SkyWest (SKYW) 10-Q 5 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 29, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	0-14719
Entity Registrant Name	SKYWEST INC
Entity Incorporation, State or Country Code	UT
Entity Tax Identification Number	87-0292166
Entity Address, Address Line One	444 South River Road
Entity Address, City or Town	St. George
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84790
City Area Code	435
Local Phone Number	634-3000
Title of 12(b) Security	Common Stock, No Par Value
Trading Symbol	SKYW
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		50,521,792
Entity Central Index Key	0000793733
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
CURRENT ASSETS:
Cash and cash equivalents	$ 246,001	$ 258,421
Marketable securities	610,450	601,989
Receivables, net	68,039	65,348
Inventories, net	110,041	104,093
Other current assets	37,438	38,742
Total current assets	1,071,969	1,068,593
PROPERTY AND EQUIPMENT:
Aircraft and rotable spares	7,960,911	7,848,100
Deposits on aircraft	129,514	124,964
Buildings and ground equipment	263,999	256,595
Total property and equipment, gross	8,354,424	8,229,659
Less-accumulated depreciation and amortization	(2,825,603)	(2,731,060)
Total property and equipment, net	5,528,821	5,498,599
OTHER ASSETS:
Operating lease right-of-use assets	223,856	238,516
Long-term receivables and other assets	324,312	320,239
Total other assets	548,168	558,755
Total assets	7,148,958	7,125,947
CURRENT LIABILITIES:
Current maturities of long-term debt	410,124	391,798
Accounts payable	412,757	496,333
Accrued salaries, wages and benefits	157,211	150,583
Current maturities of operating lease liabilities	78,930	78,886
Taxes other than income taxes	26,669	28,869
Other current liabilities	56,597	48,152
Total current liabilities	1,142,288	1,194,621
LONG-TERM DEBT, net of current maturities	2,791,274	2,717,420
DEFERRED INCOME TAXES PAYABLE	669,026	663,236
NONCURRENT OPERATING LEASE LIABILITIES	147,994	158,274
OTHER LONG-TERM LIABILITIES	108,661	124,882
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; 82,514,936 and 82,335,970 shares issued as of March 31, 2022, and December 31, 2021, respectively	727,900	722,310
Retained earnings	2,181,650	2,163,916
Treasury stock, at cost, 31,993,144 and 31,956,047 shares as of March 31, 2022, and December 31, 2021, respectively	(619,835)	(618,712)
Total stockholders' equity	2,289,715	2,267,514
Total liabilities and stockholders' equity	$ 7,148,958	$ 7,125,947

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
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	82,514,936	82,335,970
Treasury stock, at cost, shares	31,993,144	31,956,047

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
OPERATING REVENUES:
Total operating revenues	$ 735,152	$ 534,555
OPERATING EXPENSES:
Salaries, wages and benefits	300,058	219,842
Aircraft maintenance, materials and repairs	148,413	203,827
Depreciation and amortization	102,745	109,597
Aircraft fuel	25,090	19,194
Airport-related expenses	19,205	24,448
Aircraft rentals	15,996	15,490
Payroll support grant		(193,173)
Other operating expenses	71,597	54,488
Total operating expenses	683,104	453,713
OPERATING INCOME	52,048	80,842
OTHER INCOME (EXPENSE):
Interest income	425	284
Interest expense	(28,592)	(31,354)
Other income, net	880	216
Total other expense, net	(27,287)	(30,854)
INCOME BEFORE INCOME TAXES	24,761	49,988
PROVISION FOR INCOME TAXES	7,027	14,088
NET INCOME	$ 17,734	$ 35,900
BASIC EARNINGS PER SHARE (in dollars per share)	$ 0.35	$ 0.71
DILUTED EARNINGS PER SHARE (in dollars per share)	$ 0.35	$ 0.71
Weighted average common shares:
Basic (in shares)	50,480	50,286
Diluted (in shares)	50,708	50,727
COMPREHENSIVE INCOME:
Net income	$ 17,734	$ 35,900
TOTAL COMPREHENSIVE INCOME	17,734	35,900
Flying agreements
OPERATING REVENUES:
Total operating revenues	708,063	511,191
Lease, airport services and other
OPERATING REVENUES:
Total operating revenues	$ 27,089	$ 23,364

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Retained Earnings	Treasury Stock	Total
Balance at Dec. 31, 2020	$ 704,675	$ 2,052,006	$ (617,136)	$ 2,139,545
Balance (in shares) at Dec. 31, 2020	82,095		(31,914)
Increase (Decrease) in Stockholders' Equity
Net income		35,900		35,900
Exercise of common stock options and vested employee stock awards	$ 606			606
Exercise of common stock options and vested employee stock awards (in shares)	177
Employee income tax paid on vested equity awards			$ (1,573)	(1,573)
Employee income tax paid on vested equity awards (in shares)			(42)
Sale of common stock under employee stock purchase plan	$ 1,139			1,139
Sale of common stock under employee stock purchase plan (in shares)	30
Stock based compensation expense	$ 2,613			2,613
Warrants issued to U.S. Treasury	3,291			3,291
Balance at Mar. 31, 2021	$ 712,324	2,087,906	$ (618,709)	2,181,521
Balance (in shares) at Mar. 31, 2021	82,302		(31,956)
Balance at Dec. 31, 2021	$ 722,310	2,163,916	$ (618,712)	2,267,514
Balance (in shares) at Dec. 31, 2021	82,336		(31,956)
Increase (Decrease) in Stockholders' Equity
Net income		17,734		17,734
Exercise of common stock options and vested employee stock awards	$ 27			27
Exercise of common stock options and vested employee stock awards (in shares)	139
Employee income tax paid on vested equity awards			$ (1,123)	(1,123)
Employee income tax paid on vested equity awards (in shares)			(37)
Sale of common stock under employee stock purchase plan	$ 1,487			1,487
Sale of common stock under employee stock purchase plan (in shares)	40
Stock based compensation expense	$ 4,076			4,076
Balance at Mar. 31, 2022	$ 727,900	$ 2,181,650	$ (619,835)	$ 2,289,715
Balance (in shares) at Mar. 31, 2022	82,515		(31,993)

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CONSOLIDATED STATEMENTS OF CASH FLOWS
NET CASH PROVIDED BY OPERATING ACTIVITIES	$ 20,508	$ 231,593
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities	(595,325)	(332,865)
Sales of marketable securities	586,864	337,612
Acquisition of property and equipment:
Aircraft and rotable spare parts	(111,782)	(51,904)
Buildings and ground equipment	(2,236)	(4,224)
Proceeds from the sale of property and equipment	2,749	2,150
Deposits on aircraft	(28,031)	(5,000)
Aircraft deposits applied towards acquired aircraft	23,481
Increase in other assets	(387)	(67,176)
NET CASH USED IN INVESTING ACTIVITIES	(124,667)	(121,407)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt	185,740	39,931
Principal payments on long-term debt	(93,979)	(135,007)
Net proceeds from issuance of common stock	1,514	1,745
Employee income tax paid on vested equity awards	(1,123)	(1,573)
Payment of debt issuance cost	(413)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	91,739	(94,904)
Increase (decrease) in cash and cash equivalents	(12,420)	15,282
Cash and cash equivalents at beginning of period	258,421	215,723
CASH AND CASH EQUIVALENTS AT END OF PERIOD	246,001	231,005
Non-cash investing and financing activities:
Acquisition of property and equipment	13,567	1,380
Warrants issued to U.S. Treasury		3,291
Cash paid during the period for:
Interest, net of capitalized amounts	29,840	31,646
Income taxes	$ 116	$ 157

