ALASKA AIR GROUP, INC.

For the period ended Jun 30, 2025. Filed Aug 7, 2025.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2025 · Filed Aug 7, 2025

ALK$41.54-0.4%Stored close · as of Nov 10, 2026

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Contents

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED BALANCE SHEETS(unaudited)

(in millions)	June 30, 2025	December 31, 2024
ASSETS
Current Assets
Cash and cash equivalents	$750	$1,201
Restricted cash	28	29
Marketable securities	1,374	1,274
Total cash, restricted cash, and marketable securities	2,152	2,504
Receivables - net	737	558
Inventories and supplies - net	218	199
Prepaid expenses	264	307
Other current assets	136	192
Total Current Assets	3,507	3,760
Property and Equipment
Aircraft and other flight equipment	13,056	12,273
Other property and equipment	2,267	2,173
Deposits for future flight equipment	621	883
	15,944	15,329
Less accumulated depreciation and amortization	(4,729)	(4,548)
Total Property and Equipment - Net	11,215	10,781
Other Assets
Operating lease assets	1,279	1,296
Goodwill	2,724	2,724
Intangible assets - net	844	873
Other noncurrent assets	316	334
Total Other Assets	5,163	5,227
Total Assets	$19,885	$19,768

CONDENSED CONSOLIDATED BALANCE SHEETS(unaudited)

(in millions, except share amounts)	June 30, 2025	December 31, 2024
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable	$240	$186
Accrued wages, vacation and payroll taxes	697	1,001
Air traffic liability	2,127	1,712
Other accrued liabilities	1,096	997
Deferred revenue	1,824	1,592
Current portion of long-term debt	500	442
Current portion of operating lease liabilities	217	207
Current portion of finance lease liabilities	8	8
Total Current Liabilities	6,709	6,145
Noncurrent Liabilities
Long-term debt, net of current portion	4,448	4,491
Operating lease liabilities, net of current portion	1,157	1,198
Finance lease liabilities, net of current portion	43	47
Deferred income taxes	938	934
Deferred revenue	1,648	1,664
Obligation for pension and post-retirement medical benefits	452	460
Other liabilities	548	457
Total Noncurrent Liabilities	9,234	9,251
Commitments and Contingencies (Note 7)
Shareholders' Equity
Preferred stock, $0.01 par value, Authorized: 5,000,000 shares, none issued or outstanding	—	—
Common stock, $0.01 par value, Authorized: 400,000,000 shares, Issued: 2025 - 144,093,405 shares; 2024 - 141,449,174 shares, Outstanding: 2025 - 115,276,005 shares; 2024 - 123,119,199 shares	1	1
Capital in excess of par value	899	811
Treasury stock (common), at cost: 2025 - 28,817,400 shares; 2024 - 18,329,975 shares	(1,666)	(1,131)
Accumulated other comprehensive loss	(228)	(239)
Retained earnings	4,936	4,930
Total Shareholders' Equity	3,942	4,372
Total Liabilities and Shareholders' Equity	$19,885	$19,768

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)

	Three Months Ended June 30,		Six Months Ended June 30,
(in millions, except per share amounts)	2025	2024	2025	2024
Operating Revenue
Passenger revenue	$3,355	$2,651	$6,163	$4,655
Loyalty program other revenue	210	174	417	338
Cargo and other revenue	139	72	261	136
Total Operating Revenue	3,704	2,897	6,841	5,129
Operating Expenses
Wages and benefits	1,165	782	2,292	1,586
Variable incentive pay	61	49	123	93
Aircraft fuel, including hedging gains and losses	700	615	1,381	1,180
Aircraft maintenance	240	129	460	251
Aircraft rent	64	46	126	93
Landing fees and other rentals	278	173	520	338
Contracted services	146	106	291	203
Selling expenses	105	84	205	161
Depreciation and amortization	199	128	393	254
Food and beverage service	97	67	182	125
Third-party regional carrier expense	69	64	133	118
Other	247	186	508	391
Special items - operating	56	146	147	180
Total Operating Expenses	3,427	2,575	6,761	4,973
Operating Income	277	322	80	156
Non-operating Income (Expense)
Interest income	22	24	48	41
Interest expense	(66)	(36)	(132)	(71)
Interest capitalized	9	6	21	12
Other - net	(4)	—	(12)	—
Total Non-operating Expense	(39)	(6)	(75)	(18)
Income Before Income Tax	238	316	5	138
Income tax expense (benefit)	66	96	(1)	50
Net Income	$172	$220	$6	$88
Basic Earnings Per Share:	$1.45	$1.74	$0.05	$0.70
Diluted Earnings Per Share:	$1.42	$1.71	$0.05	$0.69
Weighted Average Shares Outstanding used for computation:
Basic	118.847	126.337	120.979	126.153
Diluted	120.930	128.310	123.183	127.857

