Total Revenue

+19% ( " " " )

The increase from $867.1 million in Q2 2024 to $1,035.227 million in Q2 2025 reflects a continuation of strong performance seen in earlier periods, driven by higher block hour production and improved aircraft utilization. This robust growth is supported by gains in both flying agreements and the lease, airport services, and other segments, building on previous increases in capacity and market expansion initiatives. ( " " " )

Flying Agreements

+18% ( " " " )

The rise from $838.2 million in Q2 2024 to $987.511 million in Q2 2025 is largely due to increased block hours (as seen in earlier periods with a 21.5% jump in Q1 2025) and improved fleet utilization. The growth also benefits from ongoing enhancements in capacity purchase agreements, deferred revenue recognition shifts, and additional fleet agreements established in previous periods. ( " " " )

Lease, Airport Services, and Other

+65% ( " " " )

The substantial jump from $28.9 million in Q2 2024 to $47.716 million in Q2 2025 is driven by renewed expansion in the number of leased assets and higher lease rates for third-party contracts. This aggressive recovery builds on earlier improvements noted in Q1 2025 and marks a significant turnaround from prior declines linked to reduced airport service locations. ( " " " )

Block Hours

FY 2025

12%-13% increase over 2024 "

14% increase over 2024 " "

raised

EPS

FY 2025

low to mid $9 per share area "

$10 per share area "

raised

Deferred Revenue Recognition

FY 2025

$10M-$20M per quarter "

$10M-$20M per quarter "

no change

Maintenance Expense

FY 2025

a little over $200 million per quarter "

continuing at Q2 levels, adjusted for production " "

no change

Effective Tax Rate

FY 2025

approximately 26% "

approximately 26% to 27% "

raised

Capital Expenditures (CapEx)

FY 2025

$575M-$600M "

$575M-$625M "

raised

Operating Leverage

FY 2025

no prior guidance

roughly 28% increase in EPS "

no prior guidance

Fleet Flexibility & Modernization

Previously, Q1 2025 materials highlighted reactivating stored CRJ aircraft and new orders for dual-class E175s with flexible terms ( " " ), Q4 2024 emphasized long‐term contracts and transitioning fleets ( " ), and Q3 2024 discussed multiyear agreements and deployment of CRJ550s ( " " ).

Q2 2025 reinforced fleet flexibility by detailing the return of 25 dual-class CRJs, over 40 CRJ200s, a purchase of 30 used CRJ900 airframes, new purchase agreements for 60 firm E175s (with additional options), and an expanded CRJ550 fleet ( " " " " " " ).

Consistent focus on modernizing and flexibly deploying the fleet, with an even greater proactive approach in Q2 2025 to mitigate supply chain and tariff challenges.

Robust Demand Growth & Increased Utilization

In Q1 2025, strong demand was noted with robust production growth and utilization improvements ( " " " ); Q4 2024 emphasized a 12% block hour increase with community and prorate business support ( " " " ); and Q3 2024 highlighted near pre-pandemic production levels and new capacity via agreements ( " " ).

Q2 2025 continued this narrative by noting a 7% increase in block hours from Q1, a projected 14% year‐over‐year rise in 2025, reactivation of parked aircraft, and the return of seasonality in block hour production ( " " " " " " ).

Persistent strong demand and higher utilization across periods, with Q2 2025 showing even greater optimism as production nears pre-pandemic levels.

Maintenance, MRO & Supply Chain Challenges

Q1 2025 discussed challenges in third‐party MRO networks and the use of used CRJ900 airframes to mitigate supply chain issues ( " ); Q4 2024 mentioned rising maintenance expenses and labor/parts issues ( " ); and Q3 2024 stressed increasing maintenance costs and slow aircraft reactivation due to MRO constraints ( " " " ).

Q2 2025 focused on maintaining Q2 levels of maintenance expense despite increasing production, proactively purchasing used CRJ900s for parts, working with MHI and GE, and underscored fleet flexibility to manage delays ( " " " " ).

