Alaska Air Group Reports 3% Revenue Growth to $3.63 Billion in Q4 FY2025
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Revenue Performance: Alaska Air reported a 3% year-over-year revenue increase to $3.63 billion in Q4 FY2025, slightly missing the market expectation of $3.64 billion, indicating resilience despite a temporary demand slowdown due to government shutdowns.
- Profitability Improvement: The adjusted EPS of 43 cents significantly exceeded the company's guidance of 10 cents and the consensus estimate of 12 cents, reflecting effective cost control and diverse revenue streams.
- Route Expansion: The company is set to launch new Seattle-London and Seattle-Rome routes in spring 2026, which is expected to further boost international business, alongside the introduction of multi-currency transactions and multilingual websites to enhance overseas bookings.
- Future Outlook: Alaska Air anticipates adjusted EPS for FY2026 to be between $3.50 and $6.50, with first-quarter managed corporate revenues projected to rise 20% year-over-year, demonstrating strong market demand and ongoing profitability improvements.
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Analyst Views on ALK
Wall Street analysts forecast ALK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALK is 73.00 USD with a low forecast of 64.00 USD and a high forecast of 94.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 52.370
Low
64.00
Averages
73.00
High
94.00
Current: 52.370
Low
64.00
Averages
73.00
High
94.00
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 on Alaska's Boeing jet aircraft for passengers and cargo. The Hawaiian Airlines segment includes scheduled air transportation on Hawaiian's Boeing and Airbus jet aircraft for passengers and cargo. 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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