| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 4.1K | 23.2% | 9.8% |
| Total Income | 4.1K | 23.2% | 9.8% |
| Expenditure | 4.2K | 18.3% | 23.5% |
| PBT | -214.00 | 32.5% | 189.9% |
| Net Profit | -76.00 | 60.6% | 144.2% |
| OPM | -4.13% | 4.32pp | 11.61pp |
| NPM | -1.87% | 3.98pp | 6.51pp |
| EPS | -0.68 | 59.8% | 146.9% |
Alaska Air Group Reports Q2 2026 Results Amidst Fuel Spike, Focuses on Integration Milestones
22 Jul 2026 · 22 Jul, 2:02 am
Summary
Alaska Air Group reported a net loss of $76 million ($0.68 per share) for the second quarter of 2026, impacted by a significant fuel spike. Despite the loss, total revenue increased by 10% year-over-year to $4.1 billion, with strong growth in premium and cargo segments. The company highlighted operational achievements, including leading industry on-time performance and completing the Hawaiian integration's single passenger service system. Management expressed confidence in future performance, anticipating a meaningful inflection in the third quarter with improving unit costs and revenue growth.
Key Highlights
- 1
Alaska Air Group reported a second quarter GAAP net loss of $76 million, or $0.68 per share, with an adjusted net loss of $102 million, or $0.92 per share.
- 2
Total operating revenue for the second quarter grew 10% year-over-year to $4.1 billion, driven by a 15% increase in premium revenue and a 21% increase in cargo revenue.
- 3
Capacity (ASMs) increased by 1.0% year-over-year in Q2 2026, while revenue per available seat mile (RASM) saw a significant increase of 8.6%.
- 4
Non-fuel unit costs increased by 6.5% year-over-year, with management noting that core cost management was strong outside of transitory items.
- 5
The company completed the last major integration milestone of its Hawaiian integration by transitioning to a single passenger service system.
- 6
New transatlantic service from Seattle to Rome, London, and Reykjavik was launched, expanding the company's international network.
- 7
Third quarter capacity is expected to increase 2% to 3% year-over-year, with unit revenue projected to grow in the low double digits.
Management Comments
Ben Minicucci
Our second quarter results were defined by a fuel spike outside our control - but underneath it, this company is executing better than ever. We led the industry in on-time performance for the first half of the year, completed the last major milestone of our Hawaiian integration, launched service to Europe, and returned to profitability in June. Absent the fuel headwind, we would have delivered a solidly profitable quarter. I have never been more confident in our people, our plan, and the long-term earnings power of Alaska Air Group.
Informational and educational content only. Not investment advice.