Alaska Air Group reports third quarter 2025 results
Alaska Air Group (NYSE: ALK) reported third quarter 2025 results on October 24, 2025. Q3 revenue was $3.8 billion with GAAP EPS of $0.62 and adjusted EPS of $1.05. The company reported RASM +1.4% versus pro forma 2024 and capacity (ASMs) down ~0.7%. Unit costs ex-fuel, freighter, and special items rose ~8.6%, while economic fuel averaged $2.51/gal.
Air Group highlighted integration milestones: launch of Atmos Rewards and premium credit card, Starlink Wi‑Fi fleet installation, transition to a single operating certificate, and new Seattle nonstop routes to London and Reykjavik starting May 2026. Guidance: Q4 EPS at least $0.40, full-year adjusted EPS at least $2.40. Cash and marketable securities were $2.3 billion as of Sept. 30, 2025.
Alaska Air Group (NYSE: ALK) ha riportato i risultati del terzo trimestre 2025 il 24 ottobre 2025. Il ricavo del Q3 è stato di 3,8 miliardi di dollari con un earning per share GAAP di 0,62 $ e un earning per share rettificato di 1,05 $. L'azienda ha riportato RASM +1,4% rispetto al pro forma 2024 e la capacità (ASMs) in calo di circa 0,7%. I costi unitari al netto di carburante, freighter e voci straordinarie sono aumentati di circa 8,6%, mentre il carburante economico ha mediamente 2,51 $/gal.
Air Group ha evidenziato le tappe di integrazione: lancio di Atmos Rewards e della carta di credito premium, installazione di Starlink Wi‑Fi nella flotta, passaggio a un unico certificato operativo e nuove rotte dirette da Seattle a Londra e Reykjavik a partire da maggio 2026. Previsioni: EPS Q4 almeno 0,40 $, EPS rettificato per l'anno pieno almeno 2,40 $. Le contanti e i titoli negoziabili ammontavano a 2,3 miliardi di dollari al 30 settembre 2025.
Alaska Air Group (NYSE: ALK) informó los resultados del tercer trimestre de 2025 el 24 de octubre de 2025. Los ingresos del Q3 fueron de 3.8 mil millones de dólares con un EPS GAAP de 0,62 $ y un EPS ajustado de 1,05 $. La compañía reportó RASM +1,4% frente al pro forma 2024 y la capacidad (ASMs) cayó alrededor de 0,7%. Los costos unitarios excombustible, freighter y elementos especiales subieron alrededor de 8,6%, mientras que el combustible económico promedió 2,51 $/galón.
Air Group destacó hitos de integración: lanzamiento de Atmos Rewards y tarjeta de crédito prémium, instalación de Wi‑Fi Starlink en la flota, transición a un único certificado de operación y nuevas rutas sin escalas desde Seattle a Londres y Reikiavik a partir de mayo de 2026. Guía: EPS del Q4 al menos 0,40 $, EPS ajustado de la año completo al menos 2,40 $. La liquidez y valores negociables eran de 2,3 mil millones de dólares al 30 de septiembre de 2025.
Alaska Air Group (NYSE: ALK)는 2025년 3분기 실적을 2025년 10월 24일 발표했습니다. 3분기 매출은 38억 달러였고 GAAP EPS는 0.62 달러, 조정된 EPS는 1.05 달러였습니다. 회사는 2024 회계연도 대비 RASM +1.4%를 보고했고 용량(ASMs)은 약 0.7% 감소했습니다. 단가(연료 제외, 프레이트와 특별 항목 제외)는 약 8.6% 상승했고 경제적 연료는 평균 2.51달러/갤런이었습니다.
Air Group은 통합 이정표를 강조했습니다: Atmos Rewards 및 프리미엄 신용카드 출시, 스타링크 Wi‑Fi 함대 설치, 단일 운항 인증서로의 전환, 2026년 5월부터 시애틀에서 런던 및 레이캬비크로 가는 새로운 직항 노선 개설. 가이던스: 4분기 EPS 최소 0.40달러, 연간 조정 EPS 최소 2.40달러. 현금 및 유가증권은 2025년 9월 30일 기준 23억 달러였다.
Alaska Air Group (NYSE: ALK) a publié les résultats du troisième trimestre 2025 le 24 octobre 2025. Les revenus du T3 s'élèvent à 3,8 milliards de dollars avec un BPA GAAP de 0,62 $ et un BPA ajusté de 1,05 $. L'entreprise a enregistré un RASM +1,4% par rapport au pro forma 2024 et une capacité (ASMs) en baisse d'environ 0,7%. Les coûts unitaires hors carburant, freighter et éléments spéciaux ont augmenté d'environ 8,6%, tandis que le carburant économique a été en moyenne 2,51 $/gal.
Air Group a mis en avant des jalons d'intégration: lancement de Atmos Rewards et d'une carte de crédit premium, installation de Wi‑Fi Starlink dans la flotte, passage à un seul certificat d'exploitation et nouvelles liaisons sans escale depuis Seattle vers Londres et Reykjavik à partir de mai 2026. Prévisions: EPS du Q4 d'au moins 0,40 $, EPS ajusté de l'année complète d'au moins 2,40 $. Les liquidités et valeurs mobilières s'élevaient à 2,3 milliards de dollars au 30 septembre 2025.
Alaska Air Group (NYSE: ALK) berichtete über die Ergebnisse des dritten Quartals 2025 am 24. Oktober 2025. Umsatz im Q3 betrug 3,8 Milliarden Dollar mit einem GAAP EPS von 0,62 $ und einem bereinigten EPS von 1,05 $. Das Unternehmen meldete RASM +1,4% gegenüber dem pro Forma 2024 und eine Kapazität (ASMs) von ca. 0,7% weniger. Die Stückkosten ex Kraftstoff, Fracht und Sonderposten stiegen um ca. 8,6%, während der wirtschaftliche Kraftstoff durchschnittlich 2,51 $/gal betrug.
Die Air Group hob Integrationsmeilensteine hervor: Start von Atmos Rewards und Premium-Kreditkarte, Starlink-Wi‑Fi-Flotteninstallation, Umstellung auf ein einziges Betriebsgenehmigung und neue Nonstop-Verbindungen von Seattle nach London und Reykjavik ab Mai 2026. Prognose: Q4-EPS mindestens 0,40 $, volljähriges Jahr angepasstes EPS mindestens 2,40 $. Bargeld und handelbare Wertpapiere betrugen zum 30. Sept. 2025 2,3 Milliarden Dollar.
مجموعة Alaska Air Group (NYSE: ALK) أبلغت عن نتائج الربع الثالث من 2025 في 24 أكتوبر 2025. إيرادات الربع الثالث بلغت 3.8 مليار دولار مع EPS بموجب مبادئ المحاسبة المقبولة عموماً (GAAP) قدره 0.62 دولار وEPS معدل قدره 1.05 دولار. أعلنت الشركة عن RASM +1.4% مقارنة بـ pro forma 2024 وقدرة (ASMs) بانخفاض نحو 0.7%. ارتفعت تكاليف الوحدة باستثناء الوقود، الشحن، والبنود الخاصة بحوالي 8.6%، بينما بلغ متوسط الوقود الاقتصادي 2.51 دولار/غالون.
