Alaska Air Group Narrows Second-Quarter Losses and Expects Recovery Beginning in the Third Quarter. Alaska Air Group reported a narrower loss during the second quarter of 2026 despite the sharp increase in fuel prices, while highlighting strong operational performance and continued progress in integrating Hawaiian Airlines. The company generated US$4.1 billion in revenue, up 10% year over year, driven by higher passenger demand, premium products, cargo operations, and corporate travel.
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During the quarter, Alaska completed the integration of Hawaiian Airlines into a single reservations system, launched new international services from Seattle to Rome, London, and Reykjavík, added new Boeing 737 MAX 8 and Embraer E175 aircraft, and confirmed the expansion of its cargo fleet. Hawaiian Airlines also officially joined the oneworld alliance, further strengthening the group’s global network.
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Although higher fuel prices weighed on earnings, Alaska expects conditions to improve in the third quarter as fuel costs decline. The airline forecasts capacity growth of 2% to 3%, stronger unit revenues, and a return to adjusted profitability, supported by its expanding international network and continued operational improvements.
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