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Alaska Air Group (ALK) guidance and outlook
Alaska Air Group (ALK) raised its guidance on Oct 20, 2026: EPS −$5.50 to −$5.00 for FY2026; EPS −$2.50 to −$2.00 for Q4 2026; Tax rate 20% for Q4 2026. Alaska Air Group's 10-Q filed Nov 6, 2026 makes 12 forward-looking statements.
Guidance and outlook
Latest guidance
| Metric | Period | Range | Change |
|---|---|---|---|
| EPS | FY2026 | −$5.50 to −$5.00 | new |
| EPS | Q4 2026 | −$2.50 to −$2.00 | new |
| Tax rate | Q4 2026 | 20% | new |
From the earnings release filed Oct 20, 2026 (8-K on EDGAR).
Forward-looking statements, 10-Q filed Nov 6, 2026
- Additionally, we announced our intent to join the Atlantic and Pacific Joint International Businesses, which will increase global connectivity for our guests.
- Subsequent to quarter end, we announced initiatives aimed at reducing our overhead expense, which are expected to drive approximately $100 million in savings in 2027.
- In connection with the reduction in force, we expect to incur approximately $11 million of costs, primarily related to severance and other employee termination benefits in the fourth quarter of 2026.
- We expect that fuel costs will remain elevated and volatile until these disruptions are resolved.
- Generally, we expect these expenses to increase in line with capacity, fleet size, and growth of the Company's operations.
- In the third quarter of 2026, the Company revised its full-year outlook from a pretax income to a pretax loss primarily due to elevated fuel prices.
- This reduced the Company's AETR, which lowered the expected tax benefit associated with previously recorded losses.
- Variable incentive pay decreased by $31 million, or 16%, primarily driven by a lower expected payout under the Company's Performance-Based Pay program, reflecting lower profitability driven by elevated fuel prices in 2026.
- We expect to meet our liquidity needs for the foreseeable future using cash flows from our operations, our available sources of liquidity, and future financing arrangements.
- In 2026, we plan to incur approximately $1.6 billion in capital expenditures.
- We also anticipate we may have material cash outlays associated with new technologies for the future of the business.
- We expect to satisfy these obligations using cash flows from our operations, our available sources of liquidity, and future financing arrangements.
Alaska Air Group's latest quarter
Alaska Air Group, Q3 2026: revenue $4.3B (+14% year over year), operating margin 1.9%, net loss $147M, operating cash flow $149M. The chart follows the revenue to costs, profit and cash.
Questions
Did Alaska Air Group raise or lower its guidance?
Alaska Air Group (ALK) raised its guidance on Oct 20, 2026: EPS −$5.50 to −$5.00 for FY2026; EPS −$2.50 to −$2.00 for Q4 2026; Tax rate 20% for Q4 2026.
What does Alaska Air Group expect?
Additionally, we announced our intent to join the Atlantic and Pacific Joint International Businesses, which will increase global connectivity for our guests. Subsequent to quarter end, we announced initiatives aimed at reducing our overhead expense, which are expected to drive approximately $100 million in savings in 2027. In connection with the reduction in force, we expect to incur approximately $11 million of costs, primarily related to severance and other employee termination benefits in the fourth quarter of 2026.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.