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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

January 22, 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 2.02.  Results of Operations And Financial Condition

On January 22, 2026 Alaska Air Group, Inc. (Air Group) issued a press release and certain supplemental materials reporting financial results for the fourth quarter and full year of 2025.

ITEM 7.01.  Regulation FD Disclosure

Pursuant to 17 CFR Part 243 (Regulation FD), the Company is submitting information relating to its financial and operational outlook in a press release as well as supplemental materials. The press release is attached as Exhibit 99.1. Supplemental information is attached as Exhibit 99.2. An investor update is attached as Exhibit 99.3.

In accordance with General Instruction B.2 of Form 8-K, the information under this item 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
Fourth Quarter and Full Year 2025 Earnings Press Release dated January 22, 2026
Supplemental Earnings Materials
Investor Update dated January 22, 2026
104 Cover Page Interactive Data File - embedded within the Inline XBRL Document
Signatures
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: January 22, 2026

/s/ EMILY HALVERSON
Emily Halverson
Vice President Finance and Controller

EX-99.1 2 ex9911222026earningsrelease.htm FOURTH QUARTER 2025 EARNINGS RELEASE Document

Exhibit 99.1
alaskaairgrouplogoa92.jpg

January 22, 2026
Media contact: Investor/analyst contact:
Media Relations Ryan St. John
(206) 304-0008 VP Finance, Planning and Investor Relations
ALKInvestorRelations@alaskaair.com

Alaska Air Group reports fourth quarter and full year 2025 results
Achieved single operating certificate for Hawaiian Airlines and Alaska Airlines
Reported earnings per share of $0.18, with adjusted earnings per share of $0.43, ahead of expectations and previous guidance range
Generated $1.2 billion in operating cash flow for the full year

SEATTLE — Alaska Air Group Inc. (NYSE: ALK) today reported financial results for the fourth quarter and full year ended December 31, 2025.

“We feel momentum accelerating in 2026 as the Alaska-Hawaiian Airlines combination gains full strength,” said CEO Ben Minicucci. “The people across our airlines delivered through a transformational year that set us up to win: an expanding global network, premium travel experiences delivered with care, and Atmos Rewards elevating our 11-year streak as the No. 1 airline loyalty program. Our model is positioned for where travelers are headed, and we’re ready to compete as one of four global U.S. airlines.”

Quarter in Review
Alaska Air Group's (Air Group) Consolidated Statements of Operations, Consolidated Balance Sheets, and Summary Cash Flow Statement include Hawaiian Airlines from September 18, 2024 onward. For comparability of financial and operational results, historical information has also been provided on a pro forma basis for the full year 2024 within the Supplementary Pro Forma Comparative Financial and Operating Information in this filing and in prior 8-K filings. The results presented for the fourth quarter of 2024 in the supplementary section are as reported given the inclusion of Hawaiian Airlines in Air Group for the full quarter.

Air Group reported fourth quarter GAAP pretax margin of 0.8% and net income per share of $0.18. Our fourth quarter adjusted pretax margin was 1.8% and our adjusted earnings per share was $0.43.
Q4 2025 Results Prior Expectation Actual Results
Capacity (ASMs) % change versus 2024 Up ~2% Up 2.2%
RASM % change versus 2024 Up ~1% Up 0.6%
CASMex % change versus 2024 Up ~3% Up 1.3%
Adjusted earnings per share ~$0.10 $0.43

We continued to build on key milestones for our Alaska Accelerate strategy during the quarter, including achieving a single operating certificate for Alaska and Hawaiian Airlines. We achieved record credit card acquisitions, with nearly one fourth of all signups being for the new premium credit card that we introduced late in the third quarter. We began selling our new international routes from Seattle to London and Rome during the quarter, with the first flights scheduled to operate in spring 2026.
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We are also now selling in six foreign currencies and recently unveiled our Japanese, Korean, and Italian-language based websites, helping drive point of sale outside of the United States to support our expanding international service. These achievements represent continued progress in building the infrastructure to support Air Group’s future growth and profitability, and deliver on our Alaska Accelerate goal of $10 earnings per share in 2027 enabled by $1 billion in incremental profit.

Fourth quarter revenue was $3.6 billion, resulting in a 0.6% year-over-year RASM increase despite contending with temporary demand pullback from the government shutdown in November. We believe our fourth quarter unit revenue result will be among the highest in the industry. Corporate travel grew 9% year-over-year, while close-in demand remained strong throughout the fourth quarter as bookings and yields continue to rebound from the challenging environment earlier in the year. Our diverse revenue streams continued to deliver with premium revenue increasing 7% year-over-year, cargo revenue increasing 22% year-over-year, and loyalty revenue increasing 12% year-over-year. Commercial initiatives and synergy capture remained on track for the fourth consecutive quarter.

Unit costs, excluding fuel, freighter costs, and special items increased 1.3% year-over-year. This result is better than prior guidance and signals our teams' renewed focus on cost control. Economic fuel price per gallon was $2.57 per gallon in the fourth quarter, reflecting elevated West Coast refining prices during the quarter.

First Quarter & Full Year 2026 Guidance
In the first three weeks of January, bookings have inflected positive relative to last year. We have seen several of the highest booking days in our history since January 1st with managed corporate revenues up 20% year-over-year for the first quarter. We expect first quarter unit revenues to be solidly positive and earnings per share to be approximately flat year-over-year which would mark another sequential improvement towards earnings expansion.
Given the macroeconomic headwinds the industry experienced in 2025 and the positive emergent demand trends, our guidance for 2026 reflects a wide range of potential macroeconomic outcomes. We expect to continue to realize value from Alaska Accelerate initiatives and synergies from the Hawaiian integration, which remain on track or ahead of plan relative to our initial expectations. To hit the higher end of our guidance range we would require sustained macroeconomic recovery in 2026, at or improving on trends seen in the first three weeks of the year, and for fuel prices to stabilize. Given the inherent uncertainty of the macroeconomic environment, we remain as focused as ever on controlling what is within our control, including disciplined cost management, driving strong productivity and delivering on our initiatives.

