# EDGAR Filing Document

**Accession Number:** 0000766421
**File Stem:** 0000766421-25-000026
**Filing Date:** 2025-7
**Character Count:** 61768
**Document Hash:** f2fa77733672fa83307c4c58c6af80c8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000766421-25-000026.hdr.sgml**: 20250723

**ACCESSION NUMBER**: 0000766421-25-000026

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 24

**CONFORMED PERIOD OF REPORT**: 20250723

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250723

**DATE AS OF CHANGE**: 20250723

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ALASKA AIR GROUP, INC.
- **CENTRAL INDEX KEY:** 0000766421
- **STANDARD INDUSTRIAL CLASSIFICATION:** AIR TRANSPORTATION, SCHEDULED [4512]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 911292054
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-08957
- **FILM NUMBER:** 251143890

**BUSINESS ADDRESS:**
- **STREET 1:** 19300 INTERNATIONAL BOULEVARD
- **CITY:** SEATTLE
- **STATE:** WA
- **ZIP:** 98188
- **BUSINESS PHONE:** 206-392-5040

**MAIL ADDRESS:**
- **STREET 1:** 19300 INTERNATIONAL BOULEVARD
- **CITY:** SEATTLE
- **STATE:** WA
- **ZIP:** 98188

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ALASKA AIR GROUP INC
- **DATE OF NAME CHANGE:** 19920703

?xml version='1.0' encoding='ASCII'? alk-20250723

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**FORM 8-K** 

**CURRENT REPORT PURSUANT**

**TO SECTION 13 OR 15(D) OF THE**

**SECURITIES EXCHANGE ACT OF 1934**

**July 23, 2025** 

(Date of earliest event reported)

**ALASKA AIR GROUP, INC.** 

(Exact Name of Registrant as Specified in Its Charter)

**Delaware** 

(State or Other Jurisdiction of Incorporation)

---

| | |
|:---|:---|
| **1-8957** | **91-1292054** |
| (Commission File Number) | (IRS Employer Identification No.) |

---

---

| | | | |
|:---|:---|:---|:---|
| **19300 International Boulevard** | **Seattle** | **Washington** | **98188** |
| (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Zip Code) |

---

**(206) 392-5040** 

(Registrant's Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (*see* General Instruction A.2. below):

☐&nbsp;&nbsp;&nbsp;&nbsp; Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐&nbsp;&nbsp;&nbsp;&nbsp; Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Ticker Symbol** | **Name of each exchange on which registered** |
| Common stock, $0.01 par value | ALK | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

This document is also available on our website at http://investor.alaskaair.com

------

**ITEM 2.02. Results of Operations And Financial Condition**

On July 23, 2025, Alaska Air Group, Inc. (Air Group) issued a press release and certain supplemental materials reporting financial results for the second quarter of 2025. The press release is furnished herein as Exhibit 99.1. Supplemental information is furnished herein as Exhibit 99.2.

**ITEM 7.01. Regulation FD Disclosure**

Pursuant to 17 CFR Part 243 (Regulation FD), the Company is submitting information relating to its financial and operational outlook in a press release as well as supplemental materials.

In accordance with General Instruction B.2 of Form 8-K, the information under this item shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing. This report will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.

**ITEM 9.01. Financial Statements and Other Exhibits**

---

| | |
|:---|:---|
| <u>[Exhibit 99.1](ex9917232025earningsrelease.htm)</u> | Second Quarter 2025 Earnings Press Release dated July 23, 2025 |
| <u>[Exhibit 99.2](alksupplemental2q25.htm)</u> | Supplemental Earnings Materials |
| 104 | Cover Page Interactive Data File - embedded within the Inline XBRL Document |

---

**Signatures**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

<u>ALASKA AIR GROUP, INC.</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Registrant

Date: July 23, 2025

<u>/s/ EMILY HALVERSON</u>

Emily Halverson

Vice President Finance, Controller, and Treasurer

## Exhibit 99.1

**Exhibit 99.1**

![alaskaairgrouplogob03.jpg](alaskaairgrouplogob03.jpg)

July 23, 2025

---

| | |
|:---|:---|
| **Media contact:** | **Investor/analyst contact:** |
| Media Relations | Ryan St. John |
| (206) 304-0008 | VP Finance, Planning and Investor Relations |
|  | ALKInvestorRelations@alaskaair.com |

---

**Alaska Air Group reports second quarter 2025 results**

*Announced first transatlantic route in Air Group history: Seattle to Rome starting May 2026*

*Alaska Mileage Plan named #1 airline rewards program by U.S. News & World Report for the 11th consecutive year*

*Reported earnings per share of $1.42, with adjusted earnings per share of $1.78, ahead of Wall Street expectation and previous guidance range*

SEATTLE — Alaska Air Group (NYSE: ALK) today reported financial results for the second quarter ending June 30, 2025.

The Alaska and Hawaiian teams closed out an impactful quarter that included the launch of a global network transformation and performance that beat expectations.

"The results this quarter are clear evidence of our team's disciplined execution and unwavering focus on what we can control: delivering a remarkable guest experience, driving operational excellence and unlocking the value of our newly combined network and commercial platform," said CEO Ben Minicucci. "I've never been more confident in our team of 30,000 to execute our Alaska Accelerate plan and position Air Group for long-term success."

**Quarter in Review:**

Air Group's Consolidated Statements of Operations, Consolidated Balance Sheets, and Summary Cash Flow Statement include Hawaiian Airlines from September 18, 2024 onward. For comparability of financial and operational results, historical information has also been provided on a pro forma basis within the Supplementary Pro Forma Comparative Financial and Operating Information in this filing and in prior 8-K filings. The pro forma information provided assumes Hawaiian is included in both 2024 and 2025.

Air Group delivered strong second quarter results, with a Generally Accepted Accounting Principles (GAAP) pretax margin of 6.4% and a GAAP net income per share of $1.42.

---

| | | |
|:---|:---|:---|
| **Q2 2025 Results** | **Prior Expectation** | **Actual Results** |
| Capacity (ASMs) % change versus pro forma 2024 | Up 2% to 3% | Up ~2.7% |
| RASM % change versus pro forma 2024 | Flat to down low single digits | Down ~(0.6)% |
| CASMex % change versus pro forma 2024 | Up mid to high single digits | Up ~6.5% |
| Adjusted earnings per share | $1.15 to $1.65 | $1.78 |

---

Our adjusted pretax margin was 8.0% and our adjusted earnings per share was $1.78, exceeding the high end of our previously issued guidance. Just 10 months post-acquisition, Hawaiian's second quarter adjusted pretax margin expanded by 11-points

------

versus prior year, surpassing breakeven for the first time since 2019. Our second quarter results affirm our strategy is delivering notable progress across the network and providing greater connectivity for our guests. Our team is delivering on the initiatives that underpin Alaska Accelerate and we remain committed to delivering our goal of $1 billion in incremental profit by 2027.