أبرزت Air Group معالم التكامل: إطلاق Atmos Rewards وبطاقة ائتمان مميزة، وتثبيت Wi‑Fi Starlink في الأسطول، والانتقال إلى شهادة تشغيل واحدة، وطرق جديدة من سياتل إلى لندن وريكيبافيك بدون توقف ابتداءً من مايو 2026. التوجيه: EPS للربع الرابع على الأقل 0.40 دولار، EPS المعدل للسنة الكاملة على الأقل 2.40 دولار. كانت النقدية والأوراق المالية القابلة للتداول 2.3 مليار دولار حتى 30 سبتمبر 2025.
阿拉斯加航空集团 (NYSE: ALK) 于 2025 年 10 月 24 日公布了 2025 年第三季度业绩。第三季度收入为 38 亿美元，GAAP 每股收益为 0.62 美元，调整后每股收益为 1.05 美元。公司报告 RASM +1.4%，相对于 2024 年的前瞻口径，运力（ASMs）下降约 0.7%。单位成本（不含燃料、货运和特别项目）上涨约 8.6%，经济燃料均价为 2.51 美元/加仑。
Air Group 突出显示了整合里程碑：推出 Atmos Rewards 与高端信用卡、星链 Wi‑Fi 机队安装、过渡到单一运营证书，以及自 2026 年 5 月起从西雅图到伦敦和雷克雅未克的新的直飞航线。 指引：第四季度每股收益至少 0.40 美元，全年调整后每股收益至少 2.40 美元。至 2025 年 9 月 30 日，现金及有价证券为 23 亿美元。
- Total revenue of $3.8B in Q3 2025
- Adjusted EPS of $1.05 for Q3 2025
- RASM increased ~1.4% year-over-year (pro forma)
- Repurchased 10.6M shares for ~$540M year-to-date
- Launched Atmos Rewards and premium credit card; sign-ups exceeded goal
- Unit costs ex-fuel up 8.6% year-over-year in Q3
- GAAP EPS declined from $1.84 (Q3 2024) to $0.62 (Q3 2025)
- Economic fuel price of $2.51/gal in Q3, noted as ongoing headwind
- IT outage recovery and weather raised costs during the quarter
Insights
Profitability, integration progress, and commercial initiatives point to a positive operational trajectory for Air Group this quarter.
Air Group reported a profitable third quarter with GAAP net income of $73 million and GAAP EPS of $0.62, and adjusted EPS of $1.05; revenue reached
Key dependencies and near-term risks are explicit in the report: unit costs ex-fuel rose ~
Announced two new global nonstop routes from
Launched Atmos™ Rewards loyalty program and exceeded premium credit card sign-up expectations
Announced fleet wide installation of Starlink high-speed Wi-Fi with complimentary access for Atmos Rewards members
"Alaska's profitable quarter was powered by another period of industry-leading unit revenue," said CEO Ben Minicucci. "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
Quarter in Review:
Air Group's Consolidated Statements of Operations, Consolidated Balance Sheets, and Summary Cash Flow Statement include Hawaiian Airlines from September 18, 2024 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.
Air Group reported third quarter Generally Accepted Accounting Principles (GAAP) pretax margin of
|
Q3 2025 Results |
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Prior Expectation |
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Actual Results |
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Capacity (ASMs) % change versus pro forma 2024 |
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Down ~(1.0)% |
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Down ~(0.7)% |
|
RASM % change versus pro forma 2024 |
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Flat to up low single digits |
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Up ~ |
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CASMex % change versus pro forma 2024 |
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Up mid to high single digits |
|
Up ~ |
|
Adjusted earnings per share |
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|
|
|
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 Atmos 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
Third quarter record revenue was
Unit costs, excluding fuel, freighter costs, and special items increased
Fourth Quarter and Full Year Forecast Information:
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
|
|
|
Q4 Expectation |
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Full Year Expectation |
|
Capacity (ASMs) % change versus pro forma 2024 |
|
Up |
|
Up ~ |
|
RASM % change versus pro forma 2024 |
|
Up low single digits |
|
Up low single digits |
|
CASMex % change versus pro forma 2024 |
|
Up low single digits |
|
Up mid single digits |
|
Adjusted earnings per share(a) |
|
At least |
|
At least |
|
|
|
|
(a) |
Adjusted earnings per share guidance assumes economic fuel price per gallon between |
Financial Results and Updates:
- Reported GAAP net income for the third quarter of 2025 of
$73 million $0.62 $236 million $1.84 - Reported net income for the third quarter of 2025, excluding special items and other adjustments, of
$123 million $1.05 $289 million $2.25 - Repurchased 10.6 million shares for approximately
$540 million - Generated
$229 million - Held
$2.3 billion
Operational Updates:
- Announced leadership promotions at Air Group effective in the fourth quarter of 2025, naming Jason Berry COO of Alaska Airlines, Diana Birkett Rakow CEO of Hawaiian Airlines, and Andy Schneider CEO of Horizon Air.
- Ratified a five-year agreement with more than 2,900 IAM-represented McGee Air Services employees.
- Completed the sale of
Alaska's final eight 737-900s in the third quarter. - Completed selling cutover in preparation for the full transition to a single passenger service system in spring 2026.
Atmos Rewards:
- Launched Atmos Rewards, a combined loyalty program that integrates
Alaska's Mileage Plan™ and Hawaiian's HawaiianMiles™ programs, offering flexible earning and expanded redemption options across our global network. - Released the Atmos Rewards Summit Visa Infinite, our premium co-branded credit card, offering enhanced earnings opportunities and exclusive benefits. Card sign-ups exceeded our year-end goal within two weeks, with notable traction beyond our core West Coast and Hawai'i markets.
Network and Partnerships:
- Announced new nonstop services from
Seattle toLondon andReykjavik starting May 2026, increasing our global reach to five intercontinental destinations fromSeattle . - Announced seven new nonstop routes connecting
California and the Pacific Northwest starting this winter, including new service fromBurbank ,Boise ,Spokane ,San Diego , andPalm Springs . - Expanded our codeshare agreement with STARLUX Airlines, enhancing connectivity between our network and its long-haul services to
Taipei .
Customer Experience:
- Selected Starlink to equip
Alaska's fleet with high-speed Wi-Fi, complimentary to all Atmos Rewards members. Installations are expected to begin in the fourth quarter and be completed in 2027. - Announced investments to widebody aircraft interiors to support
Alaska's premium international experience, including lie-flat Business Class suites, a new Premium Economy cabin, refreshed Main Cabin seating, and elevated onboard amenities. - Announced
San Diego lounge expansion plans to begin construction in early 2027, including a 13,000 square-foot space.
Other Highlights:
- Launched a new investment fund in partnership with oneworld alliance members and Breakthrough Energy Ventures to advance and commercialize sustainable aviation fuel (SAF) technologies.
