SkyWest Announces Second Quarter 2007 Earnings

ST. GEORGE, Utah, Aug. 8 /PRNewswire-FirstCall/ — SkyWest, Inc. today reported operating revenues of $855.0 million for the quarter ended June 30, 2007, an 8.2% increase, compared to $790.4 million for the same period last year. SkyWest also reported net income of $40.6 million for the quarter ended June 30, 2007, or $0.62 per diluted share, compared to $39.3 million of net income or $0.62 per diluted share for the same period last year.

SkyWest also reported operating revenues of $1.64 billion for the six months ended June 30, 2007, a 7.2% increase, compared to $1.53 billion for the same period last year. SkyWest also reported net income of $75.4 million for the six months ended June 30, 2007, or $1.15 per diluted share, compared to $73.9 million of net income or $1.19 per diluted share for the same period last year.

The primary items of significance affecting the second quarter of 2007 are outlined below:

Total operating revenues for the second quarter of 2007 increased primarily as a result of a 14.5% increase in available seat miles (ASMs) which was partially offset by a reduction in yield per revenue passenger mile of 5.7% and by increased fuel cost reimbursements by SkyWest’s major partners that are recorded as operating revenues and as operating expenses, under contract flying arrangements.

Total operating expenses and interest per ASM for the second quarter of 2007, excluding fuel charges of $276.2 million or $0.048 per ASM, decreased approximately 2.2% to $0.090 from $0.092 for the same quarter of 2006.

Total ASMs for the second quarter of 2007 increased 14.5% from the second quarter of 2006, primarily as a result of SkyWest increasing its fleet size to 434 aircraft as of June 30, 2007, from 397 aircraft as of June 30, 2006. At June 30, 2007, SkyWest’s fleet consisted of: 362 regional jets (233 Delta, 117 United and 12 Midwest); 60 EMB-120 aircraft (48 United, and 12 Delta); and 12 ATR72 aircraft (all Delta). During the second quarter of 2007 SkyWest generated 5.8 billion ASMs, compared to 5.1 billion ASMs during the same period of 2006.

During the quarter ended June 30, 2007, SkyWest began repurchasing outstanding shares of its common stock under a 5 million share stock buyback program previously authorized by its board of directors. As of June 30, 2007, SkyWest had repurchased approximately 2.3 million shares at a cost of approximately $60.2 million. SkyWest will continue to purchase common shares of its outstanding stock under the authorized stock buyback program, from time to time, as it deems appropriate.

SkyWest recorded stock based compensation expense of approximately $3.9 million ($2.5 million after tax) for the quarter ended June 30, 2007. Future stock based compensation expense will be contingent upon the amount of future option or stock grants that are made by SkyWest’s Board of Directors.

At June 30, 2007 SkyWest had $676.9 million in cash and marketable securities compared to $651.9 million as of December 31, 2006. SkyWest’s long-term debt increased to $1.79 billion as of June 30, 2007, compared to $1.68 billion at December 31, 2006, consistent with SkyWest’s financing arrangements on aircraft and making normal recurring debt payments. During the quarter ended June 30, 2007, SkyWest took delivery of eight CRJ 200 aircraft and two CRJ900 aircraft and financed them through a combination of permanent third-party operating leases and long-term debt. One CRJ200 was acquired with cash from working capital. SkyWest has significant long-term lease obligations that are recorded as operating leases and are not reflected as liabilities on SkyWest’s consolidated balance sheets. At a 7.39% discount factor, the present value of these lease obligations was approximately $2.1 billion as of June 30, 2007.

Under SkyWest Airlines’ United Express agreement, specific amounts are included in the rates charged for mature maintenance on regional jet aircraft engines that SkyWest records as revenue. However, consistent with the time and material maintenance policy, as more fully described in SkyWest’s Annual Report on Form 10-K for the year ended December 31, 2006, SkyWest records maintenance expense on its regional jet aircraft engines as the maintenance events occur. As a result, during the second quarter of 2007, SkyWest collected and recorded as revenue $7.5 million (pretax) under the United Express agreement which is net of any regional jet engine maintenance overhauls.

SkyWest Airlines, based in St. George, Utah, and ASA, based in Atlanta, Georgia are wholly owned subsidiaries of SkyWest, Inc. SkyWest Airlines operates as United Express, Delta Connection and Midwest Connect carriers under contractual agreements with United Airlines, Delta Air Lines and Midwest Airlines. ASA operates as a Delta Connection carrier under a contractual agreement with Delta Air Lines. System-wide, SkyWest, Inc. serves a total of approximately 242 cities in the United States, Canada, Mexico and the Caribbean, with approximately 2,739 daily departures. This press release and additional information regarding SkyWest, Inc. can be accessed at http://www.skywest.com/.

