Alaska Air Group Inc. (NYSE: ALK) has reported its financial results for the fourth quarter and full year ended December 31, 2025. The company reported earnings per share of $0.18, with adjusted earnings per share of $0.43, ahead of expectations and the previous guidance range.
In the fourth quarter of 2025, the company reported a GAAP pretax margin of 0.8% and net income per share of $0.18. The adjusted pretax margin was 1.8% and the adjusted earnings per share was $0.43. This is a significant improvement compared to the prior expectation of adjusted earnings per share of approximately $0.10.
Revenue for the fourth quarter was $3.6 billion, resulting in a 0.6% year-over-year increase in unit revenue, despite facing temporary demand pullback from the government shutdown in November. Corporate travel grew by 9% year-over-year, with close-in demand remaining strong throughout the quarter. Diverse revenue streams also delivered, with premium revenue increasing by 7% year-over-year, cargo revenue increasing by 22% year-over-year, and loyalty revenue increasing by 12% year-over-year.
Unit costs, excluding fuel, freighter costs, and special items, increased by 1.3% year-over-year. Economic fuel price per gallon was $2.57, reflecting elevated west coast refining prices during the quarter.
Looking ahead, the company expects first quarter unit revenues to be solidly positive, with managed corporate revenues up 20% year-over-year. The guidance for the full year 2026 reflects a wide range of potential macroeconomic outcomes. The company expects to continue to realize value from Alaska Accelerate initiatives and synergies from the Hawaiian integration, which remain on track or ahead of plan relative to initial expectations.
In terms of financial results, Alaska Air Group reported net income for the fourth quarter and full year 2025, under generally accepted accounting principles (GAAP), of $21 million, or $0.18 per share, and $100 million, or $0.83 per share. This is a decrease compared to the net income for the fourth quarter and full year 2024 of $71 million, or $0.55 per share, and $395 million, or $3.08 per share.
The company also reported net income for the fourth quarter and full year 2025, excluding special items and other adjustments, of $50 million, or $0.43 per share, and $293 million, or $2.44 per share. This is a decrease compared to net income for the fourth quarter and full year 2024, excluding special items and other adjustments, of $125 million, or $0.97 per share, and $625 million, or $4.87 per share.
Alaska Air Group also achieved a single operating certificate for Alaska and Hawaiian airlines, representing the most significant integration milestone to date. The company also announced the largest fleet order in its history, expanding the fleet to 475 aircraft by 2030 and over 550 aircraft by 2035. Additionally, the company made network updates, expanded its service, and invested in enhancing the customer experience.
As a result of these announcements, the company's shares have moved 0.77% on the market, and are now trading at a price of $50.04. Check out the company's full 8-K submission here.
