of which $33.9 million related to flying agreements.

Condensed Consolidated Financ_3

Condensed Consolidated Financial Statements (Tables)	9 Months Ended
	Sep. 30, 2018
ASU 2014-09
Nature of Operations and Summary of Significant Accounting Policies [Line Items]
Schedule of impact on financial statements, adoption of Topic 606	The Company recast certain prior period amounts to conform with the adoption of Topic 606, as shown in the tables below (in thousands): Three months ended September 30, 2017 Income Statement: Previously Reported Adjustments Current Presentation OPERATING REVENUES: Flying agreements (1) $ $ (11,330) $ 800,965 Airport customer service and other (2) (7,933) 11,708 Total operating revenues $ $ (19,263) $ 812,673 OPERATING EXPENSES: Salaries, wages and benefits $ 303,997 $ 17 $ 304,014 Aircraft fuel 42,071 (19,280) 22,791 Airport-related expenses (3) 16,693 13,516 30,209 Other operating expenses 78,948 (13,516) 65,432 Total operating expenses 719,567 (19,263) 700,304 OPERATING INCOME $ $ — $ 1. In previously reported periods, this line item was presented as passenger revenue. 2. In previously reported periods, this line item was presented as ground handling and other. 3. In previously reported periods, this line item was presented as ground handling services. Nine months ended September 30, 2017 Income Statement: Previously Reported Adjustments Current Presentation OPERATING REVENUES: Flying agreements (1) $ 2,349,047 $ (31,829) $ 2,317,218 Airport customer service and other (2) 58,063 (23,930) 34,133 Total operating revenues $ 2,407,110 $ (55,759) $ 2,351,351 OPERATING EXPENSES: Salaries, wages and benefits $ 899,966 $ (3,490) $ 896,476 Aircraft fuel 113,564 (52,269) 61,295 Airport-related expenses (3) 52,130 38,976 91,106 Other operating expenses 229,211 (38,976) 190,235 Total operating expenses 2,111,851 (55,759) 2,056,092 OPERATING INCOME $ $ — $ 1. In previously reported periods, this line item was presented as passenger revenue. 2. In previously reported periods, this line item was presented as ground handling and other. 3. In previously reported periods, this line item was presented as ground handling services. Balance Sheet: Previously Reported December 31, 2017 Adjustments Current Presentation December 31, 2017 ASSETS: Other long-term assets $ $ $ LIABILITIES: Other long-term liabilities $ $ $

Flying Agreements Revenue and_2

Flying Agreements Revenue and Airport Customer Service and Other Revenue (Tables)	9 Months Ended
	Sep. 30, 2018
Flying Agreements Revenue and Airport Customer Service and Other Revenue
Schedule of flying agreement revenue data	The following table represents the Company’s flying agreements revenue by type for the three and nine-month periods ended September 30, 2018 and 2017 (in thousands): For the three months ended September 30, For the nine months ended September 30, 2018 2017 2018 2017 Capacity purchase agreements revenue: flight operations $ 472,952 $ 462,832 $ 1,404,801 $ 1,367,901 Capacity purchase agreements revenue: aircraft lease revenue 208,813 213,967 599,188 621,099 Prorate agreements revenue 134,292 124,166 373,670 328,218 Flying agreements revenue $ 816,057 $ 800,965 $ 2,377,659 $ 2,317,218
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) • • • • 65 25 37 41 • ExpressJet Delta Connection Agreement (fixed-fee arrangement) • 12 • SkyWest Airlines Delta Connection Prorate Agreement (revenue-sharing arrangement) • 29 • United Express Agreements Agreement Aircraft type Number of Term / Termination SkyWest Airlines United Express Agreements (fixed-fee arrangement) • • • 61 19 65 • ExpressJet United ERJ Agreement (fixed-fee arrangement) • 100 • SkyWest Airlines United Express Prorate Agreement (revenue-sharing arrangement) • 23 • American Agreements Agreement Aircraft type Number of Term / Termination SkyWest Airlines American Agreement (fixed-fee arrangement) • 42 • SkyWest Airlines American Prorate Agreement (revenue-sharing arrangement) • 7 • ExpressJet American Agreement (fixed-fee arrangement) • 16 • Alaska Capacity Purchase Agreement Agreement Aircraft type Number of Term / Termination SkyWest Airlines Alaska Agreement (fixed-fee arrangement) • 32 •

