ALASKA AIR GROUP (ALK) Company Report

Alaska Airlines (ALK) maintains its $10 EPS target for 2027, despite macro headwinds that reduced the profit base by approximately $3 per share, citing $1 billion in planned initiatives and synergies as achievable.
The new premium co-brand card has exceeded initial expectations for card authorizations, leading to immediate outperformance in cash remuneration, though the $40 million incremental profit target by 2027 is currently unchanged.
Performance of Hawaiian assets has been better than anticipated, achieving break-even in Q2 and Q3 2025, with Q1 2026 expected to show significant improvement over Q1 2025. Cost synergies from the merger, including overhead and supply chain savings, are being realized and will continue to unlock through 2026.
The company plans to operate two wide-body fleets (A330s and 787s) for the long term, having secured five additional options for 787s, bringing the total to 17 787s for the Seattle International Complex. ALK is also actively pursuing solutions for more stable fuel supply on the West Coast.

4 days ago

Transcript

Alaska Airlines Reaffirms 2027 EPS Target Amid Operational Recovery and Merger Synergies

ALK

Guidance Update

M&A

New Projects/Investments

Alaska Airlines maintains its $10 EPS target for 2027, supported by $1 billion in initiatives including merger synergies and new loyalty programs, despite macro headwinds that reduced the initial profit buffer by approximately $3 per share.
The integration of Hawaiian assets has performed "phenomenally" better than expected, nearing break-even through Q3 compared to an initial projection of $200 million in losses, and the company is on track to achieve $200 million in cost synergies from the merger.
Temporary impacts from a government shutdown and IT outages have largely recovered, and fuel prices have returned to pre-refinery fire levels.
The company is expanding its wide-body fleet with 17 Boeing 787s for international routes from Seattle and plans to continue operating 24 Airbus A330s from Honolulu, while also evaluating narrow-body fleet consolidation.

4 days ago

Transcript

Alaska Air Group Revises Q4 2025 Earnings Forecast

ALK

Earnings

Guidance Update

Profit Warning

Alaska Air Group has significantly lowered its fourth-quarter 2025 earnings forecast to approximately 10 cents per share, representing a 75% reduction from earlier projections.
This revision is primarily attributed to an internal IT outage, which alone accounted for a $0.25 per share reduction, and government-mandated flight reductions that led to 600 cancellations and a $0.15 per share loss in revenue.
The company now projects a modest 1% increase in revenue per available seat mile (RASM) and a 3% rise in cost per available seat mile (CASM) excluding fuel for Q4 2025.
Alaska Air is engaging third-party consultants to review its IT systems and enhance data center resilience, while remaining focused on strategic integration and synergy capture for long-term value.

5 days ago

Bloomberg

ALK Reports Strong Q3 2025 Results and Upgrades Full-Year Outlook

ALK

Earnings

Guidance Update

Product Launch

ALK delivered 18% global organic revenue growth, reaching DKK 1,530 million, and saw its operating profit (EBIT) increase by 41% to DKK 423 million in Q3 2025, resulting in an EBIT margin of 28%.
The company upgraded its full-year 2025 outlook, now projecting revenue growth of 13-15% in local currencies (previously 12-14%) and an EBIT margin of approximately 26% (previously 25%).
Key growth drivers included 17% growth in tablet sales and 42% growth in other products and services, primarily fueled by higher Jext® sales within the anaphylaxis portfolio.
Strategic advancements include the successful paediatric roll-out of house dust mite and tree pollen allergy tablets, the launch of the EUR neffy® nasal adrenaline spray in the UK, and a US FDA Fast Track designation for the peanut SLIT-tablet development program.

Nov 12, 2025, 4:22 PM

Press Release

Alaska Air Group Achieves Single Operating Certificate for Alaska and Hawaiian Airlines

ALK

M&A

Management Change

New Projects/Investments

Alaska Airlines received a single operating certificate (SOC) from the Federal Aviation Administration today, October 29, 2025, allowing it to operate alongside Hawaiian Airlines as two separate brands, a milestone achieved just over a year after their combination.
The SOC marks the successful integration of training, policies, procedures, and manuals across both airlines and is a precursor to further integration, including a move to a single passenger service system (PSS) next spring (April), after which all flights will carry the AS code.
Diana Birkett Rakow has been appointed CEO of Hawaiian Airlines, with Jim Landers assuming the role of head of Hawai'i operations and Shelly Parker becoming head of Hawai'i guest operations.
Hawaiian Airlines is scheduled to join the oneworld alliance in spring 2026.

