Rising fuel costs push Alaska Air (ALK) to deeper Q1 loss despite strong demand

Rhea-AI Filing Summary

Alaska Air Group reported a larger first-quarter 2026 loss while highlighting strong demand and loyalty growth. Revenue rose 5% to about $3.3 billion, but higher fuel and costs drove a GAAP net loss of $193 million, or $1.69 per share, versus $1.35 a year earlier.

Adjusted loss per share was $1.68, better than its revised mid-quarter range. Unit revenue increased 3.5%, supported by premium, corporate and loyalty streams, while CASMex rose 6.3%. Fuel averaged $2.98 per gallon and recent spikes led the company to suspend full-year 2026 earnings guidance and forecast a Q2 adjusted loss of about $1.00 per share.

Alaska extended and expanded its long-standing Bank of America co-branded card partnership and is moving toward a single issuer, aiming to grow Atmos Rewards economics. Liquidity remained solid, with about $2.9 billion total liquidity, a debt-to-capitalization ratio of 61%, and adjusted net leverage of 3.3x. The revolving credit facility commitment was increased from $850 million to approximately $1.1 billion.

Positive

• Revenue and demand resilience: Q1 2026 revenue grew 5% to about $3.3 billion, with unit revenue up 3.5%, premium revenue up 8%, managed corporate revenue up 19%, and strong load factors above 90% on new long-haul international routes.
• Loyalty and co-brand momentum: Loyalty program cash remuneration increased 12% year-over-year and the extended Bank of America partnership, including movement toward a single issuer, is expected to drive incremental Atmos Rewards cash remuneration beyond the previously targeted $150 million profit uplift.
• Solid liquidity and credit capacity: The company generated $421 million of operating cash flow in Q1, increased its revolving credit facility commitments from $850 million to about $1.1 billion, and reported total liquidity of $2.9 billion with adjusted net leverage at 3.3x.

Negative

• Widening losses and higher costs: GAAP net loss increased to $193 million (from $166 million), and GAAP loss per share to $1.69 (from $1.35) as total operating expenses rose 7% and CASMex increased 6.3% year-over-year.
• Fuel-driven earnings pressure and suspended guidance: Q1 fuel cost per gallon rose to $2.98 and Q2 fuel is assumed around $4.50 per gallon, adding about $600 million of expense and leading to an estimated adjusted Q2 loss per share of roughly ($1.00) and suspension of full-year 2026 earnings guidance.
• Higher leverage and declining equity: The debt-to-capitalization ratio increased to 61% (from 59% at year-end 2025), shareholders’ equity declined to $3.7 billion, and adjusted net debt to EBITDAR rose to 3.3x, reflecting higher debt metrics amid ongoing losses and capital spending.

Insights

Airline equity analyst

Q1 showed resilient demand but weaker profitability, with fuel driving losses and guidance pulled.

Alaska Air Group grew Q1 2026 revenue to about $3.3 billion, up 5%, with unit revenue up 3.5%. Premium, corporate and loyalty streams were strong, and international routes like Seattle–Tokyo achieved load factors above 90% and profitability within a year.

However, higher fuel at $2.98 per gallon and a 6.3% increase in CASMex pushed GAAP net loss to $193 million and adjusted loss per share to $1.68. Management now expects an adjusted Q2 loss of about $1.00 per share and suspended full-year guidance due to fuel volatility.

Balance sheet metrics remain acceptable with debt-to-cap at 61%, adjusted net debt to EBITDAR of 3.3x, and liquidity of $2.9 billion after expanding the revolver to about $1.1 billion. The extended Bank of America co-brand deal and double-digit growth in loyalty cash remuneration support longer-term earnings potential, but near-term results are sensitive to fuel and integration execution.

8-K Event Classification

4 items: 1.01, 2.02, 7.01, 9.01

4 items

Item 1.01 Entry into a Material Definitive Agreement Business

The company signed a significant contract such as a merger agreement, credit facility, or major partnership.

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Total operating revenue: $3.3 billion GAAP net loss: $193 million GAAP loss per share: $1.69 per share +5 more

8 metrics

Total operating revenue $3.3 billion Q1 2026, up 5% year-over-year from $3.137 billion

GAAP net loss $193 million Q1 2026, versus $166 million in Q1 2025

GAAP loss per share $1.69 per share Q1 2026, compared with $1.35 per share in Q1 2025

Adjusted loss per share $1.68 per share Q1 2026, better than revised expectation range of ($2.00) to ($1.50)

Operating cash flow $421 million Cash generated from operating activities in Q1 2026

Fuel cost per gallon $2.98 Average economic fuel cost per gallon in Q1 2026

Debt-to-capitalization ratio 61% As of March 31, 2026, up from 59% at December 31, 2025

Revolving credit facility commitment $1.1 billion Total commitments after increase from $850 million in April 2026

Key Terms

CASMex, EBITDAR, debt-to-capitalization ratio, Atmos Rewards, +2 more

6 terms

CASMex financial

"CASMex % change versus 2025 | | n/a | | Up 6.3%"

EBITDAR financial

"EBITDAR | $ | 1,490 | | | $ | 1,624 |"

EBITDAR stands for Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent; it measures a company's operating profit before the cost of financing, taxes, accounting write-downs, and lease or rent payments. For investors, it reveals how much cash a business generates from its core activities without the effects of capital structure or rent commitments — similar to checking how much money a store makes from selling goods before paying for the building, loan interest, or taxes.

debt-to-capitalization ratio financial

"Debt-to-capitalization ratio, including leases | 61 | %"

The debt-to-capitalization ratio measures how much of a company’s total funding comes from borrowed money versus its own equity by comparing debt to the sum of debt plus equity. It matters to investors because a higher ratio means the business relies more on borrowing, which can increase risk and interest costs—like a household with a large mortgage relative to home value—while a lower ratio suggests more conservative financing and greater resilience in downturns.