Condensed Consolidated Financia

Condensed Consolidated Financial Statements	3 Months Ended
	Mar. 31, 2022
Condensed Consolidated Financial Statements
Condensed Consolidated Financial Statements	( 1) Condensed Consolidated Financial Statements Basis of Presentation The condensed consolidated financial statements of SkyWest, Inc. (“SkyWest” or the “Company”) and its operating subsidiary SkyWest Airlines, Inc. (“SkyWest Airlines”) and its leasing subsidiary SkyWest Leasing, Inc. (“SkyWest Leasing”) 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, 2021. Due in part to the uncertain rate of recovery from the global COVID-19 pandemic and workforce shortages, in addition to other factors, the results of operations for the three months ended March 31, 2022, are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. 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 could differ materially from those estimates and assumptions.

Flying Agreements Revenue and L

Flying Agreements Revenue and Lease, Airport Services and Other Revenues	3 Months Ended
	Mar. 31, 2022
Flying Agreements Revenue and Lease, Airport Services and Other Revenues
Flying Agreements Revenue and Lease, Airport Services and Other Revenues	(2) Flying Agreements Revenue and Lease, Airport Services and Other Revenues The Company recognizes flying agreements revenue and lease, airport services and other revenues when the service is provided under the applicable agreement. Under the Company’s fixed-fee arrangements (referred to as “capacity purchase agreements”) with United Airlines, Inc. (“United”), Delta Air Lines, Inc. (“Delta”), 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 pays for or reimburses the Company for certain direct expenses incurred under the capacity purchase agreement, such as fuel, airport landing fees and airport rents. Under the capacity purchase agreements, the Company’s performance obligation is met when each flight is completed, measured in completed block hours, and is reflected in flying agreements revenue. The transaction price for the capacity purchase 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 three months ended March 31, 2022 and 2021, capacity purchase agreements represented approximately 88.8% and 86.6% of the Company’s flying agreements revenue, respectively. Under the Company’s prorate arrangements (also referred to as a “prorate” or “revenue-sharing” agreement), 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. Under the Company’s prorate flying agreements, the performance obligation is met, and revenue is recognized 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 three months ended March 31, 2022 and 2021, prorate flying agreements represented approximately The following table represents the Company’s flying agreements revenue by type for the three months ended March 31, 2022 and 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ 2022 2021 Capacity purchase agreements revenue: flight operations ​ $ 348,474 ​ $ 211,052 Capacity purchase agreements revenue: aircraft lease and fixed revenue ​ 280,419 ​ 231,491 Prorate agreements revenue ​ 79,170 ​ 68,648 Flying agreements revenue ​ $ 708,063 ​ $ 511,191 ​ A portion of the Company’s compensation under its capacity purchase agreements is designed to reimburse the Company for certain aircraft ownership costs. The consideration for aircraft ownership costs 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 received for the use of the aircraft under the Company’s capacity purchase agreements is reflected as 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 capacity purchase 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. Under the Company’s capacity purchase agreements, the Company is paid a fixed amount per month per aircraft over the contract term. The Company recognizes revenue attributed to the fixed monthly payments proportionate to the number of block hours completed during each reporting period, relative to the estimated number of block hours the Company anticipates completing over the remaining contract term. Due to the lower number of block hours completed during the COVID-19 pandemic compared to historical levels, the amount of cash collected for the fixed amount per aircraft exceeded the revenue recognized based on block hours completed. Accordingly, the Company deferred recognizing revenue on fixed monthly cash payments the Company received under its capacity purchase agreements beginning in 2020. Based on the number of completed block hours during the three months ended March 31, 2022, the Company recognized $7.5 million of previously deferred revenue and $3.6 million of unbilled revenue, compared to deferring revenue of $21.2 million during the three months ended March 31, 2021. The Company’s deferred revenue balance was $96.4 million as of March 31, 2022, including $33.0 million in other current liabilities and $63.4 million in other long-term liabilities. The Company’s deferred revenue balance was $103.9 million as of December 31, 2021, including $24.5 million in other current liabilities and $79.4 million in other long-term liabilities. The Company’s unbilled revenue balance was $12.0 million as of March 31, 2022, and $8.4 million as of December 31, 2021, and was included in other long-term assets. The Company’s deferred revenue and unbilled revenue balance will be recognized based on the number of block hours completed during each period relative to the estimated number of block hours the Company anticipates completing over the remaining contract term. The Company’s capacity purchase 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. As of March 31, 2022, the Company had 513 aircraft in scheduled service or under contract under code-share agreements. The following table summarizes the significant provisions of each code-share agreement SkyWest Airlines has with each major airline partner: ​ ​ ​ ​ ​ ​ ​ ​ United Express Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates United Express Agreements (Capacity purchase agreement) ​ • E175 • CRJ 700 • CRJ 200 ​ 90 19 70 ​ • Individual aircraft have scheduled removal dates from 2024 to 2029 United Express Prorate Agreement (Prorate agreement) ​ • CRJ 200 ​ 41 ​ • Terminable with 120-day notice Total under United Express Agreements ​ ​ ​ 220 ​ ​ ​ Delta Connection Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates Delta Connection Agreement (Capacity purchase agreement) ​ • E175 • CRJ 900 • CRJ 700 • CRJ 200 ​ ​ 71 44 5 9 ​ • Individual aircraft have scheduled removal dates from 2022 to 2031 Delta Connection Prorate Agreement (Prorate agreement) ​ • CRJ 200 ​ 20 ​ • Terminable with 30-day notice Total under Delta Connection Agreements ​ ​ ​ 149 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ American Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates American Agreement (Capacity purchase agreement) ​ • E175 • CRJ 700 ​ 18 90 ​ • Individual aircraft have scheduled removal dates from 2024 to 2032 Total under American Agreements ​ ​ ​ 108 ​ ​ ​ ​ Alaska Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates Alaska Agreement (Capacity purchase agreement) ​ • E175 ​ 36 ​ • Individual aircraft have scheduled removal dates from 2030 to 2034 ​ In addition to the contractual arrangements described above, as of March 31, 2022, SkyWest Airlines has a capacity purchase agreement with American to place two Embraer E175 dual-class regional jet aircraft (“E175”) into service. The delivery dates for the two new E175 aircraft are currently scheduled for the third quarter of 2022. SkyWest Airlines also has an agreement with American to place 11 used Canadair CRJ700 regional jet aircraft (“CRJ700”) under a multi-year capacity purchase agreement in 2023. SkyWest Airlines has a capacity purchase agreement with Alaska to place an additional seven E175 aircraft into service. The delivery dates for the seven new E175 aircraft are currently scheduled for 2022 and the first half of 2023. SkyWest Airlines has a capacity purchase agreement with Delta to place 16 E175 aircraft into service. The delivery dates for the 16 new E175 aircraft are currently scheduled for 2022. Final delivery and in-service dates for aircraft to be placed under contract may be adjusted based on various factors. When an aircraft is scheduled to be removed from a capacity purchase 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 agreement, 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 engines to a third party. Lease, airport services and other revenues primarily consists of revenue generated from aircraft and spare engines leased to third parties and airport customer services, such as gate and ramp agent services at applicable airports where the Company has agreements with third parties. The following table represents the Company’s lease, airport services and other revenues for the three months ended March 31, 2022 and 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ 2022 2021 Operating lease revenue ​ $ 16,555 ​ $ 14,950 Airport customer service and other revenue ​ ​ 10,534 ​ ​ 8,414 Lease, airport services and other ​ $ 27,089 ​ $ 23,364 ​ The following table summarizes future minimum rental income under operating leases primarily related to leased aircraft and engines that had remaining non-cancelable lease terms as of March 31, 2022 (in thousands): ​ ​ ​ ​ April 2022 through December 2022 $ 34,054 2023 ​ 44,677 2024 ​ 42,593 2025 ​ 39,145 2026 ​ 34,516 Thereafter ​ 120,636 ​ ​ $ 315,621 ​ Of the Company’s $5.5 billion of property and equipment, net as of March 31, 2022, $246.9 million of regional jet aircraft and spare engines was leased to third parties under operating leases. The Company mitigates the residual asset risks of these assets by leasing aircraft and engine types that can be operated by the Company in the event of a default. Additionally, the operating leases typically have specified lease return condition requirements paid by the lessee to the Company and the Company typically maintains inspection rights under the leases. 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. The Company’s operating revenues could be impacted by several factors, including changes to the Company’s code-share agreements with its major airline partners, changes in flight schedules, 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. 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. Allowance for credit losses The Company monitors publicly available credit ratings for entities for which the Company has a significant receivable balance. As of March 31, 2022, the Company had gross receivables of $89.4 million in current assets and gross receivables of $232.1 million in other long-term assets. The Company has established credit loss reserves based on publicly available historic default rates issued by a third party for companies with similar credit ratings, factoring in the term of the respective accounts receivable or notes receivable. During the three months ended March 31, 2022, there were no significant changes in the outstanding accounts receivable or notes receivable or the credit ratings of the entities. The Company’s credit loss reserve was $42.1 million at March 31, 2022, compared to $42.0 million at December 31, 2021. The $0.1 million increase in the credit loss reserve for the three months ended March 31, 2022, was reflected as an increase to the credit loss expense.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2022
Share-Based Compensation
Share-Based Compensation	(3) Share-Based Compensation During the three months ended March 31, 2022, the Company granted 66,680 restricted stock units and 221,942 performance shares to certain employees of the Company under the SkyWest, Inc. 2019 Long-Term Incentive Plan. Both the restricted stock units and performance shares have a three-year vesting per share The Company accounts for forfeitures of restricted stock units and performance shares when forfeitures occur. The estimated fair value of the restricted stock units and performance shares is amortized over the applicable vesting periods. Share-based compensation expense for the performance shares is based on the Company’s anticipated outcome of achieving the performance metrics. During the three months ended March 31, 2022 and 2021, the Company recorded pre-tax share-based compensation expense of $4.1 million and $2.6 million, respectively.

