Alaska Air Group, Inc. · NYSE:ALK
Alaska Air — Q3 2025 Earnings Presentation
11 slides from Alaska Air's earnings presentation, Oct 23, 2025
Slide 1: Alaska Air Group Q3 2025 Earnings
ALASKA AIR GROUP Q3 2025 Earnings |October 23, 2025 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 ❑ Reported Q3 2025 financials reflect consolidated results , with the comparable prior year period results including Hawaiian from September 18, 2024 onward . Commentary on Q3 performance and forward - looking guidance is compared to pro forma periods and assumes Hawaiian is included
Slide 4: Alaska Accelerate initiatives progressing well
Alaska Accelerate initiatives progressing well Network Product Loyalty Cargo $400M $100M $150M $150M ▪ Industry -leading Q3 ▪ Premium revenue up 5% ▪ Launched combined single ▪ Cargo revenue increased RASM (1) ▪ ~ 70% of 737 premium loyalty platform, Atmos 27 % y/y ▪ PDX banking strategy seat retrof
Slide 5: Alaska Accelerate helping close RASM gap
Alaska Accelerate helping close RASM gap Stage -length adjusted unit revenue gap to network carriers Notes ■ Air Group has made significant investments to better serve the premium segment of the market over 83% the last several years 82% ■ Alaska Accelerate initiatives will continue to close the RAS
Slide 6: Third consecutive quarter of leading unit revenue
Third consecutive quarter of leading unit revenue Unit revenue change y/y Notes ■ Q3 2025 unit revenue increased 1.4% ALK Big 4 y/y, on the better end of prior guidance ■ Premium demand remains strong with 5.0% premium revenue up 5% on a system LSD % basis despite an overall capacity decline of (1%)
Slide 7: Revenue and Cost dynamics show improving exit rate
Revenue and Cost dynamics show improving exit rate Y/Y RASM vs CASMex Spread Notes ■ With Alaska Accelerate investments 3% underway, Air Group is beginning to harvest benefits that large industry peers are already fully capturing ■ Absent fuel impacts, margin profile to improve significantly into Q4
Slide 8: Unit cost exit rate remains strong
Unit cost exit rate remains strong CASMex change y/y Notes 8.6% ■ Unit costs were up 8.6% y/y in Q3 9% 2025, pressured by a combination of 8% low growth (~2pts) and elevated 7% 6.5% recovery costs from IT outage and 6% challenging summer operations (~1pt) MSD 5.0%% 5% ■ Q4 2025 unit costs still pres
Slide 9: Fuel Costs
Fuel Costs LA vs USGC Refining Margins (1) Notes USGC Crack Platts Jet/Kero LA Crack ■ Crude oil prices declined marginally throughout the quarter, down ~4% $1.20 versus June ■ West Coast refining margins remained $1.07 elevated throughout Q3 2025, Q3 Avg: averaging $0.75 $0.75 ■ Recent volatility i
Slide 10: Balance Sheet and Share Repurchases
Balance Sheet and Share Repurchases Adjusted Net Debt/EBITDAR Shares Outstanding Diluted Share Count (Millions) 2.7x 2.6x 129 2.4x 128 124 123 1.4x 121 1.0x 118 0.9x 2019 2021 2022 2023 2024 3Q25 2019 2023 2024 1Q25 2Q25 3Q25 Target Adj. Net Debt/EBITDAR < 1.5x 10
Slide 11: 2/4 integration milestones completed by October; Most significant phase of PSS cutover complete
2/4 integration milestones completed by October; 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 on trac