Alaska Air Group Tops Q4 Expectations, Guides 2026

‍SEATTLE — Alaska Air Group released its December-quarter and full-year 2025 financials on Jan. 22, 2026, covering results for the period that ended Dec. 31, 2025.

The carrier tied the update to its Alaska–Hawaiian integration after it secured a single operating certificate that combined Alaska Airlines (AS) and Hawaiian Airlines (HA).

For the December quarter, Alaska Air Group posted GAAP EPS of US$0.18 and adjusted EPS of US$0.43, alongside a GAAP pretax margin of 0.8% and an adjusted pretax margin of 1.8%.

The company cited fourth-quarter revenue of US$3.6 billion and said it faced a temporary demand pullback tied to the November government shutdown.

It also pointed to continued strength in higher-yielding and ancillary streams, with corporate travel up 9% year over year, premium revenue up 7%, cargo up 22%, and loyalty revenue up 12%.

Unit costs excluding fuel rose 1.3% year over year, while the quarter’s economic fuel price averaged US$2.57 per gallon.

For the full-year 2025, Alaska Air Group generated US$1.2 billion in operating cash flow.

The company reported full-year GAAP net income of US$100 million (US$0.83 per share) and adjusted net income of US$293 million (US$2.44 per share).

Alaska Air Group also reported US$570 million in share repurchases in 2025, including US$30 million in the fourth quarter.

Operationally, the airline group said it advanced its “Alaska Accelerate” plan with record credit card acquisitions, began selling new Seattle long-haul routes to London and Rome for spring 2026 service, and reiterated a longer-term target of US$10 in earnings per share in 2027, backed by US$1 billion in incremental profit.

For 2026, Alaska Air Group forecasts capacity growth of 1%–2% in Q1 and 2%–3% for the full year, with adjusted EPS guidance of (US$1.50) to (US$0.50) for Q1 and US$3.50 to US$6.50 for the full year.

The company also guided capital expenditures of about US$1.4–US$1.5 billion for 2026.