Alaska Air Group, Inc. (ALK) Reports Q2 2025 Results; Earnings Beat Expectations

Alaska Air Group, Inc. (NYSE:ALK) is included in our list of the 10 Cheap Travel Stocks to Buy According to Analysts.

A busy airport terminal with travelers queuing up for flights, revealing the sheer volumes of travelers served by the company.

On July 23, 2025, Alaska Air Group, Inc. (NYSE:ALK) released its Q2 2025 results. The company reported adjusted EPS of $1.78, which exceeded guidance. Strong premium class performance and a profitable quarter from its Hawaiian assets helped the company earn revenue of $3.7 billion. The adjusted net income for the quarter reached $215 million.

Ahead of the earnings release, UBS maintained its ‘Neutral’ rating and $49 price target, citing the growing optimism regarding the airline industry. Validating the analyst’s optimism, Alaska Air Group, Inc. (NYSE:ALK)’s premium revenue grew 5% YoY, driving 35% of its total sales.

Looking ahead, Alaska Air Group, Inc. (NYSE:ALK) expects FY25 EPS of at least $3.25. This is attributed to the Alaska Accelerate initiative and continued synergy realization. Furthermore, its new loyalty program, premium credit card launch, expansion of international long-haul network from Seattle, and a 17-aircraft 787 fleet in the pipeline are cited as other key growth drivers.

While a softer macro demand was noted during the quarter, Alaska Air Group, Inc. (NYSE:ALK) expressed growing confidence due to recent booking upticks and capacity discipline, reaffirming its target of $10 EPS by 2027 and $1 billion in expected incremental profit.

With its Alaska Airlines, Hawaiian Airlines, and Regional segments, Alaska Air Group, Inc. (NYSE:ALK) offers air transportation services. It is included in our list of cheap travel stocks.

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Disclosure: None.