Alaska Air Group has reported its fourth-quarter and full-year results for 2025.
The airline group had reported adjusted earnings per share (EPS) of 43 cents after previously guiding 10 cents per share.
Additionally, the group’s capacity was up 2.2% after guiding around 2%. RASM was up 0.6%, which had been forecast to be up around 1%.
However, the group’s net income in the fourth quarter of 2025 slipped to $21 million, or 18 cents per share, down from $71 million, 55 cents per share, in fourth quarter 2024.
Adjusted net income in the quarter was down from $125 million, or 97 cents per share, in fourth quarter 2024 down to $50 million, or 43 cents per share.
For the full year, net income fell from $395 million, or $3.08 per share, in 2024 down to $100 million, or 83 cents per share in 2025.
Adjusted full-year 2025 net income totalled $293 million, or $2.44 per share – down from $625 million, or $4.87 per share.
During the year, the company secured a single operating certificate for Alaska and its subsidiary Hawaiian Airlines, which was acquired in 2024. The group also has its regional airline Horizon Air.
Fourth quarter revenue totalled $3.6bn, up 3%, while full-year revenues were up 21% to $14.2bn. This increase comes despite the company “contending with temporary demand pullback” from government shutdown in November.
The company generated an operating cash flow of $1.2bn for the full year.
Operating expenses were up 3% to $3.6bn in the quarter, resulting in an operating income result of $75 million, up 3%.
Expenses for 2025 were up 25% to $13.9bn. Operating income was down 47% for the year to $303 million.
Corporate revenues were up 9% and premium revenues were up 7% during the quarter. Loyalty revenues were up 6% in the quarter.
“We feel momentum accelerating in 2026 as the Alaska-Hawaiian Airlines combination gains full strength,” said Alaska CEO & president Ben Minicucci.
The company provided a more subdued guidance, with capacity expected to be up 1-2% in the first quarter of 2026.
“Given the macroeconomic headwinds the industry experienced in 2025 and the positive emergent demand trends, our guidance for 2026 reflects a wide range of potential macroeconomic outcomes,” said the company.
Alaska expects first quarter losses to be between $0.50 and $1.50 per share.
“To hit the higher end of our guidance range we would require sustained macroeconomic recovery in 2026, at or improving on trends seen in the first three weeks of the year, and for fuel prices to stabilize,” the company continued in its earnings report.
“Given the inherent uncertainty of the macroeconomic environment, we remain as focused as ever on controlling what is within our control, including disciplined cost management, driving strong productivity and delivering on our initiatives.”
During the fourth quarter, the group took delivery of six 737-8 aircraft and one 787-9 aircraft. As of the end of the year, the company had an operating fleet of 413 aircraft.