Alaska Air Group, Inc. (ALK), on Thursday, posted a net profit for the third quarter, compared to a loss last year, helped by lower expenses mainly on lower fuel costs, as well as mark-to-market fuel hedge gains, nothwithstanding a drop in revenues. Earnings came in well ahead of Street estimates, while revenues fell short of expectations.
For the third quarter, the Seattle, Washington-based company posted net income of $87.6 million or $2.46 per share, compared to a net loss of $86.5 million or $2.40 per share in the prior-year quarter.
Results for the third quarter include mark-to-market fuel hedge gains of $4.6 million or $0.13 per share.
Excluding one-time items, net income for the quarter increased to $83.0 million or $2.33 per share from $39.9 million or $1.10 per share last year.
On average, nine analysts polled by Thomson Reuters expected the company to earn $2.26 per share for the quarter. Analysts' estimate typically excludes one-time charges and gains.
Quarterly revenues decreased to $967.4 million from $1.07 billion in the prior-year quarter. Analysts expected the company to report revenue of $971.52 million for the quarter.
Operating income for the quarter was $159.8 million, compared to operating loss of $120.0 million in the year-earlier period. Total operating expenses for the quarter decreased significantly to $807.6 million from $1.19 billion last year. Aircraft fuel, including hedging gains and losses for the quarter were $199.5 million, compared to $575 million in the year-ago quarter.
Alaska subsidiary Alaska Airlines' operating income for the third quarter was $136.7 million, compared to operating loss of $98.2 million in the year-ago period. Total operating revenues declined 8.8% to $858.8 million from $941.9 million in the same quarter last year.
Alaska Airlines' mainline passenger traffic for the third quarter edged up 0.2.%, while capacity declined 3.3%. Load factor increased 2.8 percentage points to 82.3%.
Horizon Air Industries Inc. operating income for the third quarter was $23.7 million, compared to operating loss of $21.6 million in the corresponding period last year. Quarterly operating revenues decreased 12.7% to $178.2 million from $204.1 million last year.
Horizon Air's passenger traffic for the quarter declined 7.6% on a 9.5% capacity decrease. Load factor increased by 1.6 percentage points to 77.9% from last year.
For the nine-month period, the company's net income was $97.5 million or $2.69 per share, compared to a net loss of $60.7 million or $1.67 per share last year. Excluding items, net income was $84.1 million or $2.32 per share, compared to a net loss of $12.0 million or $0.33 per share in the same period last year.
Total operating revenues for the quarter decreased to $2.55 billion from $2.84 billion in the year-ago period.
ALK is currently trading at $26.03, down $1.57 or 5.69%, on a volume of 0.67 million shares on the NYSE.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.