Alaska Air Group, Inc. (ALK) Q3 FY2026 earnings

Reported results

• GAAP pretax margin of 0.4% and GAAP net loss of $147 million, or $1.32 per share; adjusted pretax margin of 1.1% and adjusted net loss of $35 million, or ($0.31) per share
• Total operating revenue increased 14% year-over-year to $4.3 billion on 2.4% capacity growth, with RASM up 11.7% and CASMex up 4.4%
• Diversified revenue (non-main cabin operating revenue) grew to 54% of total revenue; premium revenue grew approximately 25% and represented more than 36% of total revenue
• Loyalty program cash remuneration grew 21% to $721 million; managed corporate revenue increased 30%
• Economic fuel cost per gallon was $3.94 versus prior expectation of $3.75; aircraft fuel expense for Q3 was $1,214 million

Guidance

• Q4 2026 capacity expected to grow approximately 1% to 1.5% year-over-year
• Q4 2026 unit revenue expected to increase in the low double digits year-over-year
• Q4 2026 non-fuel unit costs (CASMex) expected to increase in the mid-single digits
• Q4 2026 economic fuel cost expected to be $4.65 to $4.85 per gallon
• Q4 2026 adjusted loss per share expected to be ($2.50) to ($2.00)
• Full year 2026 adjusted loss per share expected to be ($5.50) to ($5.00), inclusive of $1.8 billion in fuel expense above plan

Notes

During Q3 2026, the Company revised its full-year outlook from pretax income to pretax loss, primarily due to elevated fuel prices. This reduced the estimated annual effective tax rate (AETR). A cumulative catch-up adjustment related to tax benefits on first-half losses was recorded in Q3, reducing adjusted earnings per share by $0.67. Excluding this adjustment, Q3 adjusted earnings per share were $0.36. The Company’s adjusted tax rate for Q3 was 18.4% versus original guidance of approximately 35%.

Price and volatility reaction

The stock moved -2.4% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -4.9 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-10-20 (8-K, Item 2.02). Read the original filing on sec.gov.