Why SkyWest Shares Took Off This Week
The headwinds appear to be dissipating for (NASDAQ: SKYW), giving the small-plane operator clear skies to gain altitude. That had the stock heading higher this week, with shares up 15% as of midday Thursday, according to data provided by S&P Global Market Intelligence.
It has been a volatile few years for commercial airlines. Their stock prices fell sharply in the early days of the pandemic as travel nearly ground to a halt, but a surge in demand in recent quarters has helped the sector to get airborne again.
SkyWest follows a different business model than most of the carriers that travelers will be more familiar with. It operates a fleet of about 500 smaller airplanes that do business under the brands of partners including United Airlines Holdings, Delta Air Lines, and Alaska Air Group. These fee-for-service deals help it better manage its income and expenses, but like other airlines, SkyWest does best when demand is strong.
Source Fool.com
