Data Shows Alaska Airlines’ Merger Is Working

Alaska Airlines Group announced 2Q26 numbers. Before we get to that, remember that for 1Q26, the key headwinds were sharply higher crude and refining costs, which were the largest drag. Localized demand disruptions such as rainstorms in Hawaii and civil unrest in Puerto Vallarta ahead of spring break. These markets represent roughly 30% of Air Group capacity and created a nearly 1-point unit revenue headwind.

For 2Q26, though, it was again heavily impacted by a sharp fuel price spike, while underlying commercial and operational performance was strong, with clear sequential improvement and a return to profitability in June. The group also launched transatlantic service from Seattle (Rome – 787, London – 787, Reykjavík – MAX).

2Q26 was another loss quarter driven almost entirely by the extreme fuel spike (which is outside management control). Underneath that, the business showed clear progress: strong premium/corporate/loyalty growth, better-than-expected cost control once transitory items are stripped out, industry-leading reliability, and completion of the major Hawaiian systems integration. June’s profitability and the constructive 3Q26 guidance point to an expected earnings recovery

in the second half as fuel moderates and unit revenue continues to outpace unit costs.  The combined Alaska–Hawaiian platform continues to execute on network expansion (especially long-haul), premium product, loyalty, and operational reliability while digesting the merger.