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2018
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 Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Numerator: Net Income $ 83,046 $ 53,716 $ 213,266 $ Denominator: Weighted average number of common shares outstanding 52,039 51,833 52,002 51,801 Effect of outstanding share-based awards 942 1,247 974 1,286 Weighted average number of shares for diluted net income per common share 52,981 53,080 52,976 53,087 Basic earnings per share $ 1.60 $ 1.04 $ $ 2.68 Diluted earnings per share $ 1.57 $ 1.01 $ $ 2.62

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Reporting
Schedule of Company's segment data	The following represents the Company’s segment data for the three-month periods ended September 30, 2018 and 2017 (in thousands): Three months ended September 30, 2018 SkyWest SkyWest Airlines ExpressJet Leasing Consolidated Operating revenues (1) $ 607,052 $ 140,155 $ 82,068 $ 829,275 Operating expense 512,278 139,736 39,336 691,350 Depreciation and amortization expense 39,651 8,683 37,754 86,088 Interest expense 4,044 649 26,747 31,440 Segment profit (loss) (2) 90,730 (230) 15,985 106,485 Identifiable intangible assets, other than goodwill — 1,224 — 1,224 Total assets (as of September 30, 2018) 565,266 3,368,031 6,184,860 Capital expenditures (including non-cash) 44,689 3,069 273,808 321,566 Three months ended September 30, 2017 SkyWest SkyWest Airlines ExpressJet Leasing Consolidated Operating revenues (1) (3) $ 558,994 $ 191,368 $ 62,311 $ 812,673 Operating expense (3) 472,000 200,344 27,960 700,304 Depreciation and amortization expense 34,049 12,573 27,473 74,095 Interest expense 5,276 1,017 20,808 27,101 Segment profit (loss) (2) 81,718 (9,993) 13,543 85,268 Identifiable intangible assets, other than goodwill — 6,121 — 6,121 Total assets (as of September 30, 2017) (3) 2,072,597 721,939 2,579,459 5,373,995 Capital expenditures (including non-cash) 27,118 2,259 24,122 53,499 (1) Prorate revenue, Airport customer service and other revenues is primarily reflected in the SkyWest Airlines segment. (2) Segment profit (loss) is equal to operating income less interest expense. (3) Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) . See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information. The following represents the Company’s segment data for the nine-month periods ended September 30, 2018 and 2017 (in thousands): Nine months ended September 30, 2018 SkyWest SkyWest Airlines ExpressJet Leasing Consolidated Operating revenues (1) $ $ 444,943 $ 222,420 $ Operating expense 455,084 105,030 Depreciation and amortization expense 115,979 30,044 100,363 246,386 Interest expense 12,722 2,264 71,499 86,485 Segment profit (loss) (2) 232,807 (12,405) 45,891 266,293 Identifiable intangible assets, other than goodwill — 1,224 — 1,224 Total assets (as of September 30, 2018) 565,266 Capital expenditures (including non-cash) 121,010 5,996 827,065 954,071 Nine months ended September 30, 2017 SkyWest SkyWest Airlines ExpressJet Leasing Consolidated Operating revenues (1) (3) $ $ 631,634 $ 176,099 $ Operating expense (3) 644,490 79,671 Depreciation and amortization expense 98,396 38,808 78,211 215,415 Interest expense 16,811 3,219 58,683 78,713 Segment profit (loss) (2) 194,876 (16,075) 37,745 216,546 Identifiable intangible assets, other than goodwill — 6,121 — 6,121 Total assets (as of September 30, 2017) (3) 721,939 Capital expenditures (including non-cash) 85,895 12,414 474,091 572,400 (1) Prorate revenue, Airport customer service and other revenues is primarily reflected in the SkyWest Airlines segment. (2) Segment profit (loss) is equal to operating income less interest expense. (3) Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) . See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies
Schedule of Future Minimum Rental Payments for Operating Leases	The following table summarizes future minimum rental payments primarily related to aircraft required under operating leases that had initial or remaining non-cancelable lease terms as of September 30, 2018 (in thousands): October 2018 through December 2018 $ 25,327 2019 83,268 2020 98,790 2021 90,378 2022 72,438 Thereafter 125,570 $ 495,771
Summary of commitments and obligations	The following table summarizes the Company’s commitments and obligations as noted for each of the next five years and thereafter (in thousands): Total Oct - Dec 2018 2019 2020 2021 2022 Thereafter Operating lease payments for aircraft and facility obligations $ 495,771 $ 25,327 $ 83,268 $ 98,790 $ 90,378 $ 72,438 $ 125,570 Firm aircraft and spare engine commitments 352,925 211,485 27,500 27,500 86,440 — — Interest commitments (1) 600,413 60,498 111,075 96,051 82,139 69,227 181,423 Principal maturities on long-term debt 3,134,768 90,653 360,599 342,080 336,897 342,439 1,662,100 Total commitments and obligations $ 4,583,877 $ 387,963 $ 582,442 $ 564,421 $ 595,854 $ 484,104 $ 1,969,093 (1) At September 30, 2018, the Company had variable rate notes representing only 1.0% of its total long-term debt.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value Measurements
Schedule of assets 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 September 30, 2018 Total Level 1 Level 2 Level 3 Cash, Cash Equivalents $ 324,561 $ 324,561 $ — $ — Marketable Securities Bonds and bond funds $ $ — $ $ — Commercial paper — — — — Total Assets Measured at Fair Value $ $ $ $ — Fair Value Measurements as of December 31, 2017 Total Level 1 Level 2 Level 3 Cash, Cash Equivalents $ $ $ — $ — Marketable Securities Bonds and bond funds $ 344,251 $ — $ 344,251 $ — Commercial paper — — — — Total Assets Measured at Fair Value $ 685,295 $ $ 503,503 $ —

