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# SkyWest Guides 2027 Earnings Per Share Flat With 2026 As Non-Cash Costs Rise
- URL: https://www.bullished.co/skywest-guides-2027-earnings-per-share-flat-with-2026-as-non-cash-costs-rise-bad89ab4/
- Published: 2026-10-30T05:06:33.000Z
- Updated: 2026-10-30T05:06:33.000Z
- Description: The CFO said new E175 jets and other cash earnings offset a $30 million drop in deferred revenue and higher depreciation.
- Author: Matteo Parrino
- Tags: Earnings, SKYW, Industry: Industrials

SkyWest Chief Financial Officer Rob Simmons said on the regional airline's third-quarter earnings call Thursday that 2027 earnings per share will be [similar to 2026](https://www.benzinga.com/news/26/10/62722983/skywest-q3-2026-earnings-call-transcript?ref=bullished.co), with block hours up 1% to 2%. He said non-cash accounting costs are being offset by cash earnings from new E175 aircraft.

## A $10.60 year, then a repeat

[SkyWest](https://www.bullished.co/tag/skyw/), which flies as United Express, Delta Connection, American Eagle and Alaska Airlines for those carriers, reported third-quarter net income of [$120 million, or $3.08 per diluted share](https://finance.yahoo.com/markets/stocks/articles/skywest-skyw-q3-earnings-revenues-220511638.html?.tsrc=rss&ref=bullished.co). Revenue of $1.1 billion rose 6% from the third quarter of 2025.

Simmons said 2026 EPS should land in the [$10.60 area](https://www.benzinga.com/news/26/10/62722983/skywest-q3-2026-earnings-call-transcript?ref=bullished.co), up from $10.35 in 2025\. Last quarter's color was in the area of $11\. Fuel is the reason: the company had assumed $3.65 a gallon for the second half, and the third quarter came in at $4.56 on its prorate flying, a hit of about $13 million, or 26 cents a share. The fourth-quarter assumption is $4.90.

For 2027, the fuel assumption is $4.30 a gallon on 60 million gallons. Each $1 drop in that price would add $1.20 of EPS, Simmons said.

## Non-cash drags, cash offsets

SkyWest expects to recognize about $70 million of previously deferred revenue in 2027, down from roughly $100 million in 2026\. Simmons put the $30 million gap at about 60 cents of EPS and called it "a non-cash variance." He said smaller recognition is likely to be a modest headwind for several years.

Depreciation is set to reach $350 million in 2027 from roughly $338 million in 2026, reflecting 18 new E175 deliveries. In the third quarter the company stretched the E175's estimated useful life to 30 years from 22, which cut depreciation by $16 million.

Simmons said those drags are being offset by cash earnings from the new E175s and other fleet projects. Flat EPS guidance therefore leaves out the better quality of cash flow, he told an analyst at TD Cowen.

## Spending now, payoff in 2028

Capital spending is projected at about $825 million in 2027, versus about $725 million in 2026, including roughly $525 million for the 18 E175s, to be financed with debt. Cash ended the quarter at $569 million, and $238 million remained under the buyback authorization.

Wade Steel, president and chief operating officer of SkyWest Airlines, said the full effect of the 18 aircraft will not show in results until 2028\. Delta-owned CRJ900s are due back by mid-2027, and several CRJ200s will sit out for conversion to CRJ450s. The company has 63 E175s on firm order, 33 of them not yet assigned to a partner.

Chip Childs, SkyWest's president and chief executive, said the investments being made now will deliver economic benefits in 2028.

Learn

- [How To Read An Earnings Call Transcript: Start With Guidance, Then Find What's Missing →](https://www.bullished.co/learn/how-to-read-an-earnings-call/)  
How to read an earnings call transcript: check guidance first, look for dropped metrics, compare growth with last quarter, and watch hedged wording.

### Sources

- [SkyWest (SKYW) Q3 Earnings and Revenues Miss Estimates](https://finance.yahoo.com/markets/stocks/articles/skywest-skyw-q3-earnings-revenues-220511638.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [SkyWest GAAP EPS of $3.08 misses by $0.14, revenue of $1.12B misses by $20M](https://seekingalpha.com/news/4660825-skywest-gaap-eps-of-3%5F08-misses-by-0%5F14-revenue-of-1%5F12b-misses-by-20m?ref=bullished.co) — seekingalpha.com
- [SkyWest Q3 2026 Earnings Call Transcript](https://www.benzinga.com/news/26/10/62722983/skywest-q3-2026-earnings-call-transcript?ref=bullished.co) — benzinga.com
- [SkyWest: Q3 Earnings Snapshot | wfaa.com](https://www.wfaa.com/article/syndication/associatedpress/skywest-q3-earnings-snapshot/616-238225ea-2363-4f75-9748-ec23cc17ff18?ref=bullished.co) — Associated Press
- [SkyWest: Q3 Earnings Snapshot | king5.com](https://www.king5.com/article/syndication/associatedpress/skywest-q3-earnings-snapshot/616-238225ea-2363-4f75-9748-ec23cc17ff18?ref=bullished.co) — Associated Press

### More on SkyWest

- [SkyWest Earns $3.08 A Share As A Longer E175 Depreciation Life Offsets Doubled Fuel Bill](https://www.bullished.co/skywest-earns-3-08-a-share-as-a-longer-e175-depreciation-life-offsets-doubled-fuel-bill-5eaaddfa/)

[All SkyWest (SKYW) coverage →](https://www.bullished.co/tag/skyw/)