Alaska Air Group, the corporate parent of Alaska Airlines and Hawaiian Airlines, cautioned investors this week that its third quarter earnings could be slightly lower than initially projected.
In a Securities and Exchange Commission filing, the company said it now expects adjusted earnings per share to be “at the low end” of its $1 to $1.40 forecast. It cited higher than anticipated fuel costs and operational disruptions stemming from bad weather and air traffic control problems, which led to increased costs from overtime and compensation paid to customers.
Alaska also said a technology outage in July – which briefly grounded all of Alaska Airlines’ flights – will cost about 10 cents per share.
Still, revenue trends remain strong, the company said. Unit revenue is tracking near the high end of earlier guidance, and the airline group saw strong interest in its new Atmos rewards program, which is replacing Alaska’s Mileage Plan and Hawaiian’s HawaiianMiles.
All Mileage Plan members were automatically enrolled in Atmos last month, and all HawaiianMiles members will automatically transition into Atmos on Oct. 1. Starting in 2026, the program will allow customers to choose how they would like to earn points and elite-qualifying “status points” – in distance traveled, price paid, or segments flown.
Registrations for Alaska’s new premium credit card, known as the Atmos Rewards Summit Visa Infinite card, exceeded the company’s year-end target within two weeks, the filing stated, and there was notable interest beyond the group’s core West Coast and Hawaiian markets.
Alaska Air Group is in the process of integrating Hawaiian into its operations. It expects to secure a single operating certificate from the FAA for Alaska and Hawaiian at some point this fall.
