11 Best Airline Stocks to Buy Now

5. SkyWest, Inc. (NASDAQ:SKYW)

Number of Hedge Fund Holders: 34

SkyWest, Inc. (NASDAQ:SKYW) is a regional airline company in the US with a varied portfolio, including SkyWest Airlines, SkyWest Charter, and SkyWest Leasing. The company boasts a fleet of over 500 aircraft, linking travelers to over 240 destinations. Furthermore, the company rents aircraft to other operators through SkyWest Leasing, which increases its income possibilities.

SkyWest, Inc. (NASDAQ:SKYW) reported earnings per share of $2.34 in Q4 2024, considerably above expert expectations of $1.80. Revenue totaled $944 million, above the average estimate of $907.54 million, indicating a 26% rise from $752 million in the same period the previous year. Moreover, the company’s block hour output increased by 20% year-over-year in Q4, indicating improved captain availability compared to the prior year quarter.

In addition, the company announced a contract renewal with American Airlines for 74 CRJ700 aircraft over a multi-year period. On that front, 16 additional E-175s are planned to arrive between 2025 and 2026, allowing SkyWest, Inc. (NASDAQ:SKYW) to operate a total of 278 E-175s by 2026.

ClearBridge Small Cap Value Strategy stated the following regarding SkyWest, Inc. (NASDAQ:SKYW) in its Q2 2024 investor letter:

“We also added a new position in SkyWest, Inc. (NASDAQ:SKYW), a regional airline operator. The company reported strong quarterly earnings as its pilot attrition declines and fleet utilization improves. We believe that SkyWest continues to find opportunities to deploy capital in a value-accretive manner, acquiring more planes under long-term contracts. We think earnings should hold up in a potential recession and perhaps even improve further if major airlines reduce capacity and more pilots become available for SkyWest.”