SkyWest (SKYW Quick QuoteSKYW - Free Report) announced a new flying agreement with United Airlines (UAL Quick QuoteUAL - Free Report) , in line with its efforts to expand and modernize fleet. Per the agreement, SKYW will fly 20 more E175s for UAL under a four-year contract.

The 20 E175s will become a part of SKYW’s fleet during the course of the current year. This present agreement between the two airline companies is in addition to the previously announced agreement, with UAL pertaining to the 19 SKYW-owned E175s.

The current deal, which strengthens SKYW’s relationship with UAL, is a prudent move aimed at meeting the buoyant air-travel-demand scenario. Apart from UAL, SkyWest has agreements with airline majors like Delta Air Lines (DAL Quick QuoteDAL - Free Report) and Alaska Airlines. Alaska Airlines is the wholly-owned subsidiary of Alaska Air Group (ALK Quick QuoteALK - Free Report) .

Apart from the 20 E175s under the current deal with UAL, the latter is expected to deliver four more such models in 2024. Delta is anticipated to deliver a solitary E175 to SKYW in 2024. SKYW will be delivered eight more E175s each in 2025 and 2026.

UAL is scheduled to deliver seven E175 planes in 2025 and eight in 2026. ALK is scheduled deliver one E175 in 2025. SKYW is anticipated to operate 278 E175 jets by 2026-end. We note that SKYW had 235 E175s in its fleet as of Sep 30, 2023.

Price Performance

Driven by the upbeat air-travel demand, SKYW shares have gained 221.1% in a year compared with its industry’s 7.4% growth.

Image Source: Zacks Investment Research

Zacks Rank

SKYW currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.