Operating margins have exhibited extreme volatility, shifting from a positive 11.1% in 2024Q3 to a negative 8.5% in 2026Q1, reflecting persistent pressure on expense discipline.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 14.4B | 14.24B | 11.73B | 10.43B | 9.65B | 6.18B | 3.57B | 8.78B | 8.26B | 7.89B | 5.93B | 5.6B | 5.37B | 5.16B | 4.66B | 4.32B | 3.83B | 3.4B | 3.66B | 3.51B | 3.33B | 2.98B | 2.72B | 2.44B | 2.22B | 2.14B | 2.18B | 2.08B | 1.9B | 1.74B | 1.59B |
| Revenue Growth % | 13.94% | 21.34% | 12.56% | 8.09% | 56.19% | 73.19% | -59.39% | 6.26% | 4.69% | 33.1% | 5.95% | 4.28% | 4.11% | 10.72% | 7.86% | 12.67% | 12.72% | -7.18% | 4.47% | 5.15% | 12.07% | 9.23% | 11.41% | 9.92% | 3.89% | -1.67% | 4.57% | 9.71% | 9.1% | 9.25% | 12.32% |
| Cost of Goods Sold | 3.12B | 5.74B | 8.87B | 7.96B | 7.51B | 5.36B | 4.35B | 6.42B | 6.17B | 5.27B | 3.46B | 3.31B | 3.6B | 3.54B | 3.35B | 2.15B | 966.2M | 713.8M | 1.79B | 888.4M | 1.11B | 2.13B | 1.83B | 1.61B | 1.49B | 1.46B | 1.45B | 1.18B | 1.06B | 1.03B | 1.08B |
| COGS % of Revenue | - | 40.34% | 75.62% | 76.38% | 77.89% | 86.77% | 121.96% | 73.06% | 74.72% | 66.73% | 58.35% | 59.18% | 66.99% | 68.66% | 71.91% | 49.77% | 25.21% | 21% | 48.74% | 25.34% | 33.41% | 71.69% | 67.06% | 65.69% | 67.13% | 68.37% | 66.65% | 56.71% | 55.78% | 59.23% | 67.54% |
| Gross Profit | 11.29B | 8.49B | 2.86B | 2.46B | 2.13B | 817M | -783M | 2.37B | 2.09B | 2.63B | 2.46B | 2.29B | 1.77B | 1.42B | 1.31B | 2.17B | 2.87B | 2.69B | 1.88B | 2.62B | 2.22B | 842.3M | 897.3M | 838.9M | 731M | 677.2M | 726.1M | 901.3M | 839.1M | 709.1M | 516.9M |
| Gross Margin % | 78.36% | 59.66% | 24.38% | 23.62% | 22.11% | 13.23% | -21.96% | 26.94% | 25.28% | 33.27% | 41.54% | 40.82% | 33.01% | 27.62% | 28.09% | 50.23% | 74.79% | 79% | 51.26% | 74.66% | 66.59% | 28.31% | 32.94% | 34.31% | 32.87% | 31.63% | 33.35% | 43.29% | 44.22% | 40.77% | 32.46% |
| Gross Profit Growth % | - | 196.92% | 16.16% | 15.47% | 161.08% | 204.34% | -133.09% | 13.26% | -20.45% | 6.57% | 7.83% | 28.95% | 24.44% | 8.87% | -39.69% | -24.33% | 6.71% | 43.07% | -28.28% | 17.88% | 163.62% | -6.13% | 6.96% | 14.76% | 7.94% | -6.73% | -19.44% | 7.41% | 18.33% | 37.18% | -0.08% |
| Operating Expenses | 11.06B | 8.19B | 2.29B | 2.07B | 2.06B | 132M | 992M | 1.3B | 1.45B | 1.42B | 1.16B | 987M | 810M | 586M | 767M | 1.72B | 1.65B | 1.66B | 3.44B | 1.6B | 1.51B | 3.53B | 3.08B | 2.82B | 2.64B | 2.56B | 2.46B | 2.17B | 1.96B | 1.85B | 1.75B |
| OpEx % of Revenue | - | 57.53% | 19.52% | 19.84% | 21.39% | 2.14% | 27.82% | 14.84% | 17.5% | 17.96% | 19.52% | 17.63% | 15.09% | 11.37% | 16.47% | 39.83% | 43.08% | 48.97% | 93.79% | 45.54% | 45.42% | 118.49% | 113.17% | 115.17% | 118.87% | 119.67% | 113.01% | 104.25% | 103.41% | 106.39% | 109.71% |
