Alaska Air Group, Inc., through its subsidiaries, operates airlines. It operates through three segments: Mainline, Regional, and Horizon. The company offers scheduled air transportation services on Boeing jet aircraft for passengers and cargo in the United States, and in parts of Canada, Mexico, Costa Rica, Belize, Guatemala, and the Bahamas; and for passengers across a shorter distance network within the United States, Canada, and Mexico. Alaska Air Group, Inc. was founded in 1932 and is based in Seattle, Washington.

Alaska Air Group, Inc.

A month has gone by since the last earnings report for Alaska Air Group (ALK). Shares have added about 8.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Alaska Air due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Alaska Air Beats on Earnings in Q2
ALK's second-quarter 2025 earnings of $1.78 per share beat the Zacks Consensus Estimate of $1.56 per share but declined 30.2% year over year.
Operating revenues of $3.70 billion surpassed the Zacks Consensus Estimate of $3.65 billion. The top line jumped 27.8% year over year, with passenger revenues accounting for 90.5% of the top line and increasing 27% owing to consistency in air-travel demand.
Passenger revenues totaled $3.35 billion in the reported quarter. On a year-over-year basis, cargo and other revenues of $139 million grew 93%. Loyalty program other revenues grew 21% year over year to $210 million.
Other Details of ALK’s Q2 Earnings
All comparisons have been presented on a year-over-year basis unless mentioned otherwise.
Revenue per available seat mile (RASM: a key measure of unit revenues) fell 3.3% to 15.39 cents. Yield decreased 4% to 16.62 cents.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) grew 31.8% to 20.17 billion. To cater to this increased demand, capacity (measured in average seat miles) rose 32.2% to 24.05 billion. Although traffic improved on a year-over-year basis, it failed to outpace capacity expansion. As a result, the load factor (percentage of seats filled by passengers) fell to 83.9% from 84.1% in the prior-year period. Our estimate is pegged at 88.8%.
In the second quarter, total operating expenses (on a reported basis) grew 33% to $3.42 billion. Economic fuel price per gallon fell 15.8% to $2.39.
Consolidated operating costs per available seat mile (excluding fuel and special items) grew 10.2%.
Liquidity
As of June 30, 2025, Alaska Air had $750 million of cash and cash equivalents compared with $1.04 billion at the end of the prior quarter. ALK exited the second quarter of 2025 with long-term debt (net of current portion) of $4.44 billion compared with $4.29 billion at the end of the prior quarter. Debt-to-capitalization ratio was 60% at the end of the reported quarter.
During the second quarter, ALK repurchased 8.7 million shares for $428 million.
ALK’s Outlook
ALK anticipates third-quarter 2025 adjusted earnings per share in the range of $1.00-$1.40. The Zacks Consensus Estimate is currently pegged at $1.55 per share.
For the third quarter of 2025, the company expects available seat miles (a measure of capacity) to be down 1% from the year-ago quarter. RASM is expected to remain flat to up low single digits. For third-quarter 2025, adjusted CASM is expected to be up to mid to high single digits.
ALK anticipates 2025 adjusted earnings per share to be more than $3.25. For 2025, ALK expects available seat miles to be up 2% from 2024 actuals. RASM is expected to remain flat to up low single digits. For 2025, adjusted CASM is expected to be up in mid-single digits.
Alaska Air incurred a loss of 82 cents per share (excluding $1.05 from non-recurring items) in the first quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of $1.27. In the year-ago quarter, the company reported earnings of 17 cents. The downturn is due to unprecedented drop in air travel demand in the wake of the coronavirus outbreak.
Having started in February, the downfall aggravated in March, with cancellations exceeding bookings. Demand is around 90% below the normal level.
Revenues came in at $1,636 million, missing the Zacks Consensus Estimate of $1,691.1 million. The top line also declined approximately 13% year over year. Passenger revenues — contributing 90.5% to the top line — were down 14% on a year-over-year basis.
Operating Statistics
Consolidated traffic, measured in revenue passenger miles, declined 14.4% year over year in the reported quarter. Capacity (measured in available seat miles) dropped 1.3%. Load factor (percentage of seats occupied by passengers) deteriorated 1,070 basis points to 69.6% as traffic declined more than the amount of capacity contraction.
Total revenue per available seat mile (RASM: a key measure of unit revenues) fell 11.7% year over year to 10.69 cents in the quarter under discussion. Meanwhile, yield inched up 0.9% to 13.9 cents.
Operating Expenses & Income
In the first quarter, total operating expenses (on a reported basis) were up 6% year over year to $1,957 million, with expenses on wages and benefits increasing 10%. Fuel price (economic) was $1.93 per gallon, down 9.4% year over year.
The company reported operating loss of $321 million in the first quarter against operating income of $25 million in the year-ago quarter. Consolidated cost per available seat mile — excluding fuel and special items — inched up 1.8% to 9.22 cents.
Liquidity
At the end of the first quarter, this Seattle, WA-based company had $2,125 million in cash and marketable securities compared with $1,521 million at the end of 2019.
The company exited the quarter with long-term debt of $1,203 million compared with $1,264 million at the end of 2019. Adjusted debt-to-capitalization ratio was 48% compared with 41% at the end of December 2019.
Airline traffic, measured in revenue passenger miles, rose 44.2% year over year to 13,554 million in the reported quarter. Capacity or available seat miles increased 41.1% to 15,612 million. Load factor (percentage of seats filled by passengers) increased 190 basis points to 86.8% owing to traffic growth outpacing capacity expansion.Passenger revenue per available seat mile (PRASM: a key measure of unit revenues) increased 1.3% year over year to 11.57 cents. While total revenue per available seat mile (RASM) declined 0.4% to 13.46 cents in the reported quarter, yield declined 0.8% to 13.33 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -13.91% due to these changes.
VGM Scores
At this time, Alaska Air has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock has a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Alaska Air has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Alaska Air is part of the Zacks Transportation - Airline industry. Over the past month, Delta Air Lines (DAL), a stock from the same industry, has gained 5.7%. The company reported its results for the quarter ended June 2025 more than a month ago.
Delta reported revenues of $16.65 billion in the last reported quarter, representing a year-over-year change of -0.1%. EPS of $2.10 for the same period compares with $2.36 a year ago.
Delta is expected to post earnings of $1.48 per share for the current quarter, representing a year-over-year change of -1.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.8%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Delta. Also, the stock has a VGM Score of B.
One Big Gain, Every Trading Day
To help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.
Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.
Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Alaska Air (ALK) Up 8.1% Since Last Earnings Report: Can It Continue?