Second quarter record revenue topped $3.7 billion, resulting in year-over-year RASM that is down 0.6%, which we believe will once again lead the industry. This performance is enabled by our commercial initiatives and focus on revenue diversification; in the second quarter 49% of revenue was generated outside the main cabin. Premium revenue grew 5% year-over-year, cargo revenue grew 34% year-over-year, and our loyalty program cash remuneration grew 5% year-over-year.

Unit costs excluding fuel, freighter costs, and special items increased 6.5% year-over-year, in line with prior guidance. Economic fuel price per gallon was $2.39 in the second quarter, reflecting both moderating crude oil and West Coast refining prices throughout much of the quarter. During the quarter Hawaiian Airlines experienced a cybersecurity incident. We took immediate steps to safeguard our airlines and remain engaged with authorities and experts to conclude our investigation. Our operations were not affected.

**Third Quarter and Full Year Forecast Information:**

We have recently seen a positive inflection in traffic, yield and revenue intake for both Alaska and Hawaiian Airlines' bookings. We have also adjusted our 2025 capacity expectations to approximately 2% year-over-year growth. These changes reflect 2-point reductions in off-peak flying in the third and fourth quarters relative to our prior expectations, and are expected to be margin accretive. With recent changes to the demand environment, and our continued delivery on synergy and commercial initiative commitments, our outlook for full year earnings per share is greater than $3.25.

Our third quarter adjusted earnings per share is expected to be between $1.00 and $1.40, including an expected ~10 cent impact from an IT outage that resulted in irregular operations in July. Costs remain in line with our expectation, and reflect strategic investments as well as elevated real estate costs, maintenance costs and new labor agreements. Our capacity expectations will pressure unit costs in the third quarter, which are expected to be up mid to high single digits year-over-year, before improving meaningfully in the fourth quarter. We still anticipate delivering full year unit costs in line with our prior expectations.

---

| | | |
|:---|:---|:---|
| | **Q3 Expectation** | **Full Year Expectation** |
| Capacity (ASMs) % change versus pro forma 2024 | Down ~1% | Up ~2% |
| RASM % change versus pro forma 2024 | Flat to up low single digits | Flat to up low single digits |
| CASMex % change versus pro forma 2024 | Up mid to high single digits | Up mid single digits |
| Adjusted earnings per share | $1.00 to $1.40 | >$3.25 |

---

**Financial Results and Updates:**

• Reported GAAP net income for the second quarter of 2025 of $172 million, or $1.42 per share, which includes Hawaiian results, compared to net income of $220 million, or $1.71 per share, for the second quarter of 2024, which does not include Hawaiian results.

• Reported net income for the second quarter of 2025, excluding special items and other adjustments, of $215 million, or $1.78 per share, which includes Hawaiian results, compared to net income of $327 million, or $2.55 per share, for the second quarter of 2024, which does not include Hawaiian results.

------

• Repurchased 8.7 million shares of common stock for approximately $428 million in the second quarter, bringing total repurchases to 10.5 million shares for approximately $535 million for the six months ended June 30, 2025.

• Generated $376 million in operating cash flow for the second quarter.

• Held $2.1 billion in unrestricted cash and marketable securities as of June 30, 2025.

**Operational Updates:** 

• Announced new nonstop service between Seattle and Rome beginning in May 2026, the first transatlantic route for Air Group.

• Began new daily nonstop service between Seattle and Tokyo, the first long-haul aircraft international destination from Seattle for Air Group.

• Expanded summer service with twice-daily A330 flights between Seattle and Anchorage, boosting cargo capacity equivalent to two 737 freighters.

• Expanded our combined fleet by twelve aircraft during the second quarter, taking delivery of three 737-8s, four 737-9s, one 787-9, two E175s, and two A330-300 freighters.

• Exercised options for twelve 737-10s with expected deliveries through 2028.

• Announced a new Boeing 787-9 base in Seattle and five additional 787-9s to support our international growth.

• Reached an agreement to sell Alaska's twelve 737-900s, with four aircraft sold in the second quarter and the remaining eight to be sold in the second half of 2025.

• Began the cabin refresh of Alaska's 737 fleet to expand Premium and First Class seating and elevate our guests' travel experience, with modifications expected to be completed in 2026.

• Ratified a four-year CBA with Horizon's AMFA-represented technicians and reached a tentative agreement with IAM-represented McGee Air Services employees.

• Appointed Pete Shimer to the Air Group Board of Directors serving on the Audit and Safety Committees.

**Loyalty and Guest Experience:**

• Launched enhanced benefit for Alaska Airlines Visa Signature® and Alaska Airlines Visa® Business cardholders, allowing Companion Fare redemption on Hawaiian Airlines flights within North America, including the state of Hawaiʻi.

• Announced expanded partnership with Qantas, enabling Qantas Frequent Flyers to redeem on Hawaiian Airlines' global network, and a new partnership with Philippine Airlines. Mileage Plan members can now earn on Philippine Airlines flights, and redemptions are coming soon.

• Launched Chef's (tray) Table, a new rotating First Class dining experience featuring seasonal menus crafted by celebrated West Coast chefs, including James Beard Award-winner Chef Brady Ishiwata Williams.

• Expanded fresh meal options for guests seated in the Main Cabin to more flights, now available on routes as short as 670 miles.

• Alaska Mileage Plan recognized as the Best Airline Rewards Program by U.S. News & World Report for the 11th consecutive year.

• Recognized by the Airline Passenger Experience Association as the Best Major Airline in North America in 2025.

------

The following table reconciles the company's reported GAAP net income per share (EPS) for the three and six months ended June 30, 2025 and 2024 to adjusted amounts.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** |
| | **2025** | **2025** | **2024** | **2024** |
| ***(in millions, except per share amounts)*** | **Dollars** | **Per Share** | **Dollars** | **Per Share** |
| Net income | $**172** | $**1.42** | $220 | $1.71 |
| Adjusted for: |  |  |  |  |
| &nbsp;&nbsp;Mark-to-market fuel hedge adjustments | **(1)** | **(0.01)** | (5) | (0.04) |
| &nbsp;&nbsp;Losses on foreign debt | **2** | **0.02** |  |  |
| &nbsp;&nbsp;Special items - operating | **56** | **0.46** | 146 | 1.14 |
| &nbsp;&nbsp;Income tax effect of adjustments above | **(14)** | **(0.11)** | (34) | (0.26) |
| **Adjusted net income** | $**215** | $**1.78** | $327 | $2.55 |
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
| ***(in millions, except per-share amounts)*** | **Dollars** | **Per Share** | **Dollars** | **Per Share** |
| Net income | $**6** | $**0.05** | $88 | $0.69 |
| Adjusted for: |  |  |  |  |
| &nbsp;&nbsp;Mark-to-market fuel hedge adjustments | **(4)** | **(0.03)** | (18) | (0.14) |
| &nbsp;&nbsp;Losses on foreign debt | **7** | **0.05** |  |  |
| &nbsp;&nbsp;Special items - operating | **147** | **1.19** | 180 | 1.41 |
| &nbsp;&nbsp;Income tax effect of adjustments above | **(36)** | **(0.29)** | (39) | (0.31) |
| **Adjusted net income** | $**120** | $**0.97** | $211 | $1.65 |

---

A conference call regarding the second quarter results will be streamed online at 8:30 a.m. PDT on July 24, 2025. It can be accessed at www.alaskaair.com/investors. For those unable to listen to the live broadcast, a replay will be available after the conclusion of the call.

