Alaska Air Group (NYSE:ALK) Releases Quarterly Earnings Results, Beats Estimates By $0.32 EPS

Alaska Air Group (NYSE:ALK) issued its earnings results on Thursday. The transportation company reported $0.43 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.32, FiscalAI reports. Alaska Air Group had a return on equity of 7.26% and a net margin of 0.70%.The firm had revenue of $3.63 billion for the quarter, compared to the consensus estimate of $3.64 billion. During the same quarter in the prior year, the business earned $0.97 earnings per share. The company’s revenue was up 2.8% compared to the same quarter last year. Alaska Air Group updated its Q1 2026 guidance to -1.500–0.500 EPS and its FY 2026 guidance to 3.500-6.500 EPS.

Alaska Air Group Stock Up 4.1%

Shares of NYSE ALK opened at $50.88 on Friday. The firm has a market cap of $5.90 billion, a price-to-earnings ratio of 58.48, a price-to-earnings-growth ratio of 0.50 and a beta of 1.22. Alaska Air Group has a 52-week low of $37.63 and a 52-week high of $78.08. The company’s 50-day simple moving average is $47.94 and its 200-day simple moving average is $50.79. The company has a quick ratio of 0.49, a current ratio of 0.52 and a debt-to-equity ratio of 1.12.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on ALK shares. Zacks Research raised shares of Alaska Air Group from a “strong sell” rating to a “hold” rating in a research note on Friday, December 5th. UBS Group set a $77.00 price target on shares of Alaska Air Group and gave the company a “buy” rating in a research report on Friday, December 12th. TD Cowen reiterated a “buy” rating on shares of Alaska Air Group in a research report on Monday, November 3rd. Weiss Ratings reissued a “hold (c-)” rating on shares of Alaska Air Group in a research note on Monday, December 29th. Finally, Susquehanna lifted their price target on Alaska Air Group from $52.00 to $70.00 and gave the company a “positive” rating in a research note on Friday, January 9th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, Alaska Air Group currently has an average rating of “Moderate Buy” and a consensus price target of $71.80.

Key Headlines Impacting Alaska Air Group

Here are the key news stories impacting Alaska Air Group this week:

• Positive Sentiment: Q4 adjusted EPS beat expectations (adjusted $0.43 vs. consensus $0.11), providing an upside surprise that likely supported the rally. Alaska Air Group reports fourth quarter and full year 2025 results
• Positive Sentiment: Management issued FY2026 EPS guidance of $3.50–$6.50 and said momentum is accelerating (integration with Hawaiian Airlines cited), which gives investors a multi‑quarter thesis for earnings improvement. Alaska Air Group reports fourth quarter and full year 2025 results
• Positive Sentiment: Company and analysts are pointing to a pickup in bookings late in Q4 and management expects a “meaningful” improvement in 2026 EPS, reinforcing forward optimism. Alaska Air expects ‘meaningful’ improvement in 2026 EPS
• Neutral Sentiment: Revenue grew modestly (about 2.8% y/y to $3.63B) but came in roughly flat to slightly below some estimates — a mixed top‑line print that tempers the EPS beat. Earnings snapshot / conference call
• Negative Sentiment: Near‑term guidance disappointed: Q1 2026 EPS was guided to -$1.50 to -$0.50 (worse than consensus), which is a short‑term drag and heightens execution risk. Alaska Air Group reports fourth quarter and full year 2025 results
• Negative Sentiment: CEO flagged operational risks from a major winter storm that could disrupt flights and add costs — a near‑term catalyst for volatility in revenue and margins. Alaska Airlines CEO on potential impact to flights from massive winter storm
• Negative Sentiment: Management warned of fuel/refinery risks in California that could increase costs or constrain operations, a material input‑cost risk for airlines. Alaska Airlines CEO: California refineries are a big risk for us going forward
• Negative Sentiment: Detailed quarter metrics show steep year‑over‑year declines in profitability and cash balances, higher cost of sales and rising capex/liabilities — longer‑term fundamentals that could limit upside until margins recover. Q4 results: modest revenue growth, EPS beats but profitability slumps

Hedge Funds Weigh In On Alaska Air Group

Hedge funds have recently made changes to their positions in the company. Brighton Jones LLC increased its position in shares of Alaska Air Group by 2,046.4% during the fourth quarter. Brighton Jones LLC now owns 96,932 shares of the transportation company’s stock worth $6,276,000 after purchasing an additional 92,416 shares in the last quarter. Empowered Funds LLC boosted its stake in Alaska Air Group by 60.2% during the 1st quarter. Empowered Funds LLC now owns 6,423 shares of the transportation company’s stock worth $316,000 after purchasing an additional 2,414 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Alaska Air Group by 81.7% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 340,258 shares of the transportation company’s stock worth $16,747,000 after purchasing an additional 152,953 shares during the last quarter. Intech Investment Management LLC purchased a new stake in shares of Alaska Air Group during the first quarter worth $1,318,000. Finally, Invesco Ltd. raised its position in shares of Alaska Air Group by 2.7% in the second quarter. Invesco Ltd. now owns 357,520 shares of the transportation company’s stock valued at $17,690,000 after buying an additional 9,307 shares during the last quarter. Institutional investors and hedge funds own 81.90% of the company’s stock.

Alaska Air Group Company Profile

Alaska Air Group is a publicly traded holding company headquartered in Seattle, Washington, that operates two main airlines—Alaska Airlines and Horizon Air. Through these carriers, the company offers scheduled passenger and cargo services across a network spanning the United States, Canada and Mexico. Its core business activities include domestic and international air transportation, loyalty program management under the Mileage Plan brand, and ancillary revenue streams such as baggage fees, in-flight sales and code-share partnerships with other global airlines.

The roots of Alaska Air Group trace back to the foundation of its flagship carrier, Alaska Airlines, in 1932.