The S&P 500 Index ($SPX) (SPY) on Thursday closed down by -0.40%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down by -0.34%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down by -0.46%. September E-mini S&P futures (ESU25) fell -0.40%, and September E-mini Nasdaq futures (NQU25) fell -0.45%.
Stock indexes settled lower on Thursday, with the Dow Jones Industrials falling to a 1-week low. Concerns about consumer spending weighed on stocks after Walmart reported weaker-than-expected Q2 EPS. Also, higher bond yields undercut stocks, with the 10-year T-note yield climbing +4 bp to 4.33% on hawkish Fed comments and stronger-than-expected manufacturing and existing home sales reports.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Thursday’s weekly US jobless claims report showed a weaker labor market. US weekly initial unemployment claims rose by +11,000 to a 2-month high of 235,000, showing a weaker labor market than expectations of an increase to 225,000. Weekly continuing claims rose +30,000 to a 3.75-year high of 1.972 million, higher than expectations of 1.960 million, showing people out of work are finding it harder to land a new job.
The US Aug Philadelphia Fed business outlook survey fell -16.2 to -0.3, weaker than expectations of 6.5.
The US Aug S&P manufacturing PMI unexpectedly rose +4.5 to a 3-year high of 53.3, better than expectations of a decline to 49.7.
US July existing home sales unexpectedly rose +2.0% m/m to 4.01 million, stronger than expectations of -0.3% m/m to 3.92 million.
Kansas City Fed President Jeffrey Schmid said inflation risks are marginally higher than risks to the labor market, and “modestly restrictive” monetary policy is still appropriate.
Cleveland Fed President Beth Hammack said, “We have inflation that’s too high and has been trending upwards over the past year. With the information I have, if the FOMC meeting were tomorrow, I would not see a case for reducing interest rates.”
On the geopolitical front, US Vice President Vance said negotiations over ending Russia’s war in Ukraine are focused on security guarantees for Ukraine and territory Russia wants to control, including Ukrainian territory that it currently isn’t occupying, as the US tries to broker a peace deal between the two countries. The US is working to set up a meeting between President Putin and Zelensky, and if that meeting goes well, President Trump said he’ll look to follow up with a trilateral summit with the leaders. The outcome of the negotiations could have macroeconomic implications regarding tariffs and oil prices, and could, of course, have significant consequences for European security.
The focus of the markets this week will be on any new tariff news and signs of progress toward a Ukraine peace deal. On Friday, Fed Chair Powell speaks on the economic outlook at the Federal Reserve’s annual symposium at Jackson Hole, Wyoming.
Regarding tariffs, President Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect on Monday and did not exclude goods already in transit. Last Friday, Mr. Trump said, “I’ll be setting tariffs next week and the week after on steel and on, I would say chips – chips and semiconductors, we’ll be setting sometime next week, week after.” Mr. Trump last week said he planned a 100% tariff on semiconductors but would exempt companies that move chip manufacturing to the US. Mr. Trump also mentioned 200% or 300% tariffs on chips.
In other recent tariff news, Mr. Trump last Tuesday extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India’s purchases of Russian oil. On August 5, Mr. Trump said that US tariffs on pharmaceutical imports would be announced “within the next week or so.” According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 72% at the September 16-17 FOMC meeting, down from 93% last Thursday. The markets are discounting the chances at 49% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 93% of S&P 500 firms having reported Q2 earnings, about 83% of companies exceeded profit estimates.
Overseas stock markets on Thursday settled mixed. The Euro Stoxx 50 closed down -0.19%. China’s Shanghai Composite rallied to a new 10-year high and closed up +0.13%. Japan’s Nikkei Stock 225 fell to a 1-week low and closed down -0.65%.
Interest Rates
September 10-year T-notes (ZNU5) on Thursday closed down -10 ticks, and the 10-year T-note yield rose +3.7 bp to 4.328%. Sep T-notes were under pressure Thursday on hawkish Fed comments. Kansas City Fed President Jeffrey Schmid said “modestly restrictive” monetary policy is still appropriate due to inflation risks, and Cleveland Fed President Beth Hammack said she does not favor cutting interest rates. T-notes added to their losses today after the Aug S&P manufacturing PMI expanded by the most in three years and after July existing home sales unexpectedly increased.
T-notes saw support from Fed-friendly US economic news that showed weekly jobless claims rose more than expected to a 2-month high, and the Aug Philadelphia Fed business outlook survey fell more than expected.
Fed Governor Lisa Cook said she intends to remain at the Fed despite calls from President Trump for her to resign over allegations that she committed mortgage fraud. If Cook is fired or resigns, Mr. Trump could appoint another Fed Governor who favors his lower interest rate policies.
European government bond yields on Thursday moved higher. The 10-year German bund yield rose +4.0 bp to 2.757%. The 10-year UK gilt yield rose +5.7 bp to 4.729%.
The Eurozone Aug S&P manufacturing PMI unexpectedly rose +0.7 to 50.5, stronger than expectations of a decline to 49.5 and the fastest pace of expansion in 3 years. The Aug composite PMI unexpectedly rose +0.2 to a 15-month high of 51.1, stronger than expectations of a decline to 50.6.
The Eurozone Aug consumer confidence index fell -0.8 to a 4-month low of -15.5, weaker than expectations of no change at -14.7.
Swaps are discounting the chances at 3% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Walmart (WMT) closed down more than -4% to lead losers in the Dow Jones Industrials after reporting Q2 adjusted ESP of 68 cents, weaker than the consensus of 74 cents. Costco Wholesale (COST) also closed down more than -2% on the news to lead losers in the Nasdaq 100.
SharkNinja Inc. (SN) closed down -3% after Chairman Wang sold 5 million shares in an overnight registered block trade between $116 and $118 per share.
Gilead Sciences (GILD) closed down more than -2% after Reuters reported that CVS Health declined to add the company’s HIV prevention shot to its drug coverage lists.
Airline stocks were under pressure Thursday after crude oil prices rallied to a 2-week high, which boosts jet fuel costs and lowers airlines’ profits. As a result, United Airlines Holdings (UAL) and Delta Air Lines (DAL) closed down more than -2%, and American Airlines Group (AAL) and Alaska Air Group (ALK) closed down more than -1%.
Maplebear Inc (CART) closed down more than -2% after Wedbush downgraded the stock to underperform from neutral with a price target of $42.
Monday.com Ltd (MNDY) closed down more than -1% after Bank of America Global Research downgraded the stock to neutral from buy.
Packaging stocks rose Thursday after Barclays said the announced closures of International Paper plants will reduce US containerboard capacity by about 2.5%. As a result, Packaging Corporation of America (PKG) closed up more than +6%, Smurfit WestRock (SW) closed up more than +4%, and International Paper (IP) closed up more than +2%.
PDD Holdings (PDD) closed up more than +4% to lead gainers in the Nasdaq 100 on bullish optimism for Chinese stocks after the Shanghai Composite rallied to a 10-year high today.
Nordson (NDSN) closed up +3% after reporting Q3 sales of $741.5 million, stronger than the consensus of $722.3 million.
Hewlett-Packard Enterprise (HPE) closed up more than +3% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $28.
Dayforce (DAY) closed up more than +2% after Thoma Bravo agreed to buy the company for $12.3 billion, or about $70 a share.
Humana (HUM) closed up more than +1% after RBC Capital Markets raised its price target on the stock to $322 from $283.
Earnings Reports(8/22/2025)
BJ’s Wholesale Club Holdings Inc (BJ), Buckle Inc/The (BKE), New Fortress Energy Inc (NFE), Ubiquiti Inc (UI).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Settle Lower as Bond Yields Rise on Hawkish Fed Comments

