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SEATTLE — Alaska Air Group, parent of Alaska Airlines (AS), Hawaiian Airlines (HA), and Horizon Air (QX), reported a first-quarter 2026 GAAP net loss of US$193 million, or US$1.69 per share, on approximately US$3.3 billion in revenue. The company suspended its full-year 2026 guidance due to ongoing jet fuel volatility.
Fuel costs drive change in outlook depite strong demand
The company stated that limited visibility for the remainder of 2026 prevents it from maintaining a full-year earnings forecast. Alaska expects April fuel prices to average approximately US$4.75 per gallon, with second-quarter fuel averaging around US$4.50 per gallon. This is projected to add about US$600 million in expenses and reduce earnings per share by approximately $3.60. Reuters reported that Alaska had previously guided to US$3.50 to US$6.50 in full-year earnings per share.
Despite the reported loss, Alaska noted that premium revenue rose 8% year over year, managed corporate revenue increased 19%, and loyalty cash remuneration grew 12%. The company also reported that its Seattle–Tokyo Narita (NRT) route became profitable in March, with load factors above 90%. The Seattle–Seoul Incheon (ICN) route also exceeded 90% load factors.
Operational and integration progress continues
Alaska reported industry-leading on-time performance for the quarter and highlighted ongoing integration progress following its combination with Hawaiian. Key milestones included implementing a single passenger service system and completing over 90% of premium fleet retrofits ahead of the peak summer season.
The main takeaway from the group's first quarter is not only the reported loss, but also the decision to withdraw full-year guidance despite stable demand trends. And we're just in the beginning of this fuel price hikedrama.
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