ALASKA AIR GROUP, INC.

For the period ended Sep 30, 2026. Filed Nov 6, 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.

Sep 30, 2026 · Filed Nov 6, 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)	September 30, 2026	December 31, 2025
ASSETS
Cash and cash equivalents	$835	$627
Restricted cash	34	28
Marketable securities	1,396	1,496
Receivables - net	656	565
Inventories and supplies - net	249	203
Prepaid expenses	234	278
Other current assets	37	69
Total Current Assets	3,441	3,266
Property and equipment - net of accumulated depreciation and amortization of $5,377 and $4,945	12,280	11,857
Operating lease assets	1,325	1,268
Goodwill	2,723	2,723
Intangible assets - net of accumulated amortization of $116 and $74	773	815
Other noncurrent assets	487	432
Total Noncurrent Assets	17,588	17,095
Total Assets	$21,029	$20,361
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	$443	$324
Accrued wages, vacation and payroll taxes	853	881
Air traffic liability	2,129	1,689
Other accrued liabilities	1,154	1,055
Deferred revenue	1,854	1,722
Current portion of long-term debt and finance leases	890	721
Current portion of operating lease liabilities	222	197
Total Current Liabilities	7,545	6,589
Long-term debt and finance leases, net of current portion	5,269	4,834
Operating lease liabilities, net of current portion	1,138	1,141
Deferred income taxes	909	1,004
Deferred revenue	1,690	1,711
Obligation for pension and post-retirement medical benefits	324	369
Other liabilities	624	595
Total Noncurrent Liabilities	9,954	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 - 147,152,378 shares; 2025 - 145,115,659 shares, Outstanding: 2026 - 111,631,476 shares; 2025 - 115,530,889 shares	1	1
Capital in excess of par value	1,053	961
Treasury stock (common), at cost: 2026 - 35,520,902 shares; 2025 - 29,584,770 shares	(1,951)	(1,701)
Accumulated other comprehensive loss	(187)	(173)
Retained earnings	4,614	5,030
Total Shareholders' Equity	3,530	4,118
Total Liabilities and Shareholders' Equity	$21,029	$20,361

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)

	Three Months Ended September 30,		Nine Months Ended September 30,
(in millions, except per share amounts)	2026	2025	2026	2025
Operating Revenue
Passenger revenue	$3,885	$3,424	$10,449	$9,587
Loyalty program other revenue	263	200	748	617
Cargo and other revenue	160	142	476	403
Total Operating Revenue	4,308	3,766	11,673	10,607
Operating Expenses
Wages and benefits	1,287	1,226	3,768	3,518
Variable incentive pay	68	71	163	194
Aircraft fuel	1,214	761	3,315	2,142
Aircraft maintenance	257	238	729	698
Aircraft rent	66	64	191	190
Landing fees and other rentals	333	305	929	825
Contracted services	163	151	472	442
Selling expenses	118	107	332	312
Depreciation and amortization	216	203	627	596
Food and beverage service	110	100	312	282
Third-party regional carrier expense	71	72	195	205
Other	298	256	903	764
Special items - operating	25	64	102	211
Total Operating Expenses	4,226	3,618	12,038	10,379
Operating Income (Loss)	82	148	(365)	228
Non-operating Income (Expense)
Interest income	22	23	62	71
Interest expense	(97)	(70)	(259)	(202)
Interest capitalized	14	8	37	29
Other - net	(3)	2	12	(10)
Total Non-operating Expense	(64)	(37)	(148)	(112)
Income (Loss) Before Income Tax	18	111	(513)	116
Income tax expense (benefit)	165	38	(97)	37
Net Income (Loss)	$(147)	$73	$(416)	$79
Basic Earnings (Loss) Per Share:	$(1.32)	$0.63	$(3.70)	$0.66
Diluted Earnings (Loss) Per Share:	$(1.32)	$0.62	$(3.70)	$0.65
Weighted Average Shares Outstanding used for computation:
Basic	111.611	115.287	112.334	119.061
Diluted	111.611	117.500	112.334	121.193

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS(unaudited)

	Three Months Ended September 30,		Nine Months Ended September 30,
(in millions)	2026	2025	2026	2025
Net Income (Loss)	$(147)	$73	$(416)	$79
Other comprehensive income (loss), net of tax
Marketable securities	(19)	5	(28)	20
Employee benefit plans	1	1	1	5
Interest rate derivative instruments	6	(1)	13	(9)
Total other comprehensive income (loss), net of tax	$(12)	$5	$(14)	$16
Total Comprehensive Income (Loss), Net of Tax	$(159)	$78	$(430)	$95

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
Net loss	—	—	—	—	—	(147)	(147)
Other comprehensive loss	—	—	—	—	(12)	—	(12)
Stock-based compensation	—	—	20	—	—	—	20
Stock issued under stock plans	0.064	—	(1)	—	—	—	(1)
Balance at September 30, 2026	111.631	$1	$1,053	$(1,951)	$(187)	$4,614	$3,530

(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
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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited)

	Nine Months Ended September 30,
(in millions)	2026	2025
Cash Flows from Operating Activities:
Net Income (Loss)	$(416)	$79
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	627	596
Stock-based compensation and other	64	(9)
Non-cash special items	—	52
Changes in certain assets and liabilities:
Changes in deferred income taxes	(98)	37
Increase in accounts receivable	(94)	(26)
Increase in air traffic liability	440	226
Increase in deferred revenue	111	177
Other - net	121	(68)
Net cash provided by operating activities	755	1,064
Cash Flows from Investing Activities:
Property and equipment additions
Aircraft, aircraft purchase deposits, and other flight equipment	(790)	(744)
Other property and equipment	(175)	(219)
Purchases of marketable securities	(1,014)	(1,239)
Sales and maturities of marketable securities	1,090	1,047
Other investing activities	(3)	159
Net cash used in investing activities	(892)	(996)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt, net of issuance costs	1,099	378
Long-term debt payments	(511)	(389)
Common stock repurchases	(250)	(540)
Other financing activities	29	61
Net cash provided by (used in) financing activities	367	(490)
Net increase (decrease) in cash and cash equivalents	230	(422)
Cash, cash equivalents, and restricted cash at beginning of period	684	1,257
Cash, cash equivalents, and restricted cash at end of period	$914	$835
Supplemental disclosure:
Cash paid during the period for:
Interest, net of amount capitalized	$191	$177
Non-cash transactions:
Right-of-use assets acquired through operating leases	$206	$167
Property and equipment acquired through the issuance of debt	$72	$69
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$835	$778
Restricted cash	34	28
Restricted cash included in Other noncurrent assets	45	29
Total cash, cash equivalents, and restricted cash at end of period	$914	$835

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