ALASKA AIR GROUP, INC.

For the period ended Sep 30, 2025. Filed Nov 6, 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.

Sep 30, 2025 · Filed Nov 6, 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)	September 30, 2025	December 31, 2024
ASSETS
Current Assets
Cash and cash equivalents	$778	$1,201
Restricted cash	28	29
Marketable securities	1,494	1,274
Total cash, restricted cash, and marketable securities	2,300	2,504
Receivables - net	586	558
Inventories and supplies - net	229	199
Prepaid expenses	285	307
Other current assets	66	192
Total Current Assets	3,466	3,760
Property and Equipment
Aircraft and other flight equipment	12,953	12,273
Other property and equipment	2,367	2,173
Deposits for future flight equipment	710	883
	16,030	15,329
Less accumulated depreciation and amortization	(4,794)	(4,548)
Total Property and Equipment - Net	11,236	10,781
Other Assets
Operating lease assets	1,322	1,296
Goodwill	2,723	2,724
Intangible assets - net of accumulated amortization of $60 and $16	829	873
Other noncurrent assets	436	334
Total Other Assets	5,310	5,227
Total Assets	$20,012	$19,768

CONDENSED CONSOLIDATED BALANCE SHEETS(unaudited)

(in millions, except share amounts)	September 30, 2025	December 31, 2024
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable	$322	$186
Accrued wages, vacation and payroll taxes	811	1,001
Air traffic liability	1,938	1,712
Other accrued liabilities	1,007	997
Deferred revenue	1,837	1,592
Current portion of long-term debt	519	442
Current portion of operating lease liabilities	216	207
Current portion of finance lease liabilities	9	8
Total Current Liabilities	6,659	6,145
Noncurrent Liabilities
Long-term debt, net of current portion	4,490	4,491
Operating lease liabilities, net of current portion	1,197	1,198
Finance lease liabilities, net of current portion	40	47
Deferred income taxes	976	934
Deferred revenue	1,596	1,664
Obligation for pension and post-retirement medical benefits	439	460
Other liabilities	586	457
Total Noncurrent Liabilities	9,324	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 - 144,137,508 shares; 2024 - 141,449,174 shares, Outstanding: 2025 - 115,232,538 shares; 2024 - 123,119,199 shares	1	1
Capital in excess of par value	913	811
Treasury stock (common), at cost: 2025 - 28,904,970 shares; 2024 - 18,329,975 shares	(1,671)	(1,131)
Accumulated other comprehensive loss	(223)	(239)
Retained earnings	5,009	4,930
Total Shareholders' Equity	4,029	4,372
Total Liabilities and Shareholders' Equity	$20,012	$19,768

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)

	Three Months Ended September 30,		Nine Months Ended September 30,
(in millions, except per share amounts)	2025	2024	2025	2024
Operating Revenue
Passenger revenue	$3,424	$2,821	$9,587	$7,476
Loyalty program other revenue	200	171	617	509
Cargo and other revenue	142	80	403	216
Total Operating Revenue	3,766	3,072	10,607	8,201
Operating Expenses
Wages and benefits	1,226	883	3,518	2,469
Variable incentive pay	71	104	194	197
Aircraft fuel, including hedging gains and losses	761	624	2,142	1,804
Aircraft maintenance	238	140	698	391
Aircraft rent	64	49	190	142
Landing fees and other rentals	305	194	825	532
Contracted services	151	108	442	311
Selling expenses	107	82	312	243
Depreciation and amortization	203	139	596	393
Food and beverage service	100	69	282	194
Third-party regional carrier expense	72	63	205	181
Other	256	202	764	593
Special items - operating	64	74	211	254
Total Operating Expenses	3,618	2,731	10,379	7,704
Operating Income	148	341	228	497
Non-operating Income (Expense)
Interest income	23	28	71	69
Interest expense	(70)	(44)	(202)	(115)
Interest capitalized	8	7	29	19
Other - net	2	(4)	(10)	(4)
Total Non-operating Expense	(37)	(13)	(112)	(31)
Income Before Income Tax	111	328	116	466
Income tax expense	38	92	37	142
Net Income	$73	$236	$79	$324
Basic Earnings Per Share:	$0.63	$1.87	$0.66	$2.57
Diluted Earnings Per Share:	$0.62	$1.84	$0.65	$2.52
Weighted Average Shares Outstanding used for computation:
Basic	115.287	126.189	119.061	126.165
Diluted	117.500	128.590	121.193	128.347