Q1 2026 Expectation FY 2026 Expectation
Capacity (ASMs) % change versus 2025 Up 1% to 2% 2% to 3%
Adjusted earnings (loss) per share(a)
 ($1.50) to ($0.50) $3.50 to $6.50
Capital Expenditures n/a ~$1.4 to $1.5B
(a) Q1 adjusted tax rate is estimated to be 29%. Full year adjusted tax rate is estimated to be 26% to 27%

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Financial Results and Updates:
•Reported net income for the fourth quarter and full year 2025 under Generally Accepted Accounting Principles (GAAP) of $21 million, or $0.18 per share, and $100 million, or $0.83 per share. These results compare to net income for the fourth quarter and full year 2024 of $71 million, or $0.55 per share, and $395 million, or $3.08 per share.
•Reported net income for the fourth quarter and full year 2025, excluding special items and other adjustments, of $50 million, or $0.43 per share, and $293 million, or $2.44 per share. These results compare to net income for the fourth quarter and full year 2024, excluding special items and other adjustments, of $125 million, or $0.97 per share, and $625 million, or $4.87 per share.
•Generated adjusted pretax margin of 2.8% for the full year 2025.
•Repurchased 0.7 million shares of common stock for approximately $30 million in the fourth quarter, bringing total repurchases to 11.3 million shares for $570 million in 2025.

Operational Updates:
•Alaska and Hawaiian achieved a single operating certificate, becoming one airline in the eyes of the FAA and representing the most significant integration milestone to date.
•Announced the largest fleet order in Alaska's history in January 2026, including 105 737-10 aircraft, 5 787 aircraft, and options for 35 additional 737-10 aircraft. The order will expand our fleet to 475 aircraft by 2030 and over 550 aircraft by 2035.
•Took delivery of six 737-8 aircraft and one 787-9 aircraft in the fourth quarter.
•Unveiled our new global livery for our 787 fleet in January 2026, which is planned to fly on our international routes to and from Seattle.
•Announced the opening of a new Horizon base in Las Vegas to support regional growth and flying in California.

Network Updates:
•Announced the addition of two destinations to Air Group's network, with year-round service to Tulsa and Arcata-Eureka beginning in the spring.
•Expanding service from our hubs, including new routes announced for 2026 from San Diego to Dallas, Oakland, and Raleigh-Durham; Portland to Philadelphia, Baltimore, and St. Louis; Honolulu to Burbank; and Anchorage to Boston, Boise, and Spokane.

Customer Experience:
•Led U.S. carriers in key performance metrics during the Thanksgiving travel season, including on-time performance and completion rate.
•Began installations of Starlink Wi-Fi on our E175 fleet in December, with installations on our mainline fleet to begin in spring 2026.
•Announced the Kahu‘ewai Hawai‘i Investment Plan of more than $600 million over five years to enhance the guest experience from booking to the day of travel, including retrofitting Hawaiian aircraft interiors, modernizing airport spaces in Hawai‘i, and upgrading technology.
•Our airlines finished 2025 at #2 in completion rate and #2 in on-time performance.

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Other Highlights:
•Partnered with Washington state leaders, industry partners, and others to launch the Cascadia Sustainable Aviation Accelerator initiative to accelerate the production, deployment, and adoption of sustainable aviation fuel (SAF).
•Partnered with Pono Energy to invest in the development of SAF in Hawaiʻi using locally grown agriculture feedstock.

The following table reconciles the company's reported GAAP net income per share (EPS) for the three and twelve months ended December 31, 2025 and 2024 to adjusted amounts.
  Three Months Ended December 31,
  2025   2024
(in millions, except per share amounts) Dollars Per Share Dollars Per Share
Net income $ 21  $ 0.18  $ 71  $ 0.55 
Adjusted for:
Mark-to-market fuel hedge adjustments —  —  (6) (0.05)
Gains on foreign debt (4) (0.03) (10) (0.08)
Special items - operating 39  0.33  91  0.71 
Special items - net non-operating —  —  (17) (0.13)
Income tax effect(a)
 (6) (0.05) (4) (0.03)
Adjusted net income $ 50  $ 0.43  $ 125  $ 0.97 
  Twelve Months Ended December 31,
  2025   2024
(in millions, except per share amounts) Dollars Per Share Dollars Per Share
Net income $ 100  $ 0.83  $ 395  $ 3.08 
Adjusted for:
Mark-to-market fuel hedge adjustments (4) (0.03) (28) (0.22)
Losses (gains) on foreign debt 1  0.01  (10) (0.08)
Special items - operating 250  2.08  345  2.69 
Special items - net non-operating —  —  (16) (0.12)
Income tax effect(a)
 (54) (0.45) (61) (0.48)
Adjusted net income $ 293  $ 2.44  $ 625  $ 4.87 
(a) Includes income tax effect of the adjustments in the tables above as well as one-time effects of the One Big Beautiful Bill Act which was signed into law in the third quarter of 2025.

