Alaska Air suspends 2026 profit forecast amid fuel price volatility and Q1 net loss
On April 20, Alaska Air Group announced the suspension of its earnings guidance for the full year 2026, citing fluctuations in fuel prices due to geopolitical issues. The airline experienced a net loss of $193 million in the first quarter, with adjusted losses per share reaching $1.68, compared to $0.77 from the previous year. Revenue grew by 5% year-over-year, totaling $3.3 billion. Fuel expenses averaged $2.98 per gallon, reflecting a 14.2% increase. CEO Ben Minicucci stated that the long-term strategy remains effective. For the second quarter, an adjusted loss of approximately $1.00 per share is anticipated, with fuel costs projected to average $4.50 per gallon. Capacity disruptions in Hawaii and Puerto Vallarta impacted 30%. Shares fell by 1.7% to $42.80.
Key facts
- Alaska Air Group suspended its full-year 2026 earnings guidance on April 20
- First-quarter net loss was $193 million with adjusted loss per share of $1.68
- First-quarter revenue totaled $3.3 billion, up 5% year over year
- Fuel averaged $2.98 per gallon in Q1, up 14.2% from $2.61 a year earlier
- Q2 fuel forecast is roughly $4.50 per gallon, translating to $600 million incremental expense
- Shares traded at $42.80 after hours, a 1.7% decline
- Jet fuel in the U.S. rose to $4.88 a gallon as of last week from $2.50 on Feb. 27
- Alaska Air ended Q1 with $2.9 billion in total liquidity and $20 billion in unencumbered assets
Entities
Institutions
- Alaska Air Group
- Delta Air Lines
- American Airlines
- JetBlue
- United
- Bloomberg
- NurPhoto
- Getty Images
Locations
- Seattle
- Hawaii
- Puerto Vallarta
- U.S.
- Iran
- Strait of Hormuz
Sources
- Quartz —