Alaska Air says it will spend more on fuel this quarter than it earned the last two years

By Steve Goldstein

Alaska Air says it's halting full-year guidance.

Alaska Air detailed the cost of the Iran war, and they're big: some $600 million extra in fuel costs, which is more than their entire profits the last two years.

The parent company of Alaska Airlines, Hawaiian Airlines and Horizon Air late Monday said it was halting full-year earnings guidance as it detailed its second-quarter fuel bill, which it says equates to an earnings per share headwind of $3.60 per share.

That's based on an assumed fuel bill of $4.50 per gallon, and the expectation it will consume 297 million gallons this quarter.

To put those extra $600 million in expenses in perspective, Alaska Air earned $100 million last year and $395 million in 2024.

The Seattle-headquartered airline is reducing its second-quarter capacity by nearly a percentage point from previous expectations, while unit revenue is expecting to be up high single-digits and could reach 10% year-over-year assuming demand and fares are sustained the rest of the period.

Analysts at Citi calculate the numbers result in a second-quarter loss per share of around $1, worse than the FactSet-compiled estimate for a 20 cents per share loss.

The airline also reported first-quarter numbers, a period in which on an adjusted basis it lost $1.68 per share on revenue of $3.3 billion, both of which were in line with analyst estimates.

Alaska Air stock (ALK) fell 3% in premarket trade. The stock has slumped 13% this year.

-Steve Goldstein

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

04-21-26 0447ET