Alaska Air Group reported financial results for the third quarter of 2026, ending September 30. The company reported a GAAP net loss of $147 million, or $1.32 per share, and a GAAP pretax margin of 0.4%. Excluding certain tax impacts, the company reported an adjusted net loss of $35 million, or $0.31 per share. Adjusted earnings per share, excluding a tax adjustment, were $0.36.
Revenue for the quarter increased 14% year-over-year to $4.3 billion. This growth was driven by a 2.4% increase in available seat miles (capacity) and a 11.7% increase in revenue per available seat mile (RASM). The company noted that yield improved throughout the quarter, with September yield increasing approximately 17% year-over-year. Despite strong commercial momentum, the company faced a significant fuel headwind, with economic fuel costs reaching $3.94 per gallon, up from $3.75 in the prior year.
Alaska Air Group highlighted progress in its strategic initiatives. Diversified revenue, which includes operating revenue outside the main cabin, has grown to 54% of total revenue. Premium revenue grew approximately 25% and represented more than 36% of total revenue. The loyalty program contributed $721 million in cash remuneration, a 21% increase. The company’s international network expanded with the addition of Paris, Athens, Osaka, and Papeete, bringing the Seattle international network to nine routes.
Looking ahead, the company provided guidance for the fourth quarter of 2026. Capacity is expected to grow approximately 1% to 1.5% year-over-year, with growth concentrated in international flying. Unit revenue is expected to increase in the low double digits year-over-year. The company anticipates non-fuel unit costs to increase in the mid-single digits. For the full year, the company expects an adjusted loss per share between $5.50 and $5.00, inclusive of $1.8 billion in fuel expense above its initial plan.
On the operational front, Alaska Air Group announced several updates. The company intends to join the Atlantic and Pacific Joint International Businesses with oneworld and global partners. The company unveiled two new premium guest experiences, Aurora and Leihōkū, featuring lie flat suites. Additionally, the company introduced Premium Reserve, a new premium economy product set to debut in 2028. The company also announced new nonstop service from Seattle to Athens, Paris, Osaka, and Papeete beginning in spring 2027.
