--- title: "Regional Airlines Industry: Companies" description: "7 SEC filers are classified under the Standard Industrial Classification code that describes the regional airlines industry." canonical: https://www.getswoopr.com/stocks/industries/industrials/regional-airlines/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Regional Airlines Industry ## Direct Answer 7 SEC filers are classified under the Standard Industrial Classification code that describes the regional airlines industry, and their latest annual reports show $224.8 billion of combined revenue and a median operating margin of 2.7%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Regional airlines fly smaller aircraft on short routes, mostly under contract with large network carriers for a fee per flight or per block hour. Revenue is stable, and pilot supply and contract terms drive results. The first numbers to compare across companies here are block hours and departures, contract rate and pilot availability. ## Key Industry Metrics - **Block hours and departures**: Block hours are time from gate departure to gate arrival, and departures are flights flown. Under capacity purchase deals, they are the volume base on which the carrier is paid. - **Contract rate**: Fee paid by the partner airline per flight or per block hour, often with cost pass-through. It sets revenue per unit, and renewal terms shape long-run margin. - **Pilot availability**: Number of qualified pilots relative to what the schedule needs. Shortages can ground aircraft and cut flying, so it is a direct limit on volume and revenue. - **Operating margin**: Operating profit as a share of revenue. Under fixed-fee contracts, margin is relatively stable, and it moves with labor cost and incentive payments. - **Fleet utilization**: Hours flown per aircraft per day. Higher utilization spreads fixed ownership and maintenance cost, while grounded or parked aircraft reduce earnings. ## Primary Macro Drivers - **Partner airline demand**: Revenue is fees from major carriers, so their schedules and capacity needs set block hours and departures flown. - **Pilot supply**: Having enough qualified pilots decides how many aircraft can fly, so supply limits block hours and growth. - **Contract renewals**: Capacity purchase agreements run for set terms, so renewals and their rates determine revenue stability and margin. - **Small community service rules**: Subsidy and service requirements keep some routes flown, creating steady work for small aircraft. ## Major Risks - **Contract losses**: Losing or shrinking a partner agreement removes a large share of flying and leaves aircraft idle; watch contract end dates and capacity commitments. - **Pilot shortages**: Too few pilots ground aircraft, lowering block hours and revenue and raising pay costs; watch pilot count, attrition and fleet utilization. - **Dependence on partners**: One or two network carriers account for most revenue, so their decisions on capacity or pricing decide results; watch partner concentration. - **Labor costs**: Pilot pay rises lift cost, and fixed fees mean margin falls unless contracts reprice; watch labor cost and contract rate terms. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Mixed | | Capital Intensity | High | | Regulatory Intensity | High | | Industry Maturity | Mature | | Geographic Importance | U.S. | ## Regional Airlines Filers in the SEC Record 7 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 4512. Their latest fiscal years end in 2025, and together they reported $224.8 billion of revenue. Median revenue growth over the prior year was 2.8%. Median operating margin was 2.7% and median net margin 1.6%. Median total liabilities were 76% of total assets, and 6 of 7 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Delta Air Lines, Inc.](https://www.getswoopr.com/stocks/companies/delta-air-lines/) | $63.4 billion | 2.8% | 9.2% | 7.9% | FY 2025 | | [United Airlines Holdings, Inc.](https://www.getswoopr.com/stocks/companies/united-airlines-holdings/) | $59.1 billion | 3.5% | 8.0% | 5.7% | FY 2025 | | [American Airlines Group Inc.](https://www.getswoopr.com/stocks/companies/american-airlines/) | $54.6 billion | 0.8% | 2.7% | 0.2% | FY 2025 | | [Southwest Airlines Co](https://www.getswoopr.com/stocks/companies/southwest-airlines/) | $28.1 billion | 2.1% | 1.5% | 1.6% | FY 2025 | | [Alaska Air Group, Inc.](https://www.getswoopr.com/stocks/companies/alaska-air-group-inc/) | $14.2 billion | 21.3% | 2.1% | 0.7% | FY 2025 | | [Frontier Group Holdings, Inc.](https://www.getswoopr.com/stocks/companies/frontier-group-holdings-inc/) | $3.7 billion | -1.4% | -4.0% | -3.7% | FY 2025 | | [Republic Airways Holdings Inc.](https://www.getswoopr.com/stocks/companies/republic-airways-holdings-inc/) | $1.7 billion | 13.7% | 10.0% | 4.5% | FY 2025 | Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## Where to Go Next The Regional Airlines guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company. ### More in Industrials - [Industrials sector overview](https://www.getswoopr.com/stocks/industries/industrials/) - [Research & Advisory Services](https://www.getswoopr.com/stocks/industries/industrials/research-and-advisory-services/) - [Recycling Services](https://www.getswoopr.com/stocks/industries/industrials/recycling-services/) - [Ride-Hailing](https://www.getswoopr.com/stocks/industries/industrials/ride-hailing/) - [Records Management](https://www.getswoopr.com/stocks/industries/industrials/records-management/) - [Road & Highway Construction](https://www.getswoopr.com/stocks/industries/industrials/road-and-highway-construction/) - [Railroads](https://www.getswoopr.com/stocks/industries/industrials/railroads/) - [Robotics](https://www.getswoopr.com/stocks/industries/industrials/robotics/) - [Rail Infrastructure Operators](https://www.getswoopr.com/stocks/industries/industrials/rail-infrastructure-operators/) ### Put it to work - [How to analyze a stock](https://www.getswoopr.com/stocks/how-to-analyze-a-stock/) - [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/) - [Company research](https://www.getswoopr.com/stocks/companies/) - [All industries](https://www.getswoopr.com/stocks/industries/) ## Frequently Asked Questions What are the main KPIs for the Regional Airlines industry? Key performance indicators for the Regional Airlines industry include: Block hours and departures, Contract rate, Pilot availability, Operating margin, Fleet utilization. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Regional Airlines industry? The Regional Airlines industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important. What are the biggest risks in the Regional Airlines industry? The primary risks for Regional Airlines companies include: Contract losses, Pilot shortages, Dependence on partners, Labor costs. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).