Atmos Rewards financial

"Atmos Rewards membership and co‑brand credit card remuneration both grew double digits year-over-year"

co-branded credit card financial

"announced a multi-year extension of their co-branded credit card agreement"

A co-branded credit card is a payment card issued through a partnership between a bank and a retailer or brand that carries both logos and gives cardholders special rewards or discounts with that brand—like a loyalty card and credit card rolled into one. Investors watch these deals because they can drive repeat sales, generate fee and interest income, and deliver valuable customer data, while also creating credit risk and marketing costs that affect profits.

Revolving Credit Facility financial

"amendment to the amended and restated credit and guarantee agreement ... (the “Revolving Credit Facility”)"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

Earnings Snapshot

Revenue: $3.3 billion · Guidance included

Q1 2026

Revenue $3.3 billion +5% year-over-year

GAAP net loss $193 million worse than $166 million prior year

GAAP loss per share $1.69 worse than $1.35 prior year

Adjusted loss per share $1.68 worse than $0.77 prior year

GAAP pretax margin -9.6% down from -7.4% prior year

Adjusted pretax margin -8.6% down from -4.5% prior year

Guidance

For Q2 2026, the company expects capacity up about 1% year-over-year, high single to around 10% unit revenue growth, unit costs about 1.5 points higher than Q1, economic fuel around $4.50 per gallon, and an adjusted loss per share of approximately ($1.00). Full-year 2026 earnings guidance is suspended due to fuel price volatility.

Understanding 8-K Material Events →

0000766421false00007664212026-04-202026-04-20

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

April 20, 2026

(Date of earliest event reported)

ALASKA AIR GROUP, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

1-8957						91-1292054
(Commission File Number)						(IRS Employer Identification No.)

19300 International Boulevard

Seattle

Washington

98188

(Address of Principal Executive Offices)

(Zip Code)

(206) 392-5040

(Registrant's Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Ticker Symbol			Name of each exchange on which registered
Common stock, $0.01 par value			ALK			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

This document is also available on our website at http://investor.alaskaair.com

ITEM 1.01. Entry into a Material Definitive Agreement

Revolving Credit Facility

On April 20, 2026, Alaska Air Group, Inc. (Air Group), entered into an amendment (the “Amendment”) to the amended and restated credit and guarantee agreement, dated as of September 20, 2024, as amended from time to time (the “Revolving Credit Facility”) with Alaska Airlines, Inc. (“Alaska”), as borrower, the lenders party thereto and Citibank, N.A. as the administrative agent. Air Group and its wholly owned indirect subsidiary, Hawaiian Airlines, Inc., act as guarantors under the Revolving Credit Facility.

The Amendment increases the aggregate commitment amount under the Revolving Credit Facility to approximately $1.1 billion from $850 million, subject to borrowing base availability. The terms of the Revolving Credit Facility otherwise remain substantially the same.

The foregoing description does not purport to be complete and is qualified in its entirety by reference to the full text of the Amendment, a copy of which will be filed as an exhibit to Air Group’s Form 10-Q for the quarter ended June 30, 2026.

ITEM 2.02. Results of Operations And Financial Condition

On April 20, 2026, Air Group issued a press release and certain supplemental materials reporting financial results for the first quarter of 2026. The press release is furnished herein as Exhibit 99.1. Supplemental information is furnished herein as Exhibit 99.2.

ITEM 7.01. Regulation FD Disclosure

Also on April 20, 2026, Air Group and Bank of America issued a press release announcing a multi-year extension of their co-branded credit card agreement. The press release is furnished herein as Exhibit 99.3.

Pursuant to 17 CFR Part 243 (Regulation FD), Air Group is submitting these press releases and supplemental materials. In accordance with General Instruction B.2 of Form 8-K, the information under this item, including all Exhibits, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing. This report will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.

ITEM 9.01.  Financial Statements and Other Exhibits

Exhibit 99.1						First Quarter 2026 Earnings Press Release dated April 20, 2026
Exhibit 99.2						Supplemental Earnings Materials
Exhibit 99.3						Press Release issued by Alaska Air Group, Inc. dated April 20, 2026
104						Cover Page Interactive Data File - embedded within the Inline XBRL Document

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ALASKA AIR GROUP, INC.                                                                           

Registrant

Date: April 20, 2026

/s/ EMILY HALVERSON

Emily Halverson

Vice President Finance, Controller, and Treasurer

Exhibit 99.1

April 20, 2026

Media contact:						Investor/analyst contact:
Media Relations						Ryan St. John
newsroom@alaskaair.com						VP Finance, Planning and Investor Relations
						ALKInvestorRelations@alaskaair.com

Alaska Air Group reports first quarter 2026 results

Led the industry in on-time performance in the first quarter

Extended Bank of America partnership, delivering improved economics and capabilities for our Atmos™ Rewards program

Premium revenue increased 8% year-over-year and over 90% of premium fleet retrofits completed ahead of peak summer travel season

SEATTLE — Alaska Air Group (NYSE: ALK) today reported financial results for the first quarter ending March 31, 2026.

“Even in a volatile quarter, we’re seeing clear evidence that our long-term Alaska Accelerate plan is working,” said CEO Ben Minicucci. “We’re leading the industry in on-time performance, achieving a significant integration milestone with a single reservation system, generating incredible loyalty growth with Atmos Rewards and driving strong international demand as we launch service to Europe. I’m confident in our people, our plan, and our future.”

Quarter in Review:

Air Group reported first quarter Generally Accepted Accounting Principles (GAAP) pretax margin of (9.6)% and GAAP net loss of $193 million, or $1.69 per share. Our first quarter adjusted pretax margin was (8.6)% and our adjusted net loss was $192 million, or $1.68 per share.

Q1 2026 Results

Prior Expectation

Actual Results

Capacity (ASMs) % change versus 2025

Up ~2%

Up 1.7%

RASM % change versus 2025

n/a

Up 3.5%

CASMex % change versus 2025

n/a

Up 6.3%

Adjusted loss per share

($2.00) to ($1.50)

$(1.68)

Air Group began the year with solid operating momentum, though first quarter 2026 results were impacted by sharply higher fuel prices and localized demand disruptions as a result of historic rainstorms in Hawaiʻi and civil unrest in Puerto Vallarta ahead of the peak spring break travel season. These markets represent approximately 30% of Air Group capacity. Despite these headwinds, demand remained resilient and the company continued to execute against integration priorities and Alaska Accelerate initiatives.

