Alaska Air Group Downgraded to Sell Amid Fuel Price Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 01 2026
0mins
Should l Buy ALK?
Source: seekingalpha
Alaska Air Group Inc (ALK) shares fell by 5.01% and hit a 5-day low amid broader market weakness, with the Nasdaq-100 down 0.46% and the S&P 500 down 0.49%.
The decline follows a downgrade to 'Sell' by Citi Research, citing concerns over future fuel prices and a weak earnings outlook. Analyst John Godyn pointed out that ALK's revenue per available seat mile (RASM) growth is underwhelming, and the company's optimistic EPS target of $10 for 2027 may not be achievable, leading to a target price cut from $51 to $32, indicating an 18% downside. This downgrade has raised concerns about ALK's profitability and market confidence.
The implications of this downgrade could lead to further selling pressure on ALK shares as investors reassess their positions in light of the negative outlook and the broader market's performance.
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Analyst Views on ALK
Wall Street analysts forecast ALK stock price to rise
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 40.840
Low
63.00
Averages
71.10
High
80.00
Current: 40.840
Low
63.00
Averages
71.10
High
80.00
About ALK
Alaska Air Group, Inc. is engaged in operating airlines. The Company operates through its subsidiaries Alaska Airlines, Inc., Hawaiian Holdings, Inc., Horizon Air Industries, Inc., and McGee Air Services. The Company's segments include Alaska Airlines, Hawaiian Airlines, and Regional. The Alaska Airlines segment includes scheduled air transportation of passengers and cargo on Boeing 737 (B737), Boeing 787 (B787), Boeing 717 (B717), Airbus A330 (A330), Airbus A321neo (A321neo), and others, throughout North America, Latin America, Asia, and the Pacific. The Regional segment includes Horizon's and other third-party carriers scheduled air transportation on E175 jet aircraft for passengers under capacity purchase agreements (CPAs). The Company serves more than 140 destinations throughout North America, Central America, Asia and across the Pacific. The Company provides freight and mail services (cargo) using both freighter aircraft and the bellies of its passenger aircraft.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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