Alaska Air delivered strong Q2 2025 results with adjusted EPS at the high end of guidance, supported by improved Hawaiian operations and a stable cost environment, although unit revenues slightly declined.
Adjusted EPS of $1.78 exceeded guidance, driven by improved Hawaiian operations.
Economic fuel cost per gallon averaged $2.39, aided by moderating crude prices.
Unit costs rose 6.5% due to labor agreements and capacity adjustments.
Unit revenues decreased 0.6% but outperformed industry trends.
Management expects improved cost synergies and positive demand momentum, with sequential revenue growth in 2H 2025 despite higher unit costs.
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