First quarter revenue totaled approximately $3.3 billion, with unit revenue up 3.5% year-over-year despite a nearly 1 point headwind from Hawaiʻi and Puerto Vallarta. Premium demand continued to outperform as fleet retrofits and Starlink installations progressed. Managed corporate travel increased 19% year-over-year, supported by an expanding global network. Our international long-haul expansion continues to perform strongly with Seattle-Tokyo reaching profitability less than one year after launch and load factors exceeding 90% on both Seattle-Tokyo and Seattle-Seoul routes.

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Atmos Rewards membership and co‑brand credit card remuneration both grew double digits year-over-year, with particularly strong momentum in Hawaiʻi. Further, our new long‑term extension and expansion of our co‑brand partnership with Bank of America improves economics and will drive incremental growth in cash remuneration for Air Group in 2026 and beyond.

Unit costs increased 6.3% year-over-year, in-line with expectations, reflecting the final quarter of normalization for Alaska's 2025 flight attendant contract, as well as temporary impacts from weather-related disruptions. The quarter also delivered progress in core cost performance, including improvements in aircraft utilization, productivity, and maintenance execution, while returning to industry-leading operational reliability.

First quarter fuel costs increased materially due to elevated crude and refining prices, averaging $2.98 for the period. Excluding higher fuel costs and the one‑time disruptions in Hawaiʻi and Puerto Vallarta, results would have exceeded the midpoint of original first quarter expectations.

Second Quarter Forecast Information:

For full year 2026, our visibility to earnings is limited due primarily to ongoing fuel price volatility. Until conditions stabilize and we have better sight to earnings beyond the current quarter, we have suspended full-year guidance. Similarly, for the second quarter, the range of potential financial outcomes remains wide and difficult to predict, as recent geopolitical factors have resulted in sharp and unpredictable changes in fuel prices. As a result, we're providing detailed assumptions on unit revenue and unit costs, in lieu of our traditional EPS guidance range.

Second quarter capacity is expected to be up approximately 1% year-over-year, down nearly a point from original expectations, reflecting proactive trimming of capacity in May and June. Second quarter unit revenues are trending to be up high single digits year-over-year, with a path to increasing 10% year-over-year, assuming demand strength and yield trends sustain the rest of the period. This expectation is despite a 2-point unit revenue headwind from storms in Hawai'i that have impacted near term demand.

Second quarter year-over-year unit cost performance is expected to be approximately 1.5 points higher than the first quarter, driven by close‑in capacity reductions and several transitory factors. These include crew training costs associated with the ramp‑up of international widebody flying, a year‑over‑year headwind from aircraft sale gains in the second quarter of 2025, and current year planned employee recognition expense tied to achieving a single passenger service system - an important integration milestone. Unit costs are expected to inflect downward in the second half of the year to low single‑digit growth.

Fuel remains the largest source of near‑term uncertainty. April fuel is expected to be approximately $4.75 per gallon, and we expect the quarter to average approximately $4.50 based on the forward curve today. This assumption adds approximately $600 million of expense to the second quarter, equivalent to an earnings per share headwind of $3.60. We expect to consume approximately 297 million gallons of fuel in the quarter based on our current capacity plan.

Our assumed tax rate is 32%, though this could change dependent on the full year outlook as we exit the quarter. Any tax accrual changes are not expected to have cash flow impacts, as we do not expect to incur cash taxes in the near term. Taken together, the revenue, cost, and fuel assumptions result in an adjusted loss per share estimate of approximately ($1.00). Absent the fuel price spike, we would have guided to a solidly profitable quarter.

Despite the challenging near‑term backdrop, Air Group continues to operate from a position of strength, supported by a healthy balance sheet, strong liquidity, approximately $20 billion in unencumbered assets, and disciplined capital allocation. Our

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continued focus on Alaska Accelerate initiatives to build scale, relevance and loyalty position us well to build a higher‑quality, more durable revenue mix, while maintaining focus on cost discipline and operational excellence.

Financial Results:

•Generated $421 million of operating cash flow in the first quarter.

•Repurchased 4.7 million shares of common stock for $203 million in the first quarter, with year-to-date repurchases totaling $250 million as of April 20, 2026.

•Had approximately $20 billion of unencumbered assets, including 124 aircraft and our loyalty program, at March 31, 2026.

•Made $340 million in total debt payments, including $113 million in prepayments in the first quarter.

•Ended the quarter with a debt-to-capitalization ratio of 61%, and trailing twelve months adjusted net leverage of 3.3x.

•In April, the Company exercised the accordion feature of its revolving credit facility, increasing total available commitments under the agreement from $850 million to $1.1 billion and increasing total liquidity to $2.9 billion.

Operational Updates:

•Led the industry in on-time performance in the first quarter.

•First airline to install Starlink high-speed Wi-Fi on full Regional fleet, with the first equipped Mainline aircraft now in service and fleetwide completion expected by the end of 2027.

•Completed more than 90% of Boeing 737 cabin retrofits, with full completion expected by this summer.

•Alaska, Hawaiian, and Horizon maintenance teams earned the FAA’s Diamond Award of Excellence, recognizing industry-leading teamwork and dedication to aviation safety, marking 25 years for Alaska and Horizon, and 5 years for Hawaiian.

Commercial Updates:

•Premium revenue increased 8% year-over-year.

•Loyalty program cash remuneration increased 12% year-over-year.

•Managed corporate revenue increased 19% year-over-year.

•Our Seattle-Tokyo route reached profitability in March with load factors exceeding 90%, less than one year after its launch.

•Launched Alaska’s new International Business Class on 787‑9 aircraft with enclosed suites, elevated dining, and upgraded amenities, alongside refreshed Premium and Main Cabin offerings and planned Starlink connectivity.