| Selling, General & Admin | 406M | 407M | 349M | 303M | 295M | 173M | 101M | 313M | 326M | 368M | 225M | 211M | 199M | 179M | 168M | 1.24B | 1.22B | 1.23B | -239.7M | 1.14B | 1.14B | 685.5M | 480.9M | 459.9M | 548.6M | 521.1M | 485.4M | 457.3M | 426.1M | 379.3M | 822.1M |
| SG&A % of Revenue | - | 2.86% | 2.97% | 2.91% | 3.06% | 2.8% | 2.83% | 3.56% | 3.94% | 4.66% | 3.79% | 3.77% | 3.71% | 3.47% | 3.61% | 28.67% | 31.83% | 36.23% | -6.54% | 32.49% | 34.28% | 23.04% | 17.66% | 18.81% | 24.67% | 24.34% | 22.29% | 21.96% | 22.45% | 21.81% | 51.63% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 7.79B | 1.94B | 1.77B | 1.77B | -41M | 891M | 990M | 1.12B | 1.05B | 910M | 776M | 611M | 407M | 0 | 482.2M | 431.2M | 441.9M | 427.5M | 457.6M | 371.5M | 2.84B | 2.6B | 2.36B | 2.1B | 2.04B | 1.98B | 1.71B | 1.54B | 1.47B | 924.7M |
| Operating Income | 221M | 303M | 570M | 394M | 70M | 685M | -1.77B | 1.06B | 643M | 1.21B | 1.31B | 1.3B | 962M | 838M | 570M | 448.9M | 471.6M | 267.4M | -172.2M | 212M | -87.3M | -7.4M | -79.8M | -11.1M | -88.9M | -121.8M | -20.6M | 199.9M | 211M | 139M | 89M |
| Operating Margin % | 1.53% | 2.13% | 4.86% | 3.78% | 0.73% | 11.09% | -49.78% | 12.11% | 7.78% | 15.3% | 22.02% | 23.19% | 17.92% | 16.25% | 12.24% | 10.4% | 12.31% | 7.87% | -4.7% | 6.05% | -2.62% | -0.25% | -2.93% | -0.45% | -4% | -5.69% | -0.95% | 9.6% | 11.12% | 7.99% | 5.59% |
| Operating Income Growth % | - | -46.84% | 44.67% | 462.86% | -89.78% | 138.59% | -266.98% | 65.32% | -46.77% | -7.5% | 0.62% | 34.93% | 14.8% | 47.02% | 26.98% | -4.81% | 76.37% | 255.28% | -181.23% | 342.84% | -1079.73% | 90.73% | -618.92% | 87.51% | 27.01% | -491.26% | -110.31% | -5.26% | 51.8% | 56.18% | 17.26% |
| EBITDA | 1.03B | 1.1B | 1.11B | 820M | 468M | 1.08B | -1.35B | 1.49B | 1.04B | 1.58B | 1.67B | 1.62B | 1.26B | 1.11B | 834M | 695.8M | 702.1M | 486.6M | 32.4M | 389.4M | 70.2M | 136M | 125.4M | 191.1M | 105.8M | 83.3M | 150.2M | 334.8M | 327.2M | 242.4M | 191.1M |
| EBITDA Margin % | 7.12% | 7.71% | 9.42% | 7.87% | 4.85% | 17.47% | -38% | 16.92% | 12.6% | 20.02% | 28.14% | 28.9% | 23.4% | 21.49% | 17.91% | 16.11% | 18.32% | 14.31% | 0.88% | 11.11% | 2.11% | 4.57% | 4.6% | 7.82% | 4.76% | 3.89% | 6.9% | 16.08% | 17.24% | 13.94% | 12% |
| EBITDA Growth % | -10.24% | -0.72% | 34.88% | 75.21% | -56.63% | 179.63% | -191.18% | 42.75% | -34.11% | -5.33% | 3.15% | 28.82% | 13.36% | 32.85% | 19.86% | -0.9% | 44.29% | 1401.85% | -91.68% | 454.7% | -48.38% | 8.45% | -34.38% | 80.62% | 27.01% | -44.54% | -55.14% | 2.32% | 34.98% | 26.84% | 13.41% |
| D&A (Non-Cash Add-back) | 805M | 795M | 536M | 426M | 398M | 394M | 420M | 423M | 398M | 372M | 363M | 320M | 294M | 270M | 264M | 246.9M | 230.5M | 219.2M | 204.6M | 177.4M | 157.5M | 143.4M | 205.2M | 202.2M | 194.7M | 205.1M | 170.8M | 134.9M | 116.2M | 103.4M | 102.1M |