(RTTNews) - Alaska Airlines - a subsidiary of Alaska Air Group Inc (ALK) is partnering with T-Mobile to deliver ultra-fast, free inflight Wi-Fi for Atmos Rewards members across its entire network.
As presenting partner, T-Mobile will support the rollout of one of the industry's most advanced onboard connectivity systems, providing seamless, ad-free log-ins for its own customers and additional exclusive benefits to be announced later this year.
Mike Katz, T-Mobile's President of Marketing, Strategy and Products, said the collaboration reflects a shared commitment to innovation and value for travelers, extending T-Mobile's seamless connectivity experience to all Atmos Rewards members.
The airline's fleetwide installation of the new high-speed Wi-Fi begins in 2026 and will include regional, narrowbody, and widebody aircraft. Completion is targeted for 2027, making Alaska the leading carrier from Seattle-Tacoma International Airport in gate-to-gate low-latency, high-bandwidth inflight service. Membership in Atmos Rewards, which combines Alaska's Mileage Plan and HawaiianMiles programs, is free and required to access this benefit.
This initiative builds on Alaska's long-standing partnership with T-Mobile, which has provided complimentary Wi-Fi to T-Mobile customers since 2014 and powers tools used by Alaska's crews to operate efficiently and safely.
ALK currently trades at $56.29 or 1.44% lower on the NYSE.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Alaska Airlines, T-Mobile To Offer Free Ultra-Fast Wi-Fi For Atmos Rewards Members