•Launched a single Alaska-Hawaiian mobile app, simplifying booking, check‑in, and day‑of‑travel management as part of the transition to a single passenger service system.

Other Highlights:

•Announced the election of Lindsay-Rae McIntyre as Chief People Officer of Alaska Airlines, Inc. effective April 1, 2026.

•Supported the Hawaiʻi Community Foundation – Stronger Hawaiʻi Fund and the Hawaiian Council – Kāko‘o O‘ahu to aid with immediate and long-term relief efforts related to the historic floods in Hawaiʻi.

•Atmos™ Rewards received multiple industry accolades, including Best Innovation in Airline Loyalty and Best New Personal Credit Card from The Points Guy, Best Airline Rewards Program of 2026 from NerdWallet, and Best Frequent Flyer Program of 2026 from WalletHub.

•Named to Glassdoor's 2026 list of Best Places to Work, highlighting our people-first, inclusive culture, career-growth pathways, and benefits.

•Named to TIME Magazine's 2026 list of America's most iconic companies.

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A conference call regarding the first quarter results will be streamed online at 11:30 a.m. EDT/ 8:30 a.m. PDT on April 21, 2026. 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, 2025. 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 operations following the 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 Seattle, Honolulu, Portland, Anchorage, Los Angeles, San Diego and San Francisco. We deliver remarkable care as we fly our guests to more than 140 destinations throughout North America, Latin America, Asia and the Pacific. We'll serve Europe beginning in spring 2026. Guests can book travel at alaskaair.com and hawaiianairlines.com. Alaska is a member of the oneworld alliance, with Hawaiian scheduled to join oneworld in spring 2026. With oneworld and our additional global partners, guests can earn and redeem points for travel to over 1,000 worldwide destinations with Atmos Rewards. Learn more about what’s happening at Alaska and Hawaiian at news.alaskaair.com. Alaska Air Group is traded on the New York Stock Exchange (NYSE) as “ALK.”

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Alaska Air Group, Inc.

			Three Months Ended March 31,
(in millions, except per share amounts)			2026						2025						Change
Operating Revenue
Passenger revenue			$	2,920					$	2,808					4		%
Loyalty program other revenue			227						207						10		%
Cargo and other revenue			153						122						25		%
Total Operating Revenue			3,300						3,137						5		%
Operating Expenses
Wages and benefits			1,242						1,127						10		%
Variable incentive pay			30						62						(52)		%
Aircraft fuel			796						681						17		%
Aircraft maintenance			216						220						(2)		%
Aircraft rent			61						62						(2)		%
Landing fees and other rentals			291						242						20		%
Contracted services			151						145						4		%
Selling expenses			99						100						(1)		%
Depreciation and amortization			204						194						5		%
Food and beverage service			95						85						12		%
Third-party regional carrier expense			56						64						(13)		%
Other			303						261						16		%
Special items - operating			35						91						(62)		%
Total Operating Expenses			3,579						3,334						7		%
Operating Loss			(279)						(197)						(42)		%
Non-operating Income (Expense)
Interest income			19						26						(27)		%
Interest expense			(76)						(66)						15		%
Interest capitalized			10						12						(17)		%
Other - net			9						(8)						213		%
Total Non-operating Expense			(38)						(36)						6		%
Loss Before Income Tax			(317)						(233)
Income tax benefit			(124)						(67)
Net Loss			$	(193)					$	(166)
Basic Loss Per Share			$	(1.69)					$	(1.35)
Diluted Loss Per Share			$	(1.69)					$	(1.35)
Weighted Average Shares Outstanding used for computation:
Basic			114.294						123.134
Diluted			114.294						123.134

5

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

Alaska Air Group, Inc.

(in millions, except share amounts)			March 31, 2026						December 31, 2025
ASSETS
Cash and cash equivalents			$	451					$	627
Restricted cash			27						28
Marketable securities			1,317						1,496
Receivables - net			630						565
Inventories and supplies - net			232						203
Prepaid expenses			281						278
Other current assets			79						69
Total Current Assets			3,017						3,266
Property and equipment - net of accumulated depreciation and amortization of $5,080 and $4,945			12,015						11,857
Operating lease assets			1,300						1,268
Goodwill			2,723						2,723
Intangible assets - net of accumulated amortization of $88 and $74			801						815
Other noncurrent assets			442						432
Total Noncurrent Assets			17,281						17,095
Total Assets			$	20,298					$	20,361
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable			$	409					$	324
Accrued wages, vacation and payroll taxes			657						881
Air traffic liability			2,378						1,689
Other accrued liabilities			1,121						1,055
Deferred revenue			1,781						1,722
Current portion of long-term debt and finance leases			498						721
Current portion of operating lease liabilities			212						197
Total Current Liabilities			7,056						6,589
Long-term debt and finance leases, net of current portion			4,822						4,834
Operating lease liabilities, net of current portion			1,136						1,141
Deferred income taxes			879						1,004
Deferred revenue			1,700						1,711
Obligation for pension and post-retirement medical benefits			360						369
Other liabilities			614						595
Total Noncurrent Liabilities			9,511						9,654
Shareholders' Equity
Preferred stock, $0.01 par value, Authorized: 5,000,000 shares, none issued or outstanding			—						—
Common stock, $0.01 par value, Authorized: 400,000,000 shares, Issued: 2026 - 145,631,281 shares; 2025 - 145,115,659 shares, Outstanding: 2026 - 111,359,830 shares; 2025 - 115,530,889 shares			1						1
Capital in excess of par value			973						961
Treasury stock (common), at cost: 2026 - 34,271,451 shares; 2025 - 29,584,770 shares			(1,904)						(1,701)
Accumulated other comprehensive loss			(176)						(173)
Retained earnings			4,837						5,030
Total Shareholders' Equity			3,731						4,118
Total Liabilities and Shareholders' Equity			$	20,298					$	20,361