A conference call regarding the fourth quarter and full year results will be streamed online at 11:30 a.m. EST/ 8:30 a.m. PST on January 23, 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, 2024. 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.
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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 December 31, Twelve Months Ended December 31,
(in millions, except per share amounts) 2025   2024 Change 2025   2024 Change
Operating Revenue    
Passenger revenue $ 3,248  $ 3,178  2% $ 12,835  $ 10,654  20%
Loyalty program other revenue 238    224  6% 855  733  17%
Cargo and other revenue 146    132  11% 549  348  58%
Total Operating Revenue 3,632    3,534  3% 14,239  11,735  21%
   
Operating Expenses  
Wages and benefits 1,245    1,119  11% 4,763  3,588  33%
Variable incentive pay 74    161  (54)% 268  358  (25)%
Aircraft fuel, including hedging gains and losses 737    702  5% 2,879  2,506  15%
Aircraft maintenance 214    229  (7)% 912  620  47%
Aircraft rent 60    65  (8)% 250  207  21%
Landing fees and other rentals 284    249  14% 1,109  781  42%
Contracted services 148    133  11% 590  444  33%
Selling expenses 95    106  (10)% 407  349  17%
Depreciation and amortization 199    190  5% 795  583  36%
Food and beverage service 101    93  9% 383  287  33%
Third-party regional carrier expense 67  62  8% 272  243  12%
Other 294    261  13% 1,058  854  24%
Special items - operating 39  91  (57)% 250  345  (28)%
Total Operating Expenses 3,557    3,461  3% 13,936  11,165  25%
Operating Income 75    73  3% 303  570  (47)%
Non-operating Income (Expense)  
Interest income 23    32  (28)% 94  101  (7)%
Interest expense (70)   (56) 25% (272) (171) 59%
Interest capitalized 8    10  (20)% 37  29  28%
Special items - net non-operating —  17  (100)% —  16  (100)%
Other - net (6)   3  NM (16) —  NM
Total Non-operating Income (Expense) (45)   6  NM (157) (25) NM
Income Before Income Tax 30    79  146  545 
Income tax expense 9    8  46  150 
Net Income $ 21    $ 71  $ 100  $ 395 
   
Basic Earnings Per Share $ 0.18    $ 0.56  $ 0.85  $ 3.13 
Diluted Earnings Per Share $ 0.18    $ 0.55  $ 0.83  $ 3.08 
Weighted Average Shares Outstanding used for computation:  
Basic 115.533    126.047  118.171  126.136 
Diluted 117.356    128.931  119.926  128.372 

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CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
Alaska Air Group, Inc.
As of December 31 (in millions)
 2025 2024
ASSETS
Current Assets
Cash and cash equivalents $ 627  $ 1,201 
Restricted cash 28  29 
Marketable securities 1,496  1,274 
Total cash, restricted cash, and marketable securities 2,151  2,504 
Receivables - net 565  558 
Inventories and supplies - net 203  199 
Prepaid expenses 278  307 
Other current assets 69  192 
Total Current Assets 3,266  3,760 
Property and Equipment
Aircraft and other flight equipment 13,647  12,273 
Other property and equipment 2,424  2,173 
Deposits for future flight equipment 731  883 
16,802  15,329 
Less accumulated depreciation and amortization (4,945) (4,548)
Total Property and Equipment - Net 11,857  10,781 
Other Assets
Operating lease assets 1,268  1,296 
Goodwill 2,723  2,724 
Intangible assets - net 815  873 
Other noncurrent assets 432  334 
Total Other Assets 5,238  5,227 
Total Assets $ 20,361  $ 19,768 
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CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
Alaska Air Group, Inc.
As of December 31 (in millions except share amounts)
 2025 2024
LIABILITIES AND SHAREHOLDERS' EQUITY    
Current Liabilities    
Accounts payable $ 324  $ 186 
Accrued wages, vacation and payroll taxes 881  1,001 
Air traffic liability 1,689  1,712 
Other accrued liabilities 1,055  997 
Deferred revenue 1,722  1,592 
Current portion of long-term debt and finance leases 721  450 
Current portion of operating lease liabilities 197  207 
Total Current Liabilities 6,589  6,145 
Noncurrent Liabilities
Long-term debt and finance leases, net of current portion 4,834  4,538 
Operating lease liabilities, net of current portion 1,141  1,198 
Deferred income taxes 1,004  934 
Deferred revenue 1,711  1,664 
Obligation for pension and post-retirement medical benefits 369  460 
Other liabilities 595  457 
Total Noncurrent Liabilities 9,654  9,251 
Commitments and Contingencies
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: 2025 - 145,115,659 shares; 2024 - 141,449,174 shares, Outstanding: 2025 - 115,530,889 shares; 2024 - 123,119,199 shares
 1  1 
Capital in excess of par value 961  811 
Treasury stock (common), at cost: 2025 - 29,584,770 shares; 2024 - 18,329,975 shares
 (1,701) (1,131)
Accumulated other comprehensive loss (173) (239)
Retained earnings 5,030  4,930 
Total Shareholders' Equity 4,118  4,372 
Total Liabilities and Shareholders' Equity $ 20,361  $ 19,768 
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SUMMARY CASH FLOW (unaudited)
Alaska Air Group, Inc.
(in millions) Year Ended December 31, 2025
Nine Months Ended September 30, 2025(a)
Three Months Ended
December 31, 2025(b)
Cash Flows from Operating Activities:
Net income $ 100  $ 79  $ 21 
Adjustments to reconcile net income to net cash provided by operating activities 856  639  217 
Changes in working capital 293  346  (53)
Net cash provided by operating activities 1,249  1,064  185 
Cash Flows from Investing Activities:
Property and equipment additions (1,588) (963) (625)
Other investing activities (35) (33) (2)
Net cash used in investing activities (1,623) (996) (627)
Cash Flows from Financing Activities (199) (490) 291 
Net decrease in cash and cash equivalents (573) (422) (151)
Cash, cash equivalents, and restricted cash at beginning of period(c)
 1,257  1,257  835 
Cash, cash equivalents, and restricted cash at end of period(c)
 $ 684  $ 835  $ 684 
(a) As reported in Form 10-Q for the third quarter of 2025.
(b) Cash flows for the three months ended December 31, 2025 can be calculated by subtracting cash flows for the nine months ended
September 30, 2025, as reported in Form 10-Q for the third quarter 2025, from the year ended December 31, 2025.
(c) Cash, cash equivalents, and restricted cash shown in the Summary Cash Flow consists of restricted cash presented within Restricted Cash as well as certain restricted cash balances presented within Other noncurrent assets in the condensed consolidated balance sheets.



