BMO Initiates Coverage on Alaska Air with Outperform Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 24 2026
0mins
Should l Buy ALK?
Source: seekingalpha
Alaska Air Group Inc (ALK) has seen its stock price decline by 5.01%, hitting a 5-day low amid broader market weakness, with the Nasdaq-100 down 1.43% and the S&P 500 down 1.12%.
BMO Capital Markets has initiated coverage on Alaska Air with an Outperform rating and a price target of $50, recognizing the company's long-term profit improvement potential despite current market challenges. Analyst Michael Goldie noted that Alaska Air is executing a strategic framework that includes integrating Hawaiian Airlines and reducing leverage, which are expected to enhance profitability in the long run. Although visibility into immediate cost normalization is limited, the analyst believes that management's effective execution will lead to improved financial performance.
The initiation of coverage by BMO could provide a positive outlook for Alaska Air, suggesting that the stock may have potential for recovery as market conditions improve, despite the current downturn.
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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: 43.540
Low
63.00
Averages
71.10
High
80.00
Current: 43.540
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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- Financial Performance: The revenue figure indicates a strong financial performance for the airline during this period.
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- Expected Loss: Analysts project a loss of $1.55 per share, indicating persistent challenges within the airline industry that could impact investor confidence and exert downward pressure on the stock price.
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- Mixed Analyst Ratings: Analysts have mixed ratings on Alaska Air, with some optimistic about its long-term prospects while others remain cautious about its short-term performance, which could lead to increased stock price volatility.
See More
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- Alaska Air Revenue: Alaska Air reported total operating revenue of USD 3,300 million.
- Comparison with Estimates: This figure is slightly below the estimates provided by Ibes, which projected revenue at USD 3,308 million.
See More
Alaska Air Reports Q1 Adjusted EPS of -$1.68, Below IBES Estimate of -$1.35
Alaska Air Q1 Adjusted EPS: Alaska Air reported an adjusted earnings per share (EPS) of $1.68 for the first quarter.
Comparison with Estimates: This EPS figure exceeded the estimates, which were projected at $1.35.
See More
Alaska Air Group Inc Q1 Earnings Forecast at $-1.35 per Share, Revenue Expected at $3.31 Billion - LSEG IBES Data
- Financial Overview: Alaska Air Group reported a revenue of $3.31 billion for Q1, indicating a strong performance compared to the previous year's $1.35 billion.
- Market Position: The company continues to solidify its position in the airline industry, showcasing resilience and growth in a competitive market.
See More
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- Total Operating Revenue: Alaska Air Group Inc reported a total operating revenue of $3.3 billion for the first quarter.
- Financial Performance: The revenue figure indicates a strong financial performance for the airline during this period.
See More
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- Financial Performance: Alaska Air Group reported a revenue of $3.3 billion for Q1 2026.
- Year-over-Year Growth: The unit revenue increased by 3.5% compared to the previous year.
See More
Alaska Air Group to Release Q1 Earnings with Expected Loss
- Earnings Release Date: Alaska Air Group is set to announce its Q1 earnings on April 20, drawing significant market attention regarding its financial performance amid ongoing economic challenges.
- Expected Loss: Analysts project a loss of $1.55 per share, indicating persistent challenges within the airline industry that could impact investor confidence and exert downward pressure on the stock price.
- Market Reaction: Despite the anticipated losses, Alaska Air's stock rose by 10.3% following the announcement, reflecting a degree of market optimism regarding the company's potential for recovery.
- Mixed Analyst Ratings: Analysts have mixed ratings on Alaska Air, with some optimistic about its long-term prospects while others remain cautious about its short-term performance, which could lead to increased stock price volatility.
See More