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SUMMARY CASH FLOW (unaudited)
Alaska Air Group, Inc.
(in millions)			Three Months Ended March 31,
			2026						2025
Cash Flows from Operating Activities:
Net Loss			$	(193)					$	(166)
Adjustments to reconcile net loss to net cash provided by operating activities			229						266
Changes in working capital			385						359
Net cash provided by operating activities			421						459
Cash Flows from Investing Activities:
Property and equipment additions			(338)						(238)
Other investing activities			169						(143)
Net cash used in investing activities			(169)						(381)
Cash Flows from Financing Activities:			(428)						(236)
Net decrease in cash and cash equivalents			(176)						(158)
Cash, cash equivalents, and restricted cash at beginning of period			684						1,257
Cash, cash equivalents, and restricted cash at end of the period			$	508					$	1,099
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents			$	451					$	1,044
Restricted cash			27						28
Restricted cash included in Other noncurrent assets			30						27
Total cash, cash equivalents, and restricted cash at end of the period			$	508					$	1,099

7

OPERATING STATISTICS (unaudited)
A manual recalculation of certain figures using rounded amounts may not agree directly to the actual figures presented in the table below.
			Three Months Ended March 31,
			2026						2025						Change
Consolidated Operating Statistics:(a)
Revenue passengers (000)			13,332						13,159						1.3%
RPMs (000,000) "traffic"			17,300						17,257						0.2%
ASMs (000,000) "capacity"			21,570						21,219						1.7%
Load factor			80.2%						81.3%						(1.1) pts
Yield			16.88¢						16.28¢						3.7%
PRASM			13.54¢						13.24¢						2.3%
RASM			15.30¢						14.79¢						3.5%
CASMex(b)			12.37¢						11.64¢						6.3%
Fuel cost per gallon(c)			$2.98						$2.61						14.2%
Fuel gallons (000,000)(c)			267						262						1.9%
ASMs per gallon			80.7						80.9						(0.2)%
Departures (000)			125.5						123.8						1.4%
Average full-time equivalent employees (FTEs)			31,465						29,773						5.7%
Operating fleet(d)			413						399						14 a/c

(a)Except for FTEs, data includes activity under a capacity purchase agreement with a third-party regional carrier.

(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 owned and leased aircraft as well as aircraft operated under a capacity purchase agreement with a third-party regional carrier.

8

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 amounts presented. These reconciliations include adjustments intended to improve comparability and provide a clearer view of the Company’s core operating performance.

Losses (gains) on foreign debt and other primarily reflect unrealized and realized gains or losses resulting from changes in foreign currency exchange rates on certain debt. In 2025, these expenses also included mark-to-market fuel hedge adjustments.

Special items - operating primarily relate to costs associated with the integration of Hawaiian Airlines, including employee-related costs, technology costs, and other merger-related expenses. In 2025, these expenses also included costs related to changes in Alaska flight attendants' sick leave benefits pursuant to a collective bargaining agreement ratified in that year.

Pretax Income (Loss), Net Income (Loss), and Earnings (Loss) per Share, adjusted
			Three Months Ended March 31, 2026
(in millions, except per share amounts)			Loss Before Income Tax						Income Tax						Net Loss						Per Share
GAAP			$	(317)					$	(124)					$	(193)					$	(1.69)
Adjusted for:
Gains on foreign debt and other			(3)
Special items - operating			35
Total adjustments			$	32					$	31					$	1					$	0.01
Adjusted			$	(285)					$	(93)					$	(192)					$	(1.68)
GAAP pretax margin			(9.6)		%
Adjusted pretax margin			(8.6)		%

			Three Months Ended March 31, 2025
(in millions, except per share amounts)			Loss Before Income Tax						Income Tax						Net Loss						Per Share
GAAP			$	(233)					$	(67)					$	(166)					$	(1.35)
Adjusted for:
Losses on foreign debt and other			2
Special items - operating			91
Total adjustments			$	93					$	22					$	71					$	0.58
Adjusted			$	(140)					$	(45)					$	(95)					$	(0.77)
GAAP pretax margin			(7.4)		%
Adjusted pretax margin			(4.5)		%

9

CASMex Reconciliation
			Three Months Ended March 31,
(in millions, except unit metrics)			2026						2025
Total operating expenses			$	3,579					$	3,334
Less the following components:
Aircraft fuel			796						681
Freighter costs			52						41
Performance-based pay			29						52
Special items - operating			35						91
Adjusted operating expenses			$	2,667					$	2,469
ASMs			21,570						21,219
CASMex			12.37		¢				11.64		¢

Adjusted Capital Expenditures Reconciliation
			Three Months Ended March 31,
(in millions)			2026						2025
Aircraft and aircraft purchase deposits			$	249					$	142
Other flight equipment			59						54
Other property and equipment			30						42
Capital expenditures			338						238
Adjusted for:
Property and equipment acquired through the issuance of debt			—						23
Proceeds from sales of aircraft and other equipment			(3)						(3)
Adjusted capital expenditures			$	335					$	258

Debt-to-capitalization, including leases
(in millions)			March 31, 2026						December 31, 2025
Long-term debt and finance leases, net of current portion			$	4,822					$	4,834
Operating lease liabilities, net of current portion			1,136						1,141
Adjusted debt, net of current portion			5,958						5,975
Shareholders' equity			3,731						4,118
Total Invested Capital			$	9,689					$	10,093
Debt-to-capitalization ratio, including leases			61		%				59		%

10

Adjusted net debt to earnings before interest, taxes, depreciation, amortization, fixed portion of operating lease expense, and special items
(in millions)			March 31, 2026						December 31, 2025
Long-term debt and finance leases			$	5,320					$	5,555
Operating lease liabilities			1,348						1,338
Adjusted debt			6,668						6,893
Less: Total unrestricted cash and marketable securities			1,768						2,123
Adjusted net debt			$	4,900					$	4,770
(in millions)			Twelve Months Ended March 31, 2026						Twelve Months Ended December 31, 2025
Operating Income(a)			$	221					$	303
Adjusted for:
Special items - operating			194						250
Gains on foreign debt and other			(8)						(3)
Depreciation and amortization			805						795
Fixed portion of operating lease expense			278						279
EBITDAR			$	1,490					$	1,624
Adjusted net debt to EBITDAR			3.3x						2.9x

(a)Operating income can be reconciled using the trailing twelve month operating income as filed quarterly with the SEC.