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SPECIAL ITEMS (unaudited)

Air Group has classified certain operating and non-operating activity as special items due to their unusual or infrequently occurring nature. We believe disclosing information about these items separately improves comparable year-over-year analysis and allows stakeholders to better understand our results of operations. A description of the special items is provided below.

Integration costs: Integration costs were associated with the acquisition of Hawaiian Airlines and consist of employee-related, legal and professional fees, technology, and other merger costs.

Labor and other: Labor and other costs in 2025 were primarily for changes to Alaska flight attendants' sick leave benefits pursuant to a new collective bargaining agreement. Costs in 2024 were primarily for retroactive pay for Alaska flight attendants pursuant to a tentative agreement and litigation costs related to the Virgin trademark license agreement.

Net non-operating: The income in 2024 is primarily for gains on Hawaiian debt extinguishment in the fourth quarter.

Three Months Ended December 31, Twelve Months Ended December 31,
(in millions) 2025 2024 2025 2024
Operating Expenses
Integration costs 39  80  193  208 
Labor and other $ —  $ 11  $ 57  $ 137 
Special items - operating $ 39  $ 91  $ 250  $ 345 
Non-operating Income (Expense)
Special items - net non-operating $ —  $ 17  $ —  $ 16 
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OPERATING STATISTICS SUMMARY (unaudited)
A manual recalculation of certain figures using rounded amounts may not agree directly to the actual figures presented in the table below. 2024 figures include Hawaiian results September 18, 2024 onward.
Three Months Ended December 31, Twelve Months Ended December 31,
2025   2024   Change 2025   2024   Change
Consolidated Operating Statistics:(a)
Revenue passengers (000) 14,355   14,339   0.1% 58,627   49,238   19.1%
RPMs (000,000) "traffic" 18,935   19,068   (0.7)% 77,110   63,871   20.7%
ASMs (000,000) "capacity" 23,238   22,744   2.2% 92,962   76,167   22.1%
Load factor 81.5% 83.8% (2.3) pts 82.9% 83.9% (1.0) pts
Yield 17.15¢ 16.67¢ 2.9% 16.64¢ 16.68¢ (0.2)%
PRASM 13.98¢ 13.97¢ 0.1% 13.81¢ 13.99¢ (1.3)%
RASM 15.63¢ 15.54¢ 0.6% 15.32¢ 15.41¢ (0.6)%
CASMex(b)
 11.72¢ 11.57¢ 1.3% 11.42¢ 10.80¢ 5.7%
Economic fuel cost per gallon(b)(c)
 $2.57 $2.54 1.2% $2.52 $2.74 (8.0)%
Fuel gallons (000,000)(c)
 287 279 2.9% 1,146 925 23.9%
ASMs per gallon 81.1 81.6 (0.6)% 81.1 82.3 (1.4)%
Departures (000) 135 131 3.1% 543 461 17.8%
Average full-time equivalent employees (FTEs) 32,676   30,396   7.5% 31,585   25,751   22.7%
Operating fleet(d)
 413 392 21 a/c 413 392 21 a/c
Alaska Airlines Operating Statistics:
RPMs (000,000) "traffic" 12,806 13,306   (3.8)% 52,404   53,680   (2.4)%
ASMs (000,000) "capacity" 15,737   15,754   (0.1)% 63,161   63,873   (1.1)%
Economic fuel cost per gallon $2.57 $2.55 0.8% $2.52 $2.74 (8.0)%
Hawaiian Airlines Operating Statistics:
RPMs (000,000) "traffic" 4,850 4,509 7.6% 19,304 5,143 NM
ASMs (000,000) "capacity" 5,896 5,481 7.6% 23,208 6,245 NM
Economic fuel cost per gallon(c)
 $2.49 2.44 2.0% $2.41 2.43 (0.8)%
Regional Operating Statistics:(e)
RPMs (000,000) "traffic" 1,278 1,253   2.0% 5,401 5,048   7.0%
ASMs (000,000) "capacity" 1,606 1,509 6.4% 6,593 6,049 9.0%
Economic fuel cost per gallon $2.76 $2.74 0.7% $2.71 $2.93 (7.5)%
(a)Except for FTEs, data includes information related to third-party regional capacity purchase flying arrangements.
(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 aircraft owned and leased by Alaska, Hawaiian, and Horizon, as well as aircraft operated by third-party regional carriers under capacity purchase agreements. Excludes all aircraft removed from operating service.
(e)Data presented includes information related to flights operated by Horizon and third-party carriers.

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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 actual figures presented in the tables below.

