Overview
- Alaska Air reported a second‑quarter adjusted loss of $0.92 per share and cut its third‑quarter adjusted profit guide to $0 to $1 per share, below the $1.38 consensus.
- The carrier said it expects economic jet fuel to average about $3.75 per gallon in Q3 after paying $4.43 per gallon in Q2, and it blamed renewed U.S.–Iran hostilities and shipping disruptions for recent price rises.
- U.S. airlines are facing multi‑billion‑dollar fuel hits for the year with carriers taking different paths on outlooks and costs; United has said its 2026 fuel bill could run nearly $6 billion above earlier plans.
- Airlines are responding by raising fares, trimming capacity and cutting other costs, and Alaska is accelerating fuel‑supply diversification by importing more product from Singapore to reduce West Coast exposure.
- Fuel normally makes up about a quarter of an airline’s operating costs, so sustained price volatility could drive higher ticket prices for travelers and force further route or schedule changes over coming quarters.