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Mar 31
Alaska Air Q1 2025 Earnings Report
Alaska Air Group reported its first quarter 2025 financial results, showing improvements in adjusted pretax margin and unit revenue performance.
Key Takeaways
Alaska Air Group reported a net loss of $166 million for the first quarter of 2025, with an adjusted net loss of $95 million. Despite economic uncertainty, the company improved its adjusted pretax margin by 7 points year-over-year on a pro forma basis. Capacity grew by 3.9% and total revenue increased by 9.0% year-over-year, driven by strong unit revenue performance.
Adjusted pretax loss improved by $190 million from Q1 2024 to $140 million in Q1 2025 on a pro forma basis.
Total operating revenue increased by 41% to $3,137 million compared to Q1 2024.
The company repurchased $149 million in shares year-to-date as of April 22, 2025.
Operating cash flow generated was $459 million for the first quarter.
Alaska Air
Alaska Air
Alaska Air Revenue by Segment
Revenue by Segment
Cargo Revenue
CapyFin.com Forward Guidance
For the second quarter of 2025, Alaska Air Group expects capacity to increase by 2% to 3% and anticipates flat to low single-digit RASM change. The company expects to be solidly profitable in 2025 despite potential continued revenue pressure.
Positive Outlook
- Overall bookings have stabilized.
- Company expects to be solidly profitable in 2025.
- Areas of business within control are performing well and in line with prior expectations.
- Unit costs are expected to improve sequentially through the second half of the year.
- Guidance reflects continued execution on integration milestones and synergy capture.
Challenges Ahead
- Guidance reflects approximately 6 points of revenue impact to Q2 due to recent demand softness.
- Q2 2025 faces the most cost pressure.
- Economic uncertainty and volatility persist.
- Full year 2025 guidance is not being updated due to economic uncertainty.
- Revenue may remain pressured throughout the second half of the year.