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Alaska Air's Shares Decline 4.8% Since Q1 FY26 Earnings Release
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Key Takeaways
Alaska Air reported a Q1 loss of $1.68 per share, wider than estimates, sending shares down 4.8%.
ALK revenue rose 5.2% to $3.30B, driven by passenger, cargo, and loyalty program growth.
ALK faces rising fuel and operating costs, while trimming Q2 capacity and guiding to a wider loss.
Alaska Air Group (ALK - Free Report) reported a wider-than-expected loss in the first-quarter of 2026. Revenues edged past the Zacks Consensus Estimate.
The steeper-than-expected loss failed to please investors, and the stock has declined 4.8% since its earnings release on April 20.
Image Source: Zacks Investment Research
The company reported a loss of $1.68 per share, wider than the Zacks Consensus Estimate of a loss of $1.61. In the year-ago quarter, ALK reported a loss of 77 cents per share.
Meanwhile, the operating revenues of $3.30 billion beat the Zacks Consensus Estimate of $3.27 billion. Total revenues jumped 5.2% year over year, with passenger revenues accounting for 88.5% of the top line and increasing 4% to $2.92 billion, but missing our model estimate of $2.96 billion.
Alaska Air Group, Inc. Price, Consensus and EPS Surprise
On a year-over-year basis, cargo and other revenues increased 25% year over year to $153 million, beating our estimate of $128.4 million. Loyalty program other revenues grew 10% year over year to $227 million, surpassing our estimate of $209.5 million.
Alaska Air’s diversified revenue base contributed to the top-line year-over-year growth. Corporate travel increased 19% and premium revenues grew 8%.
Other Details of ALK’s Q1 Earnings
All comparisons are presented on a year-over-year basis unless otherwise noted.
Revenue per available seat mile (RASM: a key measure of unit revenues) inched up 3.5% to 15.30 cents. Yield increased 3.7% to 16.88 cents.
Consolidated traffic (measured in revenue passenger miles) inched up 0.2% to 17.30 billion. Capacity (measured in available seat miles) rose 1.7% to 21.57 billion. Load factor (percentage of seats filled by passengers) fell to 80.2% from 81.3% in the prior-year period. Our estimate for the metric was 89.2%. In the first quarter, total operating expenses (on a reported basis) increased 7% to $3.58 billion.
Economic fuel price per gallon increased 14.2% to $2.98. Consolidated operating costs per available seat mile (excluding fuel and special items) inched up 6.3%.
Liquidity & Share Buybacks
At the end of the March quarter, ALK had $451 million in cash and cash equivalents compared with $627 million at the end of 2025. ALK exited the first quarter of 2026 with long-term debt (net of current portion) of $4.82 billion compared with $4.83 billion at the end of the prior quarter.
During the first quarter, ALK repurchased 4.7 million shares for $203 million, with year-to-date repurchases totaling $250 million as of April 20, 2026.
ALK’s Outlook
ALK anticipates a second-quarter 2026 adjusted loss per share of $1. The Zacks Consensus Estimate for loss is currently pegged at 5 cents per share.
Capacity in the June quarter is projected to be up 1% year over year, down nearly a point from original expectations, reflecting proactive capacity trimming in May and June.
The adjusted tax rate is estimated to be 32%. Unit cost in the June quarter is anticipated to be approximately 1.5 points higher than the first quarter, driven by close-in capacity reductions and several transitory factors. ALK suspended its guidance for full-year 2026 due to fuel volatility.
Delta Air Lines (DAL - Free Report) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis. Revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
J.B. Hunt Transport Services (JBHT - Free Report) posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, reflecting a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.
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Alaska Air's Shares Decline 4.8% Since Q1 FY26 Earnings Release
Key Takeaways
Alaska Air Group (ALK - Free Report) reported a wider-than-expected loss in the first-quarter of 2026. Revenues edged past the Zacks Consensus Estimate.
The steeper-than-expected loss failed to please investors, and the stock has declined 4.8% since its earnings release on April 20.
Image Source: Zacks Investment Research
The company reported a loss of $1.68 per share, wider than the Zacks Consensus Estimate of a loss of $1.61. In the year-ago quarter, ALK reported a loss of 77 cents per share.
Meanwhile, the operating revenues of $3.30 billion beat the Zacks Consensus Estimate of $3.27 billion. Total revenues jumped 5.2% year over year, with passenger revenues accounting for 88.5% of the top line and increasing 4% to $2.92 billion, but missing our model estimate of $2.96 billion.
Alaska Air Group, Inc. Price, Consensus and EPS Surprise
Alaska Air Group, Inc. price-consensus-eps-surprise-chart | Alaska Air Group, Inc. Quote
On a year-over-year basis, cargo and other revenues increased 25% year over year to $153 million, beating our estimate of $128.4 million. Loyalty program other revenues grew 10% year over year to $227 million, surpassing our estimate of $209.5 million.
Alaska Air’s diversified revenue base contributed to the top-line year-over-year growth. Corporate travel increased 19% and premium revenues grew 8%.
Other Details of ALK’s Q1 Earnings
All comparisons are presented on a year-over-year basis unless otherwise noted.
Revenue per available seat mile (RASM: a key measure of unit revenues) inched up 3.5% to 15.30 cents. Yield increased 3.7% to 16.88 cents.
Consolidated traffic (measured in revenue passenger miles) inched up 0.2% to 17.30 billion. Capacity (measured in available seat miles) rose 1.7% to 21.57 billion. Load factor (percentage of seats filled by passengers) fell to 80.2% from 81.3% in the prior-year period. Our estimate for the metric was 89.2%. In the first quarter, total operating expenses (on a reported basis) increased 7% to $3.58 billion.
Economic fuel price per gallon increased 14.2% to $2.98. Consolidated operating costs per available seat mile (excluding fuel and special items) inched up 6.3%.
Liquidity & Share Buybacks
At the end of the March quarter, ALK had $451 million in cash and cash equivalents compared with $627 million at the end of 2025. ALK exited the first quarter of 2026 with long-term debt (net of current portion) of $4.82 billion compared with $4.83 billion at the end of the prior quarter.
During the first quarter, ALK repurchased 4.7 million shares for $203 million, with year-to-date repurchases totaling $250 million as of April 20, 2026.
ALK’s Outlook
ALK anticipates a second-quarter 2026 adjusted loss per share of $1. The Zacks Consensus Estimate for loss is currently pegged at 5 cents per share.
Capacity in the June quarter is projected to be up 1% year over year, down nearly a point from original expectations, reflecting proactive capacity trimming in May and June.
The adjusted tax rate is estimated to be 32%. Unit cost in the June quarter is anticipated to be approximately 1.5 points higher than the first quarter, driven by close-in capacity reductions and several transitory factors. ALK suspended its guidance for full-year 2026 due to fuel volatility.
ALK’s Zacks Rank
Currently, ALK carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q1 Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis. Revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
J.B. Hunt Transport Services (JBHT - Free Report) posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, reflecting a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.