(RTTNews) - Alaska Airlines - a subsidiary of Alaska Air Group Inc. (ALK) has introduced its combined loyalty program, Atmos Rewards, alongside the new Atmos Rewards Summit Visa Infinite card, co-branded with Bank of America.
Designed for frequent global travelers, the card offers high-value perks including Global Companion Awards, Alaska Lounge access, fast-track status earning, and 3x points on dining, travel, and partner airline purchases.
Brett Catlin, Alaska Airlines' VP of loyalty, said the Summit card redefines premium airline credit cards by offering unmatched rewards and global travel benefits. Lora Monfared, Head of Consumer Card Products at Bank of America, noted that the partnership delivers convenience, premium experiences, and greater value for travelers.
Key features include Global Companion Awards that allow cardholders to earn up to two awards per year (valued at 25,000 or 100,000 points) for companion tickets on Alaska, Hawaiian, oneworld, and global partners; accelerated status earning with one status point for every $2 spent plus an annual 10,000-point bonus, with status levels starting at 20,000 points; 3x points on eligible dining, foreign, Alaska, and Hawaiian purchases, along with a 10% rewards bonus for eligible Bank of America account holders; lounge and travel perks such as eight Alaska Lounge passes annually, waived partner booking fees, free checked bags, preferred boarding, instant $50 travel delay credits, and waived flight change fees; and flexible redemption options, including the ability to transfer points to five hotel programs and share points freely with up to ten members.
The card carries a $395 annual fee, with a limited-time 100,000-point bonus after $6,000 spend in 90 days. Alaska's existing Visa Signature® card is rebranded as Atmos Rewards Ascent Visa Signature®, retaining its $99 Companion Fare benefit for flights within North America.
More details are available at AtmosRewards.com/SummitCard.
ALK currently trades at $56.29 or 1.44% lower on the NYSE.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Alaska Airlines Launches Atmos Rewards And Premium Summit Visa Infinite Card