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2018
Long-Term Debt
Schedule of long-term debt	Long-term debt consisted of the following as of September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Current portion of long-term debt $ 361,131 $ 313,243 Current portion of unamortized debt issue cost, net (3,804) (3,565) Current portion of long-term debt, net of debt issue costs $ 357,327 $ 309,678 Long-term debt, net of current maturities $ 2,773,637 $ 2,399,107 Long-term portion of unamortized debt issue cost, net (21,915) (21,761) Long-term debt, net of current maturities and debt issue costs $ 2,751,722 $ 2,377,346 Total long-term debt (including current portion) $ 3,134,768 $ 2,712,350 Total unamortized debt issue cost, net (25,719) (25,326) Total long-term debt, net of debt issue costs $ 3,109,049 $ 2,687,024

Condensed Consolidated Financ_4

Condensed Consolidated Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017		Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable	$ 62,233			$ 62,233		$ 42,731	[1]
Income Statement:
Total operating revenues	829,275	$ 812,673	[1]	2,418,190	$ 2,351,351
Salaries, wages and benefits	301,378	304,014	[1]	901,775	896,476
Other operating expenses	68,859	65,432	[1]	206,511	190,235
Total operating expenses	691,350	700,304	[1]	2,065,412	2,056,092
OPERATING INCOME	137,925	112,369	[1]	352,778	295,259
ASSETS
Other long-term assets	68,164			68,164		65,341	[1]
LIABILITIES:
Other long-term liabilities	62,678			62,678		58,662	[1]
Previously Reported | ASU 2014-09
Income Statement:
Total operating revenues		831,936			2,407,110
Salaries, wages and benefits		303,997			899,966
Other operating expenses		78,948			229,211
Total operating expenses		719,567			2,111,851
OPERATING INCOME		112,369			295,259
ASSETS
Other long-term assets						49,220
LIABILITIES:
Other long-term liabilities						42,541
Adjustments | ASU 2014-09
Income Statement:
Total operating revenues		(19,263)			(55,759)
Salaries, wages and benefits		17			(3,490)
Other operating expenses		(13,516)			(38,976)
Total operating expenses		(19,263)			(55,759)
ASSETS
Other long-term assets						16,121
LIABILITIES:
Other long-term liabilities						16,121
Flying agreements
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable	56,400			56,400		$ 33,900
Income Statement:
Total operating revenues	816,057	800,965	[1]	2,377,659	2,317,218
Flying agreements | Previously Reported | ASU 2014-09
Income Statement:
Total operating revenues		812,295			2,349,047
Flying agreements | Adjustments | ASU 2014-09
Income Statement:
Total operating revenues		(11,330)			(31,829)
Airport customer service and other
Income Statement:
Total operating revenues	13,218	11,708	[1]	40,531	34,133
Airport customer service and other | Previously Reported | ASU 2014-09
Income Statement:
Total operating revenues		19,641			58,063
Airport customer service and other | Adjustments | ASU 2014-09
Income Statement:
Total operating revenues		(7,933)			(23,930)
Aircraft fuel
Income Statement:
Other operating expenses		22,791			61,295
Total operating expenses	25,655	30,209	[1]	80,852	91,106
Aircraft fuel | Previously Reported | ASU 2014-09
Income Statement:
Other operating expenses		42,071			113,564
Aircraft fuel | Adjustments | ASU 2014-09
Income Statement:
Other operating expenses		(19,280)			(52,269)
Airport related expenses
Income Statement:
Other operating expenses		30,209			91,106
Total operating expenses	$ 30,258	22,791	[1]	87,208	61,295
Airport related expenses | Previously Reported | ASU 2014-09
Income Statement:
Other operating expenses		16,693			52,130
Airport related expenses | Adjustments | ASU 2014-09
Income Statement:
Other operating expenses		$ 13,516			38,976
Up-front contract reimbursements
Income Statement:
Total operating revenues				$ 1,400	$ 1,100