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS(unaudited)

	Three Months Ended September 30,		Nine Months Ended September 30,
(in millions)	2025	2024	2025	2024
Net Income	$73	$236	$79	$324
Other comprehensive income (loss), net of tax
Marketable securities	5	20	20	25
Employee benefit plans	1	3	5	9
Interest rate derivative instruments	(1)	(4)	(9)	(3)
Total other comprehensive income, net of tax	$5	$19	$16	$31
Total Comprehensive Income, Net of Tax	$78	$255	$95	$355

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
Net income	—	—	—	—	—	73	73
Other comprehensive income	—	—	—	—	5	—	5
Common stock repurchase	(0.087)	—	—	(5)	—	—	(5)
Stock-based compensation	—	—	15	—	—	—	15
Stock issued under stock plans	0.044	—	(1)	—	—	—	(1)
Balance at September 30, 2025	115.233	$1	$913	$(1,671)	$(223)	$5,009	$4,029

(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
Net income	—	—	—	—	—	236	236
Other comprehensive income	—	—	—	—	19	—	19
Common stock repurchase	(0.368)	—	—	(14)	—	—	(14)
Stock-based compensation	—	—	12	—	—	—	12
Stock issued under stock plans	0.019	—	—	—	—	—	—
Balance at September 30, 2024	126.126	$1	$769	$(882)	$(268)	$4,859	$4,479

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited)

	Nine Months Ended September 30,
(in millions)	2025	2024
Cash Flows from Operating Activities:
Net Income	$79	$324
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	596	393
Stock-based compensation and other	(9)	55
Non-cash special items	52	4
Changes in certain assets and liabilities:
Changes in deferred income taxes	37	127
Increase in accounts receivable	(26)	(85)
Increase in air traffic liability	226	229
Increase in deferred revenue	177	52
Other - net	(68)	91
Net cash provided by operating activities	1,064	1,190
Cash Flows from Investing Activities:
Property and equipment additions
Aircraft and aircraft purchase deposits	(600)	(532)
Other flight equipment	(144)	(118)
Other property and equipment	(219)	(202)
Acquisition of Hawaiian, net of cash acquired	—	(659)
Supplier proceeds	—	162
Purchases of marketable securities	(1,239)	(428)
Sales and maturities of marketable securities	1,047	1,153
Other investing activities	159	188
Net cash used in investing activities	(996)	(436)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt, net of issuance costs	378	344
Long-term debt payments	(389)	(279)
Common stock repurchases	(540)	(63)
Other financing activities	61	5
Net cash provided by (used in) financing activities	(490)	7
Net (decrease) increase in cash and cash equivalents	(422)	761
Cash, cash equivalents, and restricted cash at beginning of period	1,257	308
Cash, cash equivalents, and restricted cash at end of the period	$835	$1,069
Supplemental disclosure:
Cash paid during the period for:
Interest, net of amount capitalized	$177	$107
Income taxes, net of refunds received	$—	$2
Non-cash transactions:
Right-of-use assets acquired through operating leases	$167	$35
Property and equipment acquired through the issuance of debt	$69	$68
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$778	$1,015
Restricted cash	28	27
Restricted cash included in Other noncurrent assets	29	27
Total cash, cash equivalents, and restricted cash at end of the period	$835	$1,069

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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.