References in this update to "Air Group," "Company," "we," "us," and "our" refer to Alaska Air Group, Inc. and its subsidiaries, unless otherwise specified.

This news release may contain forward-looking statements subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. These statements relate to future events and involve known and unknown risks and uncertainties that may cause actual outcomes to be materially different from those indicated by our forward-looking statements, assumptions or beliefs. For a discussion of risks and uncertainties that may cause our forward-looking statements to differ materially, see Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Some of these risks include competition, labor costs, relations and availability, general economic conditions, increases in operating costs including fuel, uncertainties regarding the ability to successfully integrate the operations of the recently completed acquisition of Hawaiian Holdings, Inc. and the ability to realize anticipated cost savings, synergies, or growth from the acquisition, inability to meet cost reduction and other strategic goals, seasonal fluctuations in demand and financial results, supply chain risks, events that negatively impact aviation safety and security, cybersecurity risks, and changes in laws and regulations that impact our business. All of the forward-looking statements are qualified in their entirety by reference to the risk factors discussed in our most recent Form 10-K and in our subsequent SEC filings. We operate in a continually changing business environment, and new risk factors emerge from time to time. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on our business or events described in any forward-looking statements. We expressly disclaim any obligation to publicly update or revise any forward-looking statements made today to conform them to actual results. Over time, our actual results, performance or achievements may differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, assumptions or beliefs and such differences might be significant and materially adverse.

Alaska Airlines, Hawaiian Airlines and Horizon Air are subsidiaries of Alaska Air Group, with McGee Air Services a subsidiary of Alaska Airlines. With hubs in Seattle, Honolulu, Portland, Anchorage, Los Angeles, San Diego and San Francisco, we deliver remarkable care as we fly our guests to more than 140 destinations throughout North America, Latin America, Asia and the Pacific. Alaska is a member of the oneworld Alliance with Hawaiian scheduled to join in 2026. With oneworld and our additional global partners, guests can earn and redeem miles for travel to over 1,000 worldwide destinations. Guests can book travel at alaskaair.com and hawaiianairlines.com. Learn more about what's happening at Alaska and Hawaiian. Alaska Air Group is traded on the New York Stock Exchange (NYSE) as "ALK."

------

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)**

**Alaska Air Group, Inc.**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| ***(in millions, except per share amounts)*** | **2025** | **2024** | **Change** | **2025** | **2024** | **Change** |
| **Operating Revenue** |  |  |  |  |  |  |
| Passenger revenue | $**3355** | $2651 | 27% | $**6163** | $4655 | 32% |
| Loyalty program other revenue | **210** | 174 | 21% | **417** | 338 | 23% |
| Cargo and other revenue | **139** | 72 | 93% | **261** | 136 | 92% |
| **Total Operating Revenue** | **3704** | 2897 | 28% | **6841** | 5129 | 33% |
| **Operating Expenses** |  |  |  |  |  |  |
| Wages and benefits | **1165** | 782 | 49% | **2292** | 1586 | 45% |
| Variable incentive pay | **61** | 49 | 24% | **123** | 93 | 32% |
| Aircraft fuel, including hedging gains and losses | **700** | 615 | 14% | **1381** | 1180 | 17% |
| Aircraft maintenance | **240** | 129 | 86% | **460** | 251 | 83% |
| Aircraft rent | **64** | 46 | 39% | **126** | 93 | 35% |
| Landing fees and other rentals | **278** | 173 | 61% | **520** | 338 | 54% |
| Contracted services | **146** | 106 | 38% | **291** | 203 | 43% |
| Selling expenses | **105** | 84 | 25% | **205** | 161 | 27% |
| Depreciation and amortization | **199** | 128 | 55% | **393** | 254 | 55% |
| Food and beverage service | **97** | 67 | 45% | **182** | 125 | 46% |
| Third-party regional carrier expense | **69** | 64 | 8% | **133** | 118 | 13% |
| Other | **247** | 186 | 33% | **508** | 391 | 30% |
| Special items - operating | **56** | 146 | (62)% | **147** | 180 | (18)% |
| **Total Operating Expenses** | **3427** | 2575 | 33% | **6761** | 4973 | 36% |
| **Operating Income** | **277** | 322 | (14)% | **80** | 156 | (49)% |
| **Non-operating Income (Expense)** |  |  |  |  |  |  |
| Interest income | **22** | 24 | (8)% | **48** | 41 | 17% |
| Interest expense | **(66)** | (36) | 83% | **(132)** | (71) | 86% |
| Interest capitalized | **9** | 6 | 50% | **21** | 12 | 75% |
| Other - net | **(4)** |  | NM | **(12)** |  | NM |
| **Total Non-operating Expense** | **(39)** | (6) | NM | **(75)** | (18) | NM |
| **Income Before Income Tax** | **238** | 316 |  | **5** | 138 |  |
| Income tax expense (benefit) | **66** | 96 |  | **(1)** | 50 |  |
| **Net Income** | $**172** | $220 |  | $**6** | $88 |  |
| **Basic Earnings Per Share** | $**1.45** | $1.74 |  | $**0.05** | $0.70 |  |
| **Diluted Earnings Per Share** | $**1.42** | $1.71 |  | $**0.05** | $0.69 |  |
| Weighted Average Shares Outstanding used for computation: |  |  |  |  |  |  |
| Basic | **118.847** | 126.337 |  | **120.979** | 126.153 |  |
| Diluted | **120.930** | 128.310 |  | **123.183** | 127.857 |  |

---

------

**CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)**

**Alaska Air Group, Inc.**

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **June 30, 2025** | **December 31, 2024** |
| **ASSETS** | | |
| **Current Assets** | | |
| Cash and cash equivalents | $**750** | $1201 |
| Restricted cash | **28** | 29 |
| Marketable securities | **1374** | 1274 |
| &nbsp;&nbsp;Total cash, restricted cash, and marketable securities | **2152** | 2504 |
| Receivables - net | **737** | 558 |
| Inventories and supplies - net | **218** | 199 |
| Prepaid expenses | **264** | 307 |
| Other current assets | **136** | 192 |
| **Total Current Assets** | **3507** | 3760 |
| **Property and Equipment** |  |  |
| Aircraft and other flight equipment | **13056** | 12273 |
| Other property and equipment | **2267** | 2173 |
| Deposits for future flight equipment | **621** | 883 |
|  | **15944** | 15329 |
| Less accumulated depreciation and amortization | **(4729)** | (4548) |
| **Total Property and Equipment - net** | **11215** | 10781 |
| **Other Assets** |  |  |
| Operating lease assets | **1279** | 1296 |
| Goodwill | **2724** | 2724 |
| Intangible assets - net | **844** | 873 |
| Other noncurrent assets | **316** | 334 |
| **Total Other Assets** | **5163** | 5227 |
| **Total Assets** | $**19885** | $19768 |

