793733--2/23/2009--SKYWEST

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Risks Related to Our Operations We are highly dependent on Delta, United and Midwest. We may be negatively impacted by the troubled financial condition of Delta and United. We may be negatively impacted by the troubled financial condition and restructuring of Midwest The amounts we receive under our code-share agreements may be less than the actual amounts of the corresponding costs we incur. SkyWest Airlines and ASA are engaged in litigation with Delta, which may negatively impact our financial results and our relationship with Delta We have a significant amount of contractual obligations. There are risks associated with our regional jet strategy, including potential oversupply and possible passenger dissatisfaction. We may be limited from expanding our flying within the Delta and United flight systems, and there are constraints on our ability to provide airline services to airlines other than Delta and United. Economic and industry conditions constantly change, and negative economic conditions in the United States and other countries may create challenges for us that could materially and adversely affect our business and results of operations. Reduced utilization levels of our aircraft under our code-share agreements would adversely impact our financial results. Increased labor costs, strikes, labor disputes and increased unionization of our workforces may adversely affect our ability to conduct our business. We have been adversely affected by increases in fuel prices, and we would be adversely affected by disruptions in the supply of fuel. We may be unable to obtain all of the aircraft, engines, parts or related maintenance and support services we require, which could have a material adverse impact on our business. Maintenance costs will likely continue to increase as the age of our regional jet fleet increases. If we incur problems with any of our third-party service providers, our operations could be adversely affected. Interruptions or disruptions in service at one of our hub airports, due to adverse weather or for any other reason, could have a material adverse impact on our operations. Our investment in a foreign airline may negatively impact our profitability. Fluctuations in interest rates could adversely affect our liquidity, operating expenses and results. Our business could be harmed if we lose the services of our key personnel. Risks Related to the Airline Industry We may be materially affected by uncertainties in the airline industry. The airline industry is highly competitive and has undergone a period of consolidation and transition leaving fewer potential code-share partners. Terrorist activities or warnings have dramatically impacted the airline industry, and will likely continue to do so. Fuel costs have adversely affected, and will likely continue to adversely affect, the operations and financial performance of the airline industry. We are subject to significant governmental regulation. The occurrence of an aviation accident would negatively impact our operations and financial condition. Risks Related to Our Common Stock We can issue additional shares without shareholder approval. The amount of dividends we pay may decrease or we may not pay dividends. Provisions of our charter documents and code-share agreements may limit the ability or desire of others to gain control of our company.

Full 10-K form ▸

793733--2/23/2009--SKYWEST_INC