Quantcast

Alaska Airlines projects softened demand impacting second-quarter revenue forecast

Alaska Airlines projects softened demand impacting second-quarter revenue forecast
Policy
Webp messenger creation 32b142d1 3cfe 4765 8d7a 9ac50dc4f93b
Alaska Airlines | Official Website

Amid a backdrop of global economic uncertainty, Alaska Airlines has stated that it anticipates its second-quarter revenue could be impacted by up to six percentage points due to softening demand. Despite this, the airline has not revised its 2025 full-year guidance but expects to remain "solidly profitable" even if revenue pressures continue.

Alaska Airlines made this announcement following the release of its first-quarter results for 2025, which reported a net loss of $166 million on revenues exceeding $3 billion. The airline attributed the loss in part to recent economic volatility and has scheduled a call with analysts for further discussions.

While Alaska Airlines noted the stabilization of bookings, its guidance predicts a revenue impact of approximately six points in the second quarter due to reduced demand. The airline's adjusted earnings per share for 2025 is anticipated to range from $1.15 to $1.65. "Alaska is built for times like these with our relentless focus on safety, care, and performance," said Ben Minicucci, President & CEO of Alaska Air Group. He emphasized the company's focus on scaling, relevance, and loyalty at its hubs, and noted synergies recognized from its combination with Hawaiian Airlines.

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

In its operational update, Alaska Airlines reported first-quarter revenue growth of 9.0% year-over-year, with unit revenue increasing by 5.0%. The air group's capacity expanded by 3.9% during the quarter, which was one point more than anticipated, reflecting fewer flight cancellations. Additionally, premium revenue rose by 10%, and loyalty program cash intake increased by 12% compared to the previous year.

The airline also added that it expanded its fleet by eight aircraft in the first quarter, including four 737-9s, one 787-9, one E175, and two A330-300 freighters. Other developments included $459 million in operating cash flow and the launch of new nonstop routes from the San Diego hub to Phoenix, Chicago O’Hare, and Denver.

Alaska Airlines' recent outlook aligns with similar revisions from other airlines. Many carriers, including Frontier Airlines and Delta Air Lines, have adjusted their growth expectations amid softened demand and economic uncertainty, reflecting an industry-wide trend of cautious forecast revisions.

Organizations Included in this History
More News

FedEx has released the results of a recent survey focused on how Asia-Pacific (APAC) companies are responding to changes in global trade and customs regulations.

Oct 26, 2025

Delta Air Lines has inaugurated its first nonstop service from the United States to Marrakech, Morocco, marking the airline's return to North Africa after more than 14 years.

Oct 26, 2025

Alaska Airlines has announced a significant expansion of its route network for 2026, with plans to introduce service to two new cities and launch 13 new or returning routes.

Oct 25, 2025

Delta Air Lines will introduce new in-flight menu options created by celebrity chef José Andrés starting November 4.

Oct 25, 2025

The Blue Sky partnership between United Airlines and JetBlue launched today, allowing members of both airlines’ loyalty programs to earn and redeem points across the two carriers.

Oct 25, 2025

Air Canada is set to expand its presence at Billy Bishop Toronto City Airport (YTZ) by introducing four new nonstop routes to the United States in 2026.

Oct 25, 2025