ALASKA AIR GROUP, INC.

For the period ended Mar 31, 2026. Filed May 7, 2026.

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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.

Mar 31, 2026 · Filed May 7, 2026

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, except share amounts)	March 31, 2026	December 31, 2025
ASSETS
Cash and cash equivalents	$451	$627
Restricted cash	27	28
Marketable securities	1,317	1,496
Receivables - net	630	565
Inventories and supplies - net	232	203
Prepaid expenses	281	278
Other current assets	79	69
Total Current Assets	3,017	3,266
Property and equipment - net of accumulated depreciation and amortization of $5,080 and $4,945	12,015	11,857
Operating lease assets	1,300	1,268
Goodwill	2,723	2,723
Intangible assets - net of accumulated amortization of $88 and $74	801	815
Other noncurrent assets	442	432
Total Noncurrent Assets	17,281	17,095
Total Assets	$20,298	$20,361
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	$409	$324
Accrued wages, vacation and payroll taxes	657	881
Air traffic liability	2,378	1,689
Other accrued liabilities	1,121	1,055
Deferred revenue	1,781	1,722
Current portion of long-term debt and finance leases	498	721
Current portion of operating lease liabilities	212	197
Total Current Liabilities	7,056	6,589
Long-term debt and finance leases, net of current portion	4,822	4,834
Operating lease liabilities, net of current portion	1,136	1,141
Deferred income taxes	879	1,004
Deferred revenue	1,700	1,711
Obligation for pension and post-retirement medical benefits	360	369
Other liabilities	614	595
Total Noncurrent Liabilities	9,511	9,654
Commitments and Contingencies (Note 6)
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: 2026 - 145,631,281 shares; 2025 - 145,115,659 shares, Outstanding: 2026 - 111,359,830 shares; 2025 - 115,530,889 shares	1	1
Capital in excess of par value	973	961
Treasury stock (common), at cost: 2026 - 34,271,451 shares; 2025 - 29,584,770 shares	(1,904)	(1,701)
Accumulated other comprehensive loss	(176)	(173)
Retained earnings	4,837	5,030
Total Shareholders' Equity	3,731	4,118
Total Liabilities and Shareholders' Equity	$20,298	$20,361

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)

	Three Months Ended March 31,
(in millions, except per share amounts)	2026	2025
Operating Revenue
Passenger revenue	$2,920	$2,808
Loyalty program other revenue	227	207
Cargo and other revenue	153	122
Total Operating Revenue	3,300	3,137
Operating Expenses
Wages and benefits	1,242	1,127
Variable incentive pay	30	62
Aircraft fuel	796	681
Aircraft maintenance	216	220
Aircraft rent	61	62
Landing fees and other rentals	291	242
Contracted services	151	145
Selling expenses	99	100
Depreciation and amortization	204	194
Food and beverage service	95	85
Third-party regional carrier expense	56	64
Other	303	261
Special items - operating	35	91
Total Operating Expenses	3,579	3,334
Operating Loss	(279)	(197)
Non-operating Income (Expense)
Interest income	19	26
Interest expense	(76)	(66)
Interest capitalized	10	12
Other - net	9	(8)
Total Non-operating Expense	(38)	(36)
Loss Before Income Tax	(317)	(233)
Income tax benefit	(124)	(67)
Net Loss	$(193)	$(166)
Basic Loss Per Share:	$(1.69)	$(1.35)
Diluted Loss Per Share:	$(1.69)	$(1.35)
Weighted Average Shares Outstanding used for computation:
Basic	114.294	123.134
Diluted	114.294	123.134

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS(unaudited)

	Three Months Ended March 31,
(in millions)	2026	2025
Net Loss	$(193)	$(166)
Other comprehensive income (loss), net of tax
Marketable securities	(6)	9
Employee benefit plans	—	2
Interest rate derivative instruments	3	(6)
Total other comprehensive income (loss), net of tax	$(3)	$5
Total Comprehensive Loss, Net of Tax	$(196)	$(161)

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, 2025	115.531	$1	$961	$(1,701)	$(173)	$5,030	$4,118
Net loss	—	—	—	—	—	(193)	(193)
Other comprehensive loss	—	—	—	—	(3)	—	(3)
Common stock repurchase	(4.687)	—	—	(203)	—	—	(203)
Stock-based compensation	—	—	24	—	—	—	24
Stock issued under stock plans	0.516	—	(12)	—	—	—	(12)
Balance at March 31, 2026	111.360	$1	$973	$(1,904)	$(176)	$4,837	$3,731

(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 warrant issuance	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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited)

	Three Months Ended March 31,
(in millions)	2026	2025
Cash Flows from Operating Activities:
Net Loss	$(193)	$(166)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	204	194
Stock-based compensation and other	25	20
Non-cash special items	—	52
Changes in certain assets and liabilities:
Changes in deferred income taxes	(124)	(65)
Increase in accounts receivable	(65)	(11)
Increase in air traffic liability	689	492
Increase in deferred revenue	48	58
Other - net	(163)	(115)
Net cash provided by operating activities	421	459
Cash Flows from Investing Activities:
Property and equipment additions
Aircraft, aircraft purchase deposits, and other flight equipment	(308)	(196)
Other property and equipment	(30)	(42)
Purchases of marketable securities	(332)	(470)
Sales and maturities of marketable securities	504	336
Other investing activities	(3)	(9)
Net cash used in investing activities	(169)	(381)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt, net of issuance costs	110	—
Long-term debt payments	(340)	(156)
Common stock repurchases	(193)	(105)
Other financing activities	(5)	25
Net cash used in financing activities	(428)	(236)
Net decrease in cash and cash equivalents	(176)	(158)
Cash, cash equivalents, and restricted cash at beginning of period	684	1,257
Cash, cash equivalents, and restricted cash at end of period	$508	$1,099
Supplemental disclosure:
Cash paid during the period for:
Interest, net of amount capitalized	$70	$67
Non-cash transactions:
Right-of-use assets acquired through operating leases	$78	$62
Property and equipment acquired through the issuance of debt	$—	$23
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$451	$1,044
Restricted cash	27	28
Restricted cash included in Other noncurrent assets	30	27
Total cash, cash equivalents, and restricted cash at end of period	$508	$1,099

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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.