ALASKA AIR GROUP $ALK Q3’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $4.31B (Est. $4.31B) 🟡; +14% YoY 🔹 Adj. EPS: $0.36 (Est. $0.28) 🟢 🔹 GAAP EPS: -$1.32; vs $0.62 LY 🔹 Adj. Pretax Margin: 1.1%; vs 4.6% LY FY26 Guide: 🔹 Adj. EPS: -$5.50 to -$5.00 (Est. -$3.39) 🔴 Q4 Guide: 🔹 Adj. EPS: -$2.50 to -$2.00 (Est. -$1.04) 🔴 🔹 Capacity: +1%-+1.5% YoY 🔹 RASM: Up low double-digits YoY 🔹 CASMex: Up mid single-digits YoY 🔹 Economic Fuel Cost/Gallon: $4.65-$4.85 Revenue Streams: 🔹 Premium: +25% YoY 🔹 Loyalty Cash Remuneration: $721M; +21% YoY 🔹 Managed Corporate: +30% YoY 🔹 Passenger Revenue: $3.89B; +13% YoY Announcements: 🔹 Intent to Join: Atlantic and Pacific Joint International Businesses 🔹 New Service: Osaka and Papeete 🔹 Premium Products: Aurora, Leihōkū and Premium Reserve Other Q3 Metrics: 🔹 RASM: 17.21¢; +11.7% YoY 🔹 CASMex: 11.46¢; +4.4% YoY 🔹 Load Factor: 82.8%; -2.0 pts YoY 🔹 Fuel Cost/Gallon: $3.94; +57.0% YoY 🔹 Operating Cash Flow: $149M 🔹 Liquidity: $3.3B Key Updates: 🔹 Total Adjustments: $31M pre-tax; +$1.01/share 🔹 Special Items - Operating: $25M, mainly Hawaiian integration costs 🔹 Foreign Debt and Other: $6M 🔹 GAAP Net Loss: $147M; adjusted net loss $35M 🔹 Tax Catch-Up: $75M; -$0.67/share Comments: 🔸 “While we’re not satisfied with this quarter’s result or the $1.8 billion fuel headwind this year, we are confident in our ability to execute on the things we can control, including increasing the spread between unit revenue and unit costs excluding fuel.”