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Alaska Air Group Reports $147M Loss in Q3

Alaska Air Group reported a third-quarter 2026 loss of $147 million, or $1.32 a share, wider than the adjusted loss of $35 million, or 31 cents a share. Excluding certain tax impacts, adjusted earnings came to $49 million, or 36 cents a share.

Revenue climbed 14% from a year earlier to $4.3 billion, while capacity rose 2.4%. Unit revenue increased 11.7% and non-fuel unit costs rose 4.4%.

Fuel remained the biggest drag. The company said its economic fuel cost per gallon was $3.94 in the quarter, above the $3.75 it had expected. It also said fuel expense for the year is running $1.8 billion above plan.

The company’s pretax margin was 0.4% on a GAAP basis and 1.1% on an adjusted basis.

Several revenue streams outperformed the overall top line. Premium revenue rose about 25% and made up more than 36% of total revenue. Loyalty program cash remuneration increased 21% to $721 million. Managed corporate revenue increased 30%.

The company said diversified revenue outside the main cabin reached 54% of total revenue. September yield rose about 17% year over year.

For the fourth quarter, Alaska Air expects capacity to rise 1% to 1.5% from a year earlier, with growth concentrated in international flying. It sees unit revenue increasing in the low double digits and non-fuel unit costs rising in the mid-single digits. Economic fuel cost is expected at $4.65 to $4.85 per gallon.

For the full year, the company now expects an adjusted loss per share between $5.50 and $5.00. Today the company's shares have moved 1.12% to a price of $34.36. For the full picture, make sure to review ALASKA AIR GROUP, INC.'s 8-K report.

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