---

------

**CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)**

---

| | | |
|:---|:---|:---|
| ***(in millions, except share amounts)*** | **June 30, 2025** | **December 31, 2024** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** | | |
| **Current Liabilities** | | |
| Accounts payable | $**240** | $186 |
| Accrued wages, vacation and payroll taxes | **697** | 1001 |
| Air traffic liability | **2127** | 1712 |
| Other accrued liabilities | **1096** | 997 |
| Deferred revenue | **1824** | 1592 |
| Current portion of long-term debt | **500** | 442 |
| Current portion of operating lease liabilities | **217** | 207 |
| Current portion of finance lease liabilities | **8** | 8 |
| **Total Current Liabilities** | **6709** | 6145 |
| **Noncurrent Liabilities** |  |  |
| Long-term debt, net of current portion | **4448** | 4491 |
| Operating lease liabilities, net of current portion | **1157** | 1198 |
| Finance lease liabilities, net of current portion | **43** | 47 |
| Deferred income taxes | **938** | 934 |
| Deferred revenue | **1648** | 1664 |
| Obligation for pension and post-retirement medical benefits | **452** | 460 |
| Other liabilities | **548** | 457 |
| **Total Noncurrent Liabilities** | **9234** | 9251 |
| **Shareholders' Equity** |  |  |
| &nbsp;&nbsp;Preferred stock, $0.01 par value, Authorized: 5,000,000 shares, none issued or outstanding | **—** |  |
| &nbsp;&nbsp;Common stock, $0.01 par value, Authorized: 400,000,000 shares, Issued: 2025 - 144,093,405 shares; 2024 - 141,449,174 shares, Outstanding: 2025 - 115,276,005 shares; 2024 - 123,119,199 shares | **1** | 1 |
| &nbsp;&nbsp;&nbsp;Capital in excess of par value | **899** | 811 |
| &nbsp;&nbsp;Treasury stock (common), at cost: 2025 - 28,817,400 shares; 2024 - 18,329,975 shares | **(1666)** | (1131) |
| Accumulated other comprehensive loss | **(228)** | (239) |
| Retained earnings | **4936** | 4930 |
| **Total Shareholders' Equity** | **3942** | 4372 |
| **Total Liabilities and Shareholders' Equity** | $**19885** | $19768 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| **SUMMARY CASH FLOW (unaudited)** | **SUMMARY CASH FLOW (unaudited)** | | |
| **Alaska Air Group, Inc.** | | | |
| ***(in millions)*** | **Six Months Ended June 30, 2025** |<br>**Three Months Ended March 31, 2025**<sup>(a)</sup> |<br>**Three Months Ended June 30, 2025**<sup>(b)</sup> |
| **Cash Flows from Operating Activities:** | | | |
| Net income (loss) | $**6** | $(166) | $172 |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities | **455** | 266 | 189 |
| Changes in working capital | **374** | 359 | 15 |
| **Net cash provided by operating activities** | **835** | 459 | 376 |
| **Cash Flows from Investing Activities:** |  |  |  |
| Property and equipment additions | **(741)** | (238) | (503) |
| Other investing activities | **(6)** | (143) | 137 |
| **Net cash used in investing activities** | **(747)** | (381) | (366) |
| **Cash Flows from Financing Activities:** | **(544)** | (236) | (308) |
| Net decrease in cash and cash equivalents | **(456)** | (158) | (298) |
| Cash, cash equivalents, and restricted cash at beginning of period | **1257** | 1257 | 1099 |
| **Cash, cash equivalents, and restricted cash at end of the period** | $**801** | $1099 | $801 |

---

(a) As reported in Form 10-Q for the first quarter of 2025.

(b) Cash flows for the three months ended June 30, 2025 can be calculated by subtracting cash flows from the three months ended March 31, 2025 from the six months ended June 30, 2025.

**SPECIAL ITEMS (unaudited)**

Air Group has classified certain operating activity as special items due to their unusual or infrequently occurring nature. We believe disclosing information about these items separately improves comparable year-over-year analysis and allows stakeholders to better understand our results of operations. A description of the special items is provided below.

*Integration costs:* Integration costs were associated with the acquisition of Hawaiian Airlines and consist of employee-related, technology, and other merger costs.

*Labor and other:* Labor and other costs in 2025 were primarily for changes to Alaska flight attendants' sick leave benefits pursuant to a new collective bargaining agreement ratified in the first quarter of 2025. Costs in 2024 were associated with new labor agreements, the retirement of Alaska's Airbus and Horizon's Q400 aircraft, and certain litigation items.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| ***(in millions)*** | **2025** | **2024** | **2025** | **2024** |
| **Operating Expenses** |  |  |  |  |
| Integration costs | $**53** | $30 | $**93** | $38 |
| Labor and other | **3** | 116 | **54** | 142 |
| **Special items - operating** | $**56** | $146 | $**147** | $180 |

