Alaska Air Group, Inc. · NYSE:ALK
Alaska Air — Q1 2026 Earnings Presentation
10 slides from Alaska Air's earnings presentation, Apr 21, 2026
Slide 1: Alaska Air Group Q1 2026 Earnings
ALASKA AIR GROUP Q1 2026 Earnings | April 20, 2026 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 to f
Slide 3: Earnings Update
Earnings Update Air Group's Q1 2026 adjusted loss per share of ($1.68) came in ahead of the midpoint of revised mid-quarter expectations. Operating cash flow reached $421 million during the quarter, reflecting demand resilience despite a challenging fuel environment and unique headwinds in Hawai’i
Slide 4: Current Demand Environment
Current Demand Environment In Hawai’i, storms have finally passed and weather has normalized; forward bookings have recently returned to positive levels with improving trends in May and June. However, we still expect an overall 2-point unit revenue drag on the second quarter from booking impacts b
Slide 5: Alaska Accelerate initiatives progressing well
Alaska Accelerate initiatives progressing well Network Product Loyalty Cargo $400M $100M $150M $150M Revenue up 5% y/y Premium revenue up 8% Cash remuneration up 12% Cargo revenue increased SEA-NRT profitable in > 90% of 737 premium seat New BofA bank deal drives 23% y/y March and Marc
Slide 6: Capacity remains low throughout 2026
Capacity remains low throughout 2026 ASMs % change y/y Notes ■ Q2 capacity expected to be up ~1% y/y, driven by ~1.5 pts of long-haul international growth in Seattle, offset by (0.5) pt lower North America capacity ■ Air Group has reduced capacity in Q2 by approximately 1 pt compared to prior expect
Slide 7: Fuel costs have risen sharply
Fuel costs have risen sharply Jet Kero Refining Margins(1) Notes ■ Air Group sources approximately 55% $2.82 of fuel from the West Coast, ~20% from Singapore, and ~25% from various other regions including Gulf Coast $2.30 ■ West Coast refining margins have historically been volatile, and among $1.36
Slide 8: Balance Sheet
Balance Sheet TTM Adjusted Net Debt/EBITDAR Debt to Capitalization Ratio 3.3x 59% 61% 2.9x 57% 2.7x 2.3x 48% 46% 45% 38% 1.3x 0.9x 1.0x 2019 2021 2022 2023 2024 2025 1Q26 2019 2021 2022 2023 2024 2025 1Q26 Target Adj. Net Debt/EBITDAR < 1.5x Target Debt to Cap Range 40% to 50% Note: Beginning in 202
Slide 9: Share Repurchases
Share Repurchases Weigthed Average Shares Outstanding Share Repurchases Diluted Share Count (Millions) 129 128 ■ Repurchased 4.7 million shares of common stock for $203 million in the 124 first quarter 120 ■ Year to date share repurchases total $250 million, more than offsetting expected dilution in
Slide 10: 3/4 integration milestones to be completed by April 22
3/4 integration milestones to be completed by April 22 Joint Collective Single Operating Single Passenger Single Loyalty Bargaining Certificate (SOC) Service System (PSS) Agreements (JCBA) 2H 2025 Q4 2025 Q2 2026 Q2 2026 2025-2027 Launched new loyalty Teams achieved SOC in Teams have prepared to Joi