Alaska Air Group Q3 2025 revenue rises 23%; adjusted earnings fall

Alaska Air Group (NYSE: ALK) on Friday reported a sharp fall in third-quarter 2025 adjusted earnings, despite an increase in revenues. The management issued guidance for the fourth quarter.

The airline reported earnings of $1.05 per share for the third quarter, excluding one-off items, compared $2.25 per share in the prior-year quarter. On a reported basis, net income was $73 million or $0.62 per share in Q3, compared to $236 million or $1.84 per share in the same period of fiscal 2024.

Total operating revenue increased 23% to $3.77 billion in Q3 from $3.07 billion in the corresponding quarter last year. Corporate travel rose 8% annually during the quarter, vs. low single-digit declines in the prior quarter, while close-in demand remained strong throughout Q3.

“Alaska’s profitable quarter was powered by another period of industry-leading unit revenue. I’m proud of our people for taking care of our guests, executing major integration milestones, and capturing synergies ahead of plan as we bring together Alaska and Hawaiian Airlines,” said Ben Minicucci, CEO of Alaska Air Group.

The company said it expects fourth-quarter unit revenue to increase in low single digits year-over-year. Unit costs for Q4 are expected to increase in low single digits, reflecting significant cost synergies. Fourth quarter capacity growth is expected to be 2% to 3% year-over-year.