Alaska Air Group (ALK) Q2 2026 earnings summary

Executive summary

• Q2 GAAP net loss was $76M and adjusted net loss $102M, but revenue grew 10% year-over-year to $4.1B, driven by network expansion and premium product growth.

• Achieved major integration milestones, including a unified passenger service system, single loyalty program, and first-ever Europe service with new routes from Seattle to Rome, London, and Reykjavik.

• Led the industry in on-time performance and saw significant improvements in guest satisfaction.

• Premium revenues and loyalty program engagement grew strongly, with premium revenue up 15% and Atmos members up 15%.

• Cargo revenues rose 21% year-over-year, with plans to nearly double the dedicated freighter fleet.

Financial highlights

• Q2 revenue reached $4.1B, up 10% year-over-year on 1% capacity growth; unit revenues increased 8.6%.

• Premium revenue now represents 35% of total revenue, up 1.5 points this quarter.

• Non-fuel unit costs rose 6.5% year-over-year, with core cost growth in the low to mid-single digits.

• Managed corporate revenues increased 30%, with next 90-day bookings up 37%.

• Ended the quarter with $3.8B in liquidity after raising $1B in new financing.

Outlook and guidance

• Q3 capacity expected to grow 2%-3%, all from intercontinental routes; full-year growth at the low end of 2%-3% guidance.

• System unit revenues expected to improve sequentially into Q3, reaching low double digits year-over-year.

• Q3 fuel price per gallon guided at $3.75, with anticipated earnings between breakeven and $1 per share.

• Second half RASM to CASM ex-fuel spread expected to improve several points from Q2.

• Full-year earnings guidance to be updated at Investor Day in September.