Alaska Air reports revenue of USD 3.6 bn for Q4 2025
alaska air
Air Group reported fourth quarter GAAP pretax margin of 0.8% and net income per share of USD 0.18.
Alaska Air Group Inc. reported financial results for the fourth quarter and full year ended December 31, 2025. Air Group reported fourth quarter GAAP pretax margin of 0.8% and net income per share of USD 0.18. The fourth quarter adjusted pretax margin was 1.8% and the adjusted earnings per share was USD 0.43.
“We feel momentum accelerating in 2026 as the Alaska-Hawaiian Airlines combination gains full strength. The people across our airlines delivered through a transformational year that set us up to win: an expanding global network, premium travel experiences delivered with care, and Atmos Rewards elevating our 11-year streak as the No. 1 airline loyalty program. Our model is positioned for where travellers are headed, and we’re ready to compete as one of four global U.S. airlines,” said Ben Minicucci, President & CEO of Alaska Air Group.
Air Group’s Consolidated Statements of Operations, Consolidated Balance Sheets, and Summary Cash Flow Statement include Hawaiian Airlines from September 18, 2024, onward. For comparability of financial and operational results, historical information has also been provided on a pro forma basis for the full year 2024 within the Supplementary Pro Forma Comparative Financial and Operating Information in this filing and in prior 8-K filings. The results presented for the fourth quarter of 2024 in the supplementary section are as reported given the inclusion of Hawaiian Airlines in Air Group for the full quarter.
The group began selling their new international routes from Seattle to London and Rome during third quarter, with the first flights scheduled to operate in spring 2026. The group is also selling in six foreign currencies and recently unveiled Japanese, Korean, and Italian-language based websites, helping drive point of sale outside of the United States to support expanding international service.
Fourth quarter revenue was USD 3.6 billion, resulting in a 0.6% year-over-year RASM increase despite contending with temporary demand pullback from the government shutdown in November. Corporate travel grew 9% year-over-year, while close-in demand remained strong throughout the fourth quarter as bookings and yields continue to rebound from the challenging environment earlier in the year. The premium revenue increased to 7% year-over-year, and loyalty revenue increased to 12% year-over-year. Commercial initiatives and synergy capture remained on track for the fourth consecutive quarter.
Unit costs, excluding fuel, freighter costs, and special items increased 1.3% year-over-year. Economic fuel price per gallon was USD 2.57 per gallon in the fourth quarter, reflecting elevated West Coast refining prices during the quarter.
In the first three weeks of January, bookings have inflected positive relative to last year. The group has recorded several of the highest booking days in history since January 1st with managed corporate revenues up 20% year-over-year for the first quarter.
