Alaska Air Group Reports $76 Million Second-Quarter Loss

Alaska Air Group reported a second-quarter net loss of $76 million, or $0.68 per share, for the period ending June 30, 2026. The loss follows a net income of $172 million during the same period last year and contributes to a total loss of nearly $500 million for the first half of 2026. While total operating revenue grew 10% to approximately $4.1 billion, aircraft fuel expenses surged 86% to $1.31 billion, driven by Middle East conflict and the closure of the Strait of Hormuz.

CEO Ben Minicucci attributed the financial downturn to a fuel spike beyond the company's control. Despite the quarterly loss, Minicucci noted that the airline returned to profitability in June with a double-digit pretax margin. To manage liquidity and counter volatility, the company raised $1 billion in financing and trimmed certain red-eye and midweek flights. The group also expanded premium cabins and cargo services and raised fares to offset high costs.

The quarter marked the first since the full integration of Hawaiian Airlines assets in April 2026, which enabled the launch of new long-haul transatlantic service from Seattle. Alaska Air Group forecasts a return to profitability in the third quarter, projecting adjusted earnings between $0.00 and $1.00 per share, assuming fuel prices average $3.75 per gallon. A full-year earnings outlook is expected during an investor day on September 29.