Net Income Per Common Share

Net Income Per Common Share	3 Months Ended
	Mar. 31, 2022
Net Income Per Common Share
Net Income Per Common Share	(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, 2022, 361,000 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 March 31, 2022. During the three months ended March 31, 2021, 295,000 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 March 31, 2021. During the three months ended March 31, 2022, warrants to purchase 125,000 and 78,000 shares of common stock at $40.41 and $57.47 per share, respectively, were excluded from the computation of Diluted EPS since the warrants' exercise prices were greater than the average market price of the common shares during the quarter ended March 31, 2022. 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, ​ ​ 2022 ​ 2021 Numerator: ​ ​ Net income ​ $ 17,734 ​ $ 35,900 Denominator: ​ ​ ​ ​ ​ ​ Basic earnings per share weighted average shares ​ 50,480 ​ 50,286 Dilution due to stock options and restricted stock units ​ 228 ​ 441 Diluted earnings per share weighted average shares ​ 50,708 ​ 50,727 ​ ​ ​ ​ ​ ​ ​ Basic earnings per share ​ $ 0.35 ​ $ 0.71 Diluted earnings per share ​ $ 0.35 ​ $ 0.71 ​

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2022
Segment Reporting
Segment Reporting	(5) Segment Reporting The Company’s two reporting segments consist of the operations of SkyWest Airlines and SkyWest Leasing activities. The Company’s chief operating decision maker analyzes the profitability of operating new aircraft financed through the issuance of debt, including the Company’s E175 fleet, separately from the profitability of the Company’s capital deployed for ownership and financing of such aircraft. The SkyWest Airlines segment includes revenue earned under the applicable capacity purchase agreements attributed to operating such aircraft and the respective operating costs. The SkyWest Leasing segment includes applicable revenue earned under the applicable capacity purchase agreements attributed to the ownership of new aircraft acquired through the issuance of debt and the respective depreciation and interest expense of such aircraft. The SkyWest Leasing segment also includes the activity of leasing regional jet aircraft and spare engines to third parties. The SkyWest Leasing segment’s total assets and capital expenditures include new aircraft acquired through the issuance of debt and assets leased to third parties. The following represents the Company’s segment data for the three-month periods ended March 31, 2022 and 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, 2022 ​ ​ SkyWest ​ SkyWest ​ ​ ​ Airlines Leasing Consolidated Operating revenues (1) ​ $ 603,048 ​ $ 132,104 ​ $ 735,152 Operating expense ​ 621,028 ​ 62,076 ​ 683,104 Depreciation and amortization expense ​ 47,694 ​ 55,051 ​ 102,745 Interest expense ​ 1,789 ​ 26,803 ​ 28,592 Segment profit (loss) (2) ​ (19,769) ​ 43,225 ​ 23,456 Total assets (as of March 31, 2022) ​ 2,953,902 ​ 4,195,056 ​ 7,148,958 Capital expenditures (including non-cash) ​ 32,696 ​ 94,889 ​ 127,585 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, 2021 ​ ​ SkyWest ​ SkyWest ​ ​ ​ Airlines Leasing Consolidated Operating revenues (1) ​ $ 406,450 ​ $ 128,105 ​ $ 534,555 Operating expense ​ 387,870 ​ 65,843 ​ 453,713 Depreciation and amortization expense ​ 50,326 ​ 59,271 ​ 109,597 Interest expense ​ 3,129 ​ 28,225 ​ 31,354 Segment profit (2) ​ 15,451 ​ 34,037 ​ 49,488 Total assets (as of March 31, 2021) ​ 2,924,598 ​ 3,970,087 ​ 6,894,685 Capital expenditures (including non-cash) ​ 35,206 ​ 22,302 ​ 57,508 (1) Prorate revenue and airport customer service revenue are primarily reflected in the SkyWest Airlines segment. (2) Segment profit (loss) is equal to operating income less interest expense.

