Alaska Air posts wider loss in first quarter despite revenue growth

(Alliance News) - Alaska Air Group Inc on Wednesday reported strong revenue growth in the first quarter but widened its loss as rising costs weighed on performance.

The Seattle, Washington-based airline said its net loss widened to USD166 million in the first quarter ended March 31 from USD132 million a year earlier.

Diluted loss per share widened to USD1.35 from USD1.05.

Total revenue jumped 41% to USD3.14 billion from USD2.23 billion as total operating expenses increased 39% to USD3.33 billion from USD2.40 billion.

Chief Executive Officer Ben Minicucci commented: "We’re growing scale, relevance and loyalty in our hubs, we’re already recognising synergies from the combination with Hawaiian Airlines, and our employees have never been more engaged and excited about our future."

"Air Group capacity grew 3.9% during the quarter, approximately 1 point higher than expected, reflecting lower than expected flight cancellation rates...Our consolidated results reflect strong initial progress on the integration of Hawaiian Airlines, and the synergies it unlocks. We are realising benefits from our combined network, improved asset utilisation and greater connectivity for our guests," the airline added.

Passenger revenue rose 40% to USD2.81 billion from USD2.00 billion. Meanwhile, loyalty programme revenue rose 26% to USD207 million from USD164 million and cargo revenue surged 91% to USD122 million from USD64 million.

There was a notable rise in aircraft maintenance expenses with an 80% increase to USD220 million from USD122 million, and special items doubled to USD91 million from USD34 million.

Adjusted net debt fell 2.7% to USD3.81 billion as of March 31 from USD3.92 billion on December 31.

Looking ahead, Alaska Air said: "Given recent economic uncertainty and volatility, we are not providing an update to our full year 2025 guidance. We are assessing a variety of scenarios, and expect to be solidly profitable in 2025 even if revenue remains pressured throughout the second half of the year. Absent the softer macroeconomic outlook, areas of our business within our control are performing well and in line with our prior expectations. We will provide further updates to full year guidance later this year."

Alaska Air shares closed 2.6% higher at USD46.11 each in New York on Wednesday before falling 6.7% after hours.

By Elijah Dale, Alliance News reporter

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