Alaska Air Group, Inc. (ALK) AI Stock Analysis

Alaska Air Group, Inc., founded in 1932 and headquartered in Seattle, Washington, operates scheduled passenger and cargo air transportation across North America. The company organizes its airline network into three primary segments: Mainline, Regional, and Horizon. Mainline operates scheduled flights primarily using Boeing and Airbus jet aircraft to destinations across the United States and select locations in Mexico, Costa Rica, and Belize. The Regional segment connects smaller markets with major hubs across a shorter-distance network within the United States and Canada. Together with Horizon, the company provides scheduled travel and cargo services while maintaining operational efficiency across its network.

Alaska Air Group increased its annual revenue from $6.18B in FY2021 to $14.24B in FY2025, producing a five-year revenue CAGR of 31.9% from FY2020. However, profitability has contracted, with net income falling from $395.0M in FY2024 to $100.0M in FY2025 as net margin decreased from 3.4% to 0.7%. Over the trailing twelve months, revenue reached $14.76B, but operating margin was -2.9% and EPS was -$1.59. In the latest quarter ended June 30, 2026, quarterly revenue grew 9.7% year-over-year, while quarterly earnings fell 68.3%.

As of June 30, 2026, Alaska Air Group held $2.69B in cash and short-term investments against $7.62B in total debt, resulting in net debt of $4.92B. The company reported a current ratio of 0.55 and a debt-to-equity ratio of 2.08 on $3.67B of shareholders' equity. In FY2025, operating cash flow reached $1.25B while capital expenditures were $1.59B, generating free cash flow of -$339.0M. The company directed $570.0M toward share buybacks in FY2025, reducing its share count by 11.5% over five years.

Alaska Air Group trades at a forward P/E of 7.4x, lower than the 17.2x median of its US-listed Industrials peers. Its price-to-sales multiple of 0.3x is also below the peer median of 1.5x, while its EV/EBITDA stands at 13.7x compared to the sector median of 13.9x. The stock has underperformed broader benchmarks, falling 26.5% over the past year compared to a 16.8% return for the S&P 500. Over a five-year period, the stock declined 39.2% while the S&P 500 gained 83.0%.

Wall Street analysts maintain 11 Strong Buy, 4 Buy, and 1 Strong Sell ratings on Alaska Air Group. The mean price target of $55.06 sits 56.7% above the last close of $35.13 on October 16, 2026. For the fiscal year ending December 31, 2026, consensus estimates project an EPS of -$3.47 on revenue of $15.79B, with 12 analysts forecasting next fiscal year EPS to rebound to $3.38 on revenue of $17.20B. The company beat EPS estimates in 2 of the last 4 quarters, with its next earnings date scheduled for October 20, 2026.

This page is an AI-written research summary of Alaska Air Group, Inc. (ALK). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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