Adjusted Income Before Income Tax Reconciliation
  Three Months Ended December 31, Twelve Months Ended December 31,
(in millions) 2025 2024 2025 2024
Income before income tax $ 30  $ 79  $ 146  $ 545 
Adjusted for:
Mark-to-market fuel hedge adjustment —  (6) (4) (28)
Losses (gains) on foreign debt (4) (10) 1  (10)
Special items - operating 39  91  250  345 
Special items - net non-operating —  (17) —  (16)
Adjusted income before income tax $ 65  $ 137  $ 393  $ 836 
Pretax margin 0.8  % 2.2  % 1.0  % 4.6  %
Adjusted pretax margin 1.8  % 3.9  % 2.8  % 7.1  %

CASMex Reconciliation
  Three Months Ended December 31, Twelve Months Ended December 31,
(in millions) 2025 2024 2025 2024
Total operating expenses $ 3,557  $ 3,461  $ 13,936  $ 11,165 
Less the following components:
Aircraft fuel, including hedging gains and losses 737  702  2,879  2,506 
Freighter costs 56  37  192  84 
Special items - operating 39  91  250  345 
Total operating expenses, excluding fuel, freighter costs, and special items $ 2,725  $ 2,631  $ 10,615  $ 8,230 
ASMs 23,238  22,744  92,962  76,167 
CASMex 11.72  ¢ 11.57  ¢ 11.42  ¢ 10.80  ¢



12

Fuel Reconciliation
Three Months Ended December 31,
2025   2024
(in millions, except for per gallon amounts) Dollars   Cost/Gal   Dollars   Cost/Gal
Raw or "into-plane" fuel cost $ 737  $ 2.57    $ 701  $ 2.51 
Losses on settled hedges —  —    7  0.03 
Economic fuel expense $ 737  $ 2.57    $ 708  $ 2.54 
Mark-to-market fuel hedge adjustment —  —    (6) (0.02)
Aircraft fuel, including hedging gains and losses $ 737  $ 2.57    $ 702  $ 2.52 
Fuel gallons 287    279 
             
Twelve Months Ended December 31,
2025 2024
(in millions, except for per gallon amounts) Dollars   Cost/Gal   Dollars   Cost/Gal
Raw or "into-plane" fuel cost $ 2,879  $ 2.51    $ 2,496  $ 2.70 
Losses on settled hedges 4  0.01    38  0.04 
Economic fuel expense $ 2,883  $ 2.52    $ 2,534  $ 2.74 
Mark-to-market fuel hedge adjustment (4) (0.01)   (28) (0.03)
Aircraft fuel, including hedging gains and losses $ 2,879  $ 2.51    $ 2,506  $ 2.71 
Fuel gallons 1,146    925 

Debt-to-capitalization, including leases
(in millions) December 31, 2025 December 31, 2024
Long-term debt and finance leases, net of current portion $ 4,834  $ 4,538 
Capitalized operating leases 1,338  1,405 
Current portion of finance lease liabilities(a)
 181  8 
Adjusted debt, net of current portion of long-term debt $ 6,353  $ 5,951 
Shareholders' equity 4,118  4,372 
Total invested capital $ 10,471  $ 10,323 
Debt-to-capitalization ratio, including leases 61% 58%
(a) To best reflect our leverage, we included our short-term finance lease liabilities, which are recognized within 'Current portion of long-term debt and finance leases' in our condensed consolidated balance sheets.
13

Adjusted net debt to earnings before interest, taxes, depreciation, amortization, rent, and special items
(in millions) December 31, 2025 December 31, 2024
Long-term debt $ 5,309  $ 4,933 
Capitalized operating leases 1,338  1,405 
Capitalized finance leases 246  55 
Total adjusted debt 6,893  6,393 
Less: Total cash and marketable securities 2,123  2,475 
Adjusted net debt $ 4,770  $ 3,918 
(in millions) Twelve Months Ended December 31, 2025 Twelve Months Ended December 31, 2024
Operating Income $ 303  $ 570 
Adjusted for:
Special items - operating 250  345 
Mark-to-market fuel hedge adjustments (4) (28)
Losses (gains) on foreign debt 1  (10)
Depreciation and amortization 795 583
Aircraft rent 250 207
EBITDAR $ 1,595  $ 1,667 
Adjusted net debt to EBITDAR 3.0x 2.4x


14

OPERATING SEGMENTS (unaudited)
Alaska Air Group, Inc.
Three Months Ended December 31, 2025
(in millions) Alaska Airlines Hawaiian Airlines Regional
Consolidating & Other(a)
Air Group Adjusted(b)
Adjustments(c)
 Consolidated
Operating Revenue      
Passenger revenue $ 2,071  $ 728  $ 449  $ —  $ 3,248  $ —  $ 3,248 
Loyalty program other revenue 185  34  19  —  238  —  238 
Cargo and other revenue 81  60  —  5  146  —  146 
Total Operating Revenue 2,337  822  468  5  3,632  —  3,632 
Operating Expenses
Operating expenses, excluding fuel 1,768  654  369  (10) 2,781  39  2,820 
Fuel expense 451  190  96  —  737  —  737 
Total Operating Expenses 2,219  844  465  (10) 3,518  39  3,557 
Non-operating Income (Expense) (3) (38) —  (8) (49) 4  (45)
Income (Loss) Before Income Tax $ 115  $ (60) $ 3  $ 7  $ 65  $ (35) $ 30 
Three Months Ended December 31, 2024
(in millions) Alaska Airlines Hawaiian Airlines Regional
Consolidating & Other(a)
Air Group Adjusted(b)
Adjustments(c)
 Consolidated
Operating Revenue      
Passenger revenue $ 2,073  $ 673  $ 432  $ —  $ 3,178  $ —  $ 3,178 
Loyalty program other revenue 161  48  15  —  224  —  224 
Cargo and other revenue 77  53  —  2  132  —  132 
Total Operating Revenue 2,311  774  447  2  3,534  —  3,534 
Operating Expenses
Operating expenses, excluding fuel 1,725  619  341  (17) 2,668  91  2,759 
Fuel expense 447  172  89  —  708  (6) 702 
Total Operating Expenses 2,172  791  430  (17) 3,376  85  3,461 
Non-operating Income (Expense) 14  (27) —  (8) (21) 27  6 
Income (Loss) Before Income Tax $ 153  $ (44) $ 17  $ 11  $ 137  $ (58) $ 79 
    
