Alaska Air Group (NYSE:ALK) Shares Gap Down on Disappointing Earnings

Alaska Air Group, Inc. (NYSE:ALK)’s share price gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $43.54, but opened at $42.00. Alaska Air Group shares last traded at $43.1740, with a volume of 1,166,752 shares.

The transportation company reported ($1.68) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.61) by ($0.07). The company had revenue of $3.30 billion for the quarter, compared to analyst estimates of $3.31 billion. Alaska Air Group had a return on equity of 7.22% and a net margin of 0.70%.Alaska Air Group’s quarterly revenue was up 5.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.77) earnings per share. Alaska Air Group has set its Q2 2026 guidance at -1.000–1.000 EPS.

Trending Headlines about Alaska Air Group

Here are the key news stories impacting Alaska Air Group this week:

• Positive Sentiment: Management says underlying travel demand remains strong and on-time performance led the industry; premium revenue rose and fleet retrofit progress is ahead of peak season — a good sign for revenue resilience. Alaska Air points to strong underlying demand despite fuel and weather challenges
• Positive Sentiment: Expanded multi-year co-branded credit card deal with Bank of America should boost Atmos Rewards economics and incremental revenue over time, improving loyalty monetization. Alaska Air Group and Bank of America Expand Long-Standing Credit Card Partnership
• Neutral Sentiment: Revenue growth continued (Q1 revenue +5.2% YoY to ~$3.3B), roughly in line with estimates — underlying demand but slim margin for upside versus expectations. Here’s What Key Metrics Tell Us About Alaska Air (ALK) Q1 Earnings
• Neutral Sentiment: Company highlighted operational wins (on?time performance) and strategic progress (Atmos™ upgrades), which support medium-term recovery if costs normalize. Alaska Air Group reports first quarter 2026 results
• Negative Sentiment: Q1 EPS missed (loss of ~$1.68 vs. consensus -$1.61) and operating metrics show sharply higher costs — gross profit and margins deteriorated significantly year-over-year. Alaska Air Group (ALK) Reports Q1 Loss, Beats Revenue Estimates
• Negative Sentiment: Fuel cost surge tied to Iran-related market moves forced management to pull/suspend full?year guidance and cite material near?term uncertainty — a clear near-term catalyst for downside. Alaska Air pulls forecast as Iran-linked fuel surge hits margins
• Negative Sentiment: Q2 guidance reset to around -$1.00 EPS (vs. consensus ~ -$0.06) and commentary that guidance is suspended until fuel stabilizes amplify short?term risk to earnings and the stock. Alaska Air Group Suspends Guidance, Citing Fuel Cost Uncertainty

Analyst Ratings Changes

Several research firms have weighed in on ALK. BMO Capital Markets initiated coverage on shares of Alaska Air Group in a report on Tuesday, March 24th. They issued an “outperform” rating and a $50.00 target price on the stock. Bank of America lowered their price objective on shares of Alaska Air Group from $70.00 to $60.00 and set a “buy” rating for the company in a research report on Wednesday, April 1st. Cantor Fitzgerald set a $63.00 price objective on Alaska Air Group in a research note on Friday, January 30th. Zacks Research cut Alaska Air Group from a “hold” rating to a “strong sell” rating in a research note on Tuesday, April 7th. Finally, Wall Street Zen downgraded Alaska Air Group from a “sell” rating to a “strong sell” rating in a report on Tuesday, April 14th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $63.33.

Insider Activity at Alaska Air Group

In related news, CFO Shane R. Tackett sold 24,000 shares of the company’s stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $57.15, for a total value of $1,371,600.00. Following the completion of the transaction, the chief financial officer directly owned 43,377 shares of the company’s stock, valued at approximately $2,478,995.55. This represents a 35.62% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Kyle B. Levine sold 2,945 shares of the stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $60.02, for a total value of $176,758.90. Following the transaction, the executive vice president owned 20,977 shares of the company’s stock, valued at approximately $1,259,039.54. This trade represents a 12.31% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 56,945 shares of company stock valued at $3,204,569. 1.00% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Alaska Air Group

Several institutional investors have recently bought and sold shares of the company. Brighton Jones LLC boosted its position in Alaska Air Group by 2,046.4% during the 4th quarter. Brighton Jones LLC now owns 96,932 shares of the transportation company’s stock worth $6,276,000 after acquiring an additional 92,416 shares during the last quarter. Empowered Funds LLC raised its holdings in shares of Alaska Air Group by 60.2% in the first quarter. Empowered Funds LLC now owns 6,423 shares of the transportation company’s stock valued at $316,000 after purchasing an additional 2,414 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Alaska Air Group by 81.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 340,258 shares of the transportation company’s stock worth $16,747,000 after purchasing an additional 152,953 shares in the last quarter. Intech Investment Management LLC bought a new stake in shares of Alaska Air Group in the first quarter worth $1,318,000. Finally, Invesco Ltd. boosted its holdings in Alaska Air Group by 2.7% during the second quarter. Invesco Ltd. now owns 357,520 shares of the transportation company’s stock worth $17,690,000 after purchasing an additional 9,307 shares during the last quarter. Institutional investors own 81.90% of the company’s stock.

Alaska Air Group Trading Down 1.3%

The firm has a market cap of $4.87 billion, a P/E ratio of 49.39, a P/E/G ratio of 6.60 and a beta of 1.27. The business’s 50-day moving average is $44.35 and its two-hundred day moving average is $46.56. The company has a debt-to-equity ratio of 1.17, a current ratio of 0.50 and a quick ratio of 0.46.

About Alaska Air Group

Alaska Air Group is a publicly traded holding company headquartered in Seattle, Washington, that operates two main airlines—Alaska Airlines and Horizon Air. Through these carriers, the company offers scheduled passenger and cargo services across a network spanning the United States, Canada and Mexico. Its core business activities include domestic and international air transportation, loyalty program management under the Mileage Plan brand, and ancillary revenue streams such as baggage fees, in-flight sales and code-share partnerships with other global airlines.

The roots of Alaska Air Group trace back to the foundation of its flagship carrier, Alaska Airlines, in 1932.