- Partnered with Cosmo Oil Marketing to incorporate SAF on
Osaka -Honolulu flights as part of our continued commitment to decarbonization. - Launched the combined Alaska Airlines | Hawaiian Airlines Foundation, dedicated to investing in nonprofit organizations focused on communities across the states of
Alaska and Hawai'i. - Top awards in the third quarter:
- "Best Airline Rewards Program" – #1 ranking from
U.S. News & World Report - "Most Innovative Airline Initiative" – #1 ranking from Future Travel Experience
- "2025 World's Best Awards for Best Domestic Airline" – Travel + Leisure. Hawaiian Airlines ranked 2nd and Alaska Airlines ranked 4th
- "Best Employers by State" – Forbes. Hawaiian Airlines ranked No. 7 in Hawaiʻi and Alaska Airlines No. 11 in
Washington . - "2026 APEX Five Star Major Airlines" – APEX
- "Best Airline Rewards Program" – #1 ranking from
The following table reconciles the company's reported GAAP net income per share (EPS) for the three and nine months ended September 30, 2025 and 2024 to adjusted amounts.
|
|
Three Months Ended September 30, |
||||||
|
|
2025 |
|
2024 |
||||
|
(in millions, except per share amounts) |
Dollars |
|
Per Share |
|
Dollars |
|
Per Share |
|
Net income |
$ 73 |
|
$ 0.62 |
|
$ 236 |
|
$ 1.84 |
|
Adjusted for: |
|
|
|
|
|
|
|
|
Mark-to-market fuel hedge adjustments |
— |
|
— |
|
(4) |
|
(0.03) |
|
Gains on foreign debt |
(2) |
|
(0.02) |
|
— |
|
— |
|
Special items(a) |
64 |
|
0.54 |
|
75 |
|
0.58 |
|
Income tax effect(b) |
(12) |
|
(0.09) |
|
(18) |
|
(0.14) |
|
Adjusted net income |
$ 123 |
|
$ 1.05 |
|
$ 289 |
|
$ 2.25 |
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
||||||
|
|
2025 |
|
2024 |
||||
|
(in millions, except per-share amounts) |
Dollars |
|
Per Share |
|
Dollars |
|
Per Share |
|
Net income |
$ 79 |
|
$ 0.65 |
|
$ 324 |
|
$ 2.52 |
|
Adjusted for: |
|
|
|
|
|
|
|
|
Mark-to-market fuel hedge adjustments |
(4) |
|
(0.03) |
|
(22) |
|
(0.17) |
|
Losses on foreign debt |
5 |
|
0.04 |
|
— |
|
— |
|
Special items(a) |
211 |
|
1.74 |
|
255 |
|
1.99 |
|
Income tax effect(b) |
(48) |
|
(0.39) |
|
(57) |
|
(0.44) |
|
Adjusted net income |
$ 243 |
|
$ 2.01 |
|
$ 500 |
|
$ 3.90 |
|
|
|
|
(a) |
Includes |
|
(b) |
Includes income tax effect of the adjustments in the tables above as well as one-time effects of the One Big Beautiful Bill Act which was signed into law in the third quarter of 2025. |
A conference call regarding the third quarter results will be streamed online at 11:30 a.m. EDT/ 8:30 a.m. PDT on October 24, 2025. It can be accessed at www.alaskaair.com/investors. For those unable to listen to the live broadcast, a replay will be available after the conclusion of the call.
References in this update to "Air Group," "Company," "we," "us," and "our" refer to Alaska Air Group, Inc. and its subsidiaries, unless otherwise specified.
This news release may contain forward-looking statements subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. These statements relate to future events and involve known and unknown risks and uncertainties that may cause actual outcomes to be materially different from those indicated by our forward-looking statements, assumptions or beliefs. For a discussion of risks and uncertainties that may cause our forward-looking statements to differ materially, see Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Some of these risks include competition, labor costs, relations and availability, general economic conditions, increases in operating costs including fuel, uncertainties regarding the ability to successfully integrate the operations of the recently completed acquisition of Hawaiian Holdings, Inc. and the ability to realize anticipated cost savings, synergies, or growth from the acquisition, inability to meet cost reduction and other strategic goals, seasonal fluctuations in demand and financial results, supply chain risks, events that negatively impact aviation safety and security, cybersecurity risks, and changes in laws and regulations that impact our business. All of the forward-looking statements are qualified in their entirety by reference to the risk factors discussed in our most recent Form 10-K and in our subsequent SEC filings. We operate in a continually changing business environment, and new risk factors emerge from time to time. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on our business or events described in any forward-looking statements. We expressly disclaim any obligation to publicly update or revise any forward-looking statements made today to conform them to actual results. Over time, our actual results, performance or achievements may differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, assumptions or beliefs and such differences might be significant and materially adverse.
Alaska Airlines, Hawaiian Airlines and Horizon Air are subsidiaries of Alaska Air Group, and McGee Air Services is a subsidiary of Alaska Airlines. We are a global airline with hubs in
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
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|
Alaska Air Group, Inc. |
|||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
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|
(in millions, except per share amounts) |
2025 |
|
2024 |
|
Change |
|
2025 |
|
2024 |
|
Change |
|
Operating Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Passenger revenue |
$ 3,424 |
|
$ 2,821 |
|
21 % |
|
$ 9,587 |
|
$ 7,476 |
|
28 % |
|
Loyalty program other revenue |
200 |
|
171 |
|
17 % |
|
617 |
|
509 |
|
21 % |
|
Cargo and other revenue |
142 |
|
80 |
|
78 % |
|
403 |
|
216 |
|
87 % |
|
Total Operating Revenue |
3,766 |
|
3,072 |
|
23 % |
|
10,607 |
|
8,201 |
|
29 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Wages and benefits |
1,226 |
|
883 |
|
39 % |
|
3,518 |
|
2,469 |
|
42 % |
|
Variable incentive pay |
71 |
|
104 |
|
(32) % |
|
194 |
|
197 |
|
(2) % |
|
Aircraft fuel, including hedging gains and |
761 |
|
624 |
|
22 % |
|
2,142 |
|
1,804 |
|
19 % |
|
Aircraft maintenance |
238 |
|
140 |
|
70 % |
|
698 |
|
391 |
|
79 % |
|
Aircraft rent |
64 |
|
49 |
|
31 % |
|
190 |
|
142 |
|
34 % |
|
Landing fees and other rentals |
305 |
|
194 |
|
57 % |
|
825 |
|
532 |
|
55 % |
|
Contracted services |