11

Note A: Pursuant to Regulation G, we provide reconciliations of reported non-GAAP financial measures to the most directly comparable GAAP financial measures. We believe these non-GAAP measures provide meaningful supplemental information to investors for the following reasons:

•By excluding certain costs from our unit metrics, we believe that we have better visibility into our underlying operating results. The airline industry is highly competitive and characterized by significant fixed costs, so relatively small changes in operating costs can have a meaningful impact on results. Because U.S. carriers are generally similarly affected by changes in jet fuel prices over the long run, we believe it is important for management and investors to focus on company-specific cost drivers that are more controllable by management. We also adjust for costs related to our freighter aircraft operations, including costs incurred under the ATSA with Amazon, to enhance comparability with carriers that do not operate freighter aircraft. Certain special charges are excluded as they are unusual or nonrecurring in nature, providing a more meaningful assessment of ongoing cost performance.

•CASMex is a key measure used by management and the Air Group Board of Directors to evaluate cost performance. It is also commonly used by industry analysts to compare airlines. In 2026, Air Group revised its CASMex definition to exclude Performance-Based Pay (PBP) expense. We believe this revision provides a more meaningful view of core operating cost performance and enhances comparability with other carriers.

•Adjusted pretax income is an important metric used in the Company's employee incentive plan, which covers the majority of Air Group employees.

•Adjusted capital expenditures includes certain amounts that are not classified as investing cash outflows within our consolidated statements of cash flows, but are viewed by management and other stakeholders as significant long-term investments in the business. We believe these adjustments provide a more complete view of our capital expenditures during the year.

•Liquidity and leverage measures, including debt-to-capitalization and adjusted net debt to EBITDAR, are presented to provide insight into the Company's financial position and flexibility. In 2026, we made adjustments to the calculation of these metrics to enhance comparability with our peers. The debt-to-capitalization ratio now excludes the current portion of operating and finance lease liabilities, with prior periods recast for consistency. Additionally, EBITDAR was adjusted to reflect the fixed portion of operating leases rather than total aircraft rent to better reflect performance, with prior periods recast accordingly.

•Disclosure of the individual impact of certain items allows investors to evaluate performance both with and without these items. We believe this information is useful because such items may not be indicative of future performance, and industry analysts and investors frequently assess results excluding these items to enhance comparability across periods and among 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.

12

GLOSSARY OF TERMS

Adjusted debt - long-term debt, plus operating and finance lease liabilities

Adjusted net debt - long-term debt, plus operating and finance lease liabilities, less unrestricted cash and marketable securities

Adjusted net debt to EBITDAR - represents adjusted net debt divided by EBITDAR (trailing twelve months earnings before interest, taxes, depreciation, amortization, fixed portion of operating leases, 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, Performance-Based Pay (PBP), and special items per ASM, or "unit cost"

Debt-to-capitalization ratio - represents adjusted debt, net of current portion, divided by total equity plus adjusted debt, net of current portion

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

Freighter Costs - operating expenses directly attributable to the operation of B737 freighter aircraft and A330-300 freighter aircraft exclusively performing cargo missions

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

13

ALASKA AIR GROUP Q1 2026 Earnings | April 20, 2026 1

2 Safe Harbor This presentation 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, 2025 . 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 following the 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 . 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 . Non -GAAP Financial Information The Company has made reference in this presentation to financial metrics which are not in accordance with GAAP . Pursuant to Regulation G, we have provided reconciliations of non-GAAP financial measures to their most directly comparable financial measures reported on a GAAP basis within the First Quarter 2026 Earnings Release filed concurrently with this presentation . Prior year non-GAAP financial metrics have been reconciled in previous SEC filings, and can be referenced therein.

3 Earnings Update ❑ Air Group's Q1 2026 adjusted loss per share of ($1.68) came in ahead of the midpoint of revised mid -quarter expectations. Operating cash flow reached $421 million during the quarter, reflecting demand resilience despite a challenging fuel environment and unique headwinds in Hawai’i due to historic storms and civil unrest in Mexico. ❑ Unit revenue increased 3.5% in Q1 2026, building on a strong prior -year comparison and supported by broad -based strength in premium, corporate, and loyalty revenue streams. The headwinds in Hawaii and Mexico drove a nearly 1 -point impact to unit revenues for the quarter. ❑ Air Group announced a long -term extension and expansion of its co -brand partnership with Bank of America, expected to deliver improved economics and incremental cash remuneration, further strengthening loyalty as a durable, long -term earnings driver. ❑ Q1 2026 unit costs were up 6.3%, in line with expectations, reflecting continued pressure from airport real estate, maintenance, and elevated pilot training costs associated with the ramp -up of international flying. ❑ Economic fuel cost per gallon averaged $2.98 for Q1 2026 as West Coast and Singapore refining margins remained elevated throughout the quarter. ❑ Air Group’s balance sheet remains strong, with debt -to-cap at 61%, and adjusted net debt to EBITDAR at 3.3x.

4 Current Demand Environment ❑ In Hawai’i, storms have finally passed and weather has normalized; forward bookings have recently returned to positive levels with improving trends in May and June. However, we still expect an overall 2 -point unit revenue drag on the second quarter from booking impacts because of the storms. ❑ Across the Continental US , incoming yields are up 20%+ YoY in recent weeks; held unit revenues in domestic markets up double digits for back half of Q2, supporting expected low double -digit system RASM gains for the quarter ❑ Corporate travel is accelerating — Managed corporate revenue was up 19% in Q1, with held revenue over the next 90 days up nearly 30%; strength is broad -based across manufacturing, financial services, and technology ❑ International booking trends are building in line with expectations and strong Atmos Rewards engagement, and we anticipate full flights this summer on all our new European routes. Our new Rome service launches next week and over 70% of guests who have booked are Atmos Rewards members

