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Alaska Air Group

Alaska Air Group (ALK) Q2 2026 Earnings

Reported Jul 21, 2026 at 4:30 PM ET · SEC Source

Q2 26 EPS

$-0.92

BEAT +7.25%

Est. $-0.99

Q2 26 Revenue

$4.07B

MISS 0.56%

Est. $4.09B

Market Reaction

Did ALK Beat Earnings? Q2 2026 Results

Alaska Air Group posted a narrower-than-expected loss in Q2 2026, with adjusted EPS of $-0.92 beating the $-0.99 consensus estimate by 7.25%, even as revenue of $4.07 billion came in just slightly below the $4.09 billion consensus and declined a mode… Read more Alaska Air Group posted a narrower-than-expected loss in Q2 2026, with adjusted EPS of $-0.92 beating the $-0.99 consensus estimate by 7.25%, even as revenue of $4.07 billion came in just slightly below the $4.09 billion consensus and declined a modest 0.56% versus expectations. The headline numbers masked a strikingly divergent story: total revenue still grew 9.8% year over year on just 1% more capacity, reflecting genuine demand strength, but an 85% surge in economic fuel cost per gallon to $4.43 generated $600 million in incremental fuel expense that overwhelmed those gains and pushed the company to an adjusted net loss of $102 million. Analysts had already raised price targets ahead of the print, citing confidence in the unit revenue trajectory, and management's Q3 outlook appears to justify some of that optimism, with RASM expected to grow low double digits, fuel costs moderating to $3.75 per gallon, and adjusted EPS guided to a range of $0.00 to $1.00 as cost and revenue trends converge more favorably.

Key Takeaways

  • • 10% total revenue growth on 1% capacity growth reflecting strong unit revenue performance
  • • Premium revenue increased 15% year-over-year
  • • Cargo revenue increased 21% year-over-year
  • • Managed corporate revenue accelerated 30% year-over-year
  • • Loyalty cash remuneration up 19% year-over-year
  • • Active loyalty members grew 15% year-over-year
  • • 85% year-over-year increase in economic fuel cost per gallon to $4.43 drove $600 million incremental fuel cost
  • • Historic Hawaii rainstorms in March reduced system unit revenue by approximately 3 points in the quarter
  • • Non-fuel unit costs came in ~1.5 points better than guidance

ALK Forward Guidance & Outlook

Q3 2026 capacity expected up 2-3% year-over-year with nearly all growth from long-haul international flying out of Seattle. Unit revenue (RASM) expected to grow low double digits year-over-year. Non-fuel unit costs (CASMex) expected to increase low-to-mid single digits year-over-year, a meaningful step-down from H1. Economic fuel cost expected at $3.75 per gallon. Adjusted EPS guidance for Q3 is $0.00 to $1.00. Hawaii remains a 2-3 point unit revenue headwind in Q3 but demand is returning to historical levels by September. Management expects a meaningful inflection in financial performance beginning in Q3 as the spread between unit revenue and unit costs widens.

24/7 Wall St

ALK YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

ALK Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26

“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.”

— Ben Minicucci, Q2 2026 Earnings Press Release

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