Alaska Air Group Now Expects 2026 Loss as Fuel Runs $1.8 Billion Over Plan

Alaska Air Group, the parent of Alaska Airlines and Hawaiian Airlines, said Tuesday it now expects to lose money this year, after jet fuel came in $1.8 billion above its plan.

The company projects an adjusted loss of $5 to $5.50 a share for 2026, according to its third-quarter earnings release. It paid $3.94 a gallon for fuel from July through September, up 57% from $2.51 a year earlier, and expects $4.65 to $4.85 a gallon for the rest of the year.

Fuel costs have hit Alaska elsewhere, too. Rural Alaska's barge fuel cost more this year as global refinery disruptions widened fuel margins, Alaska News reported Sept. 24.

The airlines carried about 15.7 million passengers in the quarter, 1.1% fewer than a year earlier, and planes were less full. But passengers paid 13.4% more per mile flown, and revenue rose 14% to $4.3 billion. Fuel spending rose faster, up 60% to $1.2 billion.

The company lost $147 million in the quarter, compared with a $73 million profit a year earlier. Excluding special items and a tax adjustment tied to its new outlook, it earned 36 cents a share, within its forecast.

"While we're not satisfied with this quarter's result or the $1.8 billion fuel headwind this year, we are confident in our ability to execute on the things we can control," CEO Ben Minicucci said.

At a Sept. 29 investor day, the company described its in-state Alaska cargo business: five dedicated 737 freighters, service to 17 small communities, about 37% of the state's air cargo and historically about $130 million in revenue. That share leaves out 29 small Alaska commuter carriers, a footnote says. Executives said they see a path to 50% of the Alaska market as they add freighters. Four more 737-800 freighters entering service in 2027 will add 34% to the company's Alaska and Hawaii cargo capacity.