Alaska Air Group approves new stock plans, amends bylaws

Published 14/05/2025, 11:22
Alaska Air Group approves new stock plans, amends bylaws

In a recent filing with the Securities and Exchange Commission, Alaska Air Group, Inc. (NYSE:ALK), a $6.7 billion market cap airline currently rated as slightly undervalued according to InvestingPro analysis, announced several key corporate changes following its annual meeting of stockholders on May 8, 2025. The company, which maintains a "GOOD" overall financial health score, has seen management actively buying back shares recently. The company’s stockholders approved amendments to the Alaska Air Group, Inc. 2016 Performance Incentive Plan and the Employee Stock Purchase Plan. These amendments include an increase in the number of shares available for issuance and an extension of the plans through March 12, 2035.

Additionally, the company’s Certificate of Incorporation was amended to comply with foreign ownership limitations imposed by U.S. federal law. The amendments introduce restrictions on the ownership and control of the company’s voting stock to ensure adherence to regulations enforced by the U.S. Department of Transportation. This comes as Alaska Air’s stock has shown strong momentum, posting a 9.4% return in the past week alone, though it remains 15.2% down year-to-date. (InvestingPro subscribers have access to 10+ more exclusive insights about ALK’s performance and valuation metrics.)

Furthermore, the Board of Directors approved amendments to the company’s bylaws, which took effect on May 9, 2025. These changes include the addition of a new article addressing foreign ownership limitations, revisions to the advance notice provisions for stockholder nominations and proposals, and modifications to the administration of stockholder meetings. The amendments also address electronic proxies and written consents, clarify the role of officers, and make updates to the forum selection clause.

At the annual meeting, all 10 director nominees were elected for one-year terms. Additionally, stockholders ratified the appointment of KPMG LLP as the company’s independent registered public accountants for the fiscal year 2025. Other proposals, including a stockholder proposal to amend the company’s clawback policy, were addressed with varying levels of support. Notably, analysts maintain a bullish outlook on the company, with a consensus "Buy" recommendation and price targets ranging from $49 to $83 per share. For detailed analysis and comprehensive insights, investors can access the full InvestingPro Research Report, which provides in-depth coverage of Alaska Air’s financial health, valuation metrics, and growth prospects.

The information provided in this article is based on Alaska Air Group, Inc.’s SEC filing.

In other recent news, Alaska Air Group reported a challenging first quarter for 2025, with earnings falling short of expectations. The company disclosed an adjusted net loss of $95 million, with earnings per share at -0.77, missing the forecasted -0.71. Revenue was also below expectations, coming in at $3.1 billion compared to the anticipated $3.18 billion. Despite these results, Alaska Air Group remains confident in its long-term growth strategy, with plans to achieve a $10 EPS target by 2027.

In other developments, Alaska Airlines announced a new partnership with Philippine Airlines, marking the latter as its first loyalty partner in North America. This collaboration allows Alaska Airlines’ guests to book nonstop flights to Manila from various U.S. cities and earn Mileage Plan miles. The partnership expands travel options for guests to over 1,000 worldwide destinations. Additionally, Alaska Airlines has plans to integrate Hawaiian Airlines’ operations, with Hawaiian Airlines set to join the oneworld Alliance in 2026.

Analyst firms have been closely monitoring Alaska Air Group’s performance, noting the company’s strategic initiatives and market presence. While domestic market demand has softened, Hawaii remains a strong performer for the airline. Alaska Air Group is also accelerating its $1 billion share buyback program, reflecting confidence in its future prospects. These recent developments highlight the company’s efforts to navigate current market conditions while focusing on long-term growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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