---

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **OPERATING STATISTICS (unaudited)** | **OPERATING STATISTICS (unaudited)** | **OPERATING STATISTICS (unaudited)** | **OPERATING STATISTICS (unaudited)** | | | |
| A manual recalculation of certain figures using rounded amounts may not agree directly to the actual figures presented in the table below. 2024 figures are as previously reported and do not include Hawaiian operations.  | A manual recalculation of certain figures using rounded amounts may not agree directly to the actual figures presented in the table below. 2024 figures are as previously reported and do not include Hawaiian operations.  | A manual recalculation of certain figures using rounded amounts may not agree directly to the actual figures presented in the table below. 2024 figures are as previously reported and do not include Hawaiian operations.  | A manual recalculation of certain figures using rounded amounts may not agree directly to the actual figures presented in the table below. 2024 figures are as previously reported and do not include Hawaiian operations.  | A manual recalculation of certain figures using rounded amounts may not agree directly to the actual figures presented in the table below. 2024 figures are as previously reported and do not include Hawaiian operations.  | A manual recalculation of certain figures using rounded amounts may not agree directly to the actual figures presented in the table below. 2024 figures are as previously reported and do not include Hawaiian operations.  | A manual recalculation of certain figures using rounded amounts may not agree directly to the actual figures presented in the table below. 2024 figures are as previously reported and do not include Hawaiian operations.  |
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **Change** | **2025** | **2024** | **Change** |
| **Consolidated Operating Statistics:**<sup>(a)</sup> |  |  |  |  |  |  |
| Revenue passengers (000) | **15234** | 11888 | 28.1% | **28393** | 21662 | 31.1% |
| RPMs (000000) "traffic" | **20179** | 15309 | 31.8% | **37436** | 27833 | 34.5% |
| ASMs (000000) "capacity" | **24058** | 18196 | 32.2% | **45277** | 33575 | 34.9% |
| Load factor | **83.9%** | 84.1% | (0.2) pts | **82.7%** | 82.9% | (0.2) pts |
| Yield | **16.62¢** | 17.32¢ | (4.0)% | **16.46¢** | 16.73¢ | (1.6)% |
| PRASM | **13.94¢** | 14.57¢ | (4.3)% | **13.61¢** | 13.86¢ | (1.8)% |
| RASM | **15.39¢** | 15.92¢ | (3.3)% | **15.11¢** | 15.28¢ | (1.1)% |
| CASMex<sup>(b)</sup> | **10.90¢** | 9.89¢ | 10.2% | **11.36¢** | 10.67¢ | 6.5% |
| Economic fuel cost per gallon<sup>(b) (c)</sup> | **$2.39** | $2.84 | (15.8)% | **$2.49** | $2.95 | (15.6)% |
| Fuel gallons (000000)<sup>(c)</sup> | **293** | 219 | 33.8% | **556** | 406 | 36.9% |
| ASMs per gallon | **82.0** | 83.1 | (1.3)% | **81.5** | 82.7 | (1.5)% |
| Departures (000) | **139.6** | 112.4 | 24.2% | **263.5** | 208.1 | 26.6% |
| Average full-time equivalent employees (FTEs) | **31299** | 23368 | 33.9% | **30536** | 23190 | 31.7% |
| Operating fleet<sup>(d)</sup> | **409** | 326 | 83 a/c | **409** | 326 | 83 a/c |
| **Alaska Airlines Operating Statistics:** |  |  |  |  |  |  |
| RPMs (000000) "traffic" | **13735** | 14001 | (1.9)% | **25458** | 25423 | 0.1% |
| ASMs (000000) "capacity" | **16449** | 16624 | (1.1)% | **30794** | 30660 | 0.4% |
| Economic fuel cost per gallon | **$2.39** | $2.80 | (14.6)% | **$2.49** | $2.92 | (14.7)% |
| **Hawaiian Airlines Operating Statistics:** |  |  |  |  |  |  |
| RPMs (000000) "traffic" | **5034** |  | n/a | **9341** |  | n/a |
| ASMs (000000) "capacity" | **5901** |  | n/a | **11267** |  | n/a |
| Economic fuel cost per gallon<sup>(c)</sup> | **$2.29** |  | n/a | **$2.39** |  | n/a |
| **Regional Operating Statistics:**<sup>(e)</sup> |  |  |  |  |  |  |
| RPMs (000000) "traffic" | **1410** | 1308 | 7.8% | **2637** | 2410 | 9.4% |
| ASMs (000000) "capacity" | **1708** | 1572 | 8.7% | **3216** | 2915 | 10.3% |
| Economic fuel cost per gallon | **$2.58** | $3.02 | (14.6)% | **$2.68** | $3.13 | (14.4)% |

---

(a)Except for FTEs, data includes information related to third-party regional capacity purchase flying arrangements.

(b)See a reconciliation of this non-GAAP measure and Note A for a discussion of the importance of this measure to investors in the accompanying pages.

(c)Excludes operations under the Air Transportation Services Agreement (ATSA) with Amazon.

(d)Includes aircraft owned and leased by Alaska, Hawaiian, and Horizon as well as aircraft operated by third-party regional carriers under capacity purchase agreements. Excludes all aircraft removed from operating service.

(e)Data presented includes information related to flights operated by Horizon and third-party carriers.

------

**GAAP TO NON-GAAP RECONCILIATIONS (unaudited)**

**Alaska Air Group, Inc.**

We are providing reconciliations of reported non-GAAP financial measures to their most directly comparable financial measures reported on a GAAP basis. Amounts in the tables below are rounded to the nearest million. As a result, a manual recalculation of certain figures using these rounded amounts may not agree directly to the actual figures presented in the tables below.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Adjusted Income Before Income Tax Reconciliation** | **Adjusted Income Before Income Tax Reconciliation** | **Adjusted Income Before Income Tax Reconciliation** | | |
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| ***(in millions)*** | **2025** | **2024** | **2025** | **2024** |
| Income before income tax | $**238** | $316 | $**5** | $138 |
| Adjusted for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mark-to-market fuel hedge adjustment | **(1)** | (5) | **(4)** | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses on foreign debt | **2** |  | **7** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Special items - operating | **56** | 146 | **147** | 180 |
| **Adjusted income before income tax** | $**295** | $457 | $**155** | $300 |
| Pretax margin | **6.4%** | 10.9% | **0.1%** | 2.7% |
| Adjusted pretax margin | **8.0%** | 15.8% | **2.3%** | 5.8% |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **CASMex Reconciliation** | **CASMex Reconciliation** | **CASMex Reconciliation** | **CASMex Reconciliation** | **CASMex Reconciliation** | **CASMex Reconciliation** | **CASMex Reconciliation** | **CASMex Reconciliation** | **CASMex Reconciliation** |
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| ***(in millions)*** | **2025** | **2025** | **2024** | **2024** | **2025** | **2025** | **2024** | **2024** |
| Total operating expenses | $**3427** |  | $2575 |  | $**6761** |  | $4973 |  |
| Less the following components: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Aircraft fuel, including hedging gains and losses | **700** |  | 615 |  | **1381** |  | 1180 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Freighter costs | **48** |  | 13 |  | **89** |  | 28 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Special items - operating | **56** |  | 146 |  | **147** |  | 180 |  |
| **Total operating expenses, excluding fuel, freighter costs, and special items** | $**2623** |  | $1801 |  | $**5144** |  | $3585 |  |
| ASMs | **24058** |  | 18196 |  | **45277** |  | 33575 |  |
| CASMex | **10.90** | **¢** | 9.89 | ¢ | **11.36** | **¢** | 10.67 | ¢ |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fuel Reconciliation** | **Fuel Reconciliation** | **Fuel Reconciliation** | **Fuel Reconciliation** | **Fuel Reconciliation** |
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
| ***(in millions, except for per-gallon amounts)*** | **Dollars** | **Cost/Gallon** | **Dollars** | **Cost/Gallon** |
| Raw or "into-plane" fuel cost | $**700** | $**2.39** | $610 | $2.79 |
| Losses on settled hedges | **1** | **—** | 10 | 0.05 |
| **Economic fuel expense** | $**701** | $**2.39** | $620 | $2.84 |
| Mark-to-market fuel hedge adjustment | **(1)** | **—** | (5) | (0.03) |
| **Aircraft fuel, including hedging gains and losses** | $**700** | $**2.39** | $615 | $2.81 |
| **Fuel gallons** |  | **293** |  | 219 |
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
| ***(in millions, except for per gallon amounts)*** | **Dollars** | **Cost/Gallon** | **Dollars** | **Cost/Gallon** |
| Raw or "into-plane" fuel cost | $**1381** | $**2.48** | $1175 | $2.89 |
| Losses on settled hedges | **4** | **0.01** | 23 | 0.06 |
| **Economic fuel expense** | $**1385** | $**2.49** | $1198 | $2.95 |
| Mark-to-market fuel hedge adjustment | **(4)** | **(0.01)** | (18) | (0.05) |
| **Aircraft fuel, including hedging gains and losses** | $**1381** | $**2.48** | $1180 | $2.90 |
| **Fuel gallons** |  | **556** |  | 406 |