| EBIT | 311M | 499M | 889M | 818M | 706M | -257M | -2.34B | 1.07B | 793M | 1.32B | 1.41B | 1.33B | 909M | 638M | 570M | 468.5M | 508M | 307.2M | -134.1M | 260.7M | 14.9M | 200.2M | -2.19B | -17.5M | -88.9M | -1.89B | -1.78B | -1.27B | -1.12B | 183.7M | -1.23B |
| Net Interest Income | -178M | -149M | -41M | -41M | -41M | -92M | -56M | -21M | -35M | -52M | -3M | 13M | -7M | -17M | -27M | -53M | -73M | -64.1M | -36.7M | -6.3M | -48.4M | -32.1M | 5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 87M | 94M | 101M | 80M | 53M | 25M | 31M | 42M | 38M | 34M | 27M | 21M | 21M | 18M | 19M | 34.4M | 35.6M | 32.6M | 65.6M | 53.9M | 54.3M | 30.9M | 1.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 265M | 243M | 142M | 121M | 94M | 117M | 87M | 63M | 73M | 86M | 30M | 8M | 28M | 35M | 46M | 87.3M | 108.3M | 92.9M | 102.3M | 115.8M | 53.3M | 63M | 19.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -159M | -157M | -25M | -71M | 9M | -56M | -65M | -47M | -58M | -49M | 39M | 14M | 13M | -22M | -18M | -55.2M | -65.1M | -64.5M | -84.3M | -10.4M | 8.4M | -29.3M | -29.9M | 46.5M | -30.2M | 62.8M | 17.4M | 20.8M | -6.6M | -15.4M | -24.7M |
| Pretax Income | 62M | 146M | 545M | 323M | 79M | 629M | -1.84B | 1.02B | 585M | 1.16B | 1.32B | 1.31B | 975M | 816M | 514M | 393.7M | 405.9M | 202.9M | -213.2M | 201.6M | -87.8M | 137.2M | -20.6M | 29M | -101.8M | -57.5M | -15.7M | 220.7M | 204.4M | 123.6M | 64.3M |
| Pretax Margin % | 0.43% | 1.03% | 4.64% | 3.1% | 0.82% | 10.18% | -51.6% | 11.57% | 7.08% | 14.68% | 22.19% | 23.44% | 18.16% | 15.83% | 11.04% | 9.12% | 10.59% | 5.97% | -5.82% | 5.75% | -2.63% | 4.61% | -0.76% | 1.19% | -4.58% | -2.69% | -0.72% | 10.6% | 10.77% | 7.11% | 4.04% |
| Income Tax | -11M | 46M | 150M | 88M | 21M | 151M | -516M | 247M | 148M | 199M | 519M | 464M | 370M | 308M | 198M | 149.2M | 154.8M | 81.3M | -77.3M | 76.6M | -35.2M | 52.7M | -5.3M | 15.5M | -34.6M | -18M | -2.3M | 86.5M | 80M | 51.2M | 26.3M |
| Effective Tax Rate % | -17.74% | 31.51% | 27.52% | 27.24% | 26.58% | 24.01% | 28.04% | 24.31% | 25.3% | 17.17% | 39.44% | 35.37% | 37.95% | 37.75% | 38.52% | 37.9% | 38.14% | 40.07% | 36.26% | 38% | 40.09% | 38.41% | 25.73% | 53.45% | 33.99% | 31.3% | 14.65% | 39.19% | 39.14% | 41.42% | 40.9% |
| Net Income | 73M | 100M | 395M | 235M | 58M | 478M | -1.32B | 769M | 437M | 960M | 797M | 848M | 605M | 508M | 316M | 244.5M | 251.1M | 121.6M | -135.9M | 125M | -52.6M | -5.9M | -15.3M | 13.5M | -118.6M | -39.5M | -70.3M | 134.2M | 124.4M | 72.4M | 38M |
| Net Margin % | 0.51% | 0.7% | 3.37% | 2.25% | 0.6% | 7.74% | -37.13% | 8.76% | 5.29% | 12.16% | 13.44% | 15.15% | 11.27% | 9.85% | 6.79% | 5.66% | 6.55% | 3.58% | -3.71% | 3.57% | -1.58% | -0.2% | -0.56% | 0.55% | -5.33% | -1.85% | -3.23% | 6.45% | 6.56% | 4.16% | 2.39% |