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in RH (Symbol: RH), where a total volume of 4,812 contracts has been traded thus far today, a contract volume which is representative of approximately 481,200 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 47.1% of RH's average daily trading volume over the past month, of 1.0 million shares. Especially high volume was seen for the $220 strike put option expiring August 22, 2025, with 1,138 contracts trading so far today, representing approximately 113,800 underlying shares of RH. Below is a chart showing RH's trailing twelve month trading history, with the $220 strike highlighted in orange:
Best Buy Inc (Symbol: BBY) saw options trading volume of 13,431 contracts, representing approximately 1.3 million underlying shares or approximately 45.3% of BBY's average daily trading volume over the past month, of 3.0 million shares. Especially high volume was seen for the $74 strike call option expiring August 22, 2025, with 2,913 contracts trading so far today, representing approximately 291,300 underlying shares of BBY. Below is a chart showing BBY's trailing twelve month trading history, with the $74 strike highlighted in orange:
And Alaska Air Group, Inc. (Symbol: ALK) saw options trading volume of 11,443 contracts, representing approximately 1.1 million underlying shares or approximately 44.8% of ALK's average daily trading volume over the past month, of 2.6 million shares. Especially high volume was seen for the $60 strike call option expiring September 19, 2025, with 5,130 contracts trading so far today, representing approximately 513,000 underlying shares of ALK. Below is a chart showing ALK's trailing twelve month trading history, with the $60 strike highlighted in orange:
For the various different available expirations for RH options, BBY options, or ALK options, visit StockOptionsChannel.com.
GEN Average Annual Return
Institutional Holders of CLMS
Funds Holding EVR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Tuesday Option Activity: RH, BBY, ALK

In trading on Monday, shares of Alaska Air Group, Inc. (Symbol: ALK) crossed above their 200 day moving average of $45.94, changing hands as high as $46.02 per share. Alaska Air Group, Inc. shares are currently trading up about 1.3% on the day. The chart below shows the one year performance of ALK shares, versus its 200 day moving average:
Looking at the chart above, ALK's low point in its 52 week range is $38.185 per share, with $61.55 as the 52 week high point — that compares with a last trade of $45.88. The ALK DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
BH Insider Buying
Funds Holding FSR
CTS YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