In addition to historical information, this release contains forward- looking statements. SkyWest may, from time-to-time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass SkyWest’s beliefs, expectations, hopes or intentions regarding future events. Words such as “expects,”"intends,”"believes,”"anticipates,”"should,”"likely” and similar expressions identify forward-looking statements. All forward-looking statements included in this release 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 statement. Actual results will vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of reasons, including, among others: the failure to successfully operate as anticipated under the terms of the Delta Connection, United Express and Midwest Connect Agreements; the impact of negotiations with ASA’s organized labor forces and the impact of the costs of such labor forces on SkyWest’s operations and financial condition; and the challenges of competing successfully in a highly competitive and rapidly changing industry. Other factors that may cause actual results to vary from SkyWest’s expectations include developments associated with fluctuations in the economy and the demand for air travel; ongoing negotiations between SkyWest and its major partners regarding their contractual relationships; variations in market and economic conditions; the impact of global instability, including the continued impact of the United States military presence in foreign countries, the September 11, 2001 terrorist attacks and the potential impact of future hostilities, terrorist attacks or other global events; employee relations and labor costs; rapidly escalating fuel costs; the degree and nature of competition; potential fuel shortages in markets where SkyWest Airlines or ASA operates; the impact of weather-related or other natural disasters on air travel and airline costs; the ability of SkyWest Airlines and ASA to expand services in new and existing markets and to maintain profit margins in the face of pricing pressures; aircraft deliveries; SkyWest’s ability to obtain financing; and other unanticipated factors. Risk factors, cautionary statements and other conditions which could cause actual results to differ from management’s current expectations are contained in SkyWest’s filings with the Securities and Exchange Commission, including the section of SkyWest’s Annual Report on form 10-K, entitled “Risk Factors.”

                               SKYWEST, INC.                CONDENSED CONSOLIDATED STATEMENTS OF INCOME        (Dollars and Shares in Thousands, Except per Share Amounts)                                (Unaudited)                             Three Months Ended       Six Months Ended                                 June 30,                June 30,                            2007         2006       2007         2006   Operating revenues:    Passenger             $846,356     $784,332   $1,626,923   $1,518,758    Ground handling and     other                             8,692        6,072       17,092       14,501                           855,048      790,404    1,644,015    1,533,259   Operating expenses:    Flying operations      470,900      442,731      880,962      841,197    Customer service       107,774       99,390      225,226      199,066    Maintenance             96,463       73,779      190,952      152,090    Depreciation and     amortization           52,175       47,262      102,453       92,751    General and     administrative         38,881       37,621       75,993       75,671                           766,193      700,783    1,475,586    1,360,775   Operating income         88,855       89,621      168,429      172,484   Other income (expense):    Interest income          8,130        4,225       15,241        7,132    Interest expense       (31,731)     (28,519)     (62,302)     (57,062)    Gain (loss) on sale     of property and     equipment                 278           13          467       (1,084)                           (23,323)     (24,281)     (46,594)     (51,014)   Income before income    taxes                   65,532       65,340      121,835      121,470   Provision for income    taxes                   24,910       26,054       46,425       47,596   Net income              $40,622      $39,286     $ 75,410     $ 73,874    Basic earnings per    share                            $ 0.64       $ 0.62        $1.18        $1.21   Diluted earnings per    share                   $ 0.62       $ 0.62        $1.15        $1.19   Weighted average common    shares:    Basic                   63,811       62,970       64,045       61,044    Diluted                 65,245       63,759       65,541       62,088                         Unaudited Operating Highlights     Operating Highlights                                             Three Months Ended                                                  June 30,                                     2007           2006         % Change    Passengers carried            8,932,439       8,144,992           9.7   Revenue passenger miles (000) 4,661,303       4,054,909          15.0   Available seat miles (000)    5,803,018       5,070,300          14.5   Passenger load factor             80.3%           80.0%          (0.3)pts   Passenger breakeven load    factor                           74.9%           73.8%           1.5 pts   Yield per revenue passenger    mile                           $0.182          $0.193           (5.7)   Revenue per available seat    mile                           $0.147          $0.156           (5.8)   Cost per available seat mile    $0.138          $0.144           (4.2)   Fuel cost per available seat    mile                                   $0.048          $0.052           (7.7)   Average passenger trip length      522             498            4.8   Block hours                    358,286         321,422           11.5   Departures                     227,414         213,358            2.7       Operating Highlights                                             Six Months Ended                                                 June 30,                                   2007            2006         % Change    Passengers carried           16,755,545      15,553,706          7.7   Revenue passenger miles    (000)                        8,685,859       7,701,308         12.8   Available seat miles (000)   11,096,920       9,772,278         13.6   Passenger load factor              78.3%           78.8%        (0.5)pts   Passenger breakeven load    factor                            73.2%           72.9%         0.4 pts   Yield per revenue passenger    mile                            $0.187          $0.197         (5.1)   Revenue per available seat    mile                            $0.148          $0.157         (5.7)   Cost per available seat mile     $0.139          $0.145         (4.1)   Fuel cost per available seat    mile                                    $0.045          $0.050        (10.0)   Average passenger trip length       518             495          4.6   Block hours                     697,278         627,056         11.2   Departures                      441,700         416,427          6.1  

SkyWest, Inc.

CONTACT: Michael J. Kraupp, Vice President Finance and Treasurer ofSkyWest, Inc., +1-435-634-3212, Fax: +1-435-634-3205

Web site: http://www.skywest.com/