Leases, Commitments and Conting

Leases, Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Leases, Commitments and Contingencies
Leases, Commitments and Contingencies	(6) — Leases, Commitments and Contingencies The Company leases property and equipment under operating leases. For leases with durations longer than 12 months, the Company recorded the related operating lease right-of-use asset and operating lease liability at the present value of lease payments over the term. The Company used its incremental borrowing rate to discount the lease payments based on information available at lease commencement. Aircraft As of March 31, 2022, excluding aircraft financed by the Company’s major airline partners that the Company operates for them under contract, the Company had 43 aircraft under long-term lease agreements with remaining terms ranging from two years to eight years . Airport facilities The Company has operating leases for facility space including airport terminals, office space, cargo warehouses and maintenance facilities. The Company generally leases this space from government agencies that control the use of the various airports. The remaining lease terms for facility space vary from one month to 34 years. The Company’s operating leases with lease rates that are variable based on airport operating costs, use of the facilities or other variable factors are excluded from the Company’s right-of-use assets and operating lease liabilities in accordance with accounting guidance. Leases As of March 31, 2022, the Company’s right-of-use assets were $223.9 million, the Company’s current maturities of operating lease liabilities were $78.9 million, and the Company’s noncurrent lease liabilities were $148.0 million. During the three months ended March 31, 2022, the Company paid $14.7 million in operating leases reflected as a reduction from operating cash flows. The table below presents lease related terms and discount rates as of March 31, 2022. ​ ​ ​ ​ As of March 31, 2022 Weighted-average remaining lease term for operating leases 6.2 years Weighted-average discount rate for operating leases 6.0% ​ The Company’s lease costs for the three months ended March 31, 2022 and 2021 included the following components (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ 2022 2021 Operating lease cost ​ $ 21,841 ​ $ 22,127 Variable and short-term lease cost ​ 1,018 ​ 1,224 Sublease income ​ ​ (1,803) ​ ​ (1,335) Total lease cost ​ $ 21,056 ​ $ 22,016 ​ As of March 31, 2022, 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 may 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 leased aircraft required under operating leases that had initial or remaining non-cancelable lease terms as of March 31, 2022 (in thousands): ​ ​ ​ ​ ​ April 2022 through December 2022 $ 66,742 2023 ​ 76,049 2024 ​ 32,144 2025 ​ 17,568 2026 ​ 15,491 Thereafter ​ 72,827 ​ ​ $ 280,821 ​ As of March 31, 2022, the Company had a firm purchase commitment for 25 E175 aircraft from Embraer, S.A. (“Embraer”) with anticipated delivery dates through the first half of 2023. The following table summarizes the Company’s commitments and obligations as noted for each of the next five years and thereafter (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Apr - Dec 2022 2023 2024 2025 2026 Thereafter Operating lease payments for aircraft and facility obligations ​ $ 280,821 ​ $ 66,742 ​ $ 76,049 ​ $ 32,144 ​ $ 17,568 ​ $ 15,491 ​ $ 72,827 Firm aircraft and spare engine commitments ​ 679,789 ​ ​ 653,270 ​ ​ 26,519 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Interest commitments (1) ​ 485,584 ​ ​ 87,784 ​ ​ 103,072 ​ ​ 86,121 ​ ​ 68,249 ​ ​ 51,641 ​ ​ 88,717 Principal maturities on long-term debt ​ 3,232,430 ​ ​ 315,901 ​ ​ 422,380 ​ ​ 418,088 ​ ​ 485,348 ​ ​ 429,621 ​ ​ 1,161,092 Total commitments and obligations ​ $ 4,678,624 ​ $ 1,123,697 ​ $ 628,020 ​ $ 536,353 ​ $ 571,165 ​ $ 496,753 ​ $ 1,322,636 (1) At March 31, 2022, the Company’s long-term debt had fixed interest rates.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2022
Fair Value Measurements
Fair Value Measurements	(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, 2022, and December 31, 2021, 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, 2022 ​ Total Level 1 Level 2 Level 3 Marketable Securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bonds and bond funds ​ $ 170,918 ​ $ — ​ $ 170,918 ​ $ — Commercial paper ​ 439,532 ​ — ​ 439,532 ​ — ​ ​ $ 610,450 ​ $ — ​ $ 610,450 ​ $ — Cash and Cash Equivalents ​ ​ 246,001 ​ ​ 246,001 ​ ​ — ​ ​ — Total Assets Measured at Fair Value ​ $ 856,451 ​ $ 246,001 ​ $ 610,450 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements as of December 31, 2021 ​ ​ Total ​ Level 1 ​ Level 2 ​ Level 3 Marketable Securities ​ ​ ​ ​ Bonds and bond funds ​ $ 54,673 ​ $ — ​ $ 54,673 ​ $ — Commercial paper ​ 547,316 ​ — ​ 547,316 ​ — ​ ​ $ 601,989 ​ $ — ​ $ 601,989 ​ $ — Cash and Cash Equivalents ​ ​ 258,421 ​ ​ 258,421 ​ ​ — ​ ​ — Total Assets Measured at Fair Value ​ $ 860,410 ​ $ 258,421 ​ $ 601,989 ​ $ — ​ 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, 2022. 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, 2022, and December 31, 2021, the Company classified $610.5 million and $602.0 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, 2022, and December 31, 2021, the cost of the Company’s total cash and cash equivalents and marketable securities was $856.4 million and $860.4 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 $3.2 billion as of March 31, 2022, and $3.2 billion as of December 31, 2021, as compared to the carrying amount of $3.2 billion as of March 31, 2022, and $3.1 billion as of December 31, 2021.

Long-term Debt

Long-term Debt	3 Months Ended
	Mar. 31, 2022
Long-term Debt
Long-term Debt	(8) Long-term Debt ​ Long-term debt consisted of the following as of March 31, 2022, and December 31, 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ ​ December 31, 2021 Current portion of long-term debt $ 413,703 ​ $ 395,371 Current portion of unamortized debt issue cost, net ​ (3,579) ​ ​ (3,573) Current portion of long-term debt, net of debt issue costs $ 410,124 ​ $ 391,798 ​ ​ ​ ​ ​ ​ Long-term debt, net of current maturities $ 2,818,727 ​ $ 2,745,567 Long-term portion of unamortized debt issue cost, net ​ (27,453) ​ ​ (28,147) Long-term debt, net of current maturities and debt issue costs $ 2,791,274 ​ $ 2,717,420 ​ ​ ​ ​ ​ ​ Total long-term debt (including current portion) $ 3,232,430 ​ $ 3,140,938 Total unamortized debt issue cost, net ​ (31,032) ​ ​ (31,720) Total long-term debt, net of debt issue costs $ 3,201,398 ​ $ 3,109,218 ​ During the three months ended March 31, 2022, the Company took delivery of four new E175 aircraft that the Company financed through $82.8 million of long-term debt. The debt associated with the E175 aircraft has 5-year 10-year During the three months ended March 31, 2022, the Company executed a promissory note for $102.9 million. The promissory note has a three-year term, is due in monthly installments with a fixed annual interest rate of 3.6% and is secured by spare engines. As of both March 31, 2022, and December 31, 2021, the Company had $61.4 million in letters of credit and surety bonds outstanding with various banks and surety institutions. As of March 31, 2022, SkyWest Airlines had a $100 million line of credit with an expiration date of March 25, 2025. The line of credit includes minimum liquidity and profitability covenants and is secured by certain assets. As of March 31, 2022, SkyWest Airlines had no amount outstanding under the facility. However, at March 31, 2022, SkyWest Airlines had $31.4 million in letters of credit issued under the facility, which reduced the amount available under the facility to $68.6 million.

