Financial Performance - Alaska Air Group reported a total operating revenue of $3.137 billion for Q1 2025, a 41% increase compared to $2.232 billion in Q1 2024[22]. - The adjusted net loss for Q1 2