Alaska Air Group Posts $0.43 Q4 Adjusted EPS and Secures Joint Operating Certificate
Alaska Air Group posted Q4 adjusted EPS of $0.43 and GAAP EPS of $0.18, beat guidance, and generated $1.2B in annual operating cash flow. The airline secured a single operating certificate for Alaska and Hawaiian Airlines, while Morgan Stanley maintained a Buy rating and forecast $6.50 EPS.
1. Fiscal Q4 and Full Year Results
Alaska Air Group reported Q4 fiscal 2025 GAAP EPS of $0.18 and adjusted EPS of $0.43, surpassing its guidance range. The company generated $1.2 billion in operating cash flow for the full year, reflecting improved cost controls and favorable fuel expenses.
2. Operating Certificate Integration
The airline achieved a single operating certificate for Alaska Airlines and Hawaiian Airlines, consolidating operations under one regulatory approval. This milestone is expected to streamline maintenance, scheduling, and compliance processes across both carriers.
3. Analyst Ratings and Price Targets
TD Cowen cut its price target to $63 from $64 on January 30 while reaffirming a Buy rating, reflecting updated Q1 and FY2026 guidance. Morgan Stanley maintained a Buy rating on January 23, highlighting the Q4 beat and projecting $6.50 earnings per share.
4. Outlook and Synergy Progress
Synergies from the Alaska–Hawaiian integration are tracking ahead of plan, supported by strong early 2026 booking trends. Morgan Stanley sees a credible path to $6.50 EPS without additional macro or industry tailwinds, suggesting further upside from domestic demand improvements.