Analyst Downgrade of SkyWest
On 2 July 2026, Goldman Sachs downgraded SkyWest (ticker SKYW) from Buy to Neutral and cut its 12‑month price target from $126 to $108. The firm cited increased downside risk to block‑hour production and a limited upside relative to the broader airline industry’s improving backdrop.
Goldman reduced its forecast for SkyWest’s 2026 block‑hour growth to 3.0 %, down from 3.5 % previously, noting that partner‑airline capacity growth is expected to remain lower than originally planned over the medium term. Analyst Catherine O’Brien explained that this represents a “significant deceleration from recent years,” which had seen mid‑teens growth as post‑pandemic utilization ramped and the company took delivery of dual‑class E175 aircraft.
The note highlighted that 81 % of SkyWest’s 2025 revenue is generated through long‑term capacity purchase agreements with partner airlines, a model Goldman described as producing more durable results than other U.S. airlines but offering significantly less upside in an improving competitive/fare environment.
Despite the downgrade, Goldman raised its third‑quarter and fourth‑quarter 2026 industry net‑income forecasts by 24 % and 32 %, respectively, citing stronger unit‑revenue trends and a significant decline in jet‑fuel prices.