By Rajesh Kumar Singh and Nandan Mandayam
CHICAGO, July 22 (Reuters) – Alaska Air Group returned to profitability in June with a double-digit pretax margin despite fuel prices running nearly 70% higher than a year earlier, CEO Ben Minicucci said on the carrier’s quarterly earnings call on Wednesday.
He added the airline’s second quarter would have been “solidly profitable” without the fuel-price spike.
Alaska Air reported an adjusted second-quarter loss of 92 cents per share and forecast third-quarter adjusted earnings ranging from breakeven to $1 per share. The midpoint of 50 cents was well below analysts’ average estimate of $1.38, according to LSEG.
Shares were down about 4% in midday trading.
Demand held up despite higher fares, helping revenue performance accelerate through the quarter. Alaska said unit-revenue growth strengthened from 5.5% in April to 8.8% in May and 11% in June, while total June revenue rose 13.2% from a year ago.
Forward corporate bookings were up 37% year-on-year, seven percentage points above the growth achieved in the second quarter. Bookings for the summer peak and early fall were also pacing well, with unit-revenue growth running in the mid-teens year over year.
Alaska Air expects third-quarter unit revenue to rise by a low-double-digit percentage. Capacity is forecast to grow 2% to 3%, entirely from intercontinental flying, as the carrier trims planned growth elsewhere because of elevated fuel costs.
The airline is expanding premium cabins, loyalty, cargo and international travel to make earnings more resilient. Premium revenue rose 15% in the second quarter and now represents 35% of total revenue, with more than half of every revenue dollar now coming from outside the main cabin.
Hawaii remains a drag on unit revenue in the third quarter, as heavy rainstorms hurt bookings and industry capacity stayed elevated. Executives said fall demand was recovering, with September yields accelerating.
Alaska Air plans to provide an update on its full-year earnings outlook at its September 29 investor day after gaining more clarity on fuel prices and fare trends.
(Reporting by Rajesh Kumar Singh in Chicago and Nandan Mandayam in Bengaluru; Editing by Chris Reese)
By Rajesh Kumar Singh and Nandan Mandayam | Reuters | © Copyright Thomson Reuters 2026.