[1]	Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.

Flying Agreements Revenue and_3

Flying Agreements Revenue and Airport Customer Service and Other Revenue (Details) $ in Thousands	3 Months Ended			9 Months Ended		27 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)		Sep. 30, 2018USD ($)aircraftitem	Sep. 30, 2017USD ($)	Dec. 31, 2020aircraft
Agreements with other airlines
Percentage of ASMs flown under fixed-fee arrangements				84.30%
Percentage of ASMs flown under pro-rate arrangements				15.70%
Revenues [Abstract]
Operating revenues | $	$ 829,275	$ 812,673	[1]	$ 2,418,190	$ 2,351,351
Sky West Airlines Inc | Delta Connection Prorate Agreement
Revenues [Abstract]
Term of agreement				30 days
Sky West Airlines Inc | United Express Prorate Agreement
Revenues [Abstract]
Term of agreement				120 days
Sky West Airlines Inc | American Prorate Agreement
Revenues [Abstract]
Term of agreement				120 days
CRJ 200 | Sky West Airlines Inc | Delta Connection Agreements
Revenues [Abstract]
Number of aircraft				65
CRJ 200 | Sky West Airlines Inc | Delta Connection Prorate Agreement
Revenues [Abstract]
Number of aircraft				29
CRJ 200 | Sky West Airlines Inc | United Express Agreements
Revenues [Abstract]
Number of aircraft				61
CRJ 200 | Sky West Airlines Inc | United Express Prorate Agreement
Revenues [Abstract]
Number of aircraft				23
CRJ 200 | Sky West Airlines Inc | American Prorate Agreement
Revenues [Abstract]
Number of aircraft				7
CRJ 200 | ExpressJet
Revenues [Abstract]
Number of aircraft				20
Term of agreement				3 years
CRJ 700 | Sky West Airlines Inc | Delta Connection Agreements
Revenues [Abstract]
Number of aircraft				25
CRJ 700 | Sky West Airlines Inc | United Express Agreements
Revenues [Abstract]
Number of aircraft				19
CRJ 700 | Sky West Airlines Inc | American Capacity Purchase Agreement
Revenues [Abstract]
Number of aircraft				42
CRJ 700 | ExpressJet | Delta Connection Agreements
Revenues [Abstract]
Number of aircraft				12
CRJ 700 | ExpressJet | Alaska Capacity Purchase Agreement
Revenues [Abstract]
Number of aircraft				16
CRJ 700 | Delta
Revenues [Abstract]
Number of aircraft				20
CRJ 700 | American
Revenues [Abstract]
Term of agreement				4 years
Number of additional aircraft placed into service				20
CRJ 700 | United
Revenues [Abstract]
Number of aircraft				19
CRJ 900 | Sky West Airlines Inc | Delta Connection Agreements
Revenues [Abstract]
Number of aircraft				37
CRJ 900 | Delta | Forecast
Revenues [Abstract]
Number of additional aircraft placed into service						20
E 175 | Minimum
Revenues [Abstract]
Number of seats on aircraft | item				70
E 175 | Maximum
Revenues [Abstract]
Number of seats on aircraft | item				76
E 175 | Sky West Airlines Inc | Delta Connection Agreements
Revenues [Abstract]
Number of aircraft				41
E 175 | Sky West Airlines Inc | United Express Agreements
Revenues [Abstract]
Number of aircraft				65
E 175 | Sky West Airlines Inc | Alaska Capacity Purchase Agreement
Revenues [Abstract]
Number of aircraft				32
E 175 | Alaska
Revenues [Abstract]
Number of additional aircraft placed into service				3
Number of additional aircraft placed into service, deferred				3
E 175 | Delta
Revenues [Abstract]
Number of additional aircraft placed into service				8
ERJ 145 | ExpressJet | United Express Agreements
Revenues [Abstract]
Number of aircraft				100
Flying agreements
Revenues [Abstract]
Operating revenues | $	816,057	800,965	[1]	$ 2,377,659	2,317,218
Flight operations
Revenues [Abstract]
Operating revenues | $	472,952	462,832		1,404,801	1,367,901
Aircraft rentals
Revenues [Abstract]
Operating revenues | $	208,813	213,967		599,188	621,099
Prorate agreements
Revenues [Abstract]
Operating revenues | $	$ 134,292	$ 124,166		$ 373,670	$ 328,218
[1]	Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.

