Pilot Shortage and Labor Costs: The regional airline industry faces a persistent shortage of qualified pilots, leading to intense competition for talent, increased training and compensation costs, and potential for reduced flight operations or inability to meet contractual obligations with major airline partners.

Reliance on Major Airline Partners: SkyWest's business model is heavily dependent on capacity purchase agreements with larger airlines like United, Delta, American, and Alaska. Any reduction in demand for regional services from these partners, changes in contract terms, or financial difficulties experienced by a major partner could significantly impact SkyWest's revenues and profitability.

Fuel Price Volatility: Despite many capacity purchase agreements passing through fuel costs, SkyWest may still be exposed to fluctuations in fuel prices due to unhedged portions or timing differences in cost recovery, which could negatively affect its financial performance if prices rise unexpectedly.