Alaska Air Group, Inc. Earnings Summary — Q3 FY2026

• Net loss of $76 million driven primarily by an 85% year-over-year spike in fuel costs ($600M incremental impact).
• Successfully achieved a single passenger service system (PSS) integration milestone for Alaska and Hawaiian operations.
• Launched first transatlantic service from Seattle to Rome, London, and Reykjavik, expanding global footprint.
• Managed corporate revenue accelerated 30% year-over-year, alongside a 19% increase in loyalty cash remuneration.
• Liquidity increased by $1 billion through new financing to manage fuel volatility, reaching $3.8 billion.
• Revenue performance in April was hampered by historic rainstorms in Hawaii, impacting system RASM by 3 points.

Management expects a 'meaningful inflection' in financial performance starting in Q3 2026. Q3 RASM is projected to grow in the low double digits year-over-year, while non-fuel unit costs (CASMex) are expected to moderate to low-to-mid single digits growth. Guidance assumes an economic fuel cost of $3.75 per gallon and Q3 Adjusted EPS between $0.00 and $1.00.

Improving

While the quarterly results were deeply impacted by fuel costs and weather, June saw a return to double-digit pretax margins and management's Q3 outlook indicates a sharp recovery.

The company expects Q3 capacity to grow 2-3% (primarily international), with unit revenue trending toward double-digit growth as Hawaii demand recovers to historical levels by September.