SkyWest, Inc. SKYW currently benefits from increased air-travel demand. However, its weak balance sheet is a challenge.SkyWest reported first-quarter 2022 earnings of 35 cents per share, surpassing the Zacks Consensus Estimate of 3 cents. In the year-ago quarter, SKYW reported earnings of 71 cents. However, the 50.7% year-over-year decline in earnings was due to the 50.6% rise in total costs. Revenues of $735.2 million outperformed the Zacks Consensus Estimate of $667.3 million. The top line jumped 37.53% year over year.How is SkyWest Faring?With improvement in air-travel demand, SkyWest carried 72.2% and 53.9% more passengers in 2021 and first-quarter 2022, respectively, than the corresponding year-ago levels. As a result, passenger load factor (percentage of seats filled by passengers) expanded 1820 basis points to 74.6% in 2021. The measure increased 20.9 percentage points to 77.6% in first-quarter 2022. With air-travel demand continuing to improve, load factor is likely to be impressive in the remaining quarters of 2022 as well.SkyWest's fleet-modernization efforts are commendable as well. To upgrade its fleet, SkyWest entered into an agreement with Delta to purchase and operate 16 new E175 aircraft in August. Per the agreement, the 16 new E175 aircraft will come online by early 2023.SkyWest's current ratio at the end of the first quarter of 2022 was 0.94. A current ratio of less than 1 does not bode well as it implies that the company may have problems in meeting its short-term debt obligations.Rising operating expenses raise a concern for SkyWest. In first-quarter 2022, expenses related to salary, wages and benefits increased 36.5% year over year. Aircraft fuel cost surged 30.6% in the March quarter with oil prices moving north. Due to the increase in the components, total operating costs (up 50.5% in first-quarter 2022) are escalating and limiting bottom-line growth. The fact that more planes are in operation to meet the spike in demand for air travel also contributed to the rise in fuel expenses.Zacks Rank & Key PicksSkyWest currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Some better-ranked stocks in the broader Zacks Transportation sector are Ryder System, Inc. R, C.H. Robinson Worldwide, Inc. CHRW and GATX Corporation (GATX).Ryder has a trailing-four quarter surprise of 48.2%, on average, with its earnings having surpassed the Zacks Consensus Estimate in all the last four quarters. R is benefiting from improving economic and freight conditions in the United States.Revenues in all segments grew (on higher rental revenues, new business and favorable pricing) in first-quarter 2022. R currently carries a Zacks Rank #2 (Buy).The expected long-term (three-to-five years) earnings per share (EPS) growth rate for C.H. Robinson is pegged at 9%. Better freight market conditions are aiding CHRW.In first-quarter 2022, the top line improved 41.8% owing to favorable truckload pricing for customers and handsome profits in ocean freight. CHRW currently sports a Zacks Rank #1.GATX has a trailing-four quarter surprise of 40.1%, on average, with its earnings having surpassed the Zacks Consensus Estimate in all the last four quarters.The gradual improvement in the North American railcar leasing market is a boon for GATX. GATX currently has a Zacks Rank of 2. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ryder System, Inc. (R): Free Stock Analysis Report C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research