SKYWEST INC

Previous wording

The following discussion and analysis presents factors that had a material effect on the results of operations of SkyWest, Inc. (“SkyWest,” “we” or “us”) during the three- and six-month periods ended June 30, 2026 and 2025. Also discussed is our financial condition as of June 30, 2026, and December 31, 2025. You should read this discussion in conjunction with our condensed consolidated financial statements for the three and six months ended June 30, 2026, including the notes thereto, appearing elsewhere in this Report. This discussion and analysis contains forward-looking statements. Please refer to the section of this Report entitled “Cautionary Statement Concerning Forward-Looking Statements” for discussion of uncertainties, risks and assumptions associated with these statements.

Current wording

The following discussion and analysis presents factors that had a material effect on the results of operations of SkyWest, Inc. (“SkyWest,” “we” or “us”) during the three- and nine-month periods ended September 30, 2026 and 2025. Also discussed is our financial condition as of September 30, 2026, and December 31, 2025. You should read this discussion in conjunction with our condensed consolidated financial statements for the three and nine months ended September 30, 2026, including the notes thereto, appearing elsewhere in this Report. This discussion and analysis contains forward-looking statements. Please refer to the section of this Report entitled “Cautionary Statement Concerning Forward-Looking Statements” for discussion of uncertainties, risks and assumptions associated with these statements.

Previous wording

Certain of the statements contained in this Report should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “may,” “will,” “expect,” “intend,” “forecast,” “anticipate,” “believe,” “estimate,” “plan,” “project,” “could,” “should,” “hope,” “likely,” and “continue” and similar terms used in connection with statements regarding our outlook, anticipated operations, the revenue environment, our contractual relationships, and our anticipated financial performance. These statements include, but are not limited to, statements about the continued demand for our product, the effect of economic conditions on SkyWest’s business, financial condition and results of operations, SkyWest’s plans with respect to share repurchases, the timing of scheduled aircraft deliveries and returns, including with respect to aircraft for which SkyWest holds firm delivery positions or purchase rights, the transition of the new E175 aircraft to replace existing aircraft in SkyWest’s fleet and the timing thereof, transition of SkyWest’s CRJ200 fleet to the CRJ450 configuration, fleet expansion and anticipated fleet size for SkyWest in upcoming periods, expected production levels in future periods, pilot attrition trends, SkyWest’s coordination with United Airlines, Inc. (“United”), Delta Air Lines, Inc. (“Delta”), American Airlines, Inc. (“American”) and Alaska Airlines, Inc. (“Alaska”) (each, a “major airline partner” and together, “major airline partners”) regarding the delivery of aircraft under previously announced agreements and timing of placing new aircraft deliveries into service, the expected terms, timing and benefits related to SkyWest’s leasing, strategic arrangements, strategic agreements and equity investments in third parties, the potential use of SkyWest Charter, LLC (“SWC”) as a commuter air carrier, SkyWest’s provision of assets to Corporate Flight Management, Inc. d/b/a Contour Airlines, increasing the utilization and efficiency of all fleet types as well as SkyWest’s future financial and operating results, plans, objectives, expectations, estimates, intentions and outlook, and other statements that are not historical facts. All forward-looking statements included in this Report are made as of the date hereof and are based on information available to SkyWest as of such date. SkyWest assumes no obligation to update any forward-looking statements unless required by law. Readers should note that many factors could affect the future operating and financial results of SkyWest and could cause actual results to vary materially from those expressed in forward-looking statements set forth in this Report. These factors include, but are not limited to the challenges of competing successfully in a highly competitive and rapidly changing industry; developments associated with fluctuations in the economy and the demand for air travel, includ…

Excerpt shortened here; the source contains the full paragraph.

Current wording

Certain of the statements contained in this Report should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “may,” “will,” “expect,” “intend,” “forecast,” “anticipate,” “believe,” “estimate,” “plan,” “project,” “could,” “should,” “hope,” “likely,” and “continue” and similar terms used in connection with statements regarding our outlook, anticipated operations, the revenue environment, our contractual relationships, and our anticipated financial performance. These statements include, but are not limited to, statements about the continued demand for our product, the effect of economic conditions on SkyWest’s business, financial condition and results of operations, SkyWest’s plans with respect to share repurchases, the timing of scheduled aircraft deliveries and returns, including with respect to aircraft for which SkyWest holds firm delivery positions or purchase rights, the transition of the new E175 aircraft to replace existing aircraft in SkyWest’s fleet and the timing thereof, transition of SkyWest’s CRJ200 fleet to the CRJ450 configuration, fleet expansion and anticipated fleet size for SkyWest in upcoming periods, expected production levels in future periods, pilot attrition trends, SkyWest’s coordination with United Airlines, Inc. (“United”), Delta Air Lines, Inc. (“Delta”), American Airlines, Inc. (“American”) and Alaska Airlines, Inc. (“Alaska”) (each, a “major airline partner” and together, “major airline partners”) regarding the delivery of aircraft under previously announced agreements and timing of placing new aircraft deliveries into service, the expected terms, timing and benefits related to SkyWest’s leasing, strategic arrangements, strategic agreements and equity investments in third parties, increasing the utilization and efficiency of all fleet types as well as SkyWest’s future financial and operating results, plans, objectives, expectations, estimates, intentions and outlook, and other statements that are not historical facts. All forward-looking statements included in this Report are made as of the date hereof and are based on information available to SkyWest as of such date. SkyWest assumes no obligation to update any forward-looking statements unless required by law. Readers should note that many factors could affect the future operating and financial results of SkyWest and could cause actual results to vary materially from those expressed in forward-looking statements set forth in this Report. These factors include, but are not limited to the challenges of competing successfully in a highly competitive and rapidly changing industry; developments associated with fluctuations in the economy and the demand for air travel, including related to inflationary pressures, and related decreases in customer demand and spending; uncertainty regarding potential future outbreaks of infectious diseases or…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

