ALASKA AIR GROUP, INC.

For the period ended Jun 30, 2026. Filed Aug 4, 2026.

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, 2026 · Filed Aug 4, 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)	June 30, 2026	December 31, 2025
ASSETS
Cash and cash equivalents	$1,064	$627
Restricted cash	33	28
Marketable securities	1,598	1,496
Receivables - net	681	565
Inventories and supplies - net	253	203
Prepaid expenses	261	278
Other current assets	46	69
Total Current Assets	3,936	3,266
Property and equipment - net of accumulated depreciation and amortization of $5,205 and $4,945	12,009	11,857
Operating lease assets	1,345	1,268
Goodwill	2,723	2,723
Intangible assets - net of accumulated amortization of $102 and $74	787	815
Other noncurrent assets	446	432
Total Noncurrent Assets	17,310	17,095
Total Assets	$21,246	$20,361
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	$403	$324
Accrued wages, vacation and payroll taxes	727	881
Air traffic liability	2,398	1,689
Other accrued liabilities	1,217	1,055
Deferred revenue	1,778	1,722
Current portion of long-term debt and finance leases	452	721
Current portion of operating lease liabilities	217	197
Total Current Liabilities	7,192	6,589
Long-term debt and finance leases, net of current portion	5,783	4,834
Operating lease liabilities, net of current portion	1,164	1,141
Deferred income taxes	739	1,004
Deferred revenue	1,752	1,711
Obligation for pension and post-retirement medical benefits	349	369
Other liabilities	597	595
Total Noncurrent Liabilities	10,384	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 - 147,087,872 shares; 2025 - 145,115,659 shares, Outstanding: 2026 - 111,566,970 shares; 2025 - 115,530,889 shares	1	1
Capital in excess of par value	1,034	961
Treasury stock (common), at cost: 2026 - 35,520,902 shares; 2025 - 29,584,770 shares	(1,951)	(1,701)
Accumulated other comprehensive loss	(175)	(173)
Retained earnings	4,761	5,030
Total Shareholders' Equity	3,670	4,118
Total Liabilities and Shareholders' Equity	$21,246	$20,361

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)

	Three Months Ended June 30,		Six Months Ended June 30,
(in millions, except per share amounts)	2026	2025	2026	2025
Operating Revenue
Passenger revenue	$3,644	$3,355	$6,564	$6,163
Loyalty program other revenue	258	210	485	417
Cargo and other revenue	163	139	316	261
Total Operating Revenue	4,065	3,704	7,365	6,841
Operating Expenses
Wages and benefits	1,239	1,165	2,481	2,292
Variable incentive pay	65	61	95	123
Aircraft fuel	1,305	700	2,101	1,381
Aircraft maintenance	256	240	472	460
Aircraft rent	64	64	125	126
Landing fees and other rentals	305	278	596	520
Contracted services	158	146	309	291
Selling expenses	115	105	214	205
Depreciation and amortization	207	199	411	393
Food and beverage service	107	97	202	182
Third-party regional carrier expense	68	69	124	133
Other	302	247	605	508
Special items - operating	42	56	77	147
Total Operating Expenses	4,233	3,427	7,812	6,761
Operating Income (Loss)	(168)	277	(447)	80
Non-operating Income (Expense)
Interest income	21	22	40	48
Interest expense	(86)	(66)	(162)	(132)
Interest capitalized	13	9	23	21
Other - net	6	(4)	15	(12)
Total Non-operating Expense	(46)	(39)	(84)	(75)
Income (Loss) Before Income Tax	(214)	238	(531)	5
Income tax expense (benefit)	(138)	66	(262)	(1)
Net Income (Loss)	$(76)	$172	$(269)	$6
Basic Earnings (Loss) Per Share:	$(0.68)	$1.45	$(2.39)	$0.05
Diluted Earnings (Loss) Per Share:	$(0.68)	$1.42	$(2.39)	$0.05
Weighted Average Shares Outstanding used for computation:
Basic	111.127	118.847	112.702	120.979
Diluted	111.127	120.930	112.702	123.183

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS(unaudited)

	Three Months Ended June 30,		Six Months Ended June 30,
(in millions)	2026	2025	2026	2025
Net Income (Loss)	$(76)	$172	$(269)	$6
Other comprehensive income (loss), net of tax
Marketable securities	(3)	6	(9)	15
Employee benefit plans	—	2	—	4
Interest rate derivative instruments	4	(2)	7	(8)
Total other comprehensive income (loss), net of tax	$1	$6	$(2)	$11
Total Comprehensive Income (Loss), Net of Tax	$(75)	$178	$(271)	$17

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
Net loss	—	—	—	—	—	(76)	(76)
Other comprehensive income	—	—	—	—	1	—	1
Common stock repurchase	(1.249)	—	—	(47)	—	—	(47)
Stock-based compensation	0.033	—	20	—	—	—	20
Stock issued for employee stock purchase plan	1.310	—	43	—	—	—	43
Stock issued under stock plans	0.113	—	(2)	—	—	—	(2)
Balance at June 30, 2026	111.567	$1	$1,034	$(1,951)	$(175)	$4,761	$3,670

(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
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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited)

	Six Months Ended June 30,
(in millions)	2026	2025
Cash Flows from Operating Activities:
Net Income (Loss)	$(269)	$6
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	411	393
Stock-based compensation and other	42	10
Non-cash special items	—	52
Changes in certain assets and liabilities:
Changes in deferred income taxes	(262)	1
Increase in accounts receivable	(119)	(171)
Increase in air traffic liability	709	415
Increase in deferred revenue	97	216
Other - net	(3)	(87)
Net cash provided by operating activities	606	835
Cash Flows from Investing Activities:
Property and equipment additions
Aircraft, aircraft purchase deposits, and other flight equipment	(415)	(613)
Other property and equipment	(108)	(128)
Purchases of marketable securities	(872)	(844)
Sales and maturities of marketable securities	761	765
Other investing activities	(1)	73
Net cash used in investing activities	(635)	(747)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt, net of issuance costs	1,099	168
Long-term debt payments	(405)	(236)
Common stock repurchases	(250)	(535)
Other financing activities	28	59
Net cash provided by (used in) financing activities	472	(544)
Net increase (decrease) in cash and cash equivalents	443	(456)
Cash, cash equivalents, and restricted cash at beginning of period	684	1,257
Cash, cash equivalents, and restricted cash at end of period	$1,127	$801
Supplemental disclosure:
Cash paid during the period for:
Interest, net of amount capitalized	$114	$108
Non-cash transactions:
Right-of-use assets acquired through operating leases	$174	$74
Property and equipment acquired through the issuance of debt	$48	$69
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$1,064	$750
Restricted cash	33	28
Restricted cash included in Other noncurrent assets	30	23
Total cash, cash equivalents, and restricted cash at end of period	$1,127	$801

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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.