Investment in Other Companies

Investment in Other Companies	3 Months Ended
	Mar. 31, 2022
Investment in Other Companies
Investment in Other Companies	(9) — Investment in Other Companies ​ During 2019, the Company created a joint venture with Regional One, Inc. (“Regional One”) by investing $22.3 million for a 75% ownership interest in Aero Engines, LLC. (“Aero Engines”). The Company invested an additional $1.0 million into Aero Engines in 2020 and $3.3 million during the first quarter of 2022 and retained a 75% ownership interest. The primary purpose of Aero Engines is to lease engines to third parties. Aero Engines requires unanimous approval from the Company and Regional One for its engine purchases, dispositions, lease agreements with third parties and all other material transactions. The Company determined Aero Engines is a variable interest entity as the Company has a 75% ownership interest in Aero Engines and all material decisions require unanimous approval from the Company and Regional One, resulting in disproportionate ownership rights relative to voting rights. As unanimous approval is required for all Aero Engines’ material activities. Aero Engines has no primary beneficiary. The Company accounts for its investment in Aero Engines under the equity method. The Company’s exposure in its investment in Aero Engines primarily consists of the Company’s portion of income or loss from Aero Engines’ engine lease agreements with third parties and the Company’s ownership percentage in Aero Engines’ engines book value. Aero Engines had no debt outstanding as of March 31, 2022. As of March 31, 2022, the Company’s investment balance in Aero Engines was $23.9 million. The Company’s investment in Aero Engines has been recorded in “Other Assets” on the Company’s consolidated balance sheet. The Company’s portion of earnings generated by Aero Engines for the three months ended March 31, 2022, was $0.4 million, which is recorded in “Other Income (Expense)” on the Company’s consolidated statements of comprehensive income. In 2021, the Company entered into a strategic partnership with Eve UAM, LLC (“Eve”), to develop a network of deployment for Eve’s electric vertical takeoff and landing (“eVTOL”) aircraft. The Company signed a non-binding letter of intent to purchase 100 eVTOL aircraft. As part of the partnership, the Company anticipates it will acquire an equity interest in Eve in May 2022, upon completion of certain events by Eve.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Taxes
Income Taxes	(10) Income Taxes ​ The Company’s effective tax rate for the three months ended March 31, 2022 was 28.4%. The Company’s effective tax rate for the three months ended March 31, 2022 varied from the federal statutory rate of 21.0% primarily due to the provision for state income taxes, the impact of non-deductible expenses, and a discrete tax expense on employee equity transactions that occurred during the three months ended March 31, 2022. The Company’s effective tax rate for the three months ended March 31, 2021 was 28.2%. The Company’s effective tax rate for the three months ended March 31, 2021 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.

Legal Matters

Legal Matters	3 Months Ended
	Mar. 31, 2022
Legal Matters
Legal Matters	(11) Legal Matters ​ The Company is subject to certain legal actions which it considers routine to its business activities. As of March 31, 2022, 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)	3 Months Ended
	Mar. 31, 2022
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 subsidiary SkyWest Airlines, Inc. (“SkyWest Airlines”) and its leasing subsidiary SkyWest Leasing, Inc. (“SkyWest Leasing”) 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, 2021. Due in part to the uncertain rate of recovery from the global COVID-19 pandemic and workforce shortages, in addition to other factors, the results of operations for the three months ended March 31, 2022, are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. 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 could differ materially from those estimates and assumptions.

Flying Agreements Revenue and_2

Flying Agreements Revenue and Lease, Airport Services and Other Revenues (Tables)	3 Months Ended
	Mar. 31, 2022
Agreements with other airlines
Schedule of revenue by type	The following table represents the Company’s flying agreements revenue by type for the three months ended March 31, 2022 and 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ 2022 2021 Capacity purchase agreements revenue: flight operations ​ $ 348,474 ​ $ 211,052 Capacity purchase agreements revenue: aircraft lease and fixed revenue ​ 280,419 ​ 231,491 Prorate agreements revenue ​ 79,170 ​ 68,648 Flying agreements revenue ​ $ 708,063 ​ $ 511,191
Schedule of aircraft and agreements with major airline partners	​ ​ ​ ​ ​ ​ ​ ​ United Express Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates United Express Agreements (Capacity purchase agreement) ​ • E175 • CRJ 700 • CRJ 200 ​ 90 19 70 ​ • Individual aircraft have scheduled removal dates from 2024 to 2029 United Express Prorate Agreement (Prorate agreement) ​ • CRJ 200 ​ 41 ​ • Terminable with 120-day notice Total under United Express Agreements ​ ​ ​ 220 ​ ​ ​ Delta Connection Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates Delta Connection Agreement (Capacity purchase agreement) ​ • E175 • CRJ 900 • CRJ 700 • CRJ 200 ​ ​ 71 44 5 9 ​ • Individual aircraft have scheduled removal dates from 2022 to 2031 Delta Connection Prorate Agreement (Prorate agreement) ​ • CRJ 200 ​ 20 ​ • Terminable with 30-day notice Total under Delta Connection Agreements ​ ​ ​ 149 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ American Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates American Agreement (Capacity purchase agreement) ​ • E175 • CRJ 700 ​ 18 90 ​ • Individual aircraft have scheduled removal dates from 2024 to 2032 Total under American Agreements ​ ​ ​ 108 ​ ​ ​ ​ Alaska Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates Alaska Agreement (Capacity purchase agreement) ​ • E175 ​ 36 ​ • Individual aircraft have scheduled removal dates from 2030 to 2034
Schedule of future minimum rental payments for operating leases	The following table summarizes future minimum rental payments primarily related to leased aircraft required under operating leases that had initial or remaining non-cancelable lease terms as of March 31, 2022 (in thousands): ​ ​ ​ ​ ​ April 2022 through December 2022 $ 66,742 2023 ​ 76,049 2024 ​ 32,144 2025 ​ 17,568 2026 ​ 15,491 Thereafter ​ 72,827 ​ ​ $ 280,821
Airport customer service and other
Agreements with other airlines
Schedule of revenue by type	The following table represents the Company’s lease, airport services and other revenues for the three months ended March 31, 2022 and 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ 2022 2021 Operating lease revenue ​ $ 16,555 ​ $ 14,950 Airport customer service and other revenue ​ ​ 10,534 ​ ​ 8,414 Lease, airport services and other ​ $ 27,089 ​ $ 23,364
Aircraft
Agreements with other airlines
Schedule of future minimum rental payments for operating leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ 2022 2021 Operating lease revenue ​ $ 16,555 ​ $ 14,950 Airport customer service and other revenue ​ ​ 10,534 ​ ​ 8,414 Lease, airport services and other ​ $ 27,089 ​ $ 23,364 ​ The following table summarizes future minimum rental income under operating leases primarily related to leased aircraft and engines that had remaining non-cancelable lease terms as of March 31, 2022 (in thousands): ​ ​ ​ ​ April 2022 through December 2022 $ 34,054 2023 ​ 44,677 2024 ​ 42,593 2025 ​ 39,145 2026 ​ 34,516 Thereafter ​ 120,636 ​ ​ $ 315,621