15

OPERATING SEGMENTS (unaudited)
Alaska Air Group, Inc.
Twelve Months Ended December 31, 2025
(in millions) Alaska Airlines Hawaiian Airlines Regional
Consolidating & Other(a)
Air Group Adjusted(b)
Adjustments(c)
 Consolidated
Operating Revenue
Passenger revenue $ 8,132  $ 2,918  $ 1,785  $ —  $ 12,835  $ —  $ 12,835 
Loyalty program other revenue 653  134  68  —  855  —  855 
Cargo and other revenue 305  231  —  13  549  —  549 
Total Operating Revenue 9,090  3,283  1,853  13  14,239  —  14,239 
Operating Expenses
Operating expenses, excluding fuel 6,772  2,640  1,471  (76) 10,807  250  11,057 
Fuel expense 1,777  723  383  —  2,883  (4) 2,879 
Total Operating Expenses 8,549  3,363  1,854  (76) 13,690  246  13,936 
Non-operating Income (Expense) (15) (109) —  (32) (156) (1) (157)
Income (Loss) Before Income Tax $ 526  $ (189) $ (1) $ 57  $ 393  $ (247) $ 146 
Twelve Months Ended December 31, 2024
(in millions) Alaska Airlines Hawaiian Airlines Regional
Consolidating & Other(a)
Air Group Adjusted(b)
Adjustments(c)
 Consolidated
Operating Revenue      
Passenger revenue $ 8,151  $ 757  $ 1,746  $ —  $ 10,654  $ —  $ 10,654 
Loyalty program other revenue 621  53  59  —  733  —  733 
Cargo and other revenue 279  59  —  10  348  —  348 
Total Operating Revenue 9,051  869  1,805  10  11,735  —  11,735 
Operating Expenses
Operating expenses, excluding fuel 6,365  701  1,317  (69) 8,314  345  8,659 
Fuel expense 1,962  195  377  —  2,534  (28) 2,506 
Total Operating Expenses 8,327  896  1,694  (69) 10,848  317  11,165 
Non-operating Income (Expense) 20  (31) —  (40) (51) 26  (25)
Income (Loss) Before Income Tax $ 744  $ (58) $ 111  $ 39  $ 836  $ (291) $ 545 
(a)Includes consolidating entries, Air Group parent company, Horizon, McGee Air Services, and other immaterial business units.
(b)The Air Group Adjusted column represents the financial information that is reviewed by management to assess performance of operations and determine capital allocation and excludes certain charges.
(c)Includes special items, mark-to-market fuel hedge accounting adjustments, and gains/losses on foreign debt.

16

SUPPLEMENTARY PRO FORMA COMPARATIVE FINANCIAL AND OPERATING INFORMATION (unaudited)
We believe that analysis of specific results on a pro forma basis provides more meaningful year-over-year comparisons. The table below compares the three and twelve months ended December 31, 2025 to the reported three months ended December 31, 2024, which included Hawaiian results for the full quarter, and the pro forma twelve months ended December 31, 2024. Hawaiian's financial information has been conformed to reflect Air Group's historical financial statement presentation. This information does not purport to reflect what our financial and operational results would have been had the acquisition been consummated at the beginning of the periods presented.
Three Months Ended December 31, Twelve Months Ended December 31,
(in millions) 2025   2024   Change 2025
2024 Pro Forma(a)
 Change
Operating Revenue
Passenger revenue $ 3,248  $ 3,178  2% $ 12,835  $ 12,502  3%
Loyalty program other revenue 238  224  6% 855  817  5%
Cargo and other revenue 146  132  11% 549  460  19%
Total Operating Revenue 3,632  3,534  3% 14,239  13,779  3%
Operating expenses, excluding fuel 2,820  2,759  2% 11,057  10,424  6%
Aircraft fuel, including hedging gains and losses 737  702  5% 2,879  3,045  (5)%
Total Operating Expenses 3,557  3,461  3% 13,936  13,469  3%
Operating Income 75  73  3% 303  310  (2)%
Non-operating income (expense) (45) 6  NM (157) (82) 91%
Income Before Tax 30  79  (62)% 146  228  (36)%
Special items - operating 39  91  (57)% 250  363  (31)%
Special items - net non-operating —  (17) (100)% —  (24) (100)%
Mark-to-market fuel hedge adjustments —  (6) (100)% (4) (30) (87)%
Unrealized (gain)/loss on foreign debt (4) (10) (60)% 1  (13) (108)%
Adjusted Income Before Tax $ 65  $ 137  (52)% $ 393  $ 524  (25)%
Pretax Margin 0.8  % 2.2  % -1.4 pts 1.0% 1.7% -0.7 pts
Adjusted Pretax Margin 1.8  % 3.9  % -2.1 pts 2.8% 3.8% -1.0 pts
Pro Forma Comparative Operating Statistics
Revenue passengers (000) 14,355 14,339 0.1% 58,627 57,134 2.6%
RPMs (000,000) "traffic" 18,935 19,068 (0.7)% 77,110 76,566 0.7%
ASMs (000,000) "capacity" 23,238 22,744 2.2% 92,962 91,208 1.9%
Load factor 81.5% 83.8% (2.3) pt 82.9% 83.9% (1.0) pt
Yield 17.15¢ 16.67¢ 2.9% 16.64¢ 16.33¢ 1.9%
RASM 15.63¢ 15.54¢ 0.6% 15.32¢ 15.11¢ 1.4%
CASMex 11.72¢ 11.57¢ 1.3% 11.42¢ 10.91¢ 4.7%
Pro Forma Comparative CASMex Reconciliation
Total operating expenses $ 3,557  $ 3,461  2.8% $ 13,936  $ 13,469  3.5%
Less the following components:
Aircraft fuel, including hedging gains and losses 737  702  5.0% 2,879  3,045  (5.5)%
Freighter costs 56  37  51.4% 192  111  73.0%
Special items - operating 39  91  (57.1)% 250  363  (31.1)%
Total operating expenses, excluding fuel, freighter costs, and special items $ 2,725  $ 2,631  3.6% $ 10,615  $ 9,950  6.7%
ASMs 23,238 22,744 2.2% 92,962 91,208 1.9%
CASMex 11.72¢ 11.57¢ 1.3% 11.42¢ 10.91¢ 4.7%
(a) As provided on Form 8-K filed with the SEC on January 22, 2025, including certain immaterial reclassification and policy adjustments.
17