ALK Crosses Above Key Moving Average Level

Alaska Air Group, Inc. (ALK) reported second-quarter 2025 earnings of $1.78 per share, which beat the Zacks Consensus Estimate of $1.56 per share but declined 30.2% year over year.
Operating revenues of $3.70 billion surpassed the Zacks Consensus Estimate of $3.65 billion. The top line jumped 27.8% year over year, with passenger revenues accounting for 90.5% of the top line and increasing 27% owing to consistency in air-travel demand.
Passenger revenues totaled $3.35 billion in the reported quarter. On a year-over-year basis, cargo and other revenues of $139 million grew 93%. Loyalty program other revenues grew 21% year over year to $210 million.
Alaska Air Group, Inc. Price, Consensus and EPS Surprise
Other Details of ALK's Q2 Earnings
All comparisons have been presented on a year-over-year basis unless mentioned otherwise.
Revenue per available seat mile (RASM: a key measure of unit revenues) fell 3.3% to 15.39 cents. Yield decreased 4% to 16.62 cents.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) grew 31.8% to 20.17 billion. To cater to this increased demand, capacity (measured in average seat miles) rose 32.2% to 24.05 billion. Although traffic improved on a year-over-year basis, it failed to outpace capacity expansion. As a result, the load factor (percentage of seats filled by passengers) fell to 83.9% from 84.1% in the prior-year period. Our estimate is pegged at 88.8%.
In the second quarter, total operating expenses (on a reported basis) grew 33% to $3.42 billion.
Economic fuel price per gallon fell 15.8% to $2.39.
Consolidated operating costs per available seat mile (excluding fuel and special items) grew 10.2%.
Liquidity
As of June 30, 2025, Alaska Air had $750 million of cash and cash equivalents compared with $1.04 billion at the end of the prior quarter. ALK exited the second quarter of 2025 with long-term debt (net of current portion) of $4.44 billion compared with $4.29 billion at the end of the prior quarter. Debt-to-capitalization ratio was 60% at the end of the reported quarter.
During the second quarter, ALK repurchased 8.7 million shares for $428 million.
ALK's Outlook
ALK anticipates third-quarter 2025 adjusted earnings per share in the range of $1.00-$1.40. The Zacks Consensus Estimate is currently pegged at $1.55 per share.
For the third quarter of 2025, the company expects available seat miles (a measure of capacity) to be down 1% from the year-ago quarter. RASM is expected to remain flat to up low single digits. For third-quarter 2025, CASM is expected to be up to mid to high single digits.
ALK anticipates 2025 adjusted earnings per share to be more than $3.25. The Zacks Consensus Estimate is currently pegged at $3.33 per share.
For 2025, ALK expects available seat miles (a measure of capacity) to be up 2% from 2024 actuals. RASM is expected to remain flat to up low single digits. For 2025, CASM is expected to be up to mid-single digits.
Currently, ALK carries a Zacks Rank #4 (Sell).
Q2 Performances of Other Transportation Companies
Delta Air Lines (DAL) reported second-quarter 2025 earnings (excluding $1.17 per share from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.
Revenues in the June-end quarter were $16.65 billion, beating the Zacks Consensus Estimate of $16.2 billion and decreasing marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion.
J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2025 earnings of $1.31 per share, which missed the Zacks Consensus Estimate of $1.34 and declined 0.8% year over year.
Total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $2.94 billion and were flat year over year. JBHT’s second-quarter revenue performance witnessed a 6% increase in Intermodal (JBI) loads, a 13% increase in Truckload (JBT) loads, a 3% increase in Dedicated Contract Services (DCS) productivity and a 6% increase in Integrated Capacity Solutions (ICS) revenue per load. These items were offset by Final Mile Services revenue declining 10%, lower revenue per load in both JBI and JBT, a 9% decrease in ICS load volume and a 3% decline in average trucks in DCS. Total operating revenues, excluding fuel surcharge revenue, increased 1% on a year-over-year basis.
United Airlines Holdings, Inc. (UAL) reported mixed second-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.
UAL's second-quarter 2025 adjusted earnings per share of $3.87 surpassed the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure lies within the guided range of $3.25-$4.25.
Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Alaska Air Q2 Earnings Surpass Estimates, Decrease Year Over Year