Share-Based Compensation and _2

Share-Based Compensation and Stock Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Share-Based Compensation
Upon vesting, each restricted stock unit and performance share replaced with common stock	1.00%
Common stock repurchased (in shares)	427,869	281,000
Common stock repurchased, value	$ 25.2	$ 10
Payment of income tax obligation on employee equity awards	$ 13.6	4.3
Employee stock option
Share-Based Compensation
Options granted (in shares)	0
Restricted stock units
Share-Based Compensation
Granted (in dollars per share)	$ 53.40
Restricted stock units | Long Term Incentive Plan 2010
Share-Based Compensation
Granted (in shares)	114,856
Vesting period	3 years
Performance share units | Long Term Incentive Plan 2010
Share-Based Compensation
Granted (in shares)	89,982
Vesting period	3 years
Performance share units | Minimum | Long Term Incentive Plan 2010
Share-Based Compensation
Percentage number of performance shares awarded	0.00%
Performance share units | Maximum | Long Term Incentive Plan 2010
Share-Based Compensation
Percentage number of performance shares awarded	200.00%
Director
Share-Based Compensation
Granted (in shares)	15,165
Granted (in dollars per share)	$ 53.40
Accounting Standards Update 2017-09
Share-Based Compensation
Stock based compensation expense	$ 10.4	$ 8.2

