Alaska Air Group Charts Ambitious Course with Record Fleet Order and Integration Milestones

Alaska Air Group is executing the most significant strategic overhaul in its corporate history. This transformation is being propelled by a landmark aircraft acquisition and substantial investments in infrastructure, even as the financial integration of Hawaiian Airlines shapes recent performance.

The company's full-year 2025 results, released on January 22, reflect the dual nature of its current expansion. While strategic moves set the stage for future growth, the costs associated with merging with Hawaiian Airlines impacted the bottom line. Net income under GAAP standards was reported at $100 million, a decline from the $395 million earned the previous year. Hawaiian Airlines alone recorded a pre-tax loss of $189 million for 2025.

Operational progress, however, is evident. The group achieved a fourth-quarter adjusted profit per share of $0.43. Quarterly revenue climbed to $3.6 billion, marking a 2.8% year-over-year increase. Furthermore, the Federal Aviation Administration (FAA) granted a single operating certificate for both Alaska and Hawaiian Airlines in January, a critical regulatory step. Throughout the past year, the company also allocated approximately $570 million toward share repurchases.

A Historic Fleet Expansion

In late January, the airline finalized the largest aircraft order in its history. The firm commitment includes 105 Boeing 737-10 jets and five Boeing 787 wide-body aircraft. The carrier also secured options for an additional 35 737-10s. This ambitious procurement strategy is designed to grow the combined Alaska and Hawaiian fleet to roughly 475 aircraft by 2030. Management's long-term vision targets an operational fleet exceeding 550 jets by 2035.

Should investors sell immediately? Or is it worth buying Alaska Air?

Supporting this operational scale-up, the company inaugurated its new Global Training Center in Seattle. The 60,000-square-foot facility represents a first in the carrier's nearly 95-year history, bringing training for all employee groups—pilots, flight attendants, and ground personnel—under one roof. The center is equipped with ten full-motion flight simulators, among other advanced training resources.

Guidance for 2026 and Upcoming Catalysts

Looking ahead to the current fiscal year, management has adopted a cautiously optimistic tone. The company anticipates a seasonally driven loss per share in the first quarter, projected to be between $1.50 and $0.50. A key question is whether the airline can fully offset the high integration costs by the second half of the year. For the full year 2026, Alaska Air Group is targeting an adjusted profit in the range of $3.50 to $6.50 per share.

Capital expenditures for 2026 are budgeted at approximately $1.5 billion. The next significant technical milestone is scheduled for April: the merging of the two airlines' reservation systems. This integration is expected to fully combine the networks of both carriers and realize operational synergies. The company is slated to report its first-quarter financial results on April 16.