IT-related ground stop forces Alaska Airlines to postpone Q3 earnings call
Alaska Airlines' positive Q3 2025 result was overshadowed by a ground stop following another IT outage.
Alaska Airlines has informed its shareholders that it has delayed its Q3 2025 earnings call, which was scheduled to occur on October 24, 2025, after the airline had to issue a ground stop for its mainline operations due to an IT-related issue a day prior.
On October 23, the airline informed stakeholders that, following an IT outage that affected its operations and resulted in a ground stop for Alaska Airlines and Horizon Air’s flights, it would postpone its scheduled quarterly earnings call that was scheduled to happen at 11:30 Eastern Daylight Time (EDT, UTC -4) on October 24.
According to Flightradar24, on October 23 and October 24, 374, or 14.5%, of all Alaska Airlines-coded flights, including those operated by Horizon Air, were canceled.
The timing of the IT outage – its second of the year – was unfortunate, as on the same day, it reported its Q3 2025 results. Ben Miniccuci, the President and Chief Executive Officer (CEO) of Alaska Air Group, which also includes Hawaiian Airlines, said that its profitable quarter “was powered by another period of industry-leading unit revenue.”
“I am proud of our people for taking care of our guests, executing major integration milestones, and capturing synergies ahead of plan as we bring together Alaska and Hawaiian Airlines.”
Alaska Airlines highlighted that its capacity, measured in available seat miles (ASMs), revenue per ASM (RASM), cost per ASM, excluding fuel, freighter costs, and special items (CASMex), and adjusted earnings per share (EPS) were in line or better-than-expected.
The airline’s Q3 adjusted net income was $123 million, while non-adjusted net income was $73 million. Quarterly revenues were $3.7 billion, up 23% year-on-year (YoY). Operating expenses, meanwhile, went up 32% YoY to $3.6 billion, resulting in an operating income of $148 million.
During the quarter, the group accounted for another $61 million as integration costs associated with its acquisition of Hawaiian Airlines, consisting of “employee-related costs, legal and professional fees, technology, and other merger costs.”
Meanwhile, yield, passenger revenue per ASM, and RASM were all down YoY, by between -1.5% to -0.5%, with load factors trailing by 0.7% compared to the same quarter a year prior.
On a pro forma basis, which, according to the company, “provides more meaningful” YoY comparisons, passenger revenue was flat, while overall revenue grew 1%. Yield and RASM were up 1.6% and 1.4%, respectively, with the group welcoming 15.8 million passengers during the quarter, an increase of 1% YoY.
Looking forward, Alaska Airlines said that its Q4 revenues should grow in the low single digits, while unit costs should grow in the low single digits, reflecting “significant cost synergies.” The year’s last quarter’s capacity should be up 2% to 3%.
The company expects that it will reach – adjusted – profitability in Q4 and 2025, with adjusted EPS being estimated at $0.40 and $2.40, respectively.
Rytis Beresnevicius
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