Alaska Air Group (NYSE:ALK) Shares Gap Down on Disappointing Earnings

Key Points

• Shares gapped down after Alaska Air reported Q1 EPS of -$1.68, missing the consensus of -$1.61, while revenue of $3.30 billion was roughly in line with estimates.
• The company has pulled/suspended full‑year guidance and set Q2 guidance around -$1.00 EPS as a surge in fuel costs (linked to Iran-related market moves) creates material near‑term earnings risk.
• Management highlighted strong underlying travel demand, improved on‑time performance and progress on Atmos fleet upgrades, and expanded a multi‑year co‑branded credit card deal with Bank of America — factors that could support revenue and loyalty monetization over time despite short‑term headwinds.

Alaska Air Group, Inc. (NYSE:ALK - Get Free Report) gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $43.54, but opened at $42.00. Alaska Air Group shares last traded at $43.1740, with a volume of 1,166,752 shares.

The transportation company reported ($1.68) EPS for the quarter, missing the consensus estimate of ($1.61) by ($0.07). Alaska Air Group had a net margin of 0.70% and a return on equity of 7.22%. The firm had revenue of $3.30 billion during the quarter, compared to analyst estimates of $3.31 billion. During the same quarter in the prior year, the firm posted ($0.77) EPS. The firm's revenue for the quarter was up 5.2% on a year-over-year basis. Alaska Air Group has set its Q2 2026 guidance at -1.000--1.000 EPS.

Key Headlines Impacting Alaska Air Group

Here are the key news stories impacting Alaska Air Group this week:

• Positive Sentiment: Management says underlying travel demand remains strong and on-time performance led the industry; premium revenue rose and fleet retrofit progress is ahead of peak season — a good sign for revenue resilience. Alaska Air points to strong underlying demand despite fuel and weather challenges
• Positive Sentiment: Expanded multi-year co-branded credit card deal with Bank of America should boost Atmos Rewards economics and incremental revenue over time, improving loyalty monetization. Alaska Air Group and Bank of America Expand Long-Standing Credit Card Partnership
• Neutral Sentiment: Revenue growth continued (Q1 revenue +5.2% YoY to ~$3.3B), roughly in line with estimates — underlying demand but slim margin for upside versus expectations. Here's What Key Metrics Tell Us About Alaska Air (ALK) Q1 Earnings
• Neutral Sentiment: Company highlighted operational wins (on‑time performance) and strategic progress (Atmos™ upgrades), which support medium-term recovery if costs normalize. Alaska Air Group reports first quarter 2026 results
• Negative Sentiment: Q1 EPS missed (loss of ~$1.68 vs. consensus -$1.61) and operating metrics show sharply higher costs — gross profit and margins deteriorated significantly year-over-year. Alaska Air Group (ALK) Reports Q1 Loss, Beats Revenue Estimates
• Negative Sentiment: Fuel cost surge tied to Iran-related market moves forced management to pull/suspend full‑year guidance and cite material near‑term uncertainty — a clear near-term catalyst for downside. Alaska Air pulls forecast as Iran-linked fuel surge hits margins
• Negative Sentiment: Q2 guidance reset to around -$1.00 EPS (vs. consensus ~ -$0.06) and commentary that guidance is suspended until fuel stabilizes amplify short‑term risk to earnings and the stock. Alaska Air Group Suspends Guidance, Citing Fuel Cost Uncertainty

Analyst Ratings Changes

A number of research firms have recently issued reports on ALK. Cantor Fitzgerald set a $63.00 target price on shares of Alaska Air Group in a research note on Friday, January 30th. UBS Group reaffirmed a "buy" rating and set a $54.00 price target (up from $53.00) on shares of Alaska Air Group in a report on Wednesday, April 15th. TD Cowen cut their price objective on Alaska Air Group from $63.00 to $54.00 and set a "buy" rating for the company in a research report on Monday, March 9th. Susquehanna boosted their price objective on Alaska Air Group from $52.00 to $70.00 and gave the stock a "positive" rating in a research note on Friday, January 9th. Finally, Zacks Research lowered Alaska Air Group from a "hold" rating to a "strong sell" rating in a research note on Tuesday, April 7th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Alaska Air Group has a consensus rating of "Moderate Buy" and a consensus price target of $63.33.

Insider Activity

In related news, EVP Andrew R. Harrison sold 14,500 shares of the firm's stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $54.81, for a total value of $794,745.00. Following the transaction, the executive vice president owned 20,195 shares in the company, valued at $1,106,887.95. This trade represents a 41.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Shane R. Tackett sold 24,000 shares of Alaska Air Group stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $57.15, for a total value of $1,371,600.00. Following the completion of the sale, the chief financial officer owned 43,377 shares of the company's stock, valued at approximately $2,478,995.55. The trade was a 35.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 56,945 shares of company stock valued at $3,204,569 over the last 90 days. 1.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On Alaska Air Group

Large investors have recently bought and sold shares of the business. Capital Research Global Investors grew its holdings in Alaska Air Group by 86.8% during the 4th quarter. Capital Research Global Investors now owns 3,175,350 shares of the transportation company's stock worth $159,720,000 after acquiring an additional 1,475,350 shares during the period. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Alaska Air Group by 19,661.8% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,235,901 shares of the transportation company's stock valued at $62,166,000 after purchasing an additional 1,229,647 shares during the period. Jain Global LLC bought a new position in shares of Alaska Air Group in the 4th quarter worth $53,683,000. BNP Paribas Financial Markets boosted its position in shares of Alaska Air Group by 1,563.7% in the 3rd quarter. BNP Paribas Financial Markets now owns 1,092,368 shares of the transportation company's stock worth $54,378,000 after purchasing an additional 1,026,710 shares during the last quarter. Finally, Balyasny Asset Management L.P. acquired a new stake in shares of Alaska Air Group during the third quarter worth $48,583,000. 81.90% of the stock is currently owned by institutional investors and hedge funds.

Alaska Air Group Stock Down 1.3%

The business has a fifty day moving average of $44.35 and a 200 day moving average of $46.56. The firm has a market cap of $4.87 billion, a P/E ratio of 49.39, a P/E/G ratio of 6.60 and a beta of 1.27. The company has a quick ratio of 0.46, a current ratio of 0.50 and a debt-to-equity ratio of 1.17.

Alaska Air Group Company Profile

Alaska Air Group is a publicly traded holding company headquartered in Seattle, Washington, that operates two main airlines—Alaska Airlines and Horizon Air. Through these carriers, the company offers scheduled passenger and cargo services across a network spanning the United States, Canada and Mexico. Its core business activities include domestic and international air transportation, loyalty program management under the Mileage Plan brand, and ancillary revenue streams such as baggage fees, in-flight sales and code-share partnerships with other global airlines.

The roots of Alaska Air Group trace back to the foundation of its flagship carrier, Alaska Airlines, in 1932.

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