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS(unaudited)

	Three Months Ended June 30,		Six Months Ended June 30,
(in millions)	2025	2024	2025	2024
Net Income	$172	$220	$6	$88
Other comprehensive income (loss), net of tax
Marketable securities	6	4	15	5
Employee benefit plans	2	3	4	6
Interest rate derivative instruments	(2)	—	(8)	1
Total other comprehensive income, net of tax	$6	$7	$11	$12
Total Comprehensive Income, Net of Tax	$178	$227	$17	$100

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY(unaudited)

(in millions)	Common Stock Outstanding	Common Stock	Capital in Excess of Par Value	Treasury Stock	Accumulated Other Comprehensive Loss	Retained Earnings	Total
Balance at December 31, 2024	123.119	$1	$811	$(1,131)	$(239)	$4,930	$4,372
Net loss	—	—	—	—	—	(166)	(166)
Other comprehensive income	—	—	—	—	5	—	5
Common stock repurchase	(1.766)	—	—	(107)	—	—	(107)
Stock-based compensation	0.005	—	22	—	—	—	22
CARES Act warrants exercised	0.810	—	—	—	—	—	—
Stock issued under stock plans	0.717	—	11	—	—	—	11
Balance at March 31, 2025	122.885	$1	$844	$(1,238)	$(234)	$4,764	$4,137
Net income	—	—	—	—	—	172	172
Other comprehensive income	—	—	—	—	6	—	6
Common stock repurchase	(8.721)	—	—	(428)	—	—	(428)
Stock-based compensation	0.009	—	17	—	—	—	17
Stock issued for employee stock purchase plan	1.023	—	39	—	—	—	39
Stock issued under stock plans	0.080	—	(1)	—	—	—	(1)
Balance at June 30, 2025	115.276	$1	$899	$(1,666)	$(228)	$4,936	$3,942

(in millions)	Common Stock Outstanding	Common Stock	Capital in Excess of Par Value	Treasury Stock	Accumulated Other Comprehensive Loss	Retained Earnings	Total
Balance at December 31, 2023	126.090	$1	$695	$(819)	$(299)	$4,535	$4,113
Net loss	—	—	—	—	—	(132)	(132)
Other comprehensive income	—	—	—	—	5	—	5
Common stock repurchase	(0.561)	—	—	(21)	—	—	(21)
Stock-based compensation	—	—	15	—	—	—	15
Stock issued under stock plans	0.177	—	(3)	—	—	—	(3)
Balance at March 31, 2024	125.706	$1	$707	$(840)	$(294)	$4,403	$3,977
Net income	—	—	—	—	—	220	220
Other comprehensive income	—	—	—	—	7	—	7
Common stock repurchase	(0.663)	—	—	(28)	—	—	(28)
Stock-based compensation	0.013	—	13	—	—	—	13
Stock issued for employee stock purchase plan	1.401	—	37	—	—	—	37
Stock issued under stock plans	0.018	—	—	—	—	—	—
Balance at June 30, 2024	126.475	$1	$757	$(868)	$(287)	$4,623	$4,226

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited)

	Six Months Ended June 30,
(in millions)	2025	2024
Cash Flows from Operating Activities:
Net Income	$6	$88
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	393	254
Stock-based compensation and other	10	37
Non-cash special items	52	—
Changes in certain assets and liabilities:
Changes in deferred income taxes	1	47
Increase in accounts receivable	(171)	(55)
Increase in air traffic liability	415	440
Increase in deferred revenue	216	38
Other - net	(87)	23
Net cash provided by operating activities	835	872
Cash Flows from Investing Activities:
Property and equipment additions
Aircraft and aircraft purchase deposits	(523)	(380)
Other flight equipment	(90)	(63)
Other property and equipment	(128)	(144)
Supplier proceeds	—	162
Purchases of marketable securities	(844)	(163)
Sales and maturities of marketable securities	765	288
Other investing activities	73	165
Net cash used in investing activities	(747)	(135)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt, net of issuance costs	168	279
Long-term debt payments	(236)	(149)
Common stock repurchases	(535)	(49)
Other financing activities	59	6
Net cash provided by (used in) financing activities	(544)	87
Net (decrease) increase in cash and cash equivalents	(456)	824
Cash, cash equivalents, and restricted cash at beginning of period	1,257	308
Cash, cash equivalents, and restricted cash at end of the period	$801	$1,132
Supplemental disclosure:
Cash paid during the period for:
Interest, net of amount capitalized	$108	$55
Non-cash transactions:
Right-of-use assets acquired through operating leases	$74	$34
Property and equipment acquired through the issuance of debt	$69	$68
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$750	$1,115
Restricted cash	28	—
Restricted cash included in Other noncurrent assets	23	17
Total cash, cash equivalents, and restricted cash at end of the period	$801	$1,132

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.