151 |
|
108 |
|
40 % |
|
442 |
|
311 |
|
42 % |
|
Selling expenses |
107 |
|
82 |
|
30 % |
|
312 |
|
243 |
|
28 % |
|
Depreciation and amortization |
203 |
|
139 |
|
46 % |
|
596 |
|
393 |
|
52 % |
|
Food and beverage service |
100 |
|
69 |
|
45 % |
|
282 |
|
194 |
|
45 % |
|
Third-party regional carrier expense |
72 |
|
63 |
|
14 % |
|
205 |
|
181 |
|
13 % |
|
Other |
256 |
|
202 |
|
27 % |
|
764 |
|
593 |
|
29 % |
|
Special items - operating |
64 |
|
74 |
|
(14) % |
|
211 |
|
254 |
|
(17) % |
|
Total Operating Expenses |
3,618 |
|
2,731 |
|
32 % |
|
10,379 |
|
7,704 |
|
35 % |
|
Operating Income |
148 |
|
341 |
|
(57) % |
|
228 |
|
497 |
|
(54) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
23 |
|
28 |
|
(18) % |
|
71 |
|
69 |
|
3 % |
|
Interest expense |
(70) |
|
(44) |
|
59 % |
|
(202) |
|
(115) |
|
76 % |
|
Interest capitalized |
8 |
|
7 |
|
14 % |
|
29 |
|
19 |
|
53 % |
|
Other - net |
2 |
|
(4) |
|
150 % |
|
(10) |
|
(4) |
|
150 % |
|
Total Non-operating Expense |
(37) |
|
(13) |
|
185 % |
|
(112) |
|
(31) |
|
NM |
|
Income Before Income Tax |
111 |
|
328 |
|
|
|
116 |
|
466 |
|
|
|
Income tax expense |
38 |
|
92 |
|
|
|
37 |
|
142 |
|
|
|
Net Income |
$ 73 |
|
$ 236 |
|
|
|
$ 79 |
|
$ 324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Share |
$ 0.63 |
|
$ 1.87 |
|
|
|
$ 0.66 |
|
$ 2.57 |
|
|
|
Diluted Earnings Per Share |
$ 0.62 |
|
$ 1.84 |
|
|
|
$ 0.65 |
|
$ 2.52 |
|
|
|
Weighted Average Shares Outstanding used for |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
115.287 |
|
126.189 |
|
|
|
119.061 |
|
126.165 |
|
|
|
Diluted |
117.500 |
|
128.590 |
|
|
|
121.193 |
|
128.347 |
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
|||
|
Alaska Air Group, Inc. |
|||
|
(in millions) |
September 30, 2025 |
|
December 31, 2024 |
|
ASSETS |
|
|
|
|
Current Assets |
|
|
|
|
Cash and cash equivalents |
$ 778 |
|
$ 1,201 |
|
Restricted cash |
28 |
|
29 |
|
Marketable securities |
1,494 |
|
1,274 |
|
Total cash, restricted cash, and marketable securities |
2,300 |
|
2,504 |
|
Receivables - net |
586 |
|
558 |
|
Inventories and supplies - net |
229 |
|
199 |
|
Prepaid expenses |
285 |
|
307 |
|
Other current assets |
66 |
|
192 |
|
Total Current Assets |
3,466 |
|
3,760 |
|
|
|
|
|
|
Property and Equipment |
|
|
|
|
Aircraft and other flight equipment |
12,953 |
|
12,273 |
|
Other property and equipment |
2,367 |
|
2,173 |
|
Deposits for future flight equipment |
710 |
|
883 |
|
|
16,030 |
|
15,329 |
|
Less accumulated depreciation and amortization |
(4,794) |
|
(4,548) |
|
Total Property and Equipment - net |
11,236 |
|
10,781 |
|
|
|
|
|
|
Other Assets |
|
|
|
|
Operating lease assets |
1,322 |
|
1,296 |
|
Goodwill |
2,723 |
|
2,724 |
|
Intangible assets - net of accumulated amortization of |
829 |
|
873 |
|
Other noncurrent assets |
436 |
|
334 |
|
Total Other Assets |
5,310 |
|
5,227 |
|
|
|
|
|
|
Total Assets |
$ 20,012 |
|
$ 19,768 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
|||
|
(in millions, except share amounts) |
September 30, 2025 |
|
December 31, 2024 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
Current Liabilities |
|
|
|
|
Accounts payable |
$ 322 |
|
$ 186 |
|
Accrued wages, vacation and payroll taxes |
811 |
|
1,001 |
|
Air traffic liability |
1,938 |
|
1,712 |
|
Other accrued liabilities |
1,007 |
|
997 |
|
Deferred revenue |
1,837 |
|
1,592 |
|
Current portion of long-term debt |
519 |
|
442 |
|
Current portion of operating lease liabilities |
216 |
|
207 |
|
Current portion of finance lease liabilities |
9 |
|
8 |
|
Total Current Liabilities |
6,659 |
|
6,145 |
|
|
|
|
|
|
Noncurrent Liabilities |
|
|
|
|
Long-term debt, net of current portion |
4,490 |
|
4,491 |
|
Operating lease liabilities, net of current portion |
1,197 |
|
1,198 |
|
Finance lease liabilities, net of current portion |
40 |
|
47 |
|
Deferred income taxes |
976 |
|
934 |
|
Deferred revenue |
1,596 |
|
1,664 |
|
Obligation for pension and post-retirement medical benefits |
439 |
|
460 |
|
Other liabilities |
586 |
|
457 |
|
Total Noncurrent Liabilities |
9,324 |
|
9,251 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Preferred stock, |
— |
|
— |
|
Common stock, |
1 |
|
1 |
|
Capital in excess of par value |
913 |
|
811 |
|
Treasury stock (common), at cost: 2025 - 28,904,970 shares; 2024 - 18,329,975 |
(1,671) |
|
(1,131) |
|
Accumulated other comprehensive loss |
(223) |
|
(239) |
|
Retained earnings |
5,009 |
|
4,930 |
|
Total Shareholders' Equity |
4,029 |
|
4,372 |
|
Total Liabilities and Shareholders' Equity |
$ 20,012 |
|
$ 19,768 |
|
SUMMARY CASH FLOW (unaudited) |
|
|
|
|
|
|
Alaska Air Group, Inc. |
|
|
|
|
|
|
(in millions) |
Nine Months |
|
Six Months Ended |
|
Three Months |
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
Net income |
$ 79 |
|
$ 6 |
|
$ 73 |
|
Adjustments to reconcile net income to net cash provided by |
639 |
|
455 |
|
184 |
|
Changes in working capital |
346 |
|
374 |
|
(28) |
|
Net cash provided by operating activities |
1,064 |
|
835 |
|
229 |
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
Property and equipment additions |
(963) |
|
(741) |
|
(222) |
|
Other investing activities |
(33) |
|
(6) |
|
(27) |
|
Net cash used in investing activities |
(996) |
|
(747) |
|
(249) |
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities: |
(490) |
|
(544) |
|
54 |
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
(422) |
|
(456) |
|
34 |
|
Cash, cash equivalents, and restricted cash at beginning of |
1,257 |
|
1,257 |
|
801 |
|
Cash, cash equivalents, and restricted cash at end of the |
$ 835 |
|
$ 801 |
|
$ 835 |
|
|
|
|
(a) |
As reported in Form 10-Q for the second quarter of 2025. |
|
(b) |
Cash flows for the three months ended September 30, 2025 can be calculated by subtracting cash flows from the six months ended June 30, 2025 from the nine months ended September 30, 2025. |
SPECIAL ITEMS (unaudited)
Air Group has classified certain operating activity as special items due to their unusual or infrequently occurring nature. We believe disclosing information about these items separately improves comparable year-over-year analysis and allows stakeholders to better understand our results of operations. A description of the special items is provided below.
