Alaska Air Group, Inc. reported a $147 million third-quarter loss and forecast an adjusted loss for 2026 after higher fuel prices pushed its full-year pretax outlook below zero.
Revenue rose 14% to $4.3 billion, but the airline group lost $1.32 a share. Its adjusted loss was $35 million, or $0.31 a share. Alaska Air Group disclosed the results in an earnings release furnished with a Form 8-K filed with the SEC on Oct. 20.
Economic fuel costs reached $3.94 per gallon in the quarter, compared with the company’s earlier estimate of $3.75. Alaska Air Group said the increase was the main reason its full-year pretax forecast changed from a profit to a loss.
That shift also changed the company’s estimated annual tax rate. A reassessment of tax benefits associated with losses earlier in the year reduced third-quarter adjusted earnings by $0.67 a share. Excluding the $75 million tax adjustment, a supplemental calculation in the release shows $40 million in adjusted net income, or $0.36 a share. The adjustment remains part of the company’s full-year adjusted results.
The company expanded capacity 2.4% from a year earlier, while revenue per available seat mile rose 11.7%. That measure compares revenue with the number of seats offered and the distance flown. CEO Ben Minicucci cited growth in premium, international, cargo and loyalty businesses, but said he was dissatisfied with the quarter’s overall result.
Alaska Air Group now expects a full-year adjusted loss of $5.00 to $5.50 a share. Its projection includes fuel expense $1.8 billion above its original plan. For the fourth quarter, the company forecasts economic fuel costs of $4.65 to $4.85 per gallon.
The company has scheduled an earnings call for Oct. 21 at 11:30 a.m. ET.