Note A: Pursuant to Regulation G, we are providing reconciliations of reported non-GAAP financial measures to their most directly comparable financial measures reported on a GAAP basis. We believe that consideration of these non-GAAP financial measures may be important to investors for the following reasons:

•By excluding certain costs from our unit metrics, we believe that we have better visibility into the results of operations. Our industry is highly competitive and is characterized by high fixed costs, so even a small reduction in non-fuel operating costs can result in a significant improvement in operating results. We believe that all U.S. carriers are similarly impacted by changes in jet fuel costs over the long run, so it is important for management and investors to understand the impact of company-specific cost drivers which are more controllable by management. We adjust for expenses related directly to our freighter aircraft operations, including those costs incurred under the ATSA with Amazon, to allow for better comparability to other carriers that do not operate freighter aircraft. We also exclude certain special charges as they are unusual or nonrecurring in nature and adjusting for these expenses allows management and investors to better understand our cost performance.

•CASMex is one of the most important measures used by management and by the Air Group Board of Directors in assessing quarterly and annual cost performance. CASMex is also a measure commonly used by industry analysts, and we believe it is the basis by which they have historically compared our airline to others in the industry. The measure is also the subject of frequent questions from investors.

•Adjusted pretax income is an important metric for the employee incentive plan, which covers the majority of Air Group employees.

•Disclosure of the individual impact of certain noted items provides investors the ability to measure and monitor performance both with and without these special items. We believe that disclosing the impact of these items as noted above is important because it provides information on significant items that are not necessarily indicative of future performance. Industry analysts and investors consistently measure our performance without these items for better comparability between periods and among other 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.

18

GLOSSARY OF TERMS

Adjusted net debt - long-term debt, including current portion, plus capitalized operating and finance leases, less cash, restricted cash, and marketable securities

Adjusted net debt to EBITDAR - represents net adjusted debt divided by EBITDAR (trailing twelve months earnings before interest, taxes, depreciation, amortization, special items and rent)

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, and special items per ASM, or "unit cost". Beginning in 2026, CASMex will also exclude Performance-Based Pay expense.

Debt-to-capitalization ratio - represents adjusted debt (long-term debt plus capitalized operating and finance lease liabilities) divided by total equity plus adjusted debt

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

Economic Fuel - best estimate of the cash cost of fuel, net of the impact of our fuel-hedging program and excluding operations under the Air Transportation Service Agreement (ATSA) with Amazon

Freighter Costs - operating expenses directly attributable to the operation of Alaska's B737 freighter aircraft and Hawaiian's 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 paying 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 paying 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
19
EX-99.2 3 alksupplementalinfo4q25.htm ALK SUPPLEMENTAL INFORMATION alksupplementalinfo4q25
ALASKA AIR GROUP Q4 2025 Earnings | January 22, 202 6 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, 2024 . 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 Fourth Quarter 2025 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 ❑ Q4 2025 and 2024 figures reflect as reported results given Hawaiian’s inclusion in Air Group for the full quarter in 2024. Fi gures for the first three quarters in 2025 are compared to pro forma periods and assumes Hawaiian was included in both 2024 and 2025. W e believe this basis of comparison is relevant for understanding our expected results. ❑ Air Group’s Q4 2025 adjusted earnings per share of $0.43, and full year 2025 adjusted result of $2.44, came in well ahead of revised mid -quarter expectations, with approximately half of the improvement is due to better non -fuel cost performance and the other half a combination of slightly lower fuel costs in December than anticipated and a lower tax rate due to a higher earni ngs result. Strength in revenue trends persisted throughout the quarter and commercial initiatives and synergies remain on track. ❑ Air Group generated $1.2 billion in operating cash flow for the full year despite a challenging economic backdrop . ❑ Unit revenue increased 0.6% in Q4 2025. We expect our performance will lead the industry for the fourth straight quarter, despite headwinds from the government shutdown and an IT outage. ❑ Q4 2025 unit costs were up 1.3%. The result is better than our expectations, driven by enhanced focus on cost management that helped us realize cost savings across several areas of the business ❑ Economic fuel cost per gallon averaged $2.57 for Q4 2025 as West Coast 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 3.0x.