Integration costs: Integration costs were associated with the acquisition of Hawaiian Airlines and consist of employee-related costs, legal and professional fees, technology, and other merger costs.
Labor and other: Labor and other costs in 2025 were primarily for changes to
|
|
Three Months Ended |
|
Nine Months Ended September |
||||
|
(in millions) |
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
Integration costs |
$ 61 |
|
$ 90 |
|
$ 154 |
|
$ 128 |
|
Labor and other |
3 |
|
(16) |
|
57 |
|
126 |
|
Special items - operating |
$ 64 |
|
$ 74 |
|
$ 211 |
|
$ 254 |
|
OPERATING STATISTICS (unaudited) |
|
|
|
|
|
|
|||||
|
A manual recalculation of certain figures using rounded amounts may not agree directly to the actual figures presented in the |
|||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
|
2025 |
|
2024 |
|
Change |
|
2025 |
|
2024 |
|
Change |
|
Consolidated Operating Statistics:(a) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passengers (000) |
15,879 |
|
13,237 |
|
20.0 % |
|
44,272 |
|
34,899 |
|
26.9 % |
|
RPMs (000,000) "traffic" |
20,739 |
|
16,970 |
|
22.2 % |
|
58,174 |
|
44,803 |
|
29.8 % |
|
ASMs (000,000) "capacity" |
24,447 |
|
19,847 |
|
23.2 % |
|
69,724 |
|
53,422 |
|
30.5 % |
|
Load factor |
84.8 % |
|
85.5 % |
|
(0.7) pts |
|
83.4 % |
|
83.9 % |
|
(0.5) pts |
|
Yield |
16.51¢ |
|
16.62¢ |
|
(0.7) % |
|
16.48¢ |
|
16.69¢ |
|
(1.3) % |
|
PRASM |
14.00¢ |
|
14.21¢ |
|
(1.5) % |
|
13.75¢ |
|
13.99¢ |
|
(1.7) % |
|
RASM |
15.41¢ |
|
15.48¢ |
|
(0.5) % |
|
15.21¢ |
|
15.35¢ |
|
(0.9) % |
|
CASMex(b) |
11.23¢ |
|
10.16¢ |
|
10.5 % |
|
11.32¢ |
|
10.48¢ |
|
8.0 % |
|
Economic fuel cost per gallon(b) (c) |
|
|
|
|
(3.8) % |
|
|
|
|
|
(11.3) % |
|
Fuel gallons (000,000)(c) |
303 |
|
240 |
|
26.3 % |
|
859 |
|
646 |
|
33.0 % |
|
ASMs per gallon |
80.6 |
|
82.7 |
|
(2.5) % |
|
81.1 |
|
82.6 |
|
(1.8) % |
|
Departures (000) |
144.0 |
|
121.6 |
|
18.4 % |
|
407.4 |
|
329.7 |
|
23.6 % |
|
Average full-time equivalent employees |
32,590 |
|
24,963 |
|
30.6 % |
|
31,221 |
|
23,784 |
|
31.3 % |
|
Operating fleet(d) |
406 |
|
394 |
|
12 a/c |
|
406 |
|
394 |
|
12 a/c |
|
Alaska Airlines Operating Statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
RPMs (000,000) "traffic" |
14,140 |
|
14,951 |
|
(5.4) % |
|
39,597 |
|
40,375 |
|
(1.9) % |
|
ASMs (000,000) "capacity" |
16,631 |
|
17,459 |
|
(4.7) % |
|
47,424 |
|
48,118 |
|
(1.4) % |
|
Economic fuel cost per gallon |
|
|
|
|
(2.7) % |
|
|
|
|
|
(10.4) % |
|
Hawaiian Airlines Operating Statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
RPMs (000,000) "traffic" |
5,113 |
|
634 |
|
NM |
|
14,454 |
|
634 |
|
NM |
|
ASMs (000,000) "capacity" |
6,045 |
|
763 |
|
NM |
|
17,313 |
|
763 |
|
NM |
|
Economic fuel cost per gallon(c) |
|
|
|
|
— % |
|
|
|
|
|
1 % |
|
Regional Operating Statistics:(e) |
|
|
|
|
|
|
|
|
|
|
|
|
RPMs (000,000) "traffic" |
1,486 |
|
1,385 |
|
7.3 % |
|
4,123 |
|
3,795 |
|
8.6 % |
|
ASMs (000,000) "capacity" |
1,771 |
|
1,625 |
|
9.0 % |
|
4,987 |
|
4,540 |
|
9.8 % |
|
Economic fuel cost per gallon |
|
|
|
|
(0.4) % |
|
|
|
|
|
(9.7) % |
|
|
|
|
(a) |
Except for FTEs, data includes information related to third-party regional capacity purchase flying arrangements. |
|
(b) |
See a reconciliation of this non-GAAP measure and Note A for a discussion of the importance of this measure to investors in the accompanying pages. |
|
(c) |
Excludes operations under the Air Transportation Services Agreement (ATSA) with Amazon. |
|
(d) |
Includes aircraft owned and leased by |
|
(e) |
Data presented includes information related to flights operated by Horizon and third-party carriers. |
GAAP TO NON-GAAP RECONCILIATIONS (unaudited)
Alaska Air Group, Inc.
We are providing reconciliations of reported non-GAAP financial measures to their most directly comparable financial measures reported on a GAAP basis. Amounts in the tables below are rounded to the nearest million. As a result, a manual recalculation of certain figures using these rounded amounts may not agree directly to the actual figures presented in the tables below.
