We're already high up in the sky now, aren't we.

Literal

We [topic-は] already sky high [in-に] are [confirmation-んだね].

Likely spoken from an airplane ascending. 空高くに ('high up in the sky') uses 高く as the く-form of 高い adverbially, then に for location. ~んだね is explanatory ~んだ + confirmation ね — seeking acknowledgment from a listener. A moment of shared observation.