Alaska Airlines' fourth-quarter managed corporate revenue increased 9 percent year over year, a two-point quarter-over-quarter sequential improvement, despite the government shutdown and related flight reductions, Alaska chief commercial officer Andrew Harrison said during a Friday morning earnings call.
In addition, "forward-looking business bookings for 2026 are also very encouraging," he said, adding that first-quarter held, or deferred, managed corporate revenue on the books is up 20 percent year over year. The technology, manufacturing and financial services sectors in particular demonstrated "significant increases," Harrison said.
When asked by an analyst what was driving that first-quarter corporate growth, Harrison said that the carrier is "starting to see the fruits of our labor as it relates to our expanded network," especially internationally.
Alaska in recent years has worked to develop Seattle as an international gateway and introduced new routes for its legacy carrier as well as subsidiary Hawaiian Airlines, including to Tokyo and Seoul in 2025. It also will begin service to three European cities this spring—London, Rome and Reykjavik.
"I'm also pleased to report that our share of corporate travelers in our business-class cabins on our Seattle to Tokyo and Seoul routes is about to cross over our fair market share, demonstrating that we have successfully tapped into the lucrative international corporate revenue pool of the West Coast that we previously did not have access to," Harrison said.
Further, Harrison said that Alaska is "getting more and more penetration into our corporate contracts. I think it all stems to what we've been working on is to become more relevant for the corporate traveler."
In line with other U.S. carriers that have reported earnings this month, Alaska reported a 7.1 percent year-over-year increase in first- and premium-class revenue for the fourth quarter. Premium revenue represented 36 percent of total revenue, up 1 point from the third quarter. For the full year, premium cabin revenue increased 6.7 percent compared with 2024.
Alaska Q4, Full-Year 2025 Metrics
Alaska reported fourth-quarter passenger revenue of more than $3.2 billion, a 2 percent increase year over year, with total revenue up 3 percent to more than $3.6 billion.
Full-year 2025 passenger revenue was more than $12.8 billion, a 20 percent increase from a year prior. Total 2025 revenue was more than $14.2 billion, up 21 percent.
Fourth-quarter net income was $21 million compared with $71 million in Q4 2024. Alaska attributed a $30 million negative impact on fourth-quarter earnings due to the government shutdown. Full-year net income was $100 million versus $395 million a year prior.
Capacity for the fourth quarter increased 2.2 percent year over year and was up 22.1 percent for the full year compared with 2024. The fourth-quarter average fuel cost was $2.57 per gallon, while the full-year cost was $2.41 per gallon.
Alaska projects first-quarter capacity to increase 1 percent to 2 percent year over year, with full-year capacity to be up 2 percent to 3 percent versus 2025.
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