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2022
Net Income Per Common Share
Schedule of Basic EPS and Diluted EPS	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, ​ ​ 2022 ​ 2021 Numerator: ​ ​ Net income ​ $ 17,734 ​ $ 35,900 Denominator: ​ ​ ​ ​ ​ ​ Basic earnings per share weighted average shares ​ 50,480 ​ 50,286 Dilution due to stock options and restricted stock units ​ 228 ​ 441 Diluted earnings per share weighted average shares ​ 50,708 ​ 50,727 ​ ​ ​ ​ ​ ​ ​ Basic earnings per share ​ $ 0.35 ​ $ 0.71 Diluted earnings per share ​ $ 0.35 ​ $ 0.71

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2022
Segment Reporting
Schedule of Company's segment data	The following represents the Company’s segment data for the three-month periods ended March 31, 2022 and 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, 2022 ​ ​ SkyWest ​ SkyWest ​ ​ ​ Airlines Leasing Consolidated Operating revenues (1) ​ $ 603,048 ​ $ 132,104 ​ $ 735,152 Operating expense ​ 621,028 ​ 62,076 ​ 683,104 Depreciation and amortization expense ​ 47,694 ​ 55,051 ​ 102,745 Interest expense ​ 1,789 ​ 26,803 ​ 28,592 Segment profit (loss) (2) ​ (19,769) ​ 43,225 ​ 23,456 Total assets (as of March 31, 2022) ​ 2,953,902 ​ 4,195,056 ​ 7,148,958 Capital expenditures (including non-cash) ​ 32,696 ​ 94,889 ​ 127,585 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, 2021 ​ ​ SkyWest ​ SkyWest ​ ​ ​ Airlines Leasing Consolidated Operating revenues (1) ​ $ 406,450 ​ $ 128,105 ​ $ 534,555 Operating expense ​ 387,870 ​ 65,843 ​ 453,713 Depreciation and amortization expense ​ 50,326 ​ 59,271 ​ 109,597 Interest expense ​ 3,129 ​ 28,225 ​ 31,354 Segment profit (2) ​ 15,451 ​ 34,037 ​ 49,488 Total assets (as of March 31, 2021) ​ 2,924,598 ​ 3,970,087 ​ 6,894,685 Capital expenditures (including non-cash) ​ 35,206 ​ 22,302 ​ 57,508 (1) Prorate revenue and airport customer service revenue are primarily reflected in the SkyWest Airlines segment. (2) Segment profit (loss) is equal to operating income less interest expense.

Leases, Commitments and Conti_2

Leases, Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2022
Leases, Commitments and Contingencies
Summary of related terms and discount rates	​ ​ ​ ​ As of March 31, 2022 Weighted-average remaining lease term for operating leases 6.2 years Weighted-average discount rate for operating leases 6.0%
Summary of lease costs	The Company’s lease costs for the three months ended March 31, 2022 and 2021 included the following components (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ 2022 2021 Operating lease cost ​ $ 21,841 ​ $ 22,127 Variable and short-term lease cost ​ 1,018 ​ 1,224 Sublease income ​ ​ (1,803) ​ ​ (1,335) Total lease cost ​ $ 21,056 ​ $ 22,016
Schedule of future minimum rental payments for operating leases	The following table summarizes future minimum rental payments primarily related to leased aircraft required under operating leases that had initial or remaining non-cancelable lease terms as of March 31, 2022 (in thousands): ​ ​ ​ ​ ​ April 2022 through December 2022 $ 66,742 2023 ​ 76,049 2024 ​ 32,144 2025 ​ 17,568 2026 ​ 15,491 Thereafter ​ 72,827 ​ ​ $ 280,821
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 Apr - Dec 2022 2023 2024 2025 2026 Thereafter Operating lease payments for aircraft and facility obligations ​ $ 280,821 ​ $ 66,742 ​ $ 76,049 ​ $ 32,144 ​ $ 17,568 ​ $ 15,491 ​ $ 72,827 Firm aircraft and spare engine commitments ​ 679,789 ​ ​ 653,270 ​ ​ 26,519 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Interest commitments (1) ​ 485,584 ​ ​ 87,784 ​ ​ 103,072 ​ ​ 86,121 ​ ​ 68,249 ​ ​ 51,641 ​ ​ 88,717 Principal maturities on long-term debt ​ 3,232,430 ​ ​ 315,901 ​ ​ 422,380 ​ ​ 418,088 ​ ​ 485,348 ​ ​ 429,621 ​ ​ 1,161,092 Total commitments and obligations ​ $ 4,678,624 ​ $ 1,123,697 ​ $ 628,020 ​ $ 536,353 ​ $ 571,165 ​ $ 496,753 ​ $ 1,322,636 (1) At March 31, 2022, the Company’s long-term debt had fixed interest rates.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 ​ Total Level 1 Level 2 Level 3 Marketable Securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bonds and bond funds ​ $ 170,918 ​ $ — ​ $ 170,918 ​ $ — Commercial paper ​ 439,532 ​ — ​ 439,532 ​ — ​ ​ $ 610,450 ​ $ — ​ $ 610,450 ​ $ — Cash and Cash Equivalents ​ ​ 246,001 ​ ​ 246,001 ​ ​ — ​ ​ — Total Assets Measured at Fair Value ​ $ 856,451 ​ $ 246,001 ​ $ 610,450 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements as of December 31, 2021 ​ ​ Total ​ Level 1 ​ Level 2 ​ Level 3 Marketable Securities ​ ​ ​ ​ Bonds and bond funds ​ $ 54,673 ​ $ — ​ $ 54,673 ​ $ — Commercial paper ​ 547,316 ​ — ​ 547,316 ​ — ​ ​ $ 601,989 ​ $ — ​ $ 601,989 ​ $ — Cash and Cash Equivalents ​ ​ 258,421 ​ ​ 258,421 ​ ​ — ​ ​ — Total Assets Measured at Fair Value ​ $ 860,410 ​ $ 258,421 ​ $ 601,989 ​ $ — ​

Long-term Debt (Tables)

