3  Executive Summary

The industry-wide data reveals a clear trajectory from the severe operational and financial downturn of 2020 towards a sustained, albeit uneven, recovery. Revenue across all three carriers collapsed during the pandemic’s initial phase, leading to significant net losses. However, the subsequent years show a strong rebound in top-line growth, with United Airlines leading in sheer scale. Profitability has been slower to recover, hampered by volatile fuel costs and labor expenses. The analysis highlights that while revenue has largely normalized, the quality of earnings and the strength of balance sheets remain key differentiators among competitors.

The single most important insight from this comparative analysis is that SkyWest (SKW) demonstrates the most resilient and strategically advantageous financial profile. While United’s recovery in scale is impressive, SkyWest’s strength is rooted in its fundamental stability. This conclusion is supported by its superior balance sheet health, exemplified by a Net Debt-to-Equity ratio of just 81% in 2024, compared to UAL’s significantly higher 151%. Furthermore, SkyWest has generated consistent positive free cash flow annually since 2022, a feat JetBlue has not accomplished. This combination of low leverage and reliable internal cash generation positions SkyWest exceptionally well to navigate future market uncertainties and capitalize on opportunities without being constrained by financial distress.

The following table offers a high-level summary of each airline’s performance profile based on the detailed analysis within this report.

High-level summary of each airline’s performance

Performance Category	United Airline (UAL)	Jet Blue (JBLU)	SkyWest (SKYW)
Financial Health	Exhibited significant deleveraging since 2021, though the balance sheet remains highly leveraged. Liquidity is strong.	Leverage has increased steadily, reflecting persistent net losses and strategic investments, posing a risk to financial stability.	Maintained a consistently conservative and strong balance sheet with the lowest leverage, providing significant financial flexibility.
Profitability	Achieved a robust revenue recovery and returned to strong profitability by 2023, with solid operating and net margins in 2024.	Struggled to achieve consistent profitability, posting net losses in four of the last five years and demonstrating weak margin performance.	Demonstrated stable, positive operating margins throughout the period, with consistent net profitability since 2023.
Operational Efficiency	Generated powerful operating cash flows post-2021, though free cash flow has been volatile due to high capital expenditures.	Cash flow from operations has been inconsistent and often failed to cover net losses, resulting in consistently negative free cash flow.	Produced remarkably stable and positive operating and free cash flows, showcasing a highly efficient and resilient business model.
Stock Recommendation	Hold	Sell	Buy & Hold

In conclusion, the U.S. airline sector presents a landscape of varied financial fortitude. United Airlines has successfully leveraged its scale to drive a powerful earnings recovery. JetBlue faces significant headwinds in its pursuit of sustainable profitability and balance sheet repair. SkyWest, with its distinct regional operating model, has emerged from the turbulent five-year period with the most durable and well-positioned financial structure, setting the stage for a stable long-term outlook.