Alaska Air Group, Inc. · NYSE:ALK
Alaska Air — Q4 2025 Earnings Presentation
9 slides from Alaska Air's earnings presentation, Jan 23, 2026
Slide 1: Alaska Air Group Q4 2025 Earnings
ALASKA AIR GROUP Q4 2025 Earnings |January 22, 202 6 1
Slide 2: Safe Harbor
Safe Harbor This presentation may contain forward -looking statements subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933 , Section 21E of the Securities Exchange Act of 1934 , and the Private Securities Litigation Reform Act of 1995 . These statements relate
Slide 3: Earnings Update
Earnings Update ❑ Q4 2025 and 2024 figures reflect as reported results given Hawaiian’s inclusion in Air Group for the full quarter in 2024. Fi gures for the first three quarters in 2025 are compared to pro forma periods and assumes Hawaiian was included in both 2024 and 2025. W e believe this basis
Slide 4: Alaska Accelerate initiatives progressing well
Alaska Accelerate initiatives progressing well Network Product Loyalty Cargo $400M $100M $150M $150M ▪ Industry -leading Q4 RASM, ▪ Premium revenue up 7% ▪ Loyalty revenue up 12% ▪ Cargo revenue increased 4 th quarter in a row (1) ▪ 22 % y/y ~ 86 % of 737 premium seat ▪ New c ard acquisitions ▪ Now
Slide 5: Fourth consecutive quarter of leading unit revenue
Fourth consecutive quarter of leading unit revenue Unit revenue change y/y Notes ■ Q4 2025 unit revenue increased 0.6% ALK Big 4 y/y despite the government shutdown and a difficult 2024 comparison (up 7%) 5.0% ■ Premium demand remains strong with premium revenue up 7%, outpacing main cabin by 9.5 pt
Slide 6: Unit costs finished the year strong
Unit costs finished the year strong CASMex change y/y Notes 9% 8.6% ■ Unit costs were up 1.3% y/y in Q4 8% 2025, exiting the year with a strong finish 7% 6.5% 6% ■ FY 2025 unit costs finished up 4.7% y/y 5% 4.7% on 1.9% capacity growth, inclusive of 4% ~2 pts of pressure from labor deals and three-
Slide 7: Fuel Costs
Fuel Costs LA vs USGC Refining Margins (1) Notes USGC Crack Platts Jet/Kero LA Crack ■ Crude oil prices declined throughout $1.39 the quarter and were down ~9% versus the third quarter $1.20 Q4 Avg: $0.98 ■ West Coast refining margins were $1.11 elevated for most of the fourth quarter, returning to
Slide 8: Balance Sheet and Share Repurchases
Balance Sheet and Share Repurchases Adjusted Net Debt/EBITDAR Shares Outstanding Diluted Share Count (Millions) 3.0x 129 128 2.7x 2.4x 124 123 121 1.4x 118 117 0.9x 1.0x 2019 2021 2022 2023 2024 4Q25 2019 2023 2024 1Q25 2Q25 3Q25 4Q25 Target Adj. Net Debt/EBITDAR < 1.5x 8
Slide 9: 2/4 integration milestones completed; Most significant phase of PSS cutover complete
2/4 integration milestones completed; Most significant phase of PSS cutover complete Joint Collective Single Operating Single Passenger Single Loyalty Bargaining Certificate (SOC) Service System (PSS) Agreements (JCBA) 2H 2025 Q4 2025 Q2 2026 2025 - 2027 Launched new loyalty Teams achieved SOC in Se