Long-term Debt (Tables)	3 Months Ended
	Mar. 31, 2022
Long-term Debt
Schedule of long-term debt	Long-term debt consisted of the following as of March 31, 2022, and December 31, 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ ​ December 31, 2021 Current portion of long-term debt $ 413,703 ​ $ 395,371 Current portion of unamortized debt issue cost, net ​ (3,579) ​ ​ (3,573) Current portion of long-term debt, net of debt issue costs $ 410,124 ​ $ 391,798 ​ ​ ​ ​ ​ ​ Long-term debt, net of current maturities $ 2,818,727 ​ $ 2,745,567 Long-term portion of unamortized debt issue cost, net ​ (27,453) ​ ​ (28,147) Long-term debt, net of current maturities and debt issue costs $ 2,791,274 ​ $ 2,717,420 ​ ​ ​ ​ ​ ​ Total long-term debt (including current portion) $ 3,232,430 ​ $ 3,140,938 Total unamortized debt issue cost, net ​ (31,032) ​ ​ (31,720) Total long-term debt, net of debt issue costs $ 3,201,398 ​ $ 3,109,218

Flying Agreements Revenue and_3

Flying Agreements Revenue and Lease, Airport Services and Other Revenues (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)aircraft	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)
Agreements with other airlines
Percentage of ASMs flown under fixed-fee arrangements	88.80%	86.60%
Percentage of ASMs flown under pro-rate arrangements	11.20%	13.40%
Rental income under operating leases
Operating lease revenue	$ 16,555	$ 14,950
Total operating revenues	735,152	534,555
Future minimum rental income
April 2022 through December 2022	34,054
2023	44,677
2024	42,593
2025	39,145
2026	34,516
Thereafter	120,636
Total	315,621
Deferred revenue recognized	7,500
Unbilled revenue recognized	3,600
Deferred revenue	96,400	21,200	$ 103,900
Deferred revenue in other current liabilities	33,000		24,500
Deferred revenue in other long-term liabilities	63,400		79,400
Property and equipment and related assets	5,528,821		5,498,599
Gross receivables current	89,400
Gross receivables Non-current	232,100
Credit loss reserve	42,100		42,000
Increase in credit loss reserves	100
Other Noncurrent Assets
Future minimum rental income
Unbilled revenue	$ 12,000		$ 8,400
Aircraft in schedule service or under contract
Future minimum rental income
Number of aircraft | aircraft	513
United
Future minimum rental income
Number of aircraft | aircraft	220
Delta
Future minimum rental income
Number of aircraft | aircraft	149
American
Future minimum rental income
Number of aircraft | aircraft	108
Jet aircraft and spare engines leased to third parties
Future minimum rental income
Property and equipment and related assets	$ 246,900
CRJ 200 | United | United Express Agreements
Future minimum rental income
Number of aircraft | aircraft	70
CRJ 200 | United | United Express Prorate Agreement
Future minimum rental income
Number of aircraft | aircraft	41
Agreement term	120 days
CRJ 200 | Delta | Delta Capacity Purchase Agreement
Future minimum rental income
Number of aircraft | aircraft	9
CRJ 200 | Delta | Delta Connection Prorate Agreement
Future minimum rental income
Number of aircraft | aircraft	20
Agreement term	30 days
CRJ 700 | United | United Express Agreements
Future minimum rental income
Number of aircraft | aircraft	19
CRJ 700 | Delta | Delta Connection Agreements
Future minimum rental income
Number of aircraft | aircraft	5
CRJ 700 | American
Future minimum rental income
Number of aircraft under purchase agreement | aircraft	11
CRJ 700 | American | American Capacity Purchase Agreement
Future minimum rental income
Number of aircraft | aircraft	90
CRJ 900 | Delta | Delta Connection Agreements
Future minimum rental income
Number of aircraft | aircraft	44
E175
Future minimum rental income
Number of aircraft under purchase agreement | aircraft	25
E175 | Sky West Airlines Inc. | Delta Capacity Purchase Agreement
Future minimum rental income
Number of aircraft under purchase agreement | aircraft	16
Number of aircraft to be placed by 2022 | aircraft	16
E175 | Sky West Airlines Inc. | Alaska Capacity Purchase Agreement
Future minimum rental income
Number of aircraft | aircraft	36
Number of aircraft under purchase agreement | aircraft	7
E175 | United | United Express Agreements
Future minimum rental income
Number of aircraft | aircraft	90
E175 | Delta | Delta Connection Agreements
Future minimum rental income
Number of aircraft | aircraft	71
E175 | American
Future minimum rental income
Number of aircraft under purchase agreement | aircraft	2
E175 | American | American Capacity Purchase Agreement
Future minimum rental income
Number of aircraft | aircraft	18
Flying agreements
Rental income under operating leases
Total operating revenues	$ 708,063	511,191
Flight operations
Rental income under operating leases
Total operating revenues	348,474	211,052
Aircraft lease and fixed revenue
Rental income under operating leases
Total operating revenues	280,419	231,491
Prorate agreements
Rental income under operating leases
Total operating revenues	79,170	68,648
Airport customer service and other revenue
Rental income under operating leases
Total operating revenues	10,534	8,414
Lease, airport services and other.
Rental income under operating leases
Total operating revenues	$ 27,089	$ 23,364

Share-Based Compensation (Detai

Share-Based Compensation (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)item$ / sharesshares	Mar. 31, 2021USD ($)
Share-Based Compensation
Upon vesting, each restricted stock unit and performance share replaced with common stock	1
Stock based compensation expense | $	$ 4.1	$ 2.6
Restricted Stock Units (RSUs)
Share-Based Compensation
Granted (in dollars per share) | $ / shares	$ 32.86
Restricted Stock Units (RSUs) | Long Term Incentive Plan 2019
Share-Based Compensation
Granted (in shares)	66,680
Vesting period	3 years
Performance stock units
Share-Based Compensation
Granted (in dollars per share) | $ / shares	$ 32.86
Performance stock units | Long Term Incentive Plan 2019
Share-Based Compensation
Granted (in shares)	221,942
Vesting period	3 years
Number of performance period | item	3
Performance period	1 year
Performance stock units | Minimum | Long Term Incentive Plan 2019
Share-Based Compensation
Award percentage	0.00%
Performance stock units | Maximum | Long Term Incentive Plan 2019
Share-Based Compensation
Award percentage	250.00%
Director
Share-Based Compensation
Granted (in shares)	24,423
Granted (in dollars per share) | $ / shares	$ 32.86

Net Income Per Common Share (De

Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Number of outstanding units not included in computation of Diluted EPS (in shares)	361,000	295,000
Numerator:
Net income (loss)	$ 17,734	$ 35,900
Denominator:
Basic earnings per share weighted average shares	50,480,000	50,286,000
Dilution due to stock options and restricted stock units	228,000	441,000
Diluted earnings per share weighted average shares	50,708,000	50,727,000
Basic earnings per share (in dollars per share)	$ 0.35	$ 0.71
Diluted earnings per share (in dollars per share)	$ 0.35	$ 0.71
Tranche One
Warrants to purchase shares	125,000
Warrants exercise price	$ 40.41
Tranche Two
Warrants to purchase shares	78,000
Warrants exercise price	$ 57.47