used in connection with maintenance and repairs of the aircraft; the availability of suitable replacement aircraft for aging aircraft; the impact of enacted and proposed U.S. tariffs on global economic conditions and the financial markets, passenger demand, the cost of aircraft parts and supplies sourced internationally and the cost of service providers located outside of the United States; the impact of potential future U.S. government shutdowns on air traffic controller staffing, flight cancellations and federal Essential Air Service subsidies; the possibility that the stock repurchase program may be suspended or discontinued at any time; as well as the other factors identified under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, under the heading “Risk Factors” in Part II, Item 1A of this Report, elsewhere in this Report, in our other filings with the Securities and Exchange Commission (the “SEC”) and other unanticipated factors.

Current wording

connection with maintenance and repairs of the aircraft; the availability of suitable replacement aircraft for aging aircraft; the impact of enacted and proposed U.S. tariffs on global economic conditions and the financial markets, passenger demand, the cost of aircraft parts and supplies sourced internationally and the cost of service providers located outside of the United States; the impact of potential future U.S. government shutdowns on air traffic controller staffing, flight cancellations and federal Essential Air Service subsidies; the possibility that the stock repurchase program may be suspended or discontinued at any time; as well as the other factors identified under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, under the heading “Risk Factors” in Part II, Item 1A of this Report, elsewhere in this Report, in our other filings with the Securities and Exchange Commission (the “SEC”) and other unanticipated factors.

Previous wording

We have the largest regional airline operation in the United States through our operating subsidiary SkyWest Airlines, Inc. (“SkyWest Airlines”). As of June 30, 2026, we offered scheduled passenger and air freight service with approximately 2,510 total daily departures to destinations in the United States, Canada and Mexico. Our fleet of Embraer E175 regional jet aircraft (“E175”), Canadair CRJ900 regional jet aircraft (“CRJ900”), Embraer E170 regional jet aircraft (“E170”) and Canadair CRJ700 regional jet aircraft (“CRJ700”), including a 50-seat configuration of the CRJ700 aircraft, commonly referred to as a “CRJ550,” have a multiple-class seat configuration, whereas our Canadair CRJ200 regional jet aircraft (“CRJ200”) have a single-class seat configuration. SWC offers on-demand charter services using CRJ200 aircraft in a 30-seat configuration. As of June 30, 2026, we had 642 total aircraft in our fleet, including 517 aircraft in scheduled service or under contract pursuant to our code-share agreements, summarized as follows:

Current wording

We have the largest regional airline operation in the United States through our operating subsidiary SkyWest Airlines, Inc. (“SkyWest Airlines”). As of September 30, 2026, we offered scheduled passenger and air freight service with approximately 2,450 total daily departures to destinations in the United States, Canada and Mexico. Our fleet of Embraer E175 regional jet aircraft (“E175”), Embraer E170 regional jet aircraft (“E170”), Canadair CRJ900 regional jet aircraft (“CRJ900”) and Canadair CRJ700 regional jet aircraft (“CRJ700”), including a 50-seat configuration of the CRJ700 aircraft, commonly referred to as a “CRJ550,” have a multiple-class seat configuration, whereas our Canadair CRJ200 regional jet aircraft (“CRJ200”) have a single-class seat configuration. SkyWest Charter, LLC (“SWC”) offers on-demand charter services using CRJ200 aircraft in a 30-seat configuration. As of September 30, 2026, we had 645 total aircraft in our fleet, including 522 aircraft in scheduled service or under contract pursuant to our code-share agreements, summarized as follows:

Previous wording

Our business model is based on providing scheduled regional airline service under code-share agreements (commercial agreements between airlines that, among other things, allow one airline to use another airline’s flight designator codes on its flights) with our major airline partners. In exchange for such services, our major airline partners pay us either fixed fees to operate the flight, referred to as “capacity purchase agreement,” or we receive a percentage of applicable passenger ticket revenues on the designated flights we operate, referred to as “prorate agreement.” Our success is principally centered on our ability to meet the needs of our major airline partners by providing a reliable and safe operation at attractive economics. From June 30, 2025, to June 30, 2026, we made changes to our fleet, including the addition of seven new E175 aircraft.

