ALK ALASKA AIR GROUP, INC.

Overview and Growth

ALASKA AIR GROUP, INC. generated $14.24B of revenue in fiscal 2025, with net income of $100.00M and an operating cash inflow of $1.25B. The $14.24B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Compared with $11.73B in fiscal 2024, revenue recorded a 21.3% year-over-year increase. The company reported diluted EPS of $0.83, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $3.08 in fiscal 2024, the current result was 73.1% lower. At period end, total assets were $20.36B, framing the scale of the company’s operating and financing commitments. The revenue-to-assets relationship was 0.7x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

Operating income was $303.00M, the earnings remaining from reported operations after the company’s recognized operating cost structure. Operating margin measured 2.1%, showing the portion of revenue preserved after the full set of operating costs. Net income came to $100.00M, completing the progression from revenue through gross and operating profitability to the final reported result. The final earnings result represented 0.7% of revenue, connecting the absolute net income figure with the company’s top-line scale. The earnings statement records $146.00M of pretax income, the profit base against which the reported tax provision can be assessed. Pretax income represented 1.0% of revenue, placing earnings before tax in the context of the company’s operating scale. The company recognized $46.00M of income tax for the period, completing the transition from pretax income to net income. The effective relationship between income tax and positive pretax income was 31.5%, without assuming a statutory-rate comparison. Net income equaled 2.4% of period-end equity, showing the earnings generated on shareholders’ book capital. Return on period-end assets was 0.5%, connecting net income with the company’s total asset base. Current net income of $100.00M was below fiscal 2024 net income of $395.00M, showing the direction of the bottom-line change.

Liquidity and Capital Structure

At period end, the $20.36B asset base was financed through $16.24B of liabilities and $4.12B of equity. At period end, current assets of $3.27B compared with current liabilities of $6.59B, defining the company’s short-term resource position. Current assets covered only 0.5x of current liabilities, so current liabilities exceeded current assets at period end. The company held $627.00M in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 9.5% of current liabilities, showing how much near-term coverage came from cash alone. The company carried $5.31B of total debt at period end, which frames its leverage and debt-service burden. Against book equity, debt measured 1.29x, placing the company’s financial leverage in clear balance-sheet terms. Debt represented 26.1% of total assets, placing borrowing in the context of the company’s full resource base. The equity-to-assets relationship was 20.2%, placing book capital against the total resource base. Relative to total assets, liabilities measured 79.8%, complementing the separate equity-based view of the company’s capital structure. Measured against total assets, cash and equivalents represented 3.1%, a balance-sheet composition measure rather than a liquidity forecast. Total assets were 3.0% higher than fiscal 2024 assets of $19.77B, measuring the company’s own balance-sheet change. Against $4.37B of equity in fiscal 2024, the current book-equity balance moved 5.8% and ended lower. Cash and equivalents were 47.8% lower than fiscal 2024 cash of $1.20B, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

The company reported $1.25B of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 12.49x, comparing cash generated by operations with the bottom-line earnings result.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.