Net Income Per Common Share (De

Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017		Sep. 30, 2018	Sep. 30, 2017
Net Income Per Common Share
Number of outstanding options not included in computation of Diluted EPS (in shares)				207,000	284,000
Numerator
Net income	$ 83,046	$ 53,716	[1]	$ 213,266	$ 138,978
Denominator
Weighted average number of common shares outstanding	52,039,000	51,833,000	[1]	52,002,000	51,801,000
Effect of outstanding share-based awards	942,000	1,247,000		974,000	1,286,000
Weighted average number of shares for diluted net income per common share	52,981,000	53,080,000	[1]	52,976,000	53,087,000
Basic earnings per-share (in dollars per share)	$ 1.60	$ 1.04	[1]	$ 4.10	$ 2.68
Diluted earnings per-share (in dollars per share)	$ 1.57	$ 1.01	[1]	$ 4.03	$ 2.62
[1]	Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)		Sep. 30, 2018USD ($)segmentaircraft	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)	[1]
Segment Reporting
Number of operating segments | segment				3
Operating revenues	$ 829,275	$ 812,673	[1]	$ 2,418,190	$ 2,351,351
Operating expenses	691,350	700,304	[1]	2,065,412	2,056,092
Depreciation and amortization expense	86,088	74,095	[1]	246,386	215,415
Interest expense	31,440	27,101	[1]	86,485	78,713
Segment profit (loss)	109,925	86,676	[1]	275,455	219,944
Identifiable intangible assets, other than goodwill	1,224	6,121		1,224	6,121
Total assets	6,184,860	5,373,995		6,184,860	5,373,995	$ 5,474,400
Capital expenditures (including non-cash)	321,566	53,499		954,071	572,400
Segments
Segment Reporting
Segment profit (loss)	106,485	85,268		266,293	216,546
SkyWest Airlines
Segment Reporting
Operating revenues	607,052	558,994		1,750,827	1,543,618
Operating expenses	512,278	472,000		1,505,298	1,331,931
Depreciation and amortization expense	39,651	34,049		115,979	98,396
Interest expense	4,044	5,276		12,722	16,811
Total assets	2,251,563	2,072,597		2,251,563	2,072,597
Capital expenditures (including non-cash)	44,689	27,118		121,010	85,895
SkyWest Airlines | Segments
Segment Reporting
Segment profit (loss)	90,730	81,718		232,807	194,876
ExpressJet Airlines Inc
Segment Reporting
Operating revenues	140,155	191,368		444,943	631,634
Operating expenses	139,736	200,344		455,084	644,490
Depreciation and amortization expense	8,683	12,573		30,044	38,808
Interest expense	649	1,017		2,264	3,219
Identifiable intangible assets, other than goodwill	1,224	6,121		1,224	6,121
Total assets	565,266	721,939		565,266	721,939
Capital expenditures (including non-cash)	3,069	2,259		5,996	12,414
ExpressJet Airlines Inc | Segments
Segment Reporting
Segment profit (loss)	(230)	(9,993)		(12,405)	(16,075)
SkyWest Leasing
Segment Reporting
Operating revenues	82,068	62,311		222,420	176,099
Operating expenses	39,336	27,960		105,030	79,671
Depreciation and amortization expense	37,754	27,473		100,363	78,211
Interest expense	26,747	20,808		71,499	58,683
Total assets	3,368,031	2,579,459		3,368,031	2,579,459
Capital expenditures (including non-cash)	273,808	24,122		$ 827,065	474,091
SkyWest Leasing | CRJ 200
Segment Reporting
Number of aircraft | aircraft				4
SkyWest Leasing | Segments
Segment Reporting
Segment profit (loss)	$ 15,985	$ 13,543		$ 45,891	$ 37,745
[1]	Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)aircraft
Future minimum rental payments required under operating leases
October 2018 through December 2018	$ 25,327
2,019	83,268
2,020	98,790
2,021	90,378
2,022	72,438
Thereafter	125,570
Total future lease obligations	$ 495,771
E 175
Future minimum rental payments required under operating leases
Number of aircraft under firm purchase commitment | aircraft	11
E 175 | Alaska
Future minimum rental payments required under operating leases
Number of additional aircraft placed into service, deferred | aircraft	3