Key Points
Adjusted earnings per share reached $1.78, topping analyst expectations.
Revenue was $3.7 billion, up 2% year over year.
The comapny is showing early signs of improved profitability.
Alaska Air Group (NYSE:ALK), the parent company behind Alaska Airlines and now Hawaiian Airlines, reported results for Q2 2025 on July 23, 2025. The company announced adjusted earnings per share of $1.78, well above analyst estimates of $1.54 (non-GAAP), and revenue of $3.70 billion, surpassing consensus expectations on a non-GAAP basis. Successful execution of strategic priorities, even as unit revenue (RASM) remained slightly negative compared to the prior year and operating costs increased, contributed to the quarter's outcome exceeding Wall Street expectations, underscored by growth outside the main cabin and key gains from integrating Hawaiian Airlines.
Metric
Q2 2025
Q2 2025 Estimate
Q2 2024 Pro Forma
Y/Y Change
Adjusted EPS
$1.78
$1.54
$2.55
N/A
EPS
$1.42
$1.71
N/A
Revenue
$3.70 billion
$3.65 billion
$3.63 billion
2.0%
Adj. pretax margin
8.0%
10.3%
(2.3 pts)
CASMex
10.90¢
10.23¢
6.6%
Source: Alaska Air Group. Note: Analysts' consensus estimates provided by FactSet. Q2 2024 Pro Forma results for EPS and adjusted EPS do not include Hawaiian Air results; therefore, year-over-year comparisons are not applicable. CASMex = Cost per ASM, ex-fuel, special, freighter.
Business Overview and Strategic Focus
Alaska Air Group operates passenger and cargo airline services throughout North America and, after acquiring Hawaiian Airlines, across transpacific and interisland Hawaii routes. It manages three segments: Alaska Airlines, Hawaiian Airlines, and regional operations, serving millions of passengers each year. Its strategic model emphasizes efficiency, network scale, and customer-focused features, such as an extensive loyalty program and premium cabin offerings.
In recent years, the business has focused intensely on integrating Hawaiian Airlines—a move aimed at expanding its domestic and international reach. Key success factors include operational reliability, strong cost management, and leveraging alliances like the oneworld partnership. Investments in fuel-efficient aircraft and premium cabins have also supported Alaska's efforts to improve profitability and passenger appeal in a competitive market.
Quarter Highlights: Integration, Revenue Trends, and Operational Metrics
The period stood out for the progress made integrating Hawaiian Airlines. The acquisition marked a defining move, contributing meaningfully to the company’s financial results. On a pro forma basis, Hawaiian’s adjusted pretax margin improved by 11 percentage points from the prior year, with Hawaiian’s adjusted pretax margin surpassed breakeven for the first time since 2019. Work to combine operating platforms and loyalty programs has begun, with full integration planned, with a target of $1 billion in incremental profit from the acquisition by 2027.
Network expansion continued, highlighted by the announcement of Alaska Air Group’s first transatlantic route (Seattle–Rome, starting May 2026) and the launch of Seattle–Tokyo, the airline’s first international long-haul flight from Seattle. These steps complement expanded commercial partnerships: for example, a new agreement with Philippine Airlines and expanded benefits with Qantas. Notably, 49% of revenue came from outside the main cabin, reflecting both the premium product’s 5% year-over-year revenue growth and cargo revenue grew 34% year-over-year. The loyalty program continued to generate strong results, with a 5% year-over-year increase in cash remuneration and accolades such as being ranked the best U.S. airline rewards program.
Financially, total operating revenue of $3.70 billion (GAAP) rose 2% year over year on a pro forma basis. Passenger revenue (GAAP) reached $3.36 billion, up 1% versus pro forma Q2 2024, and loyalty program revenue climbed 3% to $210 million. On the cost side, operating expenses excluding fuel increased 6%, Wages and benefits increased 49% year-over-year. Aircraft maintenance costs increased 86% year-over-year. The fuel cost per gallon dropped to $2.39. The company repurchased 8.7 million shares for $428 million.
No major operational disruptions were reported during the quarter. Hawaiian Airlines experienced a cybersecurity incident, but operations were unaffected.
Alaska Air Group’s cost per available seat mile, excluding fuel and special items—a key airline efficiency metric known as CASMex—was 10.90¢, up 10.2% from the prior year, matching the company's forecast. This increase was driven by union labor agreements and increased expenses from fleet and real estate. The company’s adjusted pretax margin fell to 8.0%, compared to 10.3% in Q2 2024, reflecting these cost challenges as well as slight pressure on revenue yields despite strong sales in premium and cargo operations.
The period also marked significant gains in labor relations. Alaska Air Group ratified a four-year collective bargaining agreement with Horizon mechanics and reached a tentative agreement covering other employee groups.
Looking Ahead: Guidance and Strategic Priorities
Looking to the third quarter, management provided guidance for adjusted earnings per share in the range of $1.00 to $1.40, which includes an expected negative impact of $0.10 on adjusted earnings per share from an IT outage in July. Capacity, measured in available seat miles, is anticipated to decrease around 1% from the prior year on a pro forma basis, reflecting careful management as demand trends are monitored. Revenue per available seat mile (RASM) is expected to be generally flat to up a low-single-digit percentage. For fiscal 2025, Alaska Air Group expects capacity growth of about 2% for fiscal 2025, with revenue per available seat mile (RASM) is expected to be flat to up low single digits and CASMex is expected to rise by a mid-single-digit percentage. The company reaffirmed full-year adjusted earnings per share guidance of greater than $3.25.
Looking forward, investors will be watching continued execution on integration milestones with Hawaiian Airlines, progress toward the corporation’s $1 billion profit expansion target by 2027, and trends in operating costs—especially labor and maintenance. Management reports a recent improvement in demand and bookings and expects cost performance to improve in the fourth quarter. Additionally, ongoing share repurchase activity and the health of the balance sheet, including $2.1 billion in unrestricted cash and marketable securities as of June 30, remain central components of the outlook. ALK does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,041%* — a market-crushing outperformance compared to 183% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of July 28, 2025
JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool recommends Alaska Air Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Alaska Air Group Tops Estimates in Q2

