Alaska Air's adjusted loss widens; suspends FY2026 forecasts on Iran-tied fuel volatility

Alaska Air

21/04/2026 24:06

Overview

US airline's Q1 revenue rose 5% yr/yr, slightly missing analyst expectations

Adjusted loss for Q1 was wider than expected due to higher fuel costs and demand disruptions

Company repurchased 4.7 mln shares for $203 mln in Q1

Outlook

Alaska Air suspends full-year 2026 guidance due to ongoing fuel price volatility

Company expects Q2 capacity up about 1% year-over-year, down nearly a point from prior expectations

Alaska Air sees Q2 adjusted loss per share of about -$1.00, citing fuel cost spike

Result Drivers

HIGHER FUEL COSTS - Company said materially higher fuel prices drove up expenses and weighed on Q1 results

DEMAND DISRUPTIONS - Historic rainstorms in Hawaiʻi and civil unrest in Puerto Vallarta, Mexico, disrupted demand in markets representing about 30% of capacity

PREMIUM AND CORPORATE GROWTH - Premium revenue rose 8% and managed corporate travel increased 19%, supported by fleet retrofits and network expansion

Company press release: ID:nPn5vPvssa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Total Operating Revenue
Slight Miss*
$3.30 bln
$3.31 bln (13 Analysts)
Q1 Adjusted EPS
Miss
-$1.68
-$1.35 (16 Analysts)
Q1 EPS
-$1.69


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the airlines peer group is "buy"

Wall Street's median 12-month price target for Alaska Air Group Inc is $57.75, about 32.6% above its April 20 closing price of $43.54

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)