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Alaska Air Group, Inc. ("Air Group" or the "Company") is a Delaware corporation incorporated in 1985. Air Group operated three airlines, Alaska Airlines, Hawaiian Airlines, and Horizon Air, through October 29, 2025.
Operating margin is thin at 2.13%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 21.3%, still solid. Margins contracted 2.7pp, which offsets some of the top-line progress.
Free cash flow declined 20% versus the prior year, cash generation momentum has weakened. ROIC dropped from 4.49% to 2.34%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$14.40B
▲ +21.3% YoY
Net Income (TTM)
$73M
▼ -74.7% YoY
Op. Margin
1.53%
▼ -2.7pp YoY
ROIC
1.66%
▼ -2.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$914M
▼ -19.7% YoY
Op. Cash Flow (TTM)
$1.21B
▼ -14.7% YoY
Net Debt
$4.66B
Cash & Equiv.
$1.77B
5Y CAGR: +31.9%
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