5 Alaska Accelerate initiatives progressing well $100M $150M $150M Network Product Loyalty Cargo ▪ Revenue up 5% y/y ▪ SEA -NRT profitable in March and March LF on SEA -NRT/ICN >90% ▪ Rome service launching April 28 th; over 70% of guests booked are Atmos Rewards members ▪ London and Reykjavik launching in May ▪ Premium revenue up 8% ▪ > 90 % of 737 premium seat retrofits completed ▪ 26% of fleet (93 AC) now retrofitted with Starlink Wi - Fi, 50% expected by YE ▪ Unveiled first -ever International Business Class Suites experience, setting a new standard for long -haul travel ▪ Cash remuneration up 12% ▪ New BofA bank deal drives incremental cash remuneration ▪ Active members grew 13% y/y. Hawai’i saw double -digit growth across members, cardholders, and spend ▪ Managed corp. revenues up 19%, next 90 -day bookings up 30%+ ▪ Cargo revenue increased 23 % y/y ▪ Reached new Amazon agreement driving improved near -term economics for contract flying $400M Synergies on track Synergies on track Synergies on trackInitiatives on track

1.7% 1Q26 2Q26-E 3Q26-E 4Q26-E FY26-E 6 Capacity remains low throughout 2026 ASMs % change y/y Chart not to scale Notes ■ Q2 capacity expected to be up ~1% y/y, driven by ~1.5 pts of long -haul international growth in Seattle, offset by (0.5) pt lower North America capacity ■ Air Group has reduced capacity in Q2 by approximately 1 pt compared to prior expectations ■ FY 2026 capacity growth is still expected to 2% to 3%, among one of the lowest growth rates in the industry ■ Given the growth trajectory, unit costs are expected to be elevated in 1H26 before improving in 2H26 ~1% ~2 % to 3%

2/03 2/10 2/17 2/24 3/03 3/10 3/17 3/24 3/31 4/07 4/14 West Coast Gulf Coast MOPS (Singapore) 7 Fuel costs have risen sharply Jet Kero Refining Margins (1) Notes ■ Air Group sources approximately 55% of fuel from the West Coast, ~20% from Singapore, and ~25% from various other regions including Gulf Coast ■ West Coast refining margins have historically been volatile, and among the highest globally. Singapore has typically been among the lowest cost source, until recently surging over 400 % since early Feb levels 1 – Data from FIS Global Kiodex and Platts S&P Global Commodity Insights as of 4/16/26 $2 .30 $1.36 $0.83 $2.82 $0.42 $0.68

8 Balance Sheet Debt to Capitalization Ratio Target Adj. Net Debt/EBITDAR < 1.5x 0.9x 2.7x 1.0x 1.3x 2.3x 2.9x 3.3x 2019 2021 2022 2023 2024 2025 1Q26 TTM Adjusted Net Debt/EBITDAR 38% 48% 46% 45% 57% 59% 61% 2019 2021 2022 2023 2024 2025 1Q26 Target Debt to Cap Range 40% to 50% Note: Beginning in 2026, the Company made adjustments to the calculation of these metrics to enhance comparability with our p eers. Prior periods have been adjusted to conform to the current calculation.

9 Share Repurchases Share Repurchases ■ Repurchased 4.7 million shares of common stock for $203 million in the first quarter ■ Year to date share repurchases total $250 million, more than offsetting expected dilution in 2026 ■ Further repurchases paused until company has better visibility regarding 2H 2026 earnings trajectory Weigthed Average Shares Outstanding 124 129 128 120 114 2019 2023 2024 2025 1Q26 Diluted Share Count (Millions)

10 3/4 integration milestones to be completed by April 22 Single Loyalty Single Operating Certificate (SOC) Single Passenger Service System (PSS) Joint Collective Bargaining Agreements (JCBA) 2H 2025 Q4 2025 Q2 2026 2025 - 2027 Launched new loyalty brand, Atmos Rewards, and new premium credit card on Aug 20 th Achieved single loyalty program on Oct 1 st when HawaiianMiles members joined Atmos Rewards Atmos for Business portal launched in Sep 2025 Teams achieved SOC in October and became one mainline airline from an FAA/regulatory perspective Starting in Nov, all flights operated under AS code and Alaska call sign; guests continue to see HA flight # until operational cutover Teams have prepared to execute operational cutover on 4/22, effectively unifying single system platform to create a seamless experience across AS and HA brands Hawaiian Airlines officially joins Oneworld Joint collective bargaining negotiations with union groups remain ongoing Complete Complete 4 5 On Track

April 20, 2026

Contact:    

Media Relations    

newsroom@alaskaair.com

Alaska Air Group and Bank of America Expand Long-Standing Credit Card Partnership

Strengthens co-branded credit card portfolio and supports growth of the Atmos Rewards program

Cardholders will benefit from enhanced value across the full suite of Atmos Rewards credit cards over time

Alaska Air Group will move toward a single issuer for its Atmos Rewards credit cards

The extended partnership is expected to drive incremental value for both companies

SEATTLE / CHARLOTTE — Alaska Air Group Inc. (NYSE: ALK) and Bank of America (NYSE: BAC) today announced a multi-year extension of their co-branded credit card agreement – a continuation of the bank’s largest co-brand partnership. For more than 30 years, the strategic partnership has put an industry leading co-branded credit card in the wallet of millions of travelers and helped build various features of the airline’s brand, including the famous Companion Fare.

“Bank of America has been a foundational partner to Alaska’s growth over the last few decades,” said Ben Minicucci, Chief Executive Officer of Alaska. “Together, they have helped us build the airline industry’s most generous and valuable loyalty program. Extending this partnership will mean even greater benefits for cardholders, taking them further as Alaska and Hawaiian expand across the globe.”

The renewed agreement will deepen integration between Alaska and Bank of America by:

•Creating incremental value for both companies.

•Increasing investment in the Atmos™ Rewards brand, Alaska and Hawaiian’s lounge program, and enhancing the suite of credit cards (including new cards and refreshes of existing cards).

•Enhancing technology and the cardholder experience, including expanded benefits across multiple card offerings.

