SkyWest, Inc. (SKYW) is facing considerable financial strain due to rising operating expenses and deteriorating liquidity, resulting in a downward adjustment in earnings estimates. The Zacks Consensus Estimate for earnings in the December quarter has been revised down by 3.02% over the last 60 days, with a 2.09% decrease for 2026. In the second quarter of 2025, the company reported a 15.7% year-over-year increase in total operating expenses, primarily attributed to a 9.9% rise in labor costs and a 30.3% spike in maintenance costs.
SkyWest’s liquidity position is also concerning, with the current ratio dropping from 1.17 in 2022 to 0.73 in Q2 2025, signaling potential challenges in meeting short-term obligations. The company’s shares have decreased by 2.9% year-to-date, contrasting with a 3% gain in the Transportation – Airline industry. SkyWest currently holds a Zacks Rank of 4 (Sell), while its industry rank is in the bottom 35% of Zacks Industries.
