Regional airline SkyWest posted higher third-quarter earnings Thursday helped by a 34 percent drop in expenses as fuel costs decreased.

The airline's net income rose 9.2 percent to USD$28.6 million, from USD$26.2 million a year earlier.

But revenue slumped 32 percent to USD$637.8 million.

The airline, whose planes fly for Delta and United, pinned the drop in revenue to lower reimbursements for fuel costs paid by the major airlines.

SkyWest includes fuel reimbursements as part of its operating revenue.

SkyWest's stock is down 25 percent this year as airlines cut capacity to grapple with lower travel demand.

During the quarter, SkyWest bought 93,545 shares of its common stock for about USD$10.46 apiece, or USD$978,000. The company has the option to buy an additional 2.78 million shares.