“Alaska Air Group has been an exceptional partner for more than three decades, and this extension reflects our shared commitment to delivering meaningful value for cardholders,” said Dean Athanasia, Co-President, Bank of America. “Together, we’re investing in innovation, enhancing the cardholder experience, and supporting the continued growth of the Atmos Rewards platform — while creating long term value for both companies.”

Alaska and Bank of America are working toward BofA becoming the single issuer of all co-brand credit cards for the Atmos™ Rewards program, which has been recognized as the best Airline Rewards Program for 2026 by NerdWallet.

Remuneration from the co-brand card portfolio grew 10% in 2025, fueled by the launch of the Atmos Rewards loyalty program and the new premium Summit Visa Infinite® card. The Summit card continues to exceed acquisition and spend expectations, achieving significant average spend levels, driven by a compelling value proposition that includes exclusive lounge access and a unique Global Companion Award. This appeal has attracted new premium, high-spending customers and earned industry recognition, including being named The Points Guy’s best new personal credit card earlier this year.

The expansion of the card portfolio is expected to accelerate the growth of Alaska’s loyalty platform beyond the incremental $150 million in profit outlined in the Alaska Accelerate strategy. The extension with Bank of America reinforces this momentum, strengthening the partnership and supporting sustained long term value creation through the loyalty ecosystem.

Atmos Rewards Credit Card Benefits

The Atmos Rewards co-brand credit cards, powered by Bank of America, continue to provide cardholders industry-leading benefits including:

Summit Visa Infinite® card

•Access to an industry-leading 25,000-point Global Companion Award

•Eight Alaska Lounge day passes annually

•Three points for every $1 spent on all foreign transactions

•Travel delay protection and more

Ascent Visa Signature® card

•Access to the famous Companion Fare ($99 + taxes/fees),

•Free checked bag for cardholder and up to six travel companions

•$100 off an Alaska Lounge+ membership

•A faster path to elite status and more

Q&A

Q: What does this extended partnership mean for current and future Atmos Rewards cardholders?

A: The renewed agreement delivers expanded benefits, including increased investment in lounge programs, product enhancements and the potential for new card offerings. This ensures even greater value, more rewards, and improved experiences for all Atmos Rewards members.

Q: What does Alaska Air Group moving towards a "single issuer" with Bank of America signify for customers?

A: This initiative aims to streamline operations and further integrate the co-brand credit card experience across the entire Atmos Rewards portfolio, including Alaska Airlines and Hawaiian Airlines. It is designed to lead to more consistent, simplified, and enhanced services and offerings for cardholders.

Q: When can cardholders expect to see these new benefits and product enhancements, and how will they be notified of specific changes?

A: We are actively working to introduce enhanced benefits in the future and new product features as they become available. Cardholders will be informed of specific updates through our standard customer communications process at the appropriate time.

About Alaska Air Group

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 Seattle, Honolulu, Portland, Anchorage, Los Angeles, San Diego and San Francisco. We deliver

remarkable care as we fly our guests to more than 140 destinations throughout North America, Latin America, Asia and the Pacific. We'll serve Europe beginning in spring 2026. Guests can book travel at alaskaair.com and hawaiianairlines.com. Alaska is a member of the oneworld alliance, with Hawaiian scheduled to join oneworld in spring 2026. With oneworld and our additional global partners, guests can earn and redeem points for travel to over 1,000 worldwide destinations with Atmos Rewards. Learn more about what’s happening at Alaska and Hawaiian at news.alaskaair.com. Alaska Air Group is traded on the New York Stock Exchange (NYSE) as “ALK.”

About Bank of America

Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 59 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange. For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

# # #

FAQ

How did Alaska Air Group (ALK) perform financially in Q1 2026?

Alaska Air Group posted a Q1 2026 GAAP net loss of $193 million, or $1.69 per share. Revenue grew 5% to about $3.3 billion, and adjusted loss per share was $1.68. Higher fuel costs and rising unit costs offset solid demand and loyalty growth.

What were the main revenue and demand trends for Alaska Air Group (ALK) in Q1 2026?

Revenue rose to approximately $3.3 billion with unit revenue up 3.5% year-over-year. Premium revenue increased 8%, managed corporate revenue grew 19%, and loyalty remuneration rose 12%. New international routes like Seattle–Tokyo and Seattle–Seoul achieved load factors above 90%.

How are fuel prices affecting Alaska Air Group (ALK) and its 2026 outlook?

Fuel averaged $2.98 per gallon in Q1 2026 and is assumed around $4.50 for Q2. Management estimates this Q2 fuel spike adds roughly $600 million of expense and a $3.60 earnings-per-share headwind, driving an expected adjusted Q2 loss of about $1.00 per share.

What guidance did Alaska Air Group (ALK) provide for Q2 and full-year 2026?

The company suspended full-year 2026 earnings guidance due to fuel volatility. For Q2 2026, it expects capacity up about 1% year-over-year, unit revenue up high single to around 10%, unit costs higher than Q1, and an adjusted loss per share near $1.00.

What is the significance of Alaska Air Group’s (ALK) extended Bank of America partnership?

The multi-year extension deepens their co-branded credit card relationship and moves toward a single issuer. It is expected to improve economics, increase Atmos Rewards investments, enhance card benefits, and accelerate loyalty profit beyond the previously outlined $150 million uplift in the Alaska Accelerate strategy.

How strong is Alaska Air Group’s (ALK) balance sheet and liquidity position?

Alaska reported $2.9 billion in total liquidity after expanding its revolver to about $1.1 billion. The debt-to-capitalization ratio was 61%, adjusted net debt was roughly $4.9 billion, and adjusted net debt to EBITDAR stood at 3.3x, indicating moderate leverage with substantial unencumbered assets.

What operational milestones and integration progress did Alaska Air Group (ALK) highlight?

The company led the industry in on-time performance and advanced key integration milestones. Over 90% of Boeing 737 retrofits are complete, 26% of the fleet has Starlink Wi-Fi, and teams are transitioning to a single passenger service system as part of integrating Hawaiian and advancing the Alaska Accelerate plan.

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