Alaska Air Group

Alaska Air Group (ALK) Q1 2025 Earnings

Reported Apr 23, 2025 at 5:21 PM ET · SEC Source

Q1 25 EPS

$-0.77

MISS 0.05%

Est. $-0.77

Q1 25 Revenue

$3.14B

MISS 0.71%

Est. $3.16B

vs S&P Since Q1 25

-17.9%

TRAILING MARKET

ALK +18.3% vs S&P +36.2%

Market Reaction

Did ALK Beat Earnings? Q1 2025 Results

Alaska Air Group delivered a modest miss on both lines in Q1 2025, posting an adjusted loss of $0.77 per share against a consensus estimate of $0.77 and revenue of $3.14 billion, trailing expectations of $3.16 billion by 0.71%, even as reported reven… Read more Alaska Air Group delivered a modest miss on both lines in Q1 2025, posting an adjusted loss of $0.77 per share against a consensus estimate of $0.77 and revenue of $3.14 billion, trailing expectations of $3.16 billion by 0.71%, even as reported revenue surged 40.5% year-over-year on the first full quarter with Hawaiian Airlines consolidated. The headline numbers masked a more nuanced story: demand softened noticeably starting in February, costing the company an estimated 3 points of revenue in the quarter, while integration progress with Hawaiian remained on track, with Hawaiian's unit revenue improving 8.8% and its adjusted pretax margin gaining 14 points year-over-year. Operating cash flow came in at a solid $459 million, and the company held $2.50 billion in liquidity. Looking ahead, management guided Q2 adjusted EPS to $1.15 to $1.65, reflecting roughly 6 points of demand-related revenue pressure, and suspended full-year guidance citing economic uncertainty, though executives expressed confidence the airline would remain solidly profitable for 2025.

Key Takeaways

  • Led the industry in domestic unit revenue performance with RASM up 5.0% on pro forma combined basis
  • Premium revenue up 10% year-over-year
  • Loyalty program cash remuneration grew 12% year-over-year
  • Hawaiian unit revenue increased 8.8% year-over-year with adjusted pretax margin improved 14 points
  • Economic fuel cost per gallon decreased 15.3% year-over-year to $2.61
  • Adjusted pretax margin improved 7 points year-over-year on pro forma basis
  • Air Group capacity grew 3.9%, approximately 1 point higher than expected due to lower flight cancellation rates
24/7 Wall St

ALK YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

ALK Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“Alaska is built for times like these with our relentless focus on safety, care and performance. Amid the economic uncertainty, our teams controlled what they can control and delivered results that strengthen our foundation for the long term. We're growing scale, relevance and loyalty in our hubs, we're already recognizing synergies from the combination with Hawaiian Airlines, and our employees have never been more engaged and excited about our future. Between the progress on our Alaska Accelerate strategic plan and the resilient business model we've built over decades, Alaska is well positioned to thrive in the years ahead.”

— Ben Minicucci, Q1 2025 Earnings Press Release