Current wording

Our business model is based on providing scheduled regional airline service under code-share agreements (commercial agreements between airlines that, among other things, allow one airline to use another airline’s flight designator codes on its flights) with our major airline partners. In exchange for such services, our major airline partners pay us either fixed fees to operate the flight, referred to as a “capacity purchase agreement,” or we receive a percentage of applicable passenger ticket revenues on the designated flights we operate, referred to as a “prorate agreement.” Our success is principally centered on our ability to meet the needs of our major airline partners by providing a reliable and safe operation at attractive economics. From September 30, 2025, to September 30, 2026, we made changes to our fleet, including the addition of 11 new E175 aircraft.

Previous wording

We anticipate our fleet will continue to evolve, as we are scheduled to add a total of seven new E175 aircraft with United in 2026, 11 new E175 aircraft with American between 2026 and 2027 (which are expected to replace 11 CRJ700s we are currently flying under contract with American) and 16 new E175 aircraft with Delta between 2027 and

Current wording

We anticipate our fleet will continue to evolve, as we are scheduled to add a total of three new E175 aircraft with United in 2026, 11 new E175 aircraft with American between 2026 and 2027 (which are expected to replace 11

Previous wording

2028 (which are expected to replace 16 CRJs we are currently flying under contract with Delta). We also have multiple agreements with United to place 12 used CRJ550 aircraft into service in 2026. Timing of placing these additional aircraft into service, including delivery timing on acquired aircraft, may be subject to change. As of June 30, 2026, we operated 19 CRJ900s owned by Delta, and we anticipate returning these 19 aircraft to Delta over the next two years. Our primary objective in the fleet changes is to improve our profitability by adding new E175 aircraft and used CRJ700, CRJ550, CRJ900 and E175 aircraft, commonly referred to as “dual-class aircraft” due to the first-class seat offerings, to our capacity purchase agreements or prorate agreements, and potentially removing older aircraft from service that typically require higher maintenance costs. Additionally, during the six months ended June 30, 2026, we announced a new configuration of the CRJ200 aircraft that will have 41 seats, including seven first-class seats (referred to as a “CRJ450” aircraft). We anticipate operating the first CRJ450 in scheduled service by the end of 2026. We anticipate completing the conversion of approximately 50 CRJ200s to the CRJ450 configuration by 2028.

Current wording

CRJ700s we are currently flying under contract with American) and 16 new E175 aircraft with Delta between 2027 and 2028 (which are expected to replace 16 CRJs we are currently flying under contract with Delta). We also have multiple agreements with United to place five used CRJ550 aircraft into service by the end of 2026. Timing of placing these additional aircraft into service, including delivery timing on acquired aircraft, may be subject to change. As of September 30, 2026, we operated 16 CRJ900s owned by Delta, and we anticipate returning these 16 aircraft to Delta over the next year. Our primary objective in the fleet changes is to improve our profitability by adding new E175 aircraft and used CRJ700, CRJ550, CRJ900 and E175 aircraft, commonly referred to as “dual-class aircraft” due to the first-class seat offerings, to our capacity purchase agreements or prorate agreements, and potentially removing older aircraft from service that typically require higher maintenance costs. Additionally, during the nine months ended September 30, 2026, we announced a new configuration of the CRJ200 aircraft that will have 41 seats, including seven first-class seats (referred to as a “CRJ450” aircraft). We anticipate operating the first CRJ450 in scheduled service by the end of 2026. We anticipate completing the conversion of approximately 50 CRJ200s to the CRJ450 configuration by 2028.

Previous wording

As of June 30, 2026, approximately 46.2% of our aircraft in scheduled service or under contract were operated for United, approximately 26.9% were operated for Delta, approximately 18.6% were operated for American and approximately 8.3% were operated for Alaska.

Current wording

As of September 30, 2026, approximately 46.6% of our aircraft in scheduled service or under contract were operated for United, approximately 26.4% were operated for Delta, approximately 18.8% were operated for American and approximately 8.2% were operated for Alaska.

Previous wording

Historically, multiple contractual relationships with major airlines have enabled us to reduce our reliance on any single major airline code and to enhance and stabilize operating results through a mix of our capacity purchase agreements and our prorate agreements. For the six months ended June 30, 2026, our capacity purchase revenue represented approximately 81.9% of our total flying agreements revenue and our prorate and charter revenue, combined, represented approximately 18.1% of our total flying agreements revenue. On capacity purchase routes, the major airline partner controls scheduling, ticketing, pricing and seat inventories and we are compensated by the major airline partner at contracted rates based on completed block hours (measured from takeoff to landing, including taxi time), flight departures, the number of aircraft under contract and other operating measures. We control scheduling, pricing and seat inventories on certain prorate routes, and we share passenger fares with our major airline partners according to prorate formulas. We are also responsible for the operating costs of the prorate flights, including fuel and airport costs.

