SkyWest Trades at 1.56x P/B with Fleet Expansion and Strong Cash Position
SkyWest’s trailing 12-month price-to-book ratio stands at 1.56x versus a 3.17x industry average, with deferred revenues of $264.6 million and 13.8% top-line growth in 2025. The airline carried 8.7% more passengers, added five E175 jets in Q4 2025, and ended the year with $706.9 million cash against $546.8 million debt.
1. Valuation Discount
SkyWest’s trailing 12-month P/B ratio of 1.56x trades below the industry’s 3.17x average, highlighting a valuation gap that may appeal to value investors.
2. Operational Growth
Deferred revenues under flying contracts reached $264.6 million at year-end 2025, while 2025 revenues grew 13.8% and passenger volume rose 8.7%, with departures up 12.6% year over year.
3. Fleet Modernization
SkyWest took delivery of five Embraer E175 jets in Q4 2025 and secured multi-year extensions to operate 53 additional E175s for United and Delta, aiming for nearly 300 by 2028.
4. Balance Sheet Strength
The company ended Q4 2025 with $706.9 million in cash and marketable securities versus $546.8 million of short-term debt, and holds $213 million in remaining share repurchase capacity.