Commitments and Contingencies -

Commitments and Contingencies - Commitments and Obligations (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Operating lease payments for aircraft and facility obligations
Oct - Dec 2018	$ 25,327
2,019	83,268
2,020	98,790
2,021	90,378
2,022	72,438
Thereafter	125,570
Total	495,771
Firm aircraft and spare engine commitments
Oct - Dec 2018	211,485
2,019	27,500
2,020	27,500
2,021	86,440
Total	352,925
Interest commitments
Oct - Dec 2018	60,498
2,019	111,075
2,020	96,051
2,021	82,139
2,022	69,227
Thereafter	181,423
Total	600,413
Principal maturities on long-term debt
October - 2018	90,653
2,019	360,599
2,020	342,080
2,021	336,897
2,022	342,439
Thereafter	1,662,100
Total	3,134,768	$ 2,712,350
Total commitments and obligations
Oct - Dec 2018	387,963
2,019	582,442
2,020	564,421
2,021	595,854
2,022	484,104
Thereafter	1,969,093
Total	$ 4,583,877
Variable interest rate (as percent)	1.00%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair Value Measurements
Marketable Securities	$ 380,242	$ 503,503	[1]
Fair Value of Financial Instruments
Carrying amount of long-term debt	3,109,049	2,687,024
Recurring
Fair Value Measurements
Cash, Cash Equivalents	324,561	181,792
Marketable Securities	380,242	503,503
Total Assets Measured at Fair Value	704,803	685,295
Cost of cash and cash equivalents and available for sale securities	704,800	685,500
Fair value of cash and cash equivalents and available for sale securities	704,800	685,300
Recurring | Bonds and bond funds
Fair Value Measurements
Marketable Securities	159,942	344,251
Recurring | Commercial paper
Fair Value Measurements
Marketable Securities	220,300	159,252
Recurring | Level 1
Fair Value Measurements
Cash, Cash Equivalents	324,561	181,792
Total Assets Measured at Fair Value	324,561	181,792
Recurring | Level 2
Fair Value Measurements
Marketable Securities	380,242	503,503
Total Assets Measured at Fair Value	380,242	503,503
Fair Value of Financial Instruments
Fair value of long-term debt	3,150,000	2,700,000
Carrying amount of long-term debt	3,130,000	2,710,000
Recurring | Level 2 | Bonds and bond funds
Fair Value Measurements
Marketable Securities	159,942	344,251
Recurring | Level 2 | Commercial paper
Fair Value Measurements
Marketable Securities	$ 220,300	$ 159,252
[1]	Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.

Long-term Debt (Details)

Long-term Debt (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)aircraft	Dec. 31, 2017USD ($)
Debt Instrument [Line Items]
Current portion long-term debt	$ 361,131	$ 313,243
Less current portion of unamortized debt issue cost, net	(3,804)	(3,565)
Current portion of long-term debt, net of debt issue costs	357,327	309,678	[1]
Long-term debt, net of current maturities	2,773,637	2,399,107
Less long-term portion of unamortized debt issue cost, net	(21,915)	(21,761)
Long-term debt, net of current maturities and debt issue costs	2,751,722	2,377,346	[1]
Total long-term debt (including current portion)	3,134,768	2,712,350
Total unamortized debt issue cost, net	(25,719)	(25,326)
Total	3,109,049	2,687,024
Debt issued to purchase of aircraft	626,200
Letter of credit
Debt Instrument [Line Items]
Amount outstanding	$ 84,800	$ 87,400
E 175
Debt Instrument [Line Items]
Number of aircraft delivered | aircraft	31
Debt instrument, term	12 years
Purchased, previously-leased aircraft
Debt Instrument [Line Items]
Number of aircraft purchased | aircraft	9
Interest rate (as a percent)	6.45%
Minimum | E 175
Debt Instrument [Line Items]
Interest rate (as a percent)	4.60%
Minimum | Purchased, previously-leased aircraft
Debt Instrument [Line Items]
Debt instrument, term	3 years
Maximum | E 175
Debt Instrument [Line Items]
Interest rate (as a percent)	5.00%
Maximum | Purchased, previously-leased aircraft
Debt Instrument [Line Items]
Debt instrument, term	4 years
[1]	Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Dec. 31, 2017
Effective tax rate (as a percent)	24.50%	22.60%
Statutory Federal income tax rate (as a percent)	21.00%	21.00%
Capital loss carryforward valuation allowance		$ 0.9
Revaluation of net deferred tax liabilities for the Tax Act			$ 246.8
Alternative minimum tax credits	$ 13.9	13.9
Accounting Standards Update 2016-09
Discrete tax benefit		$ 4.6