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SEATTLE - Alaska Air Group (NYSE:ALK) reported first quarter 2025 earnings that fell short of analyst expectations, while providing weaker-than-anticipated guidance for the second quarter. Shares of the airline tumbled 8.1% following the announcement.
The company posted an adjusted loss per share of $0.77, worse than the analyst estimate of $0.71. Revenue for the quarter came in at $3.14 billion, below the consensus estimate of $3.18 billion. Despite the miss, Alaska Air Group’s revenue grew 9.0% YoY, with unit revenue up 5.0% YoY.
CEO Ben Minicucci commented, "Amid the economic uncertainty, our teams controlled what they can control and delivered results that strengthen our foundation for the long term."
For the second quarter of 2025, Alaska Air Group expects adjusted earnings per share between $1.15 and $1.65, significantly below the consensus of $2.37. The company cited approximately 6 points of revenue impact due to recent demand softness.
The airline’s capacity grew 3.9% during the first quarter, slightly higher than expected due to lower flight cancellation rates. Unit costs increased 2.1% YoY, in line with expectations and inclusive of a new flight attendant contract ratified in February.
Alaska Air Group generated $459 million in operating cash flow for the first quarter and held $2.5 billion in unrestricted cash and marketable securities as of March 31, 2025. The company repurchased 1.8 million shares for approximately $107 million in Q1, with year-to-date repurchases totaling $149 million as of April 22, 2025.
While not providing an update to full-year 2025 guidance due to economic uncertainty, Alaska Air Group expects to remain solidly profitable this year even if revenue pressure continues in the second half.
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