- Alaska Air Group (ALK, Financial) reports a Q1 2025 GAAP net loss of $166 million and adjusted net loss of $95 million.
- The company experienced total revenue growth of 9.0% and generated $459 million in operating cash flow.
- Hawaiian Airlines integration shows strong progress with unit revenue up 8.8% year-over-year.
Alaska Air Group (ALK) has announced its financial results for the first quarter of 2025, reporting a GAAP net loss of $166 million, or $1.35 per share, alongside an adjusted net loss of $95 million, equating to $0.77 per share. Despite facing macroeconomic challenges, the company achieved total revenue growth of 9.0% year-over-year and generated $459 million in operating cash flow, signifying strong operational performance.
Key financial highlights for the quarter include a 10% increase in premium revenue and a 12% rise in loyalty program cash remuneration year-over-year. Alaska Air Group maintained its leading position in industry domestic unit revenue performance with a 5.0% increase, while capacity expanded by 3.9% and unit costs rose 2.1%, reflecting effective cost management.
In terms of operational advancements, the integration with Hawaiian Airlines is progressing well, with Hawaiian's unit revenue increasing by 8.8% year-over-year. This integration has also achieved significant milestones, including the successful co-location of operations at major airports and unified cargo booking systems, enhancing overall efficiency.
Looking ahead to the second quarter of 2025, Alaska Air Group expects capacity growth of 2-3%, with an adjusted earnings per share guidance ranging from $1.15 to $1.65. Despite the absence of full-year guidance due to economic volatility, the company remains confident in its ability to sustain profitability through continued strategic initiatives and integration synergies.
The financial position of Alaska Air Group remains robust, with $2.5 billion in unrestricted cash and $149 million spent on share repurchases year-to-date, underscoring management's confidence in long-term growth prospects despite current economic headwinds.