|
Adjusted Income Before Income Tax Reconciliation |
|
|
|
|
|||
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
(in millions) |
2025 |
2024 |
|
2025 |
2024 |
||
|
Income before income tax |
$ 111 |
|
$ 328 |
|
$ 116 |
|
$ 466 |
|
Adjusted for: |
|
|
|
|
|
|
|
|
Mark-to-market fuel hedge adjustment |
— |
|
(4) |
|
(4) |
|
(22) |
|
(Gains)/losses on foreign debt |
(2) |
|
— |
|
5 |
|
— |
|
Special items(a) |
64 |
|
75 |
|
211 |
|
255 |
|
Adjusted income before income tax |
$ 173 |
|
$ 399 |
|
$ 328 |
|
$ 699 |
|
|
|
|
|
|
|
|
|
|
Pretax margin |
2.9 % |
|
10.7 % |
|
1.1 % |
|
5.7 % |
|
Adjusted pretax margin |
4.6 % |
|
13.0 % |
|
3.1 % |
|
8.5 % |
|
|
|
|
(a) |
Includes |
|
CASMex Reconciliation |
|||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
(in millions) |
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Total operating expenses |
$ 3,618 |
|
$ 2,731 |
|
$ 10,379 |
|
$ 7,704 |
|
Less the following components: |
|
|
|
|
|
|
|
|
Aircraft fuel, including hedging gains and losses |
761 |
|
624 |
|
2,142 |
|
1,804 |
|
Freighter costs |
47 |
|
17 |
|
135 |
|
46 |
|
Special items - operating |
64 |
|
74 |
|
211 |
|
254 |
|
Total operating expenses, excluding fuel, freighter |
$ 2,746 |
|
$ 2,016 |
|
$ 7,891 |
|
$ 5,600 |
|
|
|
|
|
|
|
|
|
|
ASMs |
24,447 |
|
19,847 |
|
69,724 |
|
53,422 |
|
CASMex |
11.23 ¢ |
|
10.16 ¢ |
|
11.32 ¢ |
|
10.48 ¢ |
|
Fuel Reconciliation |
|||||||
|
|
Three Months Ended September 30, |
||||||
|
|
2025 |
|
2024 |
||||
|
(in millions, except for per-gallon amounts) |
Dollars |
|
Cost/Gallon |
|
Dollars |
|
Cost/Gallon |
|
Raw or "into-plane" fuel cost |
$ 761 |
|
$ 2.51 |
|
$ 619 |
|
$ 2.57 |
|
Losses on settled hedges |
— |
|
— |
|
9 |
|
0.04 |
|
Economic fuel expense |
$ 761 |
|
$ 2.51 |
|
$ 628 |
|
$ 2.61 |
|
Mark-to-market fuel hedge adjustment |
— |
|
— |
|
(4) |
|
(0.01) |
|
Aircraft fuel, including hedging gains and losses |
$ 761 |
|
$ 2.51 |
|
$ 624 |
|
$ 2.60 |
|
Fuel gallons |
|
|
303 |
|
|
|
240 |
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
||||||
|
|
2025 |
|
2024 |
||||
|
(in millions, except for per gallon amounts) |
Dollars |
|
Cost/Gallon |
|
Dollars |
|
Cost/Gallon |
|
Raw or "into-plane" fuel cost |
$ 2,142 |
|
$ 2.50 |
|
$ 1,795 |
|
$ 2.77 |
|
Losses on settled hedges |
4 |
|
— |
|
31 |
|
0.05 |
|
Economic fuel expense |
$ 2,146 |
|
$ 2.50 |
|
$ 1,826 |
|
$ 2.82 |
|
Mark-to-market fuel hedge adjustment |
(4) |
|
— |
|
(22) |
|
(0.03) |
|
Aircraft fuel, including hedging gains and losses |
$ 2,142 |
|
$ 2.50 |
|
$ 1,804 |
|
$ 2.79 |
|
Fuel gallons |
|
|
859 |
|
|
|
646 |
|
Debt-to-capitalization, including leases |
|||
|
(in millions) |
September 30, 2025 |
|
December 31, 2024 |
|
Long-term debt, net of current portion |
$ 4,490 |
|
$ 4,491 |
|
Capitalized operating leases |
1,413 |
|
1,405 |
|
Capitalized finance leases |
49 |
|
55 |
|
Adjusted debt, net of current portion of long-term debt |
5,952 |
|
5,951 |
|
Shareholders' equity |
4,029 |
|
4,372 |
|
Total Invested Capital |
$ 9,981 |
|
$ 10,323 |
|
|
|
|
|
|
Debt-to-capitalization ratio, including leases |
60 % |
|
58 % |
|
Adjusted net debt to earnings before interest, taxes, depreciation, amortization, rent, and special items |
|||
|
(in millions) |
September 30, 2025 |
|
December 31, 2024 |
|
Long-term debt |
$ 5,009 |
|
$ 4,933 |
|
Capitalized operating leases |
1,413 |
|
1,405 |
|
Capitalized finance leases |
49 |
|
55 |
|
Total adjusted debt |
6,471 |
|
6,393 |
|
Less: Total cash and marketable securities |
2,272 |
|
2,475 |
|
Adjusted net debt |
$ 4,199 |
|
$ 3,918 |
|
|
|
|
|
|
(in millions) |
Twelve Months Ended |
|
Twelve Months Ended |
|
Operating Income(a) |
$ 301 |
|
$ 570 |
|
Adjusted for: |
|
|
|
|
Special items - operating |
302 |
|
345 |
|
Mark-to-market fuel hedge adjustments |
(10) |
|
(28) |
|
Gain on foreign debt |
(5) |
|
(10) |
|
Depreciation and amortization |
786 |
|
583 |
|
Aircraft rent |
255 |
|
207 |
|
EBITDAR |
$ 1,629 |
|
$ 1,667 |
|
|
|
|
|
|
Adjusted net debt to EBITDAR |
2.6x |
|
2.4x |
|
|
|
|
(a) |
Operating income can be reconciled using the trailing twelve month operating income as filed quarterly with the SEC. |
|
OPERATING SEGMENTS (unaudited) |
|||||||||||||
|
Alaska Air Group, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2025 |
||||||||||||
|
(in millions) |
|
|
Hawaiian |
|
Regional |
|
Consolidating |
|
Air Group |
|
Adjustments(c) |
|
Consolidated |
|
Operating Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger revenue |
$ 2,172 |
|
$ 768 |
|
$ 484 |
|
$ — |
|
$ 3,424 |
|
$ — |
|
$ 3,424 |
|
Loyalty program other revenue |
155 |
|
29 |
|
16 |
|
— |
|
200 |
|
— |
|
200 |
|
Cargo and other revenue |
79 |
|
60 |
|
— |
|
3 |
|
142 |
|
— |
|
142 |
|
Total Operating Revenue |
2,406 |
|
857 |
|
500 |
|
3 |
|
3,766 |
|
— |
|
3,766 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses, excluding fuel |
1,745 |
|
684 |
|
386 |
|
(22) |
|
2,793 |
|
64 |
|
2,857 |
|
Fuel expense |
470 |
|
188 |
|
103 |
|
— |
|
761 |
|
— |
|
761 |
|
Total Operating Expenses (Income) |
2,215 |
|
872 |
|
489 |
|
(22) |
|
3,554 |
|
64 |
|
3,618 |
|
Non-operating Income (Expense) |
(4) |
|
(27) |
|
— |
|
(8) |
|
(39) |
|
2 |
|
(37) |
|
Income (Loss) Before Income Tax |
$ 187 |
|
$ (42) |
|
$ 11 |
|
$ 17 |
|
$ 173 |
|
$ (62) |
|
$ 111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2024 |
||||||||||||
|
(in millions) |
|
|
Hawaiian |
|
Regional |
|
Consolidating |
|
Air Group |
|
Adjustments(c) |
|
Consolidated |
|
Operating Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger revenue |
$ 2,261 |
|
$ 84 |
|
$ 476 |
|
$ — |
|
$ 2,821 |
|
$ — |
|
$ 2,821 |
|
Loyalty program other revenue |
151 |
|
5 |
|
15 |
|
— |
|
171 |
|
— |
|
171 |
|
Cargo and other revenue |
71 |
|
6 |
|
— |
|
3 |
|
80 |
|
— |
|
80 |
|
Total Operating Revenue |
2,483 |
|
95 |
|
491 |
|
3 |
|
3,072 |
|
— |
|
3,072 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses, excluding fuel |
1,625 |
|
82 |
|
340 |
|
(14) |
|
2,033 |
|
74 |
|
2,107 |
|
Fuel expense |
510 |
|
23 |
|
95 |
|
— |
|
628 |
|
(4) |
|
624 |
|
Total Operating Expenses (Income) |
2,135 |
|
105 |
|
435 |
|