---

---

| | | |
|:---|:---|:---|
| **Debt-to-capitalization, including leases** | **Debt-to-capitalization, including leases** | **Debt-to-capitalization, including leases** |
| ***(in millions)*** | **June 30, 2025** | **December 31, 2024** |
| Long-term debt, net of current portion | $**4448** | $4491 |
| Capitalized operating leases | **1374** | 1405 |
| Capitalized finance leases | **51** | 55 |
| **Adjusted debt, net of current portion of long-term debt** | **5873** | 5951 |
| Shareholders' equity | **3942** | 4372 |
| **Total Invested Capital** | $**9815** | $10323 |
| **Debt-to-capitalization ratio, including leases** | **60%** | 58% |

---

------

---

| | | |
|:---|:---|:---|
| **Adjusted net debt to earnings before interest, taxes, depreciation, amortization, rent, and special items** | **Adjusted net debt to earnings before interest, taxes, depreciation, amortization, rent, and special items** | **Adjusted net debt to earnings before interest, taxes, depreciation, amortization, rent, and special items** |
| ***(in millions)*** | **June 30, 2025** | **December 31, 2024** |
| Long-term debt | $**4948** | $4933 |
| Capitalized operating leases | **1374** | 1405 |
| Capitalized finance leases | **51** | 55 |
| &nbsp;&nbsp;&nbsp;**Total adjusted debt** | **6373** | 6393 |
| Less: Total cash and marketable securities | **2124** | 2475 |
| &nbsp;&nbsp;&nbsp;**Adjusted net debt** | $**4249** | $3918 |
| ***(in millions)*** | **Twelve Months Ended June 30, 2025** | **Twelve Months Ended December 31, 2024** |
| Operating Income<sup>(a)</sup> | $**494** | $570 |
| Adjusted for: |  |  |
| &nbsp;&nbsp;&nbsp;Special items - operating | **312** | 345 |
| &nbsp;&nbsp;&nbsp;Mark-to-market fuel hedge adjustments | **(14)** | (28) |
| &nbsp;&nbsp;&nbsp;Gain on foreign debt | **(3)** | (10) |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | **722** | 583 |
| &nbsp;&nbsp;&nbsp;Aircraft rent | **240** | 207 |
| **EBITDAR** | $**1751** | $1667 |
| **Adjusted net debt to EBITDAR** | **2.4x** | 2.4x |

---

(a)Operating income can be reconciled using the trailing twelve month operating income as filed quarterly with the SEC.

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **OPERATING SEGMENTS (unaudited)** | **OPERATING SEGMENTS (unaudited)** | **OPERATING SEGMENTS (unaudited)** | **OPERATING SEGMENTS (unaudited)** | **OPERATING SEGMENTS (unaudited)** | **OPERATING SEGMENTS (unaudited)** | **OPERATING SEGMENTS (unaudited)** | **OPERATING SEGMENTS (unaudited)** |
| **Alaska Air Group, Inc.** | | | | | | | |
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| ***(in millions)*** | **Alaska Airlines** | **Hawaiian Airlines** | **Regional** | **Consolidating & Other**<sup>(a)</sup> | **Air Group Adjusted**<sup>(b)</sup> | **Adjustments**<sup>(c)</sup> | **Consolidated** |
| **Operating Revenue** | | | | | | | |
| Passenger revenue | $2132 | $769 | $454 | $— | $3355 | $— | $3355 |
| Loyalty program other revenue | 161 | 32 | 17 |  | 210 |  | 210 |
| Cargo and other revenue | 80 | 56 |  | 3 | 139 |  | 139 |
| **Total Operating Revenue** | 2373 | 857 | 471 | 3 | 3704 |  | 3704 |
| **Operating Expenses** |  |  |  |  |  |  |  |
| Operating expenses, excluding fuel | 1663 | 662 | 371 | (25) | 2671 | 56 | 2727 |
| Fuel expense | 437 | 171 | 93 |  | 701 | (1) | 700 |
| **Total Operating Expenses (Income)** | 2100 | 833 | 464 | (25) | 3372 | 55 | 3427 |
| **Non-operating Expense** | (6) | (23) |  | (8) | (37) | (2) | (39) |
| **Income (Loss) Before Income Tax** | $267 | $1 | $7 | $20 | $295 | $(57) | $238 |
|  | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| ***(in millions)*** | **Alaska Airlines** | **Hawaiian Airlines** | **Regional** | **Consolidating & Other**<sup>(a)</sup> | **Air Group Adjusted**<sup>(b)</sup> | **Adjustments**<sup>(c)</sup> | **Consolidated** |
| **Operating Revenue** |  |  |  |  |  |  |  |
| Passenger revenue | $2188 | $— | $463 | $— | $2651 | $— | $2651 |
| Loyalty program other revenue | 160 |  | 14 |  | 174 |  | 174 |
| Cargo and other revenue | 69 |  |  | 3 | 72 |  | 72 |
| **Total Operating Revenue** | 2417 |  | 477 | 3 | 2897 |  | 2897 |
| **Operating Expenses** |  |  |  |  |  |  |  |
| Operating expenses, excluding fuel | 1509 |  | 329 | (24) | 1814 | 146 | 1960 |
| Fuel expense | 520 |  | 100 |  | 620 | (5) | 615 |
| **Total Operating Expenses (Income)** | 2029 |  | 429 | (24) | 2434 | 141 | 2575 |
| **Non-operating Expense** | 6 |  |  | (12) | (6) |  | (6) |
| **Income (Loss) Before Income Tax** | $394 | $— | $48 | $15 | $457 | $(141) | $316 |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| ***(in millions)*** | **Alaska Airlines** | **Hawaiian Airlines** | **Regional** | **Consolidating & Other**<sup>(a)</sup> | **Air Group Adjusted**<sup>(b)</sup> | **Adjustments**<sup>(c)</sup> | **Consolidated** |
| **Operating Revenue** | | | | | | | |
| Passenger revenue | $3889 | $1422 | $852 | $— | $6163 | $— | $6163 |
| Loyalty program other revenue | 313 | 71 | 33 |  | 417 |  | 417 |
| Cargo and other revenue | 145 | 111 |  | 5 | 261 |  | 261 |
| **Total Operating Revenue** | 4347 | 1604 | 885 | 5 | 6841 |  | 6841 |
| Operating Expenses |  |  |  |  |  |  |  |
| Operating expenses, excluding fuel | 3259 | 1302 | 716 | (44) | 5233 | 147 | 5380 |
| Fuel expense | 856 | 345 | 184 |  | 1385 | (4) | 1381 |
| **Total Operating Expenses (Income)** | 4115 | 1647 | 900 | (44) | 6618 | 143 | 6761 |
| **Non-operating Income (Expense)** | (8) | (44) |  | (16) | (68) | (7) | (75) |
| **Income (Loss) Before Income Tax** | $224 | $(87) | $(15) | $33 | $155 | $(150) | $5 |
|  | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| ***(in millions)*** | **Alaska Airlines** | **Hawaiian Airlines** | **Regional** | **Consolidating & Other**<sup>(a)</sup> | **Air Group Adjusted**<sup>(b)</sup> | **Adjustments**<sup>(c)</sup> | **Consolidated** |
| **Operating Revenue** |  |  |  |  |  |  |  |
| Passenger revenue | $3817 | $— | $838 | $— | $4655 | $— | $4655 |
| Loyalty program other revenue | 309 |  | 29 |  | 338 |  | 338 |
| Cargo and other revenue | 131 |  |  | 5 | 136 |  | 136 |
| **Total Operating Revenue** | 4257 |  | 867 | 5 | 5129 |  | 5129 |
| Operating Expenses |  |  |  |  |  |  |  |
| Operating expenses, excluding fuel | 3014 |  | 637 | (38) | 3613 | 180 | 3793 |
| Fuel expense | 1005 |  | 193 |  | 1198 | (18) | 1180 |
| **Total Operating Expenses (Income)** | 4019 |  | 830 | (38) | 4811 | 162 | 4973 |
| **Non-operating Income (Expense)** | 3 |  |  | (21) | (18) |  | (18) |
| **Income (Loss) Before Income Tax** | $241 | $— | $37 | $22 | $300 | $(162) | $138 |

