Companies /Industrials

Alaska Air Group Inc

NYSE: ALK Airlines
$41.32
▼ $0.27 (−0.64%) today
Markets open · 4:16pm ET

Q1 2025 Earnings

Reported Apr 23, 2025, 5:21pm ET · SEC source
$-0.77
Miss −0.05%
EPS · est. $-0.77
$3.1B
Miss −0.71%
Revenue · est. $3.2B
+18.3%
Beating market
ALK vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−5%0+5%Apr 23Apr 24report 5:21pm ETearnings+2.1%−4.2%
−5%0+5%Apr 23Apr 24earnings+2.1%−4.2%
ALK −4.2%S&P 500 +2.1%
−5%0+5%Apr 23Apr 24report 5:21pm ETearnings+2.9%−4.2%
−5%0+5%Apr 23Apr 24earnings+2.9%−4.2%
ALK −4.2%NASDAQ +2.9%
0+5%+10%Apr 22May 1report 5:21pm ETearnings+4.2%+4.1%
0+5%+10%Apr 22May 1earnings+4.2%+4.1%
ALK +4.1%S&P 500 +4.2%
0+5%+10%Apr 22May 1report 5:21pm ETearnings+5.8%+4.1%
0+5%+10%Apr 22May 1earnings+5.8%+4.1%
ALK +4.1%NASDAQ +5.8%
−9.98%
Day of report
+0.96%
Next session
+6.96%
One week
+26.43%
30 days

S&P 500 over the same 30 days: +8.13%.

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 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

“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.”

Alaska Air Group CEO, on the earnings call

Forward Guidance & Outlook

For Q2 2025, the company expects capacity up 2% to 3% versus pro forma 2024, RASM flat to down low single digits, CASMex up mid-to-high single digits, and adjusted EPS of $1.15 to $1.65. Q2 guidance reflects approximately 6 points of revenue impact from recent demand softness. The company suspended full-year 2025 guidance due to economic uncertainty but expects to be solidly profitable for the full year even if revenue remains pressured throughout the second half. Unit costs are expected to improve sequentially through the second half of 2025.

ALK YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$1.0B$2.0B$3.0B$2.2B$3.1BRevenue$-242,223,042$-197,000,000Operating Income$-223,599,138$-166,000,000Net Income
$0$1.0B$2.0B$3.0BRevenueOperating IncomeNet Income

ALK Revenue by Segment

Passenger Revenue$2.8B+9.0%
Alaska Airlines$2.0B
Hawaiian Airlines$747.0M
Regional$414.0M
Loyalty Program$207.0M+7.0%
Cargo and Other$122.0M+23.0%

Figures from SEC filings and company reports. Not investment advice.