| Net Income Growth % | -79.78% | -74.68% | 68.09% | 305.17% | -87.87% | 136.1% | -272.17% | 75.97% | -54.48% | 20.45% | -6.01% | 40.17% | 19.09% | 60.76% | 29.24% | -2.63% | 106.5% | 189.48% | -208.72% | 337.64% | -791.53% | 61.44% | -213.33% | 111.38% | -200.25% | 43.81% | -152.38% | 7.88% | 71.82% | 90.53% | 119.65% |
| Net Income (Continuing) | 73M | 100M | 395M | 235M | 58M | 478M | -1.32B | 769M | 437M | 960M | 814M | 848M | 605M | 508M | 316M | 244.5M | 251.1M | 121.6M | -135.9M | 125M | -52.6M | 84.5M | -15.3M | 13.5M | -67.2M | -43.4M | -20.4M | 134.2M | 124.4M | 72.4M | 38M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.64 | 0.87 | 3.08 | 1.83 | 0.45 | 3.77 | -10.59 | 6.19 | 3.52 | 7.75 | 6.41 | 6.56 | 4.42 | 3.58 | 2.20 | 1.67 | 1.71 | 0.84 | -0.93 | 0.77 | -0.35 | -0.04 | -0.14 | 0.13 | -1.12 | -0.37 | -0.66 | 1.26 | 1.20 | 0.88 | 0.51 |
| EPS Growth % | -80.73% | -71.75% | 68.31% | 306.67% | -88.06% | 135.6% | -271.08% | 75.85% | -54.58% | 20.9% | -2.29% | 48.42% | 23.46% | 62.73% | 31.74% | -2.34% | 103.57% | 190.32% | -220.78% | 320% | -695.45% | 68.57% | -207.69% | 111.61% | -202.7% | 43.94% | -152.38% | 5% | 36.36% | 72.55% | 59.38% |
| EPS (Basic) | - | 0.85 | 3.13 | 1.84 | 0.46 | 3.82 | -10.59 | 6.24 | 3.55 | 7.79 | 6.45 | 6.61 | 4.47 | 3.63 | 2.23 | 1.71 | 1.75 | 0.85 | -0.93 | 0.78 | -0.35 | -0.05 | -0.14 | 0.13 | -1.12 | -0.37 | -0.66 | 1.27 | 1.33 | 1.23 | 0.66 |
| Diluted Shares Outstanding | 114.29M | 117.36M | 128.37M | 128.71M | 127.9M | 126.78M | 123.45M | 124.29M | 123.97M | 123.85M | 124.39M | 129.37M | 136.8M | 141.88M | 143.57M | 146.84M | 147.14M | 144.62M | 145.37M | 161.7M | 151.76M | 134.09M | 107.44M | 106.92M | 106.18M | 106M | 105.76M | 106.03M | 105.47M | 82.04M | 58.13M |
| Basic Shares Outstanding | 114.29M | 115.53M | 126.14M | 127.38M | 126.66M | 125.06M | 123.45M | 123.28M | 123.23M | 123.21M | 123.56M | 128.37M | 135.44M | 139.91M | 141.42M | 143.51M | 143.29M | 143.26M | 145.37M | 160.5M | 151.76M | 112.38M | 107.44M | 106.59M | 106.18M | 106M | 105.76M | 105.49M | 93.55M | 59.1M | 57.2M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 22.5% | 36.16% | 15.42% | 17.06% | 12.03% | 11.24% | 5.51% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Operational margin volatility
According to the provided quarterly data, Alaska Air Group experienced a significant deceleration in revenue growth, shifting from a peak of 40.5% in 2025Q1 to a more modest 5.2% by 2026Q1, suggesting that the post-pandemic demand surge has largely normalized across their core West Coast markets.