Oct 29, 2025, 10:30 AM

Press Release

Alkane Resources Reports Q1 FY26 Results and Merger Completion

ALK

Earnings

M&A

Guidance Update

Alkane Resources Limited reported a site operating cash flow of A$73 million for the quarter ending September 30, 2025 (Q1 FY26), with revenue of A$147 million from gold equivalent sales of 30,010 ounces.
The company achieved record gold production of 30,511 AuEq oz at an All-In Sustaining Cost (AISC) of A$2,988/AuEq oz for the statutory reporting period, and 36,407 AuEq oz at an AISC of A$3,036/AuEq oz for the full quarter across all operations.
Alkane maintains its Full Year Group Guidance for FY2026 of 160-175kozs AuEq at an AISC of A$2,600-2,900/AuEq oz.
The merger with Mandalay Resources Corporation was completed on August 5, 2025, and the company ended the quarter with a cash, bullion, and listed investment balance of A$191 million after repaying A$45 million in debt and incurring A$25 million in one-off merger costs.
Significant exploration results were reported, including 11.7g/t gold and 6.5% antimony over 4.88m at True Blue (Costerfield) and 8.2m @ 3.74g/t gold at El Paso (Tomingley).

Oct 29, 2025, 1:06 AM

Press Release

Alaska Airlines Announces 13 New Routes and Network Expansion

ALK

New Projects/Investments

Alaska Airlines is introducing 13 new nonstop routes beginning next spring, expanding its network from key hubs in San Diego and Portland.
The expansion includes two new destinations, Tulsa, Oklahoma, and Arcata-Eureka, California, which will bring the total number of destinations served by Alaska Air Group in 2026 to 142.
The company is deepening its commitment to Hawai'i with a new Honolulu-Burbank route and increased flights from San Francisco and Los Angeles to the Islands.
San Diego is projected to grow by more than 35% in spring 2026 compared to spring 2025, solidifying its position as Alaska Airlines' fastest-growing hub.

Oct 27, 2025, 4:47 PM

Press Release

Alaska Air Group Reports Mixed Q3 2025 Results, Lowers Profit Outlook

ALK

Earnings

Guidance Update

Profit Warning

Alaska Air Group reported its highest-ever quarterly revenue of $3.77 billion for Q3 2025, but missed earnings per share at $1.05.
The company experienced operational disruptions due to IT outages, which temporarily halted operations across all airports and affected its unit Horizon Air.
Consequently, Alaska Air Group lowered its annual adjusted profit per share forecast from over $3.25 to at least $2.40.
Despite revenue growth, the net margin for Q3 2025 was 2.33%, significantly lower than its historical median of 6.52%.
Analysts maintain a positive outlook, with a median price target implying a 23% upside for the stock.

Oct 24, 2025, 5:15 AM

CNBC

Alaska Air Group Reports Q3 2025 Results and Provides Outlook

ALK

Earnings

Guidance Update

Share Buyback

Alaska Air Group reported Q3 2025 adjusted earnings per share of $1.05 and a GAAP net income per share of $0.62, with record revenue of $3.8 billion and an adjusted pretax margin of 4.6%.
The company saw a 1.4% year-over-year increase in unit revenue (RASM) and an 8.6% increase in unit costs (CASMex) for Q3 2025 on a pro forma basis.
For Q4 2025, adjusted earnings per share are expected to be at least $0.40, with the full year 2025 adjusted earnings per share projected at least $2.40. The company also reiterated its $10 earnings per share goal for 2027.
The company repurchased 10.6 million shares for approximately $540 million during the nine months ended September 30, 2025, and maintained a strong balance sheet with a debt-to-capitalization ratio of 60% and adjusted net debt to EBITDAR of 2.6x as of September 30, 2025.

Oct 23, 2025, 10:23 PM

8-K

Alaska Air Group Lowers Q3 Earnings Outlook

ALK

Guidance Update

Profit Warning

Alaska Air Group has lowered its third-quarter earnings per share forecast to the low end of its $1.00 to $1.40 guidance.
This revision is primarily attributed to rising fuel costs, now expected to reach up to $2.55 per gallon, and operational challenges including an IT outage that will reduce EPS by approximately $0.10.
Despite these headwinds, the company is experiencing strong revenue growth driven by increased demand for premium seats and corporate travel, with unit revenue tracking near the high end of its forecast and positive yield growth year-over-year.
Analysts maintain an overall "Outperform" rating, though concerns about elevated leverage, valuation, and operational risks temper the longer-term outlook.