---

(a)Includes consolidating entries, Air Group parent company, Horizon, McGee Air Services, and other immaterial business units.

(b) The Air Group Adjusted column represents the financial information that is reviewed by management to assess performance of operations and determine capital allocation and excludes certain charges.

(c) Includes special items, mark-to-market fuel hedge accounting adjustments, and gain and losses on foreign debt.

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **SUPPLEMENTARY PRO FORMA COMPARATIVE FINANCIAL AND OPERATING INFORMATION (unaudited)** | **SUPPLEMENTARY PRO FORMA COMPARATIVE FINANCIAL AND OPERATING INFORMATION (unaudited)** | **SUPPLEMENTARY PRO FORMA COMPARATIVE FINANCIAL AND OPERATING INFORMATION (unaudited)** | **SUPPLEMENTARY PRO FORMA COMPARATIVE FINANCIAL AND OPERATING INFORMATION (unaudited)** | **SUPPLEMENTARY PRO FORMA COMPARATIVE FINANCIAL AND OPERATING INFORMATION (unaudited)** | **SUPPLEMENTARY PRO FORMA COMPARATIVE FINANCIAL AND OPERATING INFORMATION (unaudited)** | **SUPPLEMENTARY PRO FORMA COMPARATIVE FINANCIAL AND OPERATING INFORMATION (unaudited)** |
| We believe that analysis of specific financial and operational results on a pro forma basis provides more meaningful year-over-year comparisons. The table below provides results comparing the three and six months ended June 30, 2025 as reported to the pro forma three and six months ended June 30, 2024. Hawaiian's financial information has been conformed to reflect Air Group's historical financial statement presentation. This information does not purport to reflect what our financial and operational results would have been had the acquisition been consummated at the beginning of the periods presented. | We believe that analysis of specific financial and operational results on a pro forma basis provides more meaningful year-over-year comparisons. The table below provides results comparing the three and six months ended June 30, 2025 as reported to the pro forma three and six months ended June 30, 2024. Hawaiian's financial information has been conformed to reflect Air Group's historical financial statement presentation. This information does not purport to reflect what our financial and operational results would have been had the acquisition been consummated at the beginning of the periods presented. | We believe that analysis of specific financial and operational results on a pro forma basis provides more meaningful year-over-year comparisons. The table below provides results comparing the three and six months ended June 30, 2025 as reported to the pro forma three and six months ended June 30, 2024. Hawaiian's financial information has been conformed to reflect Air Group's historical financial statement presentation. This information does not purport to reflect what our financial and operational results would have been had the acquisition been consummated at the beginning of the periods presented. | We believe that analysis of specific financial and operational results on a pro forma basis provides more meaningful year-over-year comparisons. The table below provides results comparing the three and six months ended June 30, 2025 as reported to the pro forma three and six months ended June 30, 2024. Hawaiian's financial information has been conformed to reflect Air Group's historical financial statement presentation. This information does not purport to reflect what our financial and operational results would have been had the acquisition been consummated at the beginning of the periods presented. | We believe that analysis of specific financial and operational results on a pro forma basis provides more meaningful year-over-year comparisons. The table below provides results comparing the three and six months ended June 30, 2025 as reported to the pro forma three and six months ended June 30, 2024. Hawaiian's financial information has been conformed to reflect Air Group's historical financial statement presentation. This information does not purport to reflect what our financial and operational results would have been had the acquisition been consummated at the beginning of the periods presented. | We believe that analysis of specific financial and operational results on a pro forma basis provides more meaningful year-over-year comparisons. The table below provides results comparing the three and six months ended June 30, 2025 as reported to the pro forma three and six months ended June 30, 2024. Hawaiian's financial information has been conformed to reflect Air Group's historical financial statement presentation. This information does not purport to reflect what our financial and operational results would have been had the acquisition been consummated at the beginning of the periods presented. | We believe that analysis of specific financial and operational results on a pro forma basis provides more meaningful year-over-year comparisons. The table below provides results comparing the three and six months ended June 30, 2025 as reported to the pro forma three and six months ended June 30, 2024. Hawaiian's financial information has been conformed to reflect Air Group's historical financial statement presentation. This information does not purport to reflect what our financial and operational results would have been had the acquisition been consummated at the beginning of the periods presented. |
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| ***(in millions)*** | **2025** | **2024 Pro forma**<sup>(a)</sup> | **Change** | **2025** | **2024 Pro forma**<sup>(b)</sup> | **Change** |
| **Operating Revenue** |  |  |  |  |  |  |
| Passenger revenue | $**3355** | $3315 | 1% | $**6163** | $5900 | 4% |
| Loyalty program other revenue | **210** | 203 | 3% | **417** | 396 | 5% |
| Cargo and other revenue | **139** | 111 | 25% | **261** | 210 | 24% |
| **Total Operating Revenue** | **3704** | 3629 | 2% | **6841** | 6506 | 5% |
| Operating expenses, excluding fuel | **2727** | 2572 | 6% | **5380** | 5015 | 7% |
| Aircraft fuel, including hedging gains and losses | **700** | 801 | (13)% | **1381** | 1560 | (11)% |
| **Total Operating Expenses** | **3427** | 3373 | 2% | **6761** | 6575 | 3% |
| **Operating Income (Loss)** | **277** | 256 | 8% | **80** | (69) | NM |
| Non-operating expense | **(39)** | (19) | 105% | **(75)** | (37) | 103% |
| **Income (Loss) Before Income Tax** | **238** | 237 | —% | **5** | (106) | (105)% |
| Special items - operating | **56** | 152 | (63)% | **147** | 194 | (24)% |
| Special items - net non-operating | **—** | (3) | (100)% | **—** | (8) | (100)% |
| Mark-to-market fuel hedge adjustments | **(1)** | (5) | (80)% | **(4)** | (20) | (80)% |
| (Gain)/Losses on foreign debt | **2** | (7) | (129)% | **7** | (16) | (144)% |
| **Adjusted Income Before Income Tax** | $**295** | $374 | (21)% | $**155** | $44 | NM |
| Pretax Margin | **6.4%** | 6.5% | (0.1) pts | **0.1%** | (1.6)% | 1.7 pts |
| Adjusted Pretax Margin | **8.0%** | 10.3% | (2.3) pts | **2.3%** | 0.7% | 1.6 pts |
| **Pro forma Comparative Operating Statistics** |  |  |  |  |  |  |
| Revenue passengers (000) | **15234** | 14676 | 3.8% | **28393** | 27071 | 4.9% |
| RPMs (000000) "traffic" | **20179** | 19828 | 1.8% | **37436** | 36425 | 2.8% |
| ASMs (000000) "capacity" | **24058** | 23426 | 2.7% | **45277** | 43855 | 3.2% |
| Load factor | **83.9%** | 84.6% | (0.7) pts | **82.7%** | 83.1% | (0.4) pts |
| Yield | **16.62¢** | 16.72¢ | (0.6)% | **16.46¢** | 16.20¢ | 1.6% |
| RASM | **15.39¢** | 15.49¢ | (0.6)% | **15.11¢** | 14.84¢ | 1.8% |
| CASMex | **10.90¢** | 10.23¢ | 6.5% | **11.36¢** | 10.89¢ | 4.3% |
| **Pro forma Comparative CASMex Reconciliation** |  |  |  |  |  |  |
| Total operating expenses | $**3427** | $3373 | 2% | $**6761** | $6575 | 3% |
| Less the following components: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Aircraft fuel, including hedging gains and losses | **700** | 801 | (13)% | **1381** | 1560 | (11)% |
| &nbsp;&nbsp;&nbsp;Freighter costs | **48** | 23 | 109% | **89** | 45 | 98% |
| &nbsp;&nbsp;&nbsp;Special items - operating | **56** | 152 | (63)% | **147** | 194 | (24)% |
| **Total operating expenses, excluding fuel, freighter costs, and special items** | $**2623** | $2397 | 9% | $**5144** | $4776 | 8% |