Ongoing challenges in maintenance and supply chain remain, though proactive mitigation measures are in place; the sentiment is cautious but confident in managing these issues.

Regulatory Dynamics & Charter/Essential Air Service

Q1 2025 highlighted regulatory delays for SkyWest Charter approval and the strong demand for small community air service ( " " " ); Q4 2024 focused on proactively reengaging with the FAA and monitoring Essential Air Service dynamics ( " " " ); Q3 2024 reiterated commitment to underserved communities and growing charter business ( " ).

Q2 2025 discussed tariffs as part of regulatory challenges, noted optimism about receiving commuter authorization for charter operations, and emphasized strong demand in small and mid‐sized communities with effective regulatory navigation ( " " ).

A consistently high priority across periods with steady optimism; in Q2 2025, regulatory discussions expanded to include tariff issues while maintaining focus on community air service.

Capital Allocation & CapEx Management

Q1 2025 materials focused on disciplined capital deployment, significant share repurchases, free cash flow generation, and debt repayment ( " " " ); Q4 2024 detailed $340‑million CapEx in 2024, share repurchase activity, and debt reduction ( " " ); and Q3 2024 reiterated strong liquidity and opportunistic capital allocation ( " " ).

Q2 2025 discussed a flexible CapEx regime with forecast expenditures of $575–625 million, continuous share repurchase and deleveraging strategy, and the ability to defer aircraft deliveries if needed ( " " " " ).

Steady emphasis on capital discipline throughout, with Q2 2025 maintaining a robust financial strategy and flexibility to adjust investments amid external uncertainties.

Pilot Shortage & Staffing Challenges

Q1 2025 acknowledged ongoing pilot shortages and highlighted steps taken to stabilize staffing ( " " " ); Q4 2024 noted a shift toward a more measured, disciplined hiring pace given lower utilization compared to 2019 ( " ); and Q3 2024 observed improvements with pilot numbers approaching pre-pandemic levels ( " ).

Q2 2025 made only indirect mentions by noting proactive engine maintenance during the pilot shortage period and the reactivation of parked aircraft, implying improvements ( " " ).

While initially a major concern, pilot staffing challenges appear to be easing; Q2 2025 reflects a reduced emphasis, signaling improvement and stabilization in staffing levels.

Tariff & Trade Uncertainty

Not mentioned in Q1 2025, Q4 2024, or Q3 2024 ( " " " " ).

Q2 2025 introduced a detailed discussion on the 10% tariff—applied only to certain components—and the potential impact on Embraer deliveries, along with plans to delay deliveries if a 50% tariff were imposed ( " " " ).

A new emergent topic in Q2 2025 that indicates rising concerns over trade uncertainty, highlighting the need for flexible delivery scheduling and enhanced collaboration with partners.

Contract Management & Dependency Risks

Q1 2025 reviewed extensions of key contracts with Delta, American Airlines, and United, alongside managing dependency risks in CPA revenues ( " " " " ); Q4 2024 reinforced long‐term agreements and contract flying as a foundation ( " " " ); and Q3 2024 touched on partner dependency via agreements though less explicitly ( " " ).

Q2 2025 did not specifically address contract management or dependency risks.

Previously a consistent focus with structured long‑term contracts, the topic is less emphasized in Q2 2025, possibly sidelined by more pressing issues like tariffs and supply chain challenges.

Market Expansion & Service Restoration Opportunities

Q1 2025 discussed strong initiatives to restore service in underserved markets via additional CRJ550s and charter models ( " " " " ); Q4 2024 emphasized returning service to communities and leveraging the essential air service program ( " " " ); and Q3 2024 highlighted expansion into new cities and reentry into withdrawn markets with a focus on prorate business ( " " " " ).

Q2 2025 reinforced the commitment to market expansion by citing the robust demand in small and mid‑sized communities, proactive restoration of service, and strong community support for prorate business expansions ( " " " ).

Continued and consistent optimism regarding market expansion and service restoration, with Q2 2025 reinforcing strategies to capitalize on underserved community demand amid operational improvements.