 
4 Alaska Accelerate initiatives progressing well $100M $150M $150M Network Product Loyalty Cargo ▪ Industry - leading Q4 RASM, 4 th quarter in a row (1) ▪ Now selling in six currencies and unveiled Japanese, Korean , and Italian language -based websites to support international point -of-sale ▪ Selling 38 codeshare destinations in Europe to support LHR and FCO sales ▪ Premium revenue up 7% ▪ ~ 86 % of 737 premium seat retrofits completed, 100% expected by Spring ▪ 16% of fleet (66 AC) now enabled with Starlink Wi -Fi, 50% expected by YE ▪ Rolling out new lounge food and beverage program and international onboard curated experiences ▪ Loyalty revenue up 12% ▪ New c ard acquisitions finished up 17% for the year , 1/4th of sign ups in Q4 were for premium credit card with 60% of new accounts outside PNW, 25% in CA ▪ Managed corp. revenues up 9%, 2 pt increase vs. Q3. New Atmos business card acquisitions up 185% ▪ Cargo revenue increased 22 % y/y ▪ In early January, became the first operational workgroup to be fully integrated, merging onto one unified cargo selling and technology platform ▪ Operational build -out nearly complete to support cargo launch to LHR and FCO $400M Synergies on track Synergies on track Synergies on trackInitiatives on track 1 – Industry - leading Q4 y/y RASM expectation based on SEC filings and consensus estimates as of January 22, 2025

 
5 Fourth consecutive quarter of leading unit revenue Unit revenue change y/y Notes ■ Q4 2025 unit revenue increased 0.6% y/y despite the government shutdown and a difficult 2024 comparison (up 7%) ■ Premium demand remains strong with premium revenue up 7%, outpacing main cabin by 9.5 pts and now represents 36% of total revenue, up 1 point from the third quarter ■ Managed corporate travel demonstrated a strong inflection in Q4, with revenue up 9% y/y, a 2 pt sequential increase from Q3. Held revenues up 20% for Q1 2025 ■ Cargo and loyalty revenue outpaced system revenue growth, up 22% and 12% respectively 5.0% (0.6%) 1.4% 0.6% 1Q25 2Q25 3Q25 4Q25 ALK Big 4 Q4 2025 and Q4 2025E unit revenue based on company filings, company guidance and consensus estimates including DAL, AAL, UAL, LU V

 
2.1% 6.5% 8.6% 1.3% 4.7% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 1Q25 2Q25 3Q25 4Q25 FY25 6 Unit costs finished the year strong CASMex change y/y Chart not to scale Capacity Growth 3.9% 2.7% (0.7%) 2.2% 1.9% Notes ■ Unit costs were up 1.3% y/y in Q4 2025, exiting the year with a strong finish ■ FY 2025 unit costs finished up 4.7% y/y on 1.9% capacity growth, inclusive of ~2 pts of pressure from labor deals and three-quarters of a point of pressure due to less capacity growth. The company reduced flying in the third and fourth quarters to better match supply with demand given macroeconomic challenges which naturally pressures unit costs

 
7 Fuel Costs LA vs USGC Refining Margins (1) Notes ■ Crude oil prices declined throughout the quarter and were down ~9% versus the third quarter ■ West Coast refining margins were elevated for most of the fourth quarter, returning to normal levels in December. However, they spiked again in early January due to refinery maintenance and flaring events ■ Recent volatility in West Coast refining margins driven by continued supply disruptions could put pressure on 2026 earnings $1.11 USGC Crack Platts Jet/Kero LA Crack Q4 Avg: $0.98 1 – Data from FIS Global Kiodex and Platts S&P Global Commodity Insights $1.39 $0.85 $1.20 $0.57

 
8 Balance Sheet and Share Repurchases Shares Outstanding Target Adj. Net Debt/EBITDAR < 1.5x 0.9x 2.7x 1.0x 1.4x 2.4x 3.0x 2019 2021 2022 2023 2024 4Q25 Adjusted Net Debt/EBITDAR 124 129 128 123 121 118 117 2019 2023 2024 1Q25 2Q25 3Q25 4Q25 Diluted Share Count (Millions)

 
9 2/4 integration milestones completed; Most significant phase of PSS cutover complete 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 Selling cutover completed on October 15, 2025, ensuring seamless guest experience. Bookings for HA flights departing April 22 nd and beyond are now made in Alaska’s reservation system, SABRE The operational cutover in April ‘26 will unify full guest experience across AS and HA brands Joint collective bargaining negotiations with union groups remain ongoing Complete Complete

 
EX-99.3 4 ex9931222026investorupdate.htm 1/22/2026 INVESTOR UPDATE Document

Exhibit 99.3

Investor Update - January 22, 2026

CASMex Definition
Beginning in 2026, Air Group's definition of CASMex will adjust for Performance-Based Pay (PBP) expense. We believe excluding these costs from our CASMex calculation will allow investors to better understand Air Group's core operating cost performance and will provide more meaningful comparison of our results to the airline industry. The table below provides a reconciliation of 2025 operating expenses and CASMex excluding PBP, which will be used for year-over-year comparison purposes in 2026.
(in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025
Total operating expenses $ 3,334  $ 3,427  $ 3,618  $ 3,557  $ 13,936 
Less the following components:
Aircraft fuel, including hedging gains and losses 681  700  761  737  2,879 
Freighter costs 41  48  47  56  192 
Performance-Based Pay 52  49  62  66  229 
Special items - operating 91  56  64  39  250 
Total operating expenses, excluding fuel, freighter costs, PBP, and special items $ 2,469  $ 2,574  $ 2,684  $ 2,659  $ 10,386 
ASMs 21,219  24,058  24,447  23,238  92,962 
CASMex 11.64  ¢ 10.70  ¢ 10.98  ¢ 11.44  ¢ 11.17  ¢

References in this update to “Air Group,” “Company,” “we,” “us,” and “our” refer to Alaska Air Group, Inc. and its subsidiaries, unless otherwise specified.

Certain financial information provided in this exhibit (“non-GAAP financial figures”) is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Non-GAAP financial figures may be useful to stakeholders, but should not be considered a substitute for GAAP figures. Air Group is not able to reconcile certain forward looking non-GAAP financial figures without unreasonable effort because the adjusting items will not be known until the end of the indicated future periods and could be significant. Please see the cautionary statement under “Forward-Looking Information.”

Forward-Looking Information
This investor update 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, 2024. 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.