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(a) As provided on Form 8-K filed with the SEC on January 22, 2025, including certain immaterial reclassification and policy adjustments.

(b) Pro forma six months ended June 30, 2024 can be calculated by adding the three months ended March 31, 2024 and June 30, 2024 as provided on Form 8-K filed with the SEC on January 22, 2025, including certain immaterial reclassification and policy adjustments.

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**Note A:** Pursuant to Regulation G, we are providing reconciliations of reported non-GAAP financial measures to their most directly comparable financial measures reported on a GAAP basis. We believe that consideration of these non-GAAP financial measures may be important to investors for the following reasons:

**•** By excluding certain costs from our unit metrics, we believe that we have better visibility into the results of operations. Our industry is highly competitive and is characterized by high fixed costs, so even a small reduction in non-fuel operating costs can result in a significant improvement in operating results. We believe that all U.S. carriers are similarly impacted by changes in jet fuel costs over the long run, so it is important for management and investors to understand the impact of company-specific cost drivers which are more controllable by management. We adjust for expenses related directly to our freighter aircraft operations, including those costs incurred under the ATSA with Amazon, to allow for better comparability to other carriers that do not operate freighter aircraft. We also exclude certain special charges as they are unusual or nonrecurring in nature and adjusting for these expenses allows management and investors to better understand our cost performance.

**•** CASMex is one of the most important measures used by management and by the Air Group Board of Directors in assessing quarterly and annual cost performance. CASMex is also a measure commonly used by industry analysts, and we believe it is the basis by which they have historically compared our airline to others in the industry. The measure is also the subject of frequent questions from investors.

**•** Adjusted pretax income is an important metric for the employee incentive plan, which covers the majority of Air Group employees.

**•** Disclosure of the individual impact of certain noted items provides investors the ability to measure and monitor performance both with and without these special items. We believe that disclosing the impact of these items as noted above is important because it provides information on significant items that are not necessarily indicative of future performance. Industry analysts and investors consistently measure our performance without these items for better comparability between periods and among other airlines.

**•** Although we disclose our unit revenue, we do not, nor are we able to, evaluate unit revenue excluding the impact that changes in fuel costs have had on ticket prices. Fuel expense represents a large percentage of our total operating expenses. Fluctuations in fuel prices often drive changes in unit revenue in the mid-to-long term. Although we believe it is useful to evaluate non-fuel unit costs for the reasons noted above, we would caution readers of these financial statements not to place undue reliance on unit costs excluding fuel as a measure or predictor of future profitability because of the significant impact of fuel costs on our business.

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**GLOSSARY OF TERMS**

**Adjusted net debt -** long-term debt, including current portion, plus capitalized operating and finance leases, less cash and marketable securities

**Adjusted net debt to EBITDAR** - represents net adjusted debt divided by EBITDAR (trailing twelve months earnings before interest, taxes, depreciation, amortization, rent, and special items)

**ASMs** - available seat miles, or "capacity"; represents total seats available across the fleet multiplied by the number of miles flown

**CASMex** - operating costs excluding fuel, freighter costs, and special items per ASM, or "unit cost"

**Debt-to-capitalization ratio** - represents adjusted debt (long-term debt plus capitalized operating and finance lease liabilities) divided by total equity plus adjusted debt

**Diluted Earnings per Share** - represents earnings per share (EPS) using fully diluted shares outstanding

**Diluted Shares** - represents the total number of shares that would be outstanding if all possible sources of conversion, such as stock options, were exercised

**Economic Fuel** - best estimate of the cash cost of fuel, net of the impact of our fuel-hedging programs and excluding operations under the Air Transportation Service Agreement (ATSA) with Amazon

**Freighter Costs -** operating expenses directly attributable to the operation of Alaska's B737 freighter aircraft and Hawaiian's A330-300 freighter aircraft exclusively performing cargo missions

**Load Factor** - RPMs as a percentage of ASMs; represents the number of available seats that were filled with revenue passengers

**PRASM** - passenger revenue per ASM, or "passenger unit revenue"

**RASM** - operating revenue per ASMs, or "unit revenue"; operating revenue includes all passenger revenue, freight & mail, loyalty program revenue, and other ancillary revenue; represents the average total revenue for flying one seat one mile

**RPMs** - revenue passenger miles, or "traffic"; represents the number of seats that were filled with revenue passengers; one passenger traveling one mile is one RPM

**Yield** - passenger revenue per RPM; represents the average passenger revenue for flying one passenger one mile

## Exhibit 99.2

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