Current wording

Historically, multiple contractual relationships with major airlines have enabled us to reduce our reliance on any single major airline code and to enhance and stabilize operating results through a mix of our capacity purchase agreements and our prorate agreements. For the nine months ended September 30, 2026, our capacity purchase revenue represented approximately 81.2% of our total flying agreements revenue and our prorate and charter revenue, combined, represented approximately 18.8% of our total flying agreements revenue. On capacity purchase routes, the major airline partner controls scheduling, ticketing, pricing and seat inventories and we are compensated by the major airline partner at contracted rates based on completed block hours (measured from takeoff to landing, including taxi time), flight departures, the number of aircraft under contract and other operating measures. We control scheduling, pricing and seat inventories on certain prorate routes, and we share passenger fares with our major airline partners according to prorate formulas. We are also responsible for the operating costs of the prorate flights, including fuel and airport costs.

Previous wording

We had total operating revenues of $1.1 billion for the three months ended June 30, 2026, a 6.5% increase compared to total operating revenues of $1.0 billion for the three months ended June 30, 2025. We had net income of $100.7 million, or $2.54 per diluted share, for the three months ended June 30, 2026, compared to net income of $120.3 million, or $2.91 per diluted share, for the three months ended June 30, 2025. The significant items affecting our revenue and operating expenses during the three months ended June 30, 2026, are outlined below:

Current wording

We had total operating revenues of $1.12 billion for the three months ended September 30, 2026, a 6.4% increase compared to total operating revenues of $1.05 billion for the three months ended September 30, 2025. We had net income of $119.5 million, or $3.08 per diluted share, for the three months ended September 30, 2026, compared to net income of $116.4 million, or $2.81 per diluted share, for the three months ended September 30, 2025. The significant items affecting our revenue and operating expenses during the three months ended September 30, 2026, are outlined below:

Previous wording

The number of aircraft we have in scheduled service or under contract pursuant to our code-share agreements and the number of block hours we incur on our flights are primary drivers of our flying agreements revenue under our capacity purchase agreements. The number of flights we operate and the corresponding number of passengers we carry are the primary drivers of our revenue under our prorate agreements. The number of aircraft we have in scheduled service or under contract pursuant to our code-share agreements increased from 502 as of June 30, 2025 to 517 as of June 30, 2026, or by 3.0%; and the number of block hours increased from 376,269 for the three months ended June 30, 2025 to 396,696 for the three months ended June 30, 2026, or by 5.4%, primarily due to an increase in the number of aircraft operating under our capacity purchase agreements and higher scheduled utilization of our aircraft under contract.

Current wording

The number of aircraft we have in scheduled service or under contract pursuant to our code-share agreements and the number of block hours we incur on our flights are primary drivers of our flying agreements revenue under our capacity purchase agreements. The number of flights we operate and the corresponding number of passengers we carry are the primary drivers of our revenue under our prorate agreements. The number of aircraft we have in scheduled service or under contract pursuant to our code-share agreements increased from 498 as of September 30, 2025 to 522 as of September 30, 2026, or by 4.8%, and the number of block hours increased from 384,247 for the three months ended September 30, 2025 to 401,727 for the three months ended September 30, 2026, or by 4.5%, primarily due to an increase in the number of aircraft operating under our capacity purchase agreements.

Previous wording

Our capacity purchase revenue increased $21.6 million, or 2.6%, for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, primarily as a result of an increase in completed block hours for the comparable periods. Our prorate and charter revenue increased $55.4 million, or 38.1%, for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, primarily as a result of an increase in the number of passengers carried on our prorate routes, a higher average revenue per passenger and an increase in the number of prorate and charter flights operated year-over-year.

Current wording

Our capacity purchase revenue increased $22.1 million, or 2.6%, for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025, primarily as a result of an increase in completed block hours for the comparable periods. Our prorate and charter revenue increased $50.8 million, or 30.4%, for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025, primarily as a result of an increase in the number of passengers carried on our prorate routes, a higher average revenue per passenger and an increase in the number of prorate and charter flights operated year-over-year.

Previous wording

Our total operating expenses increased $81.8 million, or 9.5%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The increase in operating expenses was primarily due to an increase in our direct operating expenses associated with the increase in the number of flights we operated, higher fuel costs and higher pilot training costs for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. Departures increased from 222,874 for the three months ended June 30, 2025 to 227,960 for the three months ended June 30, 2026, or by 2.3%, and our total block hours increased 5.4% for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. Additional details regarding the increase in our operating expenses are described in the section of this Report entitled “Results of Operations.”

Current wording

Our total operating expenses increased $65.4 million, or 7.5%, for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. The increase in operating expenses was primarily due to an increase in our direct operating expenses associated with the increase in the number of flights we operated, higher fuel costs and higher pilot training costs for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. The increase in operating expenses was partially offset by a reduction in depreciation expense due to a revision of the estimated useful lives of our E175 aircraft during the three months ended September 30, 2026, as discussed under “Critical Accounting Policies and Estimates.” Departures increased from 226,305 for the three months ended September 30, 2025 to 229,595 for the three months ended September 30, 2026, or by 1.5%, and our total block hours increased 4.5% for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025. Additional details regarding the increase in our operating expenses are described in the section of this Report entitled “Results of Operations.”

