Alaska Air Group (ALK) TD Cowen 10th Annual Future of the Consumer Conference summary

Near-term performance and demand trends

• Strong domestic yields, accelerating corporate travel, and robust loyalty engagement are supporting positive unit revenue trends for Q2, with corporate travel up 25%-30% year-over-year in the next 90 days.

• Corporate travel recovery is broad-based across tech, aerospace, and other major sectors, especially in the West Coast region.

• Summer demand is expected to be strong, with positive trends continuing across key business lines.

Cost structure, fuel, and operational efficiency

• Cost performance is in line with expectations, with transitory cost pressures from crew ramp-up for international flying and one-time gains from aircraft sales impacting year-over-year comparisons.

• Structural cost advantage remains 12%-13% better than legacy carriers, with a focus on maintaining this gap while closing the RASM gap.

• Fuel prices have been volatile but are stabilizing, with spot prices now below $3.80, down from highs of $5; supply chain improvements are ongoing, including sourcing Jet A from Singapore for cost advantages.

Integration and strategic focus post-acquisition

• Major integration milestones from the Hawaiian acquisition are complete, including single operating certificate, loyalty, selling, and PSS, enabling a shift from integration to execution.

• Management expects to optimize the combined business, further lean out costs, and realize value from premium investments and network synergies in the coming quarters.