{"id":899948,"date":"2025-10-23T20:45:16","date_gmt":"2025-10-24T00:45:16","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/alaska-air-group-reports-third-quarter-2025-results\/"},"modified":"2025-10-23T20:45:16","modified_gmt":"2025-10-24T00:45:16","slug":"alaska-air-group-reports-third-quarter-2025-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/alaska-air-group-reports-third-quarter-2025-results\/","title":{"rendered":"Alaska Air Group reports third quarter 2025 results"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n Announced two new global nonstop routes from Seattle<\/span> to London<\/span> and Reykjavik<\/span> starting May 2026<\/span><\/i>\n <\/p>\n

\n Launched Atmos\u2122 Rewards loyalty program and exceeded premium credit card sign-up expectations<\/i>\n <\/p>\n

\n Announced fleet wide installation of Starlink high-speed Wi-Fi with complimentary access for Atmos Rewards members<\/i>\n <\/p>\n

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\n SEATTLE<\/span>
\n <\/span>, Oct. 23, 2025<\/span><\/span> \/PRNewswire\/ — Alaska Air Group (NYSE: ALK) today reported financial results for the third quarter ending September 30, 2025<\/span>.<\/p>\n

“Alaska’s<\/span> profitable quarter was powered by another period of industry-leading unit revenue,” said CEO Ben Minicucci<\/span>. “I’m proud of our people for taking care of our guests, executing major integration milestones and capturing synergies ahead of plan as we bring together Alaska<\/span> and Hawaiian Airlines. Together we are delivering on our Alaska Accelerate vision, building our future as a global airline positioned to compete with greater scale, deeper relevance and stronger loyalty in the places we fly.”<\/p>\n

\n Quarter in Review:<\/b>\n <\/p>\n

Air Group’s Consolidated Statements of Operations, Consolidated Balance Sheets, and Summary Cash Flow Statement include Hawaiian Airlines from September 18, 2024<\/span> onward. For comparability of financial and operational results, historical information has also been provided on a pro forma basis within the Supplementary Pro Forma Comparative Financial and Operating Information in this filing and in prior 8-K filings. The pro forma information provided assumes Hawaiian is included in both 2024 and 2025.<\/p>\n

Air Group reported third quarter Generally Accepted Accounting Principles (GAAP) pretax margin of 2.9% and a GAAP net income per share of $0.62<\/span>. Our third quarter adjusted pretax margin was 4.6% and our adjusted earnings per share was $1.05<\/span>.<\/p>\n

\n\n\n\n\n\n\n
\n

\n
\n Q3 2025 Results<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Prior Expectation<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Actual Results <\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Capacity (ASMs) % change versus pro forma 2024<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Down ~(1.0)%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Down ~(0.7)%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n RASM % change versus pro forma 2024<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Flat to up low single digits<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Up ~1.4%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n CASMex % change versus pro forma 2024<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Up mid to high single digits<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Up ~8.6%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted earnings per share<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $1.00 to $1.40<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $1.05<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Air Group continued to advance its Alaska Accelerate strategy during the quarter, achieving several key integration milestones. These include the successful launch of our unified\u00a0Atmos Rewards loyalty program and new premium credit card, final approval for our imminent transition to become one mainline airline under a single operating certificate, and the completion of our selling cutover to a unified passenger service system. These achievements represent significant progress in building the infrastructure to support Air Group’s future growth and profitability, and deliver on our Alaska Accelerate goal of $10<\/span> earnings per share in 2027 enabled by $1 billion<\/span> in incremental profit.<\/p>\n

Third quarter record revenue was $3.8 billion<\/span>, resulting in a 1.4% year-over-year RASM increase which we believe will continue to lead the industry. Corporate travel grew 8% year-over-year compared to low single-digit declines in the prior quarter, while close-in demand remained strong throughout the third quarter. Our diverse revenue streams continued to deliver with premium revenue increasing 5%, year-over-year, cargo revenue increasing 27% year-over-year, and our loyalty program cash remuneration increasing 8% year-over-year. Commercial initiatives and synergy capture remained on track for the third consecutive quarter.<\/p>\n

Unit costs, excluding fuel, freighter costs, and special items increased 8.6% year-over-year. This increase is at the high end of prior guidance, primarily due to elevated recovery costs from the IT outage that resulted in irregular operations in July and several weeks of challenging weather. Economic fuel price per gallon was $2.51<\/span> per gallon in the third quarter, reflecting elevated West Coast refining prices during the third quarter.<\/p>\n

\n Fourth\u00a0Quarter and Full Year Forecast Information:<\/b>\n <\/p>\n

We anticipate fourth quarter unit revenue to increase low single digits year-over-year, building on last year’s solid performance. Unit costs for the fourth quarter are expected to increase low single-digits year-over-year and reflect significant cost synergies, with fourth quarter capacity growth expected to be 2 to 3% year-over-year. Fuel costs are expected to remain a headwind due to ongoing volatility in West Coast refining costs. We expect fourth quarter earnings per share of at least $0.40<\/span>, with full year adjusted earnings per share of at least $2.40<\/span>.<\/p>\n

\n\n\n\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n Q4 Expectation <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Full Year Expectation<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Capacity (ASMs) % change versus pro forma 2024<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Up 2% to 3%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Up ~2%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n RASM % change versus pro forma 2024<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Up low single digits<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Up low single digits<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n CASMex % change versus pro forma 2024<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Up low single digits<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Up mid single digits<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted earnings per share(a)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n \u00a0At least $0.40<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n At least $2.40<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n (a)<\/span>\n <\/p>\n<\/td>\n

\n

\n Adjusted earnings per share guidance assumes economic fuel price per gallon between $2.50 and $2.60, non-operating expense of approximately $50 million, and a tax rate of 32%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Financial Results and Updates:<\/b>\n <\/p>\n