Alaska Air Group Q3 Earnings Forecast Cut by Zacks Research

Key Points

• Zacks Research cut Alaska Air Group’s Q3 2026 EPS forecast to $0.37 from $0.91 and projects a $2.21-per-share loss for full-year 2026, signaling weaker near-term earnings expectations.
• Despite the forecast reductions and mixed analyst commentary, Alaska Air retains a consensus “Moderate Buy” rating, with an average price target of $57.62 versus shares trading near $39.57.
• The company reported a smaller-than-expected quarterly loss of $0.92 per share in its latest results, while revenue rose 9.7% year over year to $4.07 billion; CEO Benito Minicucci also purchased 25,000 shares.

Alaska Air Group, Inc. (NYSE:ALK - Free Report) - Investment analysts at Zacks Research cut their Q3 2026 earnings per share estimates for Alaska Air Group in a research note issued on Tuesday, October 6th. Zacks Research analyst Team now anticipates that the transportation company will earn $0.37 per share for the quarter, down from their previous estimate of $0.91. The consensus estimate for Alaska Air Group's current full-year earnings is ($2.28) per share. Zacks Research also issued estimates for Alaska Air Group's Q4 2026 earnings at $0.01 EPS, FY2026 earnings at ($2.21) EPS, Q1 2027 earnings at $0.36 EPS, Q2 2027 earnings at $1.91 EPS, Q4 2027 earnings at $1.67 EPS, FY2027 earnings at $5.65 EPS, Q1 2028 earnings at $2.46 EPS, Q2 2028 earnings at $2.05 EPS and FY2028 earnings at $9.39 EPS.

Other equities analysts have also issued reports about the company. Bank of America lifted their price objective on Alaska Air Group from $60.00 to $65.00 and gave the company a "buy" rating in a research note on Wednesday, July 1st. Barclays set a $52.00 target price on shares of Alaska Air Group and gave the company an "overweight" rating in a research note on Friday, September 11th. Cantor Fitzgerald set a $46.00 price target on shares of Alaska Air Group in a research report on Monday, August 24th. Wall Street Zen downgraded Alaska Air Group from a "sell" rating to a "strong sell" rating in a report on Monday. Finally, Susquehanna cut their price objective on Alaska Air Group from $55.00 to $50.00 and set a "positive" rating on the stock in a research report on Wednesday. Ten research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Alaska Air Group currently has an average rating of "Moderate Buy" and a consensus price target of $57.62.

Alaska Air Group Stock Down 0.8%

Shares of NYSE ALK opened at $39.57 on Thursday. The company has a quick ratio of 0.51, a current ratio of 0.55 and a debt-to-equity ratio of 1.58. The stock has a market capitalization of $4.41 billion, a PE ratio of -25.20 and a beta of 1.33. The firm has a fifty day moving average of $42.80 and a 200-day moving average of $43.27. Alaska Air Group has a 52-week low of $33.03 and a 52-week high of $60.63.

Alaska Air Group (NYSE:ALK - Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The transportation company reported ($0.92) EPS for the quarter, beating the consensus estimate of ($0.99) by $0.07. Alaska Air Group had a negative return on equity of 3.11% and a negative net margin of 1.19%.The company had revenue of $4.07 billion during the quarter, compared to analysts' expectations of $4.09 billion. During the same quarter in the previous year, the business earned $1.42 EPS. The firm's revenue was up 9.7% on a year-over-year basis. Alaska Air Group has set its Q3 2026 guidance at 0.000-1.000 EPS.

Insider Buying and Selling

In other news, CEO Benito Minicucci bought 25,000 shares of the firm's stock in a transaction on Thursday, August 20th. The stock was purchased at an average price of $40.06 per share, for a total transaction of $1,001,500.00. Following the transaction, the chief executive officer owned 256,582 shares in the company, valued at approximately $10,278,674.92. This trade represents a 10.80% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Andrew R. Harrison sold 5,300 shares of Alaska Air Group stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $49.67, for a total transaction of $263,251.00. Following the sale, the executive vice president owned 25,528 shares in the company, valued at approximately $1,267,975.76. This represents a 17.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 1.00% of the company's stock.

Institutional Investors Weigh In On Alaska Air Group

A number of institutional investors and hedge funds have recently modified their holdings of ALK. BlackRock Inc. acquired a new stake in shares of Alaska Air Group in the second quarter valued at about $606,307,000. Primecap Management Co. CA bought a new position in Alaska Air Group during the second quarter worth about $168,467,000. Bank of New York Mellon Corp bought a new stake in Alaska Air Group in the second quarter valued at approximately $34,776,000. Bank of America Corp DE acquired a new stake in shares of Alaska Air Group in the second quarter valued at approximately $32,751,000. Finally, Privium Fund Management UK Ltd bought a new stake in shares of Alaska Air Group during the 2nd quarter worth about $27,195,000. Institutional investors and hedge funds own 81.90% of the company's stock.

Trending Headlines about Alaska Air Group

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

• Positive Sentiment: Susquehanna lowered its price target from $55 to $50 but maintained a Positive rating, implying substantial potential upside from recent trading levels. Alaska Air Group Stock Price Target Lowered at Susquehanna
• Neutral Sentiment: Zacks Research continues to project a significant rebound after 2026, forecasting earnings of $5.65 per share in fiscal 2027 and $9.39 per share in fiscal 2028, although both figures were reduced from prior estimates. Q3 EPS Estimates for Alaska Air Group Cut by Zacks Research
• Negative Sentiment: Zacks cut its fiscal 2026 EPS forecast to a $2.21 loss from a $1.54 loss, while reducing its Q3 and Q4 2026 estimates to $0.37 and $0.01, respectively. These revisions suggest weaker-than-expected near-term earnings momentum.
• Negative Sentiment: The reductions extended into 2027 and 2028: Q1 2027 EPS was lowered to $0.36 from $0.52, fiscal 2027 EPS to $5.65 from $6.20, and fiscal 2028 EPS to $9.39 from $9.99. Q2 2027, Q4 2027, Q1 2028, and Q2 2028 forecasts were also trimmed.
• Negative Sentiment: Citi reiterated its Sell rating on Alaska Air, adding to the cautious analyst backdrop. Citi Sticks to Their Sell Rating for Alaska Air

About Alaska Air Group

Alaska Air Group, Inc is an airline holding company headquartered in Seattle, Washington. Its principal subsidiaries are Alaska Airlines and Hawaiian Airlines, which provide scheduled passenger and cargo air transportation, as well as Horizon Air, a regional airline that operates flights for Alaska Airlines. The group also owns McGee Air Services, an aviation services provider.

Alaska Airlines serves destinations across Alaska, the contiguous United States, Canada, Mexico, and other locations in North America.

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