Previous wording

Our significant accounting policies are summarized in Note 1 to our consolidated financial statements for the year ended December 31, 2025, and Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which are presented in our Annual Report on Form 10-K for the year ended December 31, 2025. Critical accounting policies are those policies that are most important to the preparation of our consolidated financial statements and require management’s subjective and complex judgments due to the need to make estimates about the effect of matters that are inherently uncertain. Our critical accounting policies relate to revenue recognition, long-lived assets, and income tax. The application of these accounting policies involves the exercise of judgment and the use of assumptions as to future uncertainties and, as a result, actual results will likely differ, and may differ materially, from such estimates. There have been no significant changes in our critical accounting estimates during the six months ended June 30, 2026.

Current wording

Our significant accounting policies are summarized in Note 1 to our consolidated financial statements for the year ended December 31, 2025, and Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which are presented in our Annual Report on Form 10-K for the year ended December 31, 2025. Critical accounting policies are those policies that are most important to the preparation of our consolidated financial statements and require management’s subjective and complex judgments due to the need to make estimates about the effect of matters that are inherently uncertain. Our critical accounting policies relate to revenue recognition, long-lived assets, and income tax. The application of these accounting policies involves the exercise of judgment and the use of assumptions as to future uncertainties and, as a result, actual results will likely differ, and may differ materially, from such estimates.

Previous wording

The following table sets forth our major operational statistics and the associated percentage changes for the periods identified below. The increase in block hours and departures during the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily dueto additional aircraft operating under our capacity purchase agreements, additional routes operated under our prorate agreements andan increase in the number of block hours incurred per aircraft due to the higher scheduled utilization of our aircraft during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Current wording

The following table sets forth our major operational statistics and the associated percentage changes for the periods identified below. The increase in block hours and departures during the three months ended September 30, 2026, compared to the three months ended September 30, 2025, was primarily dueto additional aircraft operating under our capacity purchase agreements and additional routes operated under our prorate agreements during the three months ended September 30, 2026, compared to the three months ended September 30, 2025.

Previous wording

Combined “Capacity purchase agreements flight operations revenue” and “Capacity purchase agreements aircraft lease revenue” increased 2.6% for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, driven primarily by a 5.4% increase in block hour production during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The increase in aircraft lease revenue and decrease in flight operations revenue was primarily due to a reallocation of variable consideration between non-lease and lease components based on relative standalone selling prices as a result of capacity purchase agreement contract amendments entered into since June 30, 2025.

Current wording

Combined “Capacity purchase agreements flight operations revenue” and “Capacity purchase agreements aircraft lease revenue” increased 2.6% for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, driven primarily by a 4.5% increase in block hour production during the three months ended September 30, 2026, compared to the three months ended September 30, 2025. The larger increase in aircraft lease revenue relative to the increase in flight operations revenue was primarily due to a reallocation of variable consideration between non-lease and lease components based on relative standalone selling prices as a result of capacity purchase agreement contract amendments entered into since September 30, 2025.

Previous wording

The increase in prorate agreements and charter revenue of $55.4 million, or 38.1%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily due to an increase in prorate departures, passengers and passenger revenue we received on routes we operated under our prorate agreements duringthe three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Current wording

The increase in prorate agreements and charter revenue of $50.8 million, or 30.4%, for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, was primarily due to an increase in prorate departures, passengers and passenger revenue we received on routes we operated under our prorate agreements duringthe three months ended September 30, 2026, compared to the three months ended September 30, 2025.

Previous wording

The decrease in lease, airport services and other revenues of $9.5 million, or 19.9%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily due to a decrease in revenue from

Current wording

The decrease in lease, airport services and other revenues of $5.5 million, or 14.2%, for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, was primarily due to a decrease in revenue from maintenance services provided to third parties during the three months ended September 30, 2026, compared to the three months ended September 30, 2025.

Previous wording

Salaries, wages and benefits. The $36.6 million, or 9.4%, increase in salaries, wages and benefits for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily due to an increase in direct labor costs supporting the higher number of flights we operated during the three months ended June 30, 2026, compared to the three months ended June 30, 2025, and due to an increase in pilot training costs associated with higher pilot attrition rates since June 30, 2025*.*

Current wording

Salaries, wages and benefits. The $38.1 million, or 9.7%, increase in salaries, wages and benefits for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, was primarily due to an increase in direct labor costs supporting the higher number of flights we operated during the three months ended September 30, 2026, compared to the three months ended September 30, 2025, and due to an increase in pilot training costs associated with higher pilot attrition rates since September 30, 2025*.*

Previous wording

Aircraft maintenance, materials and repairs. The $4.0 million, or 1.7%, increase in aircraft maintenance expense for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily due to an increase in our flight volume, which increased our maintenance activity and related expenses for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, partially offset by a reduction in maintenance services provided to third parties for the comparable periods.

Current wording

Aircraft maintenance, materials and repairs. The $8.6 million, or 3.4%, decrease in aircraft maintenance expense for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, was primarily due to lower discrete maintenance events and a reduction in maintenance services provided to third parties, partially offset by an increase in our flight volume, which increased our maintenance activity and related expenses, for the three months ended September 30, 2026, compared to the three months ended September 30, 2025.

