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Alaska Air Group

Alaska Air Group (ALK) Q1 2026 Earnings

Reported Apr 20, 2026 at 4:55 PM ET · SEC Source

Q1 26 EPS

$-1.68

MISS 5.75%

Est. $-1.59

Q1 26 Revenue

$3.30B

BEAT +0.28%

Est. $3.29B

vs S&P Since Q1 26

+6.0%

BEATING MARKET

ALK +11.8% vs S&P +5.8%

Market Reaction

Did ALK Beat Earnings? Q1 2026 Results

Alaska Air Group posted a narrower-than-expected loss in Q1 2026, but fuel costs and weather disruptions kept the quarter firmly in the red, with adjusted earnings of negative $1.68 per share missing the consensus estimate of negative $1.59 by 5.75%.… Read more Alaska Air Group posted a narrower-than-expected loss in Q1 2026, but fuel costs and weather disruptions kept the quarter firmly in the red, with adjusted earnings of negative $1.68 per share missing the consensus estimate of negative $1.59 by 5.75%. Revenue told a more encouraging story, climbing 5.2% year-over-year to $3.30 billion, just edging past the $3.29 billion analyst forecast, as premium revenue grew 8% and managed corporate travel surged 19%. The headline drag was unmistakable: fuel expense jumped 17% to $796 million, with the average cost per gallon rising 14.2% to $2.98, while total operating expenses swelled 7% to $3.58 billion. Looking ahead, the company suspended its full-year 2026 EPS guidance citing fuel price volatility, and Q2 projections are sobering, with fuel expected to average roughly $4.50 per gallon, representing an approximate $3.60 per-share headwind and pointing to a Q2 adjusted loss near $1.00 per share. Still, with UBS raising its price target and analyst sentiment broadly constructive on the carrier's West Coast network and loyalty expansion, investors are weighing near-term cost pressure against longer-term strategic momentum.

Key Takeaways

  • • Premium revenue increased 8% year-over-year
  • • Loyalty program cash remuneration increased 12% year-over-year
  • • Managed corporate revenue increased 19% year-over-year
  • • Unit revenue (RASM) increased 3.5% year-over-year
  • • Passenger revenue increased 4% year-over-year to $2.92 billion
  • • Cargo and other revenue increased 25% year-over-year
  • • Active loyalty members grew 13% year-over-year
  • • Industry-leading on-time performance in Q1

ALK Forward Guidance & Outlook

Alaska Air Group suspended full-year 2026 EPS guidance due to fuel price volatility. For Q2 2026, capacity is expected to be up approximately 1% year-over-year (trimmed ~1 point from original expectations). Unit revenues are trending up high single digits year-over-year, with a path to 10% growth assuming demand strength sustains, despite a 2-point unit revenue headwind from Hawaiʻi storms. Q2 unit costs are expected to be approximately 1.5 points higher than Q1 on a year-over-year basis, driven by close-in capacity reductions, crew training for international widebody flying, prior-year aircraft sale gains, and employee recognition expense. Unit costs are expected to inflect downward to low single-digit growth in the second half. Q2 fuel is expected to average approximately $4.50 per gallon, adding approximately $600 million in fuel expense (approximately $3.60 EPS headwind). The resulting Q2 adjusted loss per share estimate is approximately ($1.00). Full-year 2026 capacity growth is still expected at 2% to 3%. The assumed tax rate is 32%.

24/7 Wall St

ALK YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

ALK Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“Even in a volatile quarter, we're seeing clear evidence that our long-term Alaska Accelerate plan is working. We're leading the industry in on-time performance, achieving a significant integration milestone with a single reservation system, generating incredible loyalty growth with Atmos Rewards and driving strong international demand as we launch service to Europe. I'm confident in our people, our plan, and our future.”

— Ben Minicucci, Q1 2026 Earnings Press Release

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