Here's Why Investors Should Bet on SkyWest Stock Right Now

SkyWest’s SKYW top line is benefiting from robust air travel demand. The company’s expansion strategy and shareholder-friendly initiatives are also encouraging. Due to these tailwinds, SKYW shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.

Let’s delve deeper.

Upsides for SkyWest

Northward Earnings Estimate Revision: The Zacks Consensus Estimate for earnings per share has been revised upward by 2.7% over the past 60 days for the current quarter. For 2025, the consensus mark for earnings per share has moved 3.6% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.

Robust Price Performance: A look at the company’s price trend reveals that its shares have risen 20.4% over the past year, surpassing the  Zacks Transportation – Airline industry’s 19.4% growth.

Positive Earnings Surprise History:SKYW has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 17.1%.

Solid Zacks Rank: SkyWest currently carries a Zacks Rank #2 (Buy).

Bullish Industry Rank: The industry to which SKYW belongs currently has a Zacks Industry Rank of 70 (out of 245). Such a favorable rank places it in the top 29% of Zacks Industries.Studies show that 50% of a stock price movement is directly related to the performance of the industry group to which it belongs.

A mediocre stock within a strong group is likely to outperform a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative.

Growth Factors: SkyWest reported strong year-over-year operational growth in the first quarter of 2025. Total block hours rose 21.5%, driven by increased aircraft utilization across all fleet types. Departures were up 19.1%, while the number of passengers carried grew 13.6%, underscoring robust demand. Operational reliability remained high, with an adjusted flight completion rate of 99.9% and an improved raw flight completion rate of 98.2%.

SkyWest is expanding its E175 fleet to 278 aircraft by the end of 2026, with 16 more set for delivery — 15 for United Airlines and one for Alaska Airlines. This move reinforces E175’s central role in SkyWest’s fleet and strengthens its support of United Airlines’ regional network.

Moreover, SkyWest’s strong financial position reflects its ongoing commitment to shareholder value. In May 2025, the company increased its share repurchase authorization by $250 million, bringing the total to $272 million. Under the program approved in May 2023, SkyWest repurchased 141,000 shares in the first quarter of 2025 for $13.7 million at an average price of $97.27 per share, up from 47,000 shares in the fourth quarter of 2024. As of March 31, 2025, $34 million remained available under the current repurchase program.

Other Airline Stocks to Consider

Investors may also consider Copa Holdings CPA and Wabtec WAB.

Copa Holdings currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

CPA has an expected earnings growth rate of 14% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5.5%. Shares of CPA have risen 16.8% year to date.

Wabtec Group currently carries a Zacks Rank of 2.

WAB has an expected earnings growth rate of 15.3% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once in the remaining, delivering an average beat of 5.9%. Shares of WAB have risen 6.6% year to date.

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This article originally published on Zacks Investment Research (zacks.com).

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