How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in SkyWest (SKYW) ten years ago? It may not have been easy to hold on to SKYW for all that time, but if you did, how much would your investment be worth today?
SkyWest's Business In-Depth
With that in mind, let's take a look at SkyWest's main business drivers.
SkyWest, founded in 1972, is based in St. George, UT and operates as a regional airline in the United States through its subsidiary SkyWest Airlines.
SkyWest is also the holding company of an aircraft leasing company. In January 2019, SkyWest completed the sale of its erstwhile subsidiary, ExpressJet Airlines, to United Airlines joint venture — ManaAir LLC.
SkyWest Airlines offers high-quality regional service to airports located primarily in the Midwestern and Western United States as well as Mexico and Canada. The carrier primarily operates from Chicago (O’Hare), Denver, Houston, Los Angeles, Minneapolis, Phoenix, Salt Lake City, San Francisco and Seattle airports.
Offering scheduled regional airline service under code-share agreements (a deal between airlines allowing them to use each other’s codes on flights among other things) with its airline partners, forms the basis of the company’s operating model. On a daily basis, SkyWest is responsible for operating more than 2,100 flights to multiple destinations in North America.
SkyWest provides regional operations to its major airline partners under long-term, fixed-fee, code-share agreements. The company has codeshare agreements with key airline players like Delta Air Lines, American Airlines, United and Alaska Airlines.
The fixed-fee agreement with these companies obligate the respective major airline partner to refund the amount of fuel costs SkyWest incurs under those agreements.
Under the prorate agreements with Delta, United Airlines, and American Airlines, SkyWest is liable to cover the costs including fuel expenses of operating the concerned flights. Going by historical evidence, these multiple agreements consisting of a mix of fixed-fee and prorate flying arrangements should bolster the company’s operating results.
In 2024, 96.7% of the company's operating revenues of $3.41 billion came from flying agreements. The rest came from airport customer services and others. As of December 31, 2024, SKYW had a total of 492 aircraft in scheduled service or under contract (which includes 262 E175s, 36 CRJ900s, 119 CRJ700s and 75 CRJ200s in its fleet).
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in SkyWest ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in May 2015 would be worth $6,170.88, or a 517.09% gain, as of May 9, 2025, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 167.66% and the price of gold went up 167.29% over the same time frame.
Analysts are anticipating more upside for SKYW.
Shares of SKYW have gained 25.1% in the past year, compared with the 4.4% growth of the industry it belongs to. SKYW's shareholder-friendly approach through share buybacks boost investor confidence and positively impacts the company's bottom line. SkyWest's fleet-modernization efforts are commendable. SKYW has fleet-related agreements with other airline heavyweights like United Airlines and Alaska Airlines. By 2026-end, SKYW is scheduled to operate 278 E175 aircraft.Despite the positives, we advise investors not to buy SKYW now due to the rise in operating expenses which is likely to weigh on SKYW's bottom line. A debt-laden balance sheet continues to act as a major concern.We advise investors to wait for a better entry point. For those who already own the stock, it will be prudent to stay invested.
Shares have gained 18.14% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SkyWest, Inc. (SKYW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