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)segment	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)
Segment Reporting
Number of reporting segments | segment	2
Operating revenues	$ 735,152	$ 534,555
Operating expense	683,104	453,713
Depreciation and amortization expense	102,745	109,597
Interest expense	28,592	31,354
Segment profit (loss)	23,456	49,488
Total assets (as of March 31)	7,148,958	6,894,685	$ 7,125,947
Capital expenditures (including non-cash)	127,585	57,508
SkyWest Airlines
Segment Reporting
Operating revenues	603,048	406,450
Operating expense	621,028	387,870
Depreciation and amortization expense	47,694	50,326
Interest expense	1,789	3,129
Segment profit (loss)	(19,769)	15,451
Total assets (as of March 31)	2,953,902	2,924,598
Capital expenditures (including non-cash)	32,696	35,206
SkyWest Leasing
Segment Reporting
Operating revenues	132,104	128,105
Operating expense	62,076	65,843
Depreciation and amortization expense	55,051	59,271
Interest expense	26,803	28,225
Segment profit (loss)	43,225	34,037
Total assets (as of March 31)	4,195,056	3,970,087
Capital expenditures (including non-cash)	$ 94,889	$ 22,302

Leases, Commitments and Conti_3

Leases, Commitments and Contingencies (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)aircraft	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 223,856		$ 238,516
Current maturities of lease liabilities	78,930		78,886
Noncurrent operating leases	147,994		$ 158,274
Operating leases	$ 14,700
Weighted-average remaining lease term for operating leases	6 years 2 months 12 days
Weighted-average discount rate for operating leases	6.00%
Lease costs
Operating lease cost	$ 21,841	$ 22,127
Variable and short-term lease cost	1,018	1,224
Sublease income	(1,803)	(1,335)
Total lease cost	$ 21,056	$ 22,016
Aircraft
Lessee, Lease, Description [Line Items]
Number of aircraft acquired | aircraft	43
Aircraft | Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	2 years
Aircraft | Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	8 years
Airport Facilities | Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 month
Airport Facilities | Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	34 years

Leases, Commitments and Conti_4

Leases, Commitments and Contingencies - Operating Leases (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)aircraft
Future minimum rental payments required under operating leases
April 2022 through December 2022	$ 66,742
2023	76,049
2024	32,144
2025	17,568
2026	15,491
Thereafter	72,827
Total	$ 280,821
E175
Future minimum rental payments required under operating leases
Number of aircraft under purchase agreement | aircraft	25

Leases, Commitments and Conti_5

Leases, Commitments and Contingencies - Commitments and Obligations (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Operating lease payments for aircraft and facility obligations
Apr - Dec 2022	$ 66,742
2023	76,049
2024	32,144
2025	17,568
2026	15,491
Thereafter	72,827
Total	280,821
Firm aircraft and spare engine commitments
Apr - Dec 2022	653,270
2023	26,519
Total	679,789
Interest commitments
Apr - Dec 2022	87,784
2023	103,072
2024	86,121
2025	68,249
2026	51,641
Thereafter	88,717
Total	485,584
Principal maturities on long-term debt
Apr - Dec 2022	315,901
2023	422,380
2024	418,088
2025	485,348
2026	429,621
Thereafter	1,161,092
Total long-term debt	3,232,430	$ 3,140,938
Total commitments and obligations
Apr - Dec 2022	1,123,697
2023	628,020
2024	536,353
2025	571,165
2026	496,753
Thereafter	1,322,636
Total	$ 4,678,624

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value Measurements
Marketable securities	$ 610,450	$ 601,989
Carrying amount of long-term debt	3,201,398	3,109,218
Recurring | Estimate of Fair Value Measurement
Fair Value Measurements
Marketable securities	610,450	601,989
Cash and cash equivalents	246,001	258,421
Total Assets Measured at Fair Value	856,451	860,410
Cost of cash and cash equivalents and available for sale securities	856,400	860,400
Recurring | Estimate of Fair Value Measurement | Corporate Bond Securities
Fair Value Measurements
Marketable securities	170,918	54,673
Recurring | Estimate of Fair Value Measurement | Commercial Paper
Fair Value Measurements
Marketable securities	439,532	547,316
Recurring | Level 1
Fair Value Measurements
Cash and cash equivalents	246,001	258,421
Total Assets Measured at Fair Value	246,001	258,421
Recurring | Level 2
Fair Value Measurements
Marketable securities	610,450	601,989
Total Assets Measured at Fair Value	610,450	601,989
Fair value of long-term debt	3,200,000	3,200,000
Carrying amount of long-term debt	3,200,000	3,100,000
Recurring | Level 2 | Corporate Bond Securities
Fair Value Measurements
Marketable securities	170,918	54,673
Recurring | Level 2 | Commercial Paper
Fair Value Measurements
Marketable securities	$ 439,532	$ 547,316

Long-term Debt (Details)

Long-term Debt (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)aircraft	Dec. 31, 2021USD ($)
Debt Instrument [Line Items]
Current portion long-term debt	$ 413,703	$ 395,371
Current portion of unamortized debt issue cost, net	(3,579)	(3,573)
Current portion of long-term debt, net of debt issue costs	410,124	391,798
Long-term debt, net of current maturities	2,818,727	2,745,567
Long-term portion of unamortized debt issue cost, net	(27,453)	(28,147)
Long-term debt, net of current maturities and debt issue costs	2,791,274	2,717,420
Total long-term debt (including current portion)	3,232,430	3,140,938
Total unamortized debt issue cost, net	(31,032)	(31,720)
Total long-term debt, net of debt issue costs	3,201,398	3,109,218
Long-term debt	3,201,398	$ 3,109,218
Amount outstanding	0
Maximum borrowing capacity	100,000
Current borrowing capacity	68,600
Letters of credit and surety bonds
Debt Instrument [Line Items]
Letters of credit and surety bonds outstanding with various banks and surety institutions	61,400
Letters of credit
Debt Instrument [Line Items]
Amount outstanding	$ 31,400
Promissory note
Debt Instrument [Line Items]
Debt instrument, term	3 years
Interest rate (as a percent)	3.60%
Principal amount	$ 102,900
E175
Debt Instrument [Line Items]
Number of aircraft delivered | aircraft	4
Purchase of aircraft financed through long-term debt	$ 82,800
Minimum | E175
Debt Instrument [Line Items]
Debt instrument, term	5 years
Maximum | E175
Debt Instrument [Line Items]
Debt instrument, term	10 years

Investment in Other Companies (

Investment in Other Companies (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022USD ($)	Dec. 31, 2022aircraft	Dec. 31, 2020USD ($)	Dec. 31, 2021USD ($)
Long-term debt	$ 3,201,398			$ 3,109,218
Eve UAM, LLC ("Eve") | Strategic partnership | Electric vertical takeoff and landing ("eVTOL") aircraft | Forecast
Non-binding letter of intent to purchase number of aircraft | aircraft		100
Aero Engines, LLC.
Payments to acquire interest in joint venture			$ 22,300
Investment ownership (as a percent)	75.00%		75.00%
Additional interest in Joint venture	$ 3,300		$ 1,000
Long-term debt	0
Investment balance in Aero Engines	23,900
Aero Engines, LLC. | Other Nonoperating Income.
Company's portion of loss generated by Aero Engines	$ 400

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Taxes
Effective tax rate (as a percent)	28.40%	28.20%
Statutory Federal income tax rate (as a percent)	21.00%	21.00%