Alaska Air Group, Inc. reported a net loss of $166 million for the first quarter of 2025, compared to a loss of $132 million in the same period of the previous year. The company's total operating revenue increased to $3.137 billion, up from $2.232 billion in the first quarter of 2024, driven primarily by a significant rise in passenger revenue, which reached $2.808 billion, compared to $2.004 billion a year earlier. This increase reflects a 40% growth in passenger traffic, with revenue passenger miles (RPMs) rising to 17.257 billion from 12.524 billion.
The financial performance indicates a notable shift from the previous fiscal period, with total operating expenses also rising to $3.334 billion from $2.398 billion. The increase in expenses was largely attributed to higher wages and benefits, which totaled $1.127 billion, up from $804 million, as well as increased aircraft fuel costs. The company incurred $91 million in special items related to labor costs and integration expenses from the acquisition of Hawaiian Holdings, which was completed in September 2024.
Operationally, Alaska Air Group reported a total of 13.159 million revenue passengers for the quarter, a significant increase from 9.774 million in the prior year. The company also noted a load factor of 81.3%, slightly down from 81.4% in the previous year. The average full-time equivalent employee count rose to 29,773, reflecting the integration of Hawaiian Airlines and increased operational capacity. The company anticipates a capacity growth of 2% to 3% in the second quarter of 2025, although it expects unit revenue to remain flat or decline slightly.
Looking ahead, Alaska Air Group remains focused on the successful integration of Hawaiian Airlines into its operations. Despite the challenges posed by economic uncertainty, the company is optimistic about achieving profitability in 2025, even if revenue pressures persist. The management is assessing various scenarios to navigate the current market conditions and is committed to enhancing operational performance across its combined network.
About ALASKA AIR GROUP, INC.
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