Previous wording

Depreciation and amortization. The $2.3 million, or 2.6%, increase in depreciation and amortization expense for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily due to an increase in depreciation expense related to the acquisition of seven new E175 aircraft and spare engines since June 30, 2025.

Current wording

Depreciation and amortization. The $16.2 million, or 17.5%, decrease in depreciation and amortization expense for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, was primarily due to a revision of theestimated useful lives of our E175 aircraft, as discussed under “Critical Accounting Policies and Estimates,” partially offset by increased depreciation expense from additions to property and equipment, including the acquisition of 11 new E175 aircraft and spare engines since September 30, 2025.

Previous wording

*Aircraft fuel.*The $33.1 million, or 120.6%, increase in fuel cost for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily due to an increase in the number of flights we operated under our prorate agreements and charter operations and the corresponding increase in gallons of fuel we purchased and an increase in our average fuel cost per gallon from $2.88 for the three months ended June 30, 2025 to $4.45 for the three months ended June 30, 2026. We purchase and incur expense for all fuel on flights operated under our prorate agreements and charter operations. All fuel costs incurred under our capacity purchase agreements are either purchased directly by our major airline partner, or if purchased by us, we record the direct reimbursement as a reduction to our fuel expense. The following table summarizes the gallons of fuel we purchased under our prorate agreements and charter operations, for the periods indicated:

Current wording

*Aircraft fuel.*The $32.1 million, or 93.8%, increase in fuel cost for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, was primarily due to an increase in the number of flights we operated under our prorate agreements and charter operations and the corresponding increase in gallons of fuel we purchased and an increase in our average fuel cost per gallon from $3.04 for the three months ended September 30, 2025 to $4.56 for the three months ended September 30, 2026. We purchase and incur expense for all fuel on flights operated under our prorate agreements and charter operations. All fuel costs incurred under our capacity purchase agreements are either purchased directly by our major airline partner, or if purchased by us, we record the direct reimbursement as a reduction to our fuel expense. The following table summarizes the gallons of fuel we purchased under our prorate agreements and charter operations, for the periods indicated:

Previous wording

Airport-related expenses. Airport-related expenses include airport-related customer service costs such as outsourced airport gate and ramp agent services, airport security fees, passenger interruption costs, deicing, landing fees and station rents. The $5.5 million, or 20.2%, increase in airport-related expenses for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily due to an increase in subcontracted airport services, station rents and landing fees as a result of an increase in the number of flights we operated under our prorate

Current wording

Airport-related expenses. Airport-related expenses include airport-related customer service costs such as outsourced airport gate and ramp agent services, airport security fees, passenger interruption costs, deicing, landing fees and station rents. The $6.4 million, or 20.0%, increase in airport-related expenses for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, was primarily due to an increase in subcontracted airport services, station rents and landing fees as a result of an increase in the number of flights we operated under our prorate agreements. For clarity, our employee airport customer service labor costs are reflected in salaries, wages and benefits and customer service labor costs we outsource to third parties are included in airport-related expenses.

Previous wording

Other operating expenses. Other operating expenses primarily consist of aircraft rentals, property taxes, hull and liability insurance, simulator costs, crew per diem, crew hotel costs and credit loss reserves. The $0.3 million, or 0.3%, increase in other operating expenses for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025 was primarily due to higher training‑related hotel costs, driven by pilot training, and an increase in other operating costs as a result of the higher number of flights we operated during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. These increases were partially offset by a decrease in ourcredit loss reserve expense during the three months ended June 30, 2026, reflecting the elevated credit loss reserve expense recognized during the three months ended June 30, 2025 from our assessment of higher credit risk losses of certain outstanding receivables.

Current wording

Other operating expenses. Other operating expenses primarily consist of aircraft rentals, property taxes, hull and liability insurance, simulator costs, crew per diem, crew hotel costs and credit loss reserves. The $13.6 million, or 17.5%, increase in other operating expenses for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025 was primarily due to higher training‑related hotel costs, driven by pilot training, and an increase in other operating costs as a result of the higher number of flights we operated during the three months ended September 30, 2026, compared to the three months ended September 30, 2025.

Previous wording

Interest income. Interest income decreased $2.3 million, or 20.4%, for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. The decrease in interest income was primarily related to a decrease in our marketable securities from June 30, 2025 to June 30, 2026.

Current wording

Interest income. Interest income decreased $2.5 million, or 23.4%, for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025. The decrease in interest income was primarily related to a decrease in our marketable securities from September 30, 2025 to September 30, 2026.

Previous wording

Other income (expense), net. Other income (expense), net decreased $7.8 million for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. Other income (expense), net primarily consists of the unrealized and realized gains and losses on our investments in other companies, income or loss related to our equity method investments and gains or losses on the sale of assets. The decrease in other income (expense), net was primarily the result of a decrease in the fair value of our investments in other companies and a decrease in the gain on the sale of assets for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Current wording

Other income (expense), net. Other income (expense), net increased $1.9 million for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. Other income (expense), net primarily consists of the unrealized and realized gains and losses on our investments in other companies, income or loss related to our equity method investments and gains or losses on the sale of assets. The increase in other income (expense), net was primarily due to unrealized losses recognized during the three months ended September 30, 2025 that did not recur in the three months ended September 30, 2026.