For the quarter ended June 2025, Alaska Air Group (ALK) reported revenue of $3.7 billion, up 27.9% over the same period last year. EPS came in at $1.78, compared to $2.55 in the year-ago quarter.
The reported revenue represents a surprise of +1.26% over the Zacks Consensus Estimate of $3.66 billion. With the consensus EPS estimate being $1.56, the EPS surprise was +14.1%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Alaska Air performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Passenger Load Factor: 83.9% versus the five-analyst average estimate of 85.2%.
Economic fuel cost per gallon: $2.39 compared to the $2.42 average estimate based on four analysts.
Available seat miles (ASM): 24.06 billion versus 22.96 billion estimated by four analysts on average.
Total revenue per ASM (RASM): 15.39 cents versus the four-analyst average estimate of 16.11 cents.
Revenue passenger miles (RPM): 20.18 billion compared to the 19.59 billion average estimate based on four analysts.
Passenger Yield: 16.62 cents versus 17.21 cents estimated by three analysts on average.
Operating expenses per ASM, excluding fuel and special items: 10.9 cents versus 11.59 cents estimated by three analysts on average.
Fuel gallons: 293.00 Mgal versus the three-analyst average estimate of 285.01 Mgal.
Total Passenger Revenue: $3.36 billion versus $3.31 billion estimated by five analysts on average.
Revenue- Loyalty program other revenue: $210 million versus $219.52 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +20.7% change.
Revenue- Cargo and other: $139 million versus the four-analyst average estimate of $137.72 million. The reported number represents a year-over-year change of +93.1%.
Operating Revenues- Passenger - Hawaiian: $857 million compared to the $600.11 million average estimate based on two analysts.
Shares of Alaska Air have returned +7.1% over the past month versus the Zacks S&P 500 composite's +5.9% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's What Key Metrics Tell Us About Alaska Air (ALK) Q2 Earnings

Alaska Air Group (ALK) came out with quarterly earnings of $1.78 per share, beating the Zacks Consensus Estimate of $1.56 per share. This compares to earnings of $2.55 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +14.10%. A quarter ago, it was expected that this airline would post a loss of $0.72 per share when it actually produced a loss of $0.77, delivering a surprise of -6.94%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Alaska Air, which belongs to the Zacks Transportation - Airline industry, posted revenues of $3.7 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.26%. This compares to year-ago revenues of $2.9 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Alaska Air shares have lost about 18.1% since the beginning of the year versus the S&P 500's gain of 7.3%.
What's Next for Alaska Air?
While Alaska Air has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Alaska Air was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.97 on $3.74 billion in revenues for the coming quarter and $3.47 on $14.17 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Airline is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, American Airlines (AAL), is yet to report results for the quarter ended June 2025. The results are expected to be released on July 24.
This world's largest airline is expected to post quarterly earnings of $0.79 per share in its upcoming report, which represents a year-over-year change of -27.5%. The consensus EPS estimate for the quarter has been revised 48.1% lower over the last 30 days to the current level.
American Airlines' revenues are expected to be $14.29 billion, down 0.3% from the year-ago quarter.
Should You Invest in Alaska Air Group, Inc. (ALK)?
Before you invest in Alaska Air Group, Inc. (ALK), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Index	Bulls	Bears
Confidence
Support
Cash flows

	S/L 5%RUB 56.53	S/L 10%RUB 53.55	S/L 15%RUB 50.57
Day	7.48%	0.03%	0.00%
Week	42.56%	10.17%	1.16%
Month	69.74%	42.45%	21.80%

Alaska Air Group, Inc.

Market sentiment

Overall assessment

Share of longs and shorts

Long

Short

Momentum

Protective stop levels