Alaska Air Group has reported its fourth-quarter and full-year 2025 results, which point to a strong start for 2026. The company said it entered 2026 with demand improving and a major integration milestone behind it, following its acquisition of Hawaiian Airlines.
A Little About Alaska Air Group
Alaska Air Group, Inc. is a major American airline holding company founded in 1932. It is based in SeaTac, Washington, and operates Alaska Airlines, Hawaiian Airlines and Horizon Air.
It serves over 140 destinations across North America, Central America, Asia, and the Pacific. It has hubs in:
- Seattle
- Honolulu
- Portland
- Anchorage
- Los Angeles
- San Diego
- San Francisco
As of 2026, it is considered the 4th largest global airline in the U.S. following its acquisition of Hawaiian Airlines. It’s also a member of the oneworld Alliance as of July 2020.
2025 Expectations
The company has reported an earnings per share (EPS) of $0.43 for Q4 and $2.44 for the full year in 2025. This landed above both market expectations and its prior guidance range. This pushes their total revenue to $3.6 billion for Q4 and $14.2 billion for the full year in 2025.
Despite elevated fuel costs and impacts from a government shutdown, their operating cash flow was reported as $1.2 billion for the full year, and their total liquidity was $3 billion at year end. This is a realistic ratio for an airline of Alaska’s size.
The company reported strong demand in premium cabins, with First and Premium Class revenues up 7.1% year-over-year in the fourth quarter. Alaska Air Group Inc. have also launched a successful premium credit card, Atmos Summit, with 75,000 sign-ups in four months, exceeding expectations as they initially projected closer to 25,000 sign-ups.
What This Means for 2026
For 2026, the group forecasts 2%-3% capacity growth for the full year. This is supported by a new Boeing aircraft order, aimed at expanding long-haul and international capacity.
CEO, Ben Minicucci, said:
“We feel momentum accelerating in 2026 as the Alaska-Hawaiian Airlines combination gains full strength,”
Exceeding expectations means projecting meaningful profit improvement and revenue growth through strong premium, loyalty and international demand.
The airline is leveraging its “Alaska Accelerate” strategy, including new, larger aircraft orders in order to drive earnings. This plan aims to generate $1 billion in incremental profit by 2027 by focusing on high-margin, premium and international travel.
The company expects 2026 adjusted EPS to be in the range of $3.50 to $6.50, reflecting a rebound after a challenging 2025. Despite beating 2025 Q4 expectations, the company is managing risks such as high fuel costs and volatile demand.
Do you think they will beat this in 2026? Let us know your thoughts in the comments!
