Alaska Air Group (NYSE:ALK) Stock Price Up 5.8% After Earnings Beat

Shares of Alaska Air Group, Inc. (NYSE:ALK) shot up 5.8% during mid-day trading on Friday following a stronger than expected earnings report. The stock traded as high as $51.50 and last traded at $51.7090. 3,226,444 shares changed hands during mid-day trading, a decline of 2% from the average session volume of 3,291,101 shares. The stock had previously closed at $48.86.

The transportation company reported $0.43 EPS for the quarter, beating analysts’ consensus estimates of $0.11 by $0.32. Alaska Air Group had a net margin of 0.70% and a return on equity of 7.26%. The firm had revenue of $3.63 billion during the quarter, compared to the consensus estimate of $3.64 billion. During the same quarter last year, the firm earned $0.97 earnings per share. The firm’s revenue was up 2.8% compared to the same quarter last year. Alaska Air Group has set its Q1 2026 guidance at -1.500–0.500 EPS and its FY 2026 guidance at 3.500-6.500 EPS.

Key Alaska Air Group News

Here are the key news stories impacting Alaska Air Group this week:

• Positive Sentiment: Q4 adjusted EPS beat expectations (adjusted $0.43 vs. consensus $0.11), providing an upside surprise that likely supported the rally. Alaska Air Group reports fourth quarter and full year 2025 results
• Positive Sentiment: Management issued FY2026 EPS guidance of $3.50–$6.50 and said momentum is accelerating (integration with Hawaiian Airlines cited), which gives investors a multi‑quarter thesis for earnings improvement. Alaska Air Group reports fourth quarter and full year 2025 results
• Positive Sentiment: Company and analysts are pointing to a pickup in bookings late in Q4 and management expects a “meaningful” improvement in 2026 EPS, reinforcing forward optimism. Alaska Air expects ‘meaningful’ improvement in 2026 EPS
• Neutral Sentiment: Revenue grew modestly (about 2.8% y/y to $3.63B) but came in roughly flat to slightly below some estimates — a mixed top‑line print that tempers the EPS beat. Earnings snapshot / conference call
• Negative Sentiment: Near‑term guidance disappointed: Q1 2026 EPS was guided to -$1.50 to -$0.50 (worse than consensus), which is a short‑term drag and heightens execution risk. Alaska Air Group reports fourth quarter and full year 2025 results
• Negative Sentiment: CEO flagged operational risks from a major winter storm that could disrupt flights and add costs — a near‑term catalyst for volatility in revenue and margins. Alaska Airlines CEO on potential impact to flights from massive winter storm
• Negative Sentiment: Management warned of fuel/refinery risks in California that could increase costs or constrain operations, a material input‑cost risk for airlines. Alaska Airlines CEO: California refineries are a big risk for us going forward
• Negative Sentiment: Detailed quarter metrics show steep year‑over‑year declines in profitability and cash balances, higher cost of sales and rising capex/liabilities — longer‑term fundamentals that could limit upside until margins recover. Q4 results: modest revenue growth, EPS beats but profitability slumps

Wall Street Analyst Weigh In

ALK has been the subject of several recent analyst reports. UBS Group set a $77.00 price objective on shares of Alaska Air Group and gave the company a “buy” rating in a research note on Friday, December 12th. Wall Street Zen raised shares of Alaska Air Group from a “sell” rating to a “hold” rating in a report on Friday. Raymond James Financial reiterated an “outperform” rating and set a $71.00 price target on shares of Alaska Air Group in a research report on Friday, December 19th. Susquehanna upped their price target on Alaska Air Group from $52.00 to $70.00 and gave the stock a “positive” rating in a report on Friday, January 9th. Finally, TD Cowen reaffirmed a “buy” rating on shares of Alaska Air Group in a research note on Monday, November 3rd. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $71.80.

Institutional Trading of Alaska Air Group

Several large investors have recently modified their holdings of ALK. Foster Dykema Cabot & Partners LLC acquired a new position in shares of Alaska Air Group during the 3rd quarter worth approximately $28,000. MAI Capital Management increased its position in Alaska Air Group by 80.5% during the second quarter. MAI Capital Management now owns 628 shares of the transportation company’s stock worth $31,000 after buying an additional 280 shares in the last quarter. AlphaQuest LLC acquired a new position in shares of Alaska Air Group in the third quarter worth $34,000. Smartleaf Asset Management LLC lifted its position in shares of Alaska Air Group by 43.2% in the third quarter. Smartleaf Asset Management LLC now owns 838 shares of the transportation company’s stock valued at $42,000 after acquiring an additional 253 shares in the last quarter. Finally, Country Trust Bank purchased a new stake in shares of Alaska Air Group in the third quarter valued at $45,000. 81.90% of the stock is currently owned by institutional investors and hedge funds.

Alaska Air Group Trading Up 4.1%

The firm has a market cap of $5.90 billion, a price-to-earnings ratio of 58.48, a price-to-earnings-growth ratio of 0.52 and a beta of 1.22. The business has a 50 day moving average of $47.94 and a 200 day moving average of $50.80. The company has a quick ratio of 0.49, a current ratio of 0.52 and a debt-to-equity ratio of 1.12.

Alaska Air Group Company Profile

Alaska Air Group is a publicly traded holding company headquartered in Seattle, Washington, that operates two main airlines—Alaska Airlines and Horizon Air. Through these carriers, the company offers scheduled passenger and cargo services across a network spanning the United States, Canada and Mexico. Its core business activities include domestic and international air transportation, loyalty program management under the Mileage Plan brand, and ancillary revenue streams such as baggage fees, in-flight sales and code-share partnerships with other global airlines.

The roots of Alaska Air Group trace back to the foundation of its flagship carrier, Alaska Airlines, in 1932.