The sharp decline in year-over-year growth rates indicates that the company is struggling to maintain the momentum seen in early 2025. Investors should monitor whether this deceleration reflects a broader softening in regional business travel or if it is a temporary lull preceding the integration of new capacity.
As reported in the financial statements, Alaska Air Group's operating margins have exhibited extreme sensitivity, swinging from a positive 11.1% in 2024Q3 to a negative 8.5% in 2026Q1, highlighting the inherent difficulty in maintaining profitability within a high fixed-cost airline operating environment.
The erratic nature of these margins suggests that the company lacks the pricing power necessary to fully offset fluctuations in operational costs. This volatility warrants further investigation into whether the current cost structure is fundamentally misaligned with the company's revenue-generating capacity during periods of lower demand.
Based on the income statement figures, Alaska Air Group's cost of goods sold and operating expenses have frequently outpaced revenue gains, leading to net losses in three of the last ten quarters and underscoring the persistent pressure on the company's overall expense discipline.
The inability to consistently scale operating income relative to revenue suggests that management is facing significant headwinds in controlling labor and fuel-related expenditures. This trend implies that the company may remain vulnerable to even minor inflationary pressures in the near term.
Analysis of the recent quarterly performance reveals that Alaska Air Group's net margin has frequently dipped into negative territory, with a -5.8% net margin reported in 2026Q1, which raises concerns regarding the long-term viability of their current operational model in a competitive landscape.
Short-sellers would likely focus on the recurring net losses and the inability to maintain consistent profitability despite revenue growth. This pattern suggests that the company's reliance on specific regional hubs may be a double-edged sword, limiting their ability to pivot during sector-wide downturns.
Quick answers to the most common questions about buying ALK stock.
For fiscal year 2025, Alaska Air Group, Inc. (ALK) reported total revenue of $14.24B. This represents a 794.3% increase compared to $1.59B in 1996.
Alaska Air Group, Inc. (ALK) is profitable, generating $100.0M in net income for the fiscal year ending 2025 with a net profit margin of 0.7%.
Alaska Air Group, Inc. (ALK) reported an operating income of $303.0M, resulting in an operating profit margin of 2.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Alaska Air Group, Inc. (ALK) generated $8.49B in gross profit for the year, representing a gross profit margin of 59.7%. This demonstrates the company's core pricing power and production efficiency.