Alaska Air Group NYSE:ALK, a Seattle-based airline, reported a narrower-than-expected adjusted loss for the second quarter as sharply higher fuel prices continued to weigh on its results. The company posted an adjusted loss of $0.92 per share, compared with the $0.99 loss analysts had expected, while the airline had earned $1.78 per share during the same period last year. Fuel costs increased 85% from a year earlier, with Chief Executive Officer Ben Minicucci describing the quarter as being shaped by a fuel-price spike outside the company's control.
The airline expects to generate third-quarter 2026 earnings of as much as $1 per share, below the average analyst forecast of $1.48, suggesting that elevated jet-fuel prices may continue to pressure near-term profitability. Alaska suspended its full-year guidance in April because geopolitical tensions made reliable forecasting more difficult, although the company reaffirmed its goal of reaching earnings per share of $10 in 2027. Investors may view the maintained target as a sign that management remains focused on its longer-term earnings ambitions, even as the current fuel environment creates greater uncertainty around the pace of recovery.
The fuel crisis has affected major U.S. airlines differently, with United Airlines Holdings NASDAQ:UAL, a U.S. airline, recently issuing a second-quarter earnings outlook below Wall Street expectations partly because higher fuel costs overshadowed strong travel demand. Delta Air Lines NYSE:DAL, another major U.S. airline, exceeded analyst forecasts during the same broader period. Alaska is also moving ahead with a major expansion strategy after announcing in January that it would order 110 aircraft from Boeing NYSE:BA, a U.S. aircraft manufacturer, representing the largest investment in new planes in Alaska's history and supporting its plans to build a broader global network.