Alaska Air Group reported GAAP net income of $21 million, or $0.18 per share, for the quarter ended December 31, 2025, compared with $71 million, or $0.55 per share, in the year-ago period. On an adjusted basis, excluding special items and mark-to-market fuel hedge impacts, net income was $50 million, or $0.43 per share, well above the prior guidance midpoint of $0.10. Fourth-quarter revenue totaled $3.6 billion, delivering a 0.6% year-over-year increase in revenue per available seat mile despite a temporary government shutdown in November. Unit costs, excluding fuel and special items, rose just 1.3%, below the prior expectation of a 3% increase, and fuel expense averaged $2.57 per gallon for the quarter.

During the quarter, Alaska Airlines and Hawaiian Airlines achieved a single operating certificate, marking the most significant step in their integration since September 2024. The combined carrier recorded record credit-card signups, with nearly 25% enrolling in the new premium card launched in Q3 2025. International expansion efforts included the launch of bookings on Seattle-London and Seattle-Rome routes, with sales now available in six foreign currencies and three localized websites (Japanese, Korean and Italian). The group also took delivery of six Boeing 737-8s and one 787-9, and unveiled a new global livery for the 787 fleet, positioning itself for its spring 2026 international schedule.

For Q1 2026, management expects adjusted earnings per share to be roughly flat year-over-year, supported by corporate travel revenues up 20% in early January and several of the strongest booking days on record. Full-year 2026 guidance calls for system capacity to grow 2% to 3% versus 2025, adjusted earnings of $3.50 to $6.50 per share, and capital expenditures of $1.4 to $1.5 billion. The outlook assumes continued realization of synergies from the Hawaiian integration and disciplined cost control, with a full-year adjusted pretax margin target of approximately 2.8% and a tax rate of 26% to 27%.