A Business at a Glance
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ITEM 1. BUSINESS Alaska Air Group, Inc. ("Air Group" or the "Company") is a Delaware corporation incorporated in 1985. Air Group operated three airlines, Alaska Airlines, Hawaiian Airlines, and Horizon Air, through October 29, 2025. On that date, Alaska Airlines' and Hawaiian Airlines' operations were combined under Alaska's Federal Aviation Administration (FAA) operating certificate. Hawaiian Airlines is preserved as a distinct brand, providing a unique guest experience to guests traveling to, from, or within the Hawaiian Islands. Alaska Airlines was organized in 1932 and incorporated in 1937 in the state of Alaska. Hawaiian Airlines was originally incorporated in 1929 in the Territory of Hawai'i, and has been a Delaware corporation and wholly-owned subsidiary of Hawaiian Holdings, Inc. since 2005. Hawaiian Holdings, Inc. was acquired by Air Group in 2024. Horizon Air is a Washington corporation that was incorporated and began service in 1981, and was acquired by Air Group in 1986.
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Passenger | $5.50B | $8.81B | $9.53B | $10.65B | $12.84B | 36% |
Passenger ticket revenue, net of taxes and fees | — | $7.43B | $8.02B | $8.93B | $10.76B | 30% |
Operating Segments | — | $8.81B | $9.53B | $10.65B | $8.13B | 23% |
Loyalty program passenger revenue | — | $931M | $1.03B | $1.18B | $1.43B | 4% |
Loyalty program other | — | — | $648M | $733M | $855M | 2% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 14.2B | 14.2B | 11.7B | 10.4B | 9.6B | 6.2B |
| Net Income | 100M | 100M | 395M | 235M | 58M | 478M |
| EPS | $0.83 | $0.83 | $3.08 | $1.83 | $0.45 | $3.77 |
| Free Cash Flow | 940M | 940M | 1.2B | -444M | -253M | 738M |
| ROIC | 2.0% | 2.7% | 6.7% | 6.1% | 1.3% | 14.2% |
| Gross Margin | 12.7% | 12.7% | 14.6% | 12.5% | 9.3% | 21.4% |
| Debt/Equity | 1.61 | 1.61 | 1.13 | 0.75 | 0.69 | 0.80 |
| Dividends/Share | $0.00 | - | - | - | $0.00 | $0.00 |
| Operating Income | 303M | 303M | 570M | 394M | 70M | 685M |
| Operating Margin | 2.1% | 2.1% | 4.9% | 3.8% | 0.7% | 11.1% |
| ROE | 2.4% | 2.4% | 9.3% | 5.9% | 1.5% | 14.1% |
| Shares Outstanding | 120M | 120M | 128M | 128M | 129M | 127M |
ALASKA AIR GROUP, INC. passes 1 of 9 quality checks, indicating weak fundamentals.
ALASKA AIR GROUP, INC. trades at 48.2x trailing earnings, compared to its 15-year median P/E of 16.7x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 4.9x vs a median of 9.1x. The company's 5-year average ROIC is 6.2% with a gross margin of 14.1%. Total shareholder yield (buybacks) is 11.8%. At current prices, the estimated annualized return to fair value is +12.6%.
ALASKA AIR GROUP, INC. (ALK) has a current P/E ratio of 48.2, compared to its historical median P/E of 16.7. The stock is currently considered Expensive based on its historical valuation range.
ALASKA AIR GROUP, INC. (ALK) has a 5-year average return on invested capital (ROIC) of 6.2%. This is below average and may indicate limited pricing power.
ALASKA AIR GROUP, INC. (ALK) has a market capitalization of $4.8B. It is classified as a mid-cap stock.
ALASKA AIR GROUP, INC. (ALK) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 11.84%.
Based on historical P/E analysis, ALASKA AIR GROUP, INC. (ALK) appears expensive. The current P/E of 48.2 is 189% above its historical median of 16.7. The estimated fair value CAGR (P/E method) is -16.6%.
ALASKA AIR GROUP, INC. (ALK) operates in the Air Transportation, Scheduled industry, within the Industrials sector.
ALASKA AIR GROUP, INC. (ALK) reported annual revenue of $14.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
ALASKA AIR GROUP, INC. (ALK) has a net profit margin of 0.7%. This is a modest margin.
ALASKA AIR GROUP, INC. (ALK) generated $940 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ALASKA AIR GROUP, INC. (ALK) has a debt-to-equity ratio of 1.61. This indicates higher leverage, which may increase financial risk.
ALASKA AIR GROUP, INC. (ALK) reported earnings per share (EPS) of $0.83 in its most recent fiscal year.
ALASKA AIR GROUP, INC. (ALK) has a return on equity (ROE) of 2.4%. This indicates moderate shareholder returns.
ALASKA AIR GROUP, INC. (ALK) has a 5-year average gross margin of 14.1%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 16 years of financial data for ALASKA AIR GROUP, INC. (ALK), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ALASKA AIR GROUP, INC. (ALK) has a book value per share of $34.18, based on its most recent annual SEC filing.