Previous wording

*Provision for income taxes.*For the three months ended June 30, 2026 and 2025, our effective income tax rates were 27.5% and 26.3%, respectively, which included the statutory federal income tax rate of 21% and other reconciling income tax items, including state income taxes, and the impact of non-deductible expenses. The increase in the effective tax rate was primarily generated from greater non-deductible expense for the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Current wording

reconciling income tax items, including state income taxes and the impact of non-deductible expenses. The decrease in the effective tax rate for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025 was the result of a discrete tax benefit resulting from a change in the estimated state tax rate used to value deferred taxes for the three months ended September 30, 2026, offset by greater non-deductible expense for the three months ended September 30, 2026, compared to the three months ended September 30, 2025.

Previous wording

Net income. Primarily due to the factors described above, we generated net income of $100.7 million, or $2.54 per diluted share, for the three months ended June 30, 2026, compared to net income of $120.3 million, or $2.91 per diluted share, for the three months ended June 30, 2025.

Current wording

Net income. Primarily due to the factors described above, we generated net income of $119.5 million, or $3.08 per diluted share, for the three months ended September 30, 2026, compared to net income of $116.4 million, or $2.81 per diluted share, for the three months ended September 30, 2025.

Previous wording

The following table sets forth our major operational statistics and the associated percentage changes for the periods identified below. The increase in block hours and departures during the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily dueto additional aircraft operating under our capacity purchase agreements, additional routes operated under our prorate agreements andan increase in the number of block hours incurred per aircraft due to the higher scheduled utilization of our aircraft during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Current wording

The following table sets forth our major operational statistics and the associated percentage changes for the periods identified below. The increase in block hours and departures during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, was primarily dueto additional aircraft operating under our capacity purchase agreements and additional routes operated under our prorate agreements during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025.

Previous wording

Combined “Capacity purchase agreements flight operations revenue” and “Capacity purchase agreements aircraft lease revenue” increased 2.8% for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, driven primarily by a 4.3% increase in block hour production during the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The increase in aircraft lease revenue and decrease in flight operations revenue was primarily due to a reallocation of variable consideration between non-lease and lease components based on relative standalone selling prices as a result of capacity purchase agreement contract amendments entered into since June 30, 2025.

Current wording

Combined “Capacity purchase agreements flight operations revenue” and “Capacity purchase agreements aircraft lease revenue” increased 2.8% for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, driven primarily by a 4.4% increase in block hour production during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The increase in aircraft lease revenue and decrease in flight operations revenue was primarily due to a reallocation of variable consideration between non-lease and lease components based on relative standalone selling prices as a result of capacity purchase agreement contract amendments entered into since September 30, 2025.

Previous wording

The increase in prorate agreements and charter revenue of $92.8 million, or 33.6%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to an increase in prorate departures, passengers and passenger revenue we received on routes we operated under our prorate agreements duringthe six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Current wording

The increase in prorate agreements and charter revenue of $143.5 million, or 32.4%, for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, was primarily due to an increase in prorate departures, passengers and passenger revenue we received on routes we operated under our prorate agreements duringthe nine months ended September 30, 2026, compared to the nine months ended September 30, 2025.

Previous wording

The decrease in lease, airport services and other revenues of $6.7 million, or 8.3%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to a decrease in revenue from

Current wording

The decrease in lease, airport services and other revenues of $12.2 million, or 10.2%, for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, was primarily due to a decrease in revenue from maintenance services provided to third parties during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025.

Previous wording

Salaries, wages and benefits. The $81.4 million, or 10.6%, increase in salaries, wages and benefits for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to an increase in direct labor costs supporting the higher number of flights we operated during the six months ended June 30, 2026, compared to the six months ended June 30, 2025, and due to an increase in pilot training costs associated with higher pilot attrition rates since June 30, 2025*.*

Current wording

Salaries, wages and benefits. The $119.5 million, or 10.3%, increase in salaries, wages and benefits for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, was primarily due to an increase in direct labor costs supporting the higher number of flights we operated during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, and due to an increase in pilot training costs associated with higher pilot attrition rates since September 30, 2025*.*

Previous wording

Aircraft maintenance, materials and repairs. The $8.0 million, or 1.8%, increase in aircraft maintenance expense for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to an increase in our flight volume, which increased our maintenance activity and related expenses for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, partially offset by a reduction in maintenance services provided to third parties for the comparable periods.

Current wording

Aircraft maintenance, materials and repairs. The $0.6 million, or 0.1%, decrease in aircraft maintenance expense for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, was primarily due to lower discrete maintenance events and a reduction in maintenance services provided to third parties, partially offset by an increase in our flight volume, which increased our maintenance activity and related expenses, for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025.

Previous wording

Depreciation and amortization. The $3.1 million, or 1.7%, increase in depreciation and amortization expense for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to an increase in depreciation expense related to the acquisition of seven new E175 aircraft and spare engines since June 30, 2025.

Current wording

Depreciation and amortization. The $13.1 million, or 4.8%, decrease in depreciation and amortization expense for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, was primarily

Previous wording

*Aircraft fuel.*The $47.5 million, or 91.5%, increase in fuel cost for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to an increase in the number of flights we operated under our prorate agreements and charter operations and the corresponding increase in gallons of fuel we purchased and an increase in our average fuel cost per gallon from $2.95 for the six months ended June 30, 2025 to $3.97 for the six months ended June 30, 2026. We purchase and incur expense for all fuel on flights operated under our prorate agreements and charter operations. All fuel costs incurred under our capacity purchase agreements are either purchased directly by our major airline partner, or if purchased by us, we record the direct reimbursement as a reduction to our fuel expense. The following table summarizes the gallons of fuel we purchased under our prorate agreements and charter operations, for the periods indicated:

Current wording

*Aircraft fuel.*The $79.6 million, or 92.4%, increase in fuel cost for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, was primarily due to an increase in the number of flights we operated under our prorate agreements and charter operations and the corresponding increase in gallons of fuel we purchased and an increase in our average fuel cost per gallon from $2.98 for the nine months ended September 30, 2025 to $4.19 for the nine months ended September 30, 2026. We purchase and incur expense for all fuel on flights operated under our prorate agreements and charter operations. All fuel costs incurred under our capacity purchase agreements are either purchased directly by our major airline partner, or if purchased by us, we record the direct reimbursement as a reduction to our fuel expense. The following table summarizes the gallons of fuel we purchased under our prorate agreements and charter operations, for the periods indicated:

Previous wording

Airport-related expenses. Airport-related expenses include airport-related customer service costs such as outsourced airport gate and ramp agent services, airport security fees, passenger interruption costs, deicing, landing fees and station rents. The $13.8 million, or 25.2%, increase in airport-related expenses for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to an increase in subcontracted airport services, station rents and landing fees as a result of an increase in the number of flights we operated under our prorate

Current wording

Airport-related expenses. Airport-related expenses include airport-related customer service costs such as outsourced airport gate and ramp agent services, airport security fees, passenger interruption costs, deicing, landing fees and station rents. The $20.2 million, or 23.3%, increase in airport-related expenses for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, was primarily due to an increase in subcontracted airport services, station rents and landing fees as a result of an increase in the number of flights we operated under our prorate agreements. For clarity, our employee airport customer service labor costs are reflected in salaries, wages and benefits and customer service labor costs we outsource to third parties are included in airport-related expenses.

Previous wording

Other operating expenses. Other operating expenses primarily consist of aircraft rentals, property taxes, hull and liability insurance, simulator costs, crew per diem, crew hotel costs and credit loss reserves. The $8.4 million, or 4.9%, increase in other operating expenses for the six months ended June 30, 2026, compared to the six months ended June 30, 2025 was primarily due to higher training‑related hotel costs, driven by pilot training, and an increase in other operating costs as a result of the higher number of flights we operated during the six months ended June 30, 2026, compared to the six months ended June 30, 2025. These increases were partially offset by a decrease in ourcredit loss reserve expense during the six months ended June 30, 2026, reflecting the elevated credit loss reserve expense recognized during the six months ended June 30, 2025 from our assessment of higher credit risk losses of certain outstanding receivables.

Current wording

Other operating expenses. Other operating expenses primarily consist of aircraft rentals, property taxes, hull and liability insurance, simulator costs, crew per diem, crew hotel costs and credit loss reserves. The $22.0 million, or 8.8%, increase in other operating expenses for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025 was primarily due to higher training‑related hotel costs, driven by pilot training, and an increase in other operating costs as a result of the higher number of flights we operated during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. These increases were partially offset by elevated credit loss reserves we recorded during the nine months ended September 30, 2025 that did not continue to elevate during the nine months ended September 30, 2026.

Previous wording

Interest income. Interest income decreased $3.7 million, or 17.7%, for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. The decrease in interest income was primarily related to a decrease in our marketable securities from June 30, 2025 to June 30, 2026.

Current wording

Interest income. Interest income decreased $6.2 million, or 19.6%, for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. The decrease in interest income was primarily related to a decrease in our marketable securities from September 30, 2025 to September 30, 2026.

Previous wording

Other income (expense), net. Other income (expense), net decreased $9.3 million for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. Other income (expense), net primarily consists of the unrealized and realized gains and losses on our investments in other companies, income or loss related to our equity method investments and gains or losses on the sale of assets. The decrease in other income (expense), net was primarily the result of a decrease in the fair value of our investments in other companies and a decrease in the gain on the sale of assets for the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Current wording

Other income (expense), net. Other income (expense), net decreased $5.8 million for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. Other income (expense), net primarily consists of the unrealized and realized gains and losses on our investments in other companies, income or loss related to our equity method investments and gains or losses on the sale of assets. The decrease in other income (expense), net was primarily the result of a decrease in the gain on the sale of assets and a decrease in the fair value of our investments in other companies for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025.