(14) |
|
2,661 |
|
70 |
|
2,731 |
|
Non-operating Income (Expense) |
3 |
|
(4) |
|
— |
|
(11) |
|
(12) |
|
(1) |
|
(13) |
|
Income (Loss) Before Income Tax |
$ 351 |
|
$ (14) |
|
$ 56 |
|
$ 6 |
|
$ 399 |
|
$ (71) |
|
$ 328 |
|
|
Nine Months Ended September 30, 2025 |
||||||||||||
|
(in millions) |
|
|
Hawaiian |
|
Regional |
|
Consolidating |
|
Air Group |
|
Adjustments(c) |
|
Consolidated |
|
Operating Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger revenue |
$ 6,061 |
|
$ 2,190 |
|
$ 1,336 |
|
$ — |
|
$ 9,587 |
|
$ — |
|
$ 9,587 |
|
Loyalty program other revenue |
468 |
|
100 |
|
49 |
|
— |
|
617 |
|
— |
|
617 |
|
Cargo and other revenue |
224 |
|
171 |
|
— |
|
8 |
|
403 |
|
— |
|
403 |
|
Total Operating Revenue |
6,753 |
|
2,461 |
|
1,385 |
|
8 |
|
10,607 |
|
— |
|
10,607 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses, excluding fuel |
5,004 |
|
1,986 |
|
1,102 |
|
(66) |
|
8,026 |
|
211 |
|
8,237 |
|
Fuel expense |
1,326 |
|
533 |
|
287 |
|
— |
|
2,146 |
|
(4) |
|
2,142 |
|
Total Operating Expenses (Income) |
6,330 |
|
2,519 |
|
1,389 |
|
(66) |
|
10,172 |
|
207 |
|
10,379 |
|
Non-operating Income (Expense) |
(12) |
|
(71) |
|
— |
|
(24) |
|
(107) |
|
(5) |
|
(112) |
|
Income (Loss) Before Income Tax |
$ 411 |
|
$ (129) |
|
$ (4) |
|
$ 50 |
|
$ 328 |
|
$ (212) |
|
$ 116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2024 |
||||||||||||
|
(in millions) |
|
|
Hawaiian |
|
Regional |
|
Consolidating |
|
Air Group |
|
Adjustments(c) |
|
Consolidated |
|
Operating Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger revenue |
$ 6,078 |
|
$ 84 |
|
$ 1,314 |
|
$ — |
|
$ 7,476 |
|
$ — |
|
$ 7,476 |
|
Loyalty program other revenue |
460 |
|
5 |
|
44 |
|
— |
|
509 |
|
— |
|
509 |
|
Cargo and other revenue |
202 |
|
6 |
|
— |
|
8 |
|
216 |
|
— |
|
216 |
|
Total Operating Revenue |
6,740 |
|
95 |
|
1,358 |
|
8 |
|
8,201 |
|
— |
|
8,201 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses, excluding fuel |
4,639 |
|
82 |
|
977 |
|
(52) |
|
5,646 |
|
254 |
|
5,900 |
|
Fuel expense |
1,515 |
|
23 |
|
288 |
|
— |
|
1,826 |
|
(22) |
|
1,804 |
|
Total Operating Expenses (Income) |
6,154 |
|
105 |
|
1,265 |
|
(52) |
|
7,472 |
|
232 |
|
7,704 |
|
Non-operating Income (Expense) |
6 |
|
(4) |
|
— |
|
(32) |
|
(30) |
|
(1) |
|
(31) |
|
Income (Loss) Before Income Tax |
$ 592 |
|
$ (14) |
|
$ 93 |
|
$ 28 |
|
$ 699 |
|
$ (233) |
|
$ 466 |
|
|
|
|
(a) |
Includes consolidating entries, Air Group parent company, Horizon, McGee Air Services, and other immaterial business units. |
|
(b) |
The Air Group Adjusted column represents the financial information that is reviewed by management to assess performance of operations and determine capital allocation and excludes certain charges. |
|
(c) |
Includes special items, mark-to-market fuel hedge accounting adjustments, and gain and losses on foreign debt. |
|
SUPPLEMENTARY PRO FORMA COMPARATIVE FINANCIAL AND OPERATING INFORMATION (unaudited) |
|||||||||||
|
We believe that analysis of specific financial and operational results on a pro forma basis provides more meaningful year-over- |
|||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
(in millions) |
2025 |
|
2024 Pro |
|
Change |
|
2025 |
|
2024 Pro |
|
Change |
|
Operating Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Passenger revenue |
$ 3,424 |
|
$ 3,424 |
|
— % |
|
$ 9,587 |
|
$ 9,324 |
|
3 % |
|
Loyalty program other revenue |
200 |
|
197 |
|
2 % |
|
617 |
|
593 |
|
4 % |
|
Cargo and other revenue |
142 |
|
118 |
|
20 % |
|
403 |
|
328 |
|
23 % |
|
Total Operating Revenue |
3,766 |
|
3,739 |
|
1 % |
|
10,607 |
|
10,245 |
|
4 % |
|
Operating expenses, excluding fuel |
2,857 |
|
2,650 |
|
8 % |
|
8,237 |
|
7,665 |
|
7 % |
|
Aircraft fuel, including hedging gains and losses |
761 |
|
783 |
|
(3) % |
|
2,142 |
|
2,343 |
|
(9) % |
|
Total Operating Expenses |
3,618 |
|
3,433 |
|
5 % |
|
10,379 |
|
10,008 |
|
4 % |
|
Operating Income |
148 |
|
306 |
|
(52) % |
|
228 |
|
237 |
|
(4) % |
|
Non-operating expense |
(37) |
|
(51) |
|
(27) % |
|
(112) |
|
(88) |
|
27 % |
|
Income Before Income Tax |
111 |
|
255 |
|
(56) % |
|
116 |
|
149 |
|
(22) % |
|
Special items(c) |
64 |
|
79 |
|
(19) % |
|
211 |
|
265 |
|
(20) % |
|
Mark-to-market fuel hedge adjustments |
— |
|
(4) |
|
(100) % |
|
(4) |
|
(24) |
|
(83) % |
|
(Gain)/Losses on foreign debt |
(2) |
|
13 |
|
(115) % |
|
5 |
|
(3) |
|
NM |
|
Adjusted Income Before Income Tax |
$ 173 |
|
$ 343 |
|
(50) % |
|
$ 328 |
|
$ 387 |
|
(15) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax Margin |
2.9 % |
|
6.8 % |
|
(3.9) pts |
|
1.1 % |
|
1.5 % |
|
(0.4) pts |
|
Adjusted Pretax Margin |
4.6 % |
|
9.2 % |
|
(4.6) pts |
|
3.1 % |
|
3.8 % |
|
(0.7) pts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma Comparative Operating Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passengers (000) |
15,879 |
|
15,724 |
|
1.0 % |
|
44,272 |
|
42,795 |
|
3.5 % |
|
RPMs (000,000) "traffic" |
20,739 |
|
21,073 |
|
(1.6) % |
|
58,174 |
|
57,498 |
|
1.2 % |
|
ASMs (000,000) "capacity" |
24,447 |
|
24,607 |
|
(0.7) % |
|
69,724 |
|
68,462 |
|
1.8 % |
|
Load factor |
84.8 % |
|
85.6 % |
|
(0.8) pts |
|
83.4 % |
|
84.0 % |
|
(0.6) pts |
|
Yield |
16.51¢ |
|
16.25¢ |
|
1.6 % |
|
16.48¢ |
|
16.22¢ |
|
1.6 % |
|
RASM |
15.41¢ |
|
15.19¢ |
|
1.4 % |
|
15.21¢ |
|
14.96¢ |
|
1.7 % |
|
CASMex |
11.23¢ |
|
10.34¢ |
|
8.6 % |
|
11.32¢ |
|
10.69¢ |
|
5.9 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma Comparative CASMex Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
$ 3,618 |
|
$ 3,433 |
|
5 % |
|
$ 10,379 |
|
$ 10,008 |
|
4 % |
|
Less the following components: |
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel, including hedging gains and losses |
761 |
|
783 |
|
(3) % |
|
2,142 |
|
2,343 |
|
(9) % |
|
Freighter costs |
47 |
|
29 |
|
62 % |
|
135 |
|
74 |
|
82 % |
|
Special items - operating |
64 |
|
78 |
|
(18) % |
|
211 |
|
272 |
|
(22) % |
|
Total operating expenses, excluding fuel, freighter |
$ 2,746 |
|
$ 2,543 |
|
8 % |
|
$ 7,891 |
|
$ 7,319 |
|
8 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASMs |
24,447 |
|
24,607 |
|
(0.7) % |
|
69,724 |
|
68,462 |
|
1.8 % |
|
CASMex |
11.23¢ |
|
10.34¢ |
|
8.6 % |
|
11.32¢ |
|
10.69¢ |
|
5.9 % |
|
|
|
|
(a) |
As provided on Form 8-K filed with the SEC on January 22, 2025, including certain immaterial reclassification and policy adjustments. |
|
(b) |
Pro forma nine months ended September 30, 2024 can be calculated by adding the three months ended March 31, 2024, June 30, 2024, and September 30, 2024 as provided on Form 8-K filed with the SEC on January 22, 2025, including certain immaterial reclassification and policy adjustments. |
|
(c) |
Includes non-operating special items of |
Note A: Pursuant to Regulation G, we are providing reconciliations of reported non-GAAP financial measures to their most directly comparable financial measures reported on a GAAP basis. We believe that consideration of these non-GAAP financial measures may be important to investors for the following reasons:
- By excluding certain costs from our unit metrics, we believe that we have better visibility into the results of operations. Our industry is highly competitive and is characterized by high fixed costs, so even a small reduction in non-fuel operating costs can result in a significant improvement in operating results. We believe that all
U.S. carriers are similarly impacted by changes in jet fuel costs over the long run, so it is important for management and investors to understand the impact of company-specific cost drivers which are more controllable by management. We adjust for expenses related directly to our freighter aircraft operations, including those costs incurred under the ATSA with Amazon, to allow for better comparability to other carriers that do not operate freighter aircraft. We also exclude certain special charges as they are unusual or nonrecurring in nature and adjusting for these expenses allows management and investors to better understand our cost performance. - CASMex is one of the most important measures used by management and by the Air Group Board of Directors in assessing quarterly and annual cost performance. CASMex is also a measure commonly used by industry analysts, and we believe it is the basis by which they have historically compared our airline to others in the industry. The measure is also the subject of frequent questions from investors.
- Adjusted pretax income is an important metric for the employee incentive plan, which covers the majority of Air Group employees.
- Disclosure of the individual impact of certain noted items provides investors the ability to measure and monitor performance both with and without these special items. We believe that disclosing the impact of these items as noted above is important because it provides information on significant items that are not necessarily indicative of future performance. Industry analysts and investors consistently measure our performance without these items for better comparability between periods and among other airlines.
- Although we disclose our unit revenue, we do not, nor are we able to, evaluate unit revenue excluding the impact that changes in fuel costs have had on ticket prices. Fuel expense represents a large percentage of our total operating expenses. Fluctuations in fuel prices often drive changes in unit revenue in the mid-to-long term. Although we believe it is useful to evaluate non-fuel unit costs for the reasons noted above, we would caution readers of these financial statements not to place undue reliance on unit costs excluding fuel as a measure or predictor of future profitability because of the significant impact of fuel costs on our business.
GLOSSARY OF TERMS
Adjusted net debt - long-term debt, including current portion, plus capitalized operating and finance leases, less cash and marketable securities
Adjusted net debt to EBITDAR - represents net adjusted debt divided by EBITDAR (trailing twelve months earnings before interest, taxes, depreciation, amortization, rent, and special items)
ASMs - available seat miles, or "capacity"; represents total seats available across the fleet multiplied by the number of miles flown
CASMex - operating costs excluding fuel, freighter costs, and special items per ASM, or "unit cost"
Debt-to-capitalization ratio - represents adjusted debt (long-term debt plus capitalized operating and finance lease liabilities) divided by total equity plus adjusted debt
Diluted Earnings per Share - represents earnings per share (EPS) using fully diluted shares outstanding
Diluted Shares - represents the total number of shares that would be outstanding if all possible sources of conversion, such as stock options, were exercised
Economic Fuel - best estimate of the cash cost of fuel, net of the impact of our fuel-hedging programs and excluding operations under the Air Transportation Service Agreement (ATSA) with Amazon
Freighter Costs - operating expenses directly attributable to the operation of
Load Factor - RPMs as a percentage of ASMs; represents the number of available seats that were filled with revenue passengers
PRASM - passenger revenue per ASM, or "passenger unit revenue"
RASM - operating revenue per ASMs, or "unit revenue"; operating revenue includes all passenger revenue, freight & mail, loyalty program revenue, and other ancillary revenue; represents the average total revenue for flying one seat one mile
RPMs - revenue passenger miles, or "traffic"; represents the number of seats that were filled with revenue passengers; one passenger traveling one mile is one RPM
Yield - passenger revenue per RPM; represents the average passenger revenue for flying one passenger one mile
View original content:https://www.prnewswire.com/news-releases/alaska-air-group-reports-third-quarter-2025-results-302593424.html
SOURCE Alaska Air Group
FAQ
What did Alaska Air Group (ALK) report for Q3 2025 revenue and EPS?
How did ALK's unit revenue and unit costs change in Q3 2025 versus pro forma 2024?
What is Alaska Air Group's Q4 and full-year 2025 EPS guidance for ALK?
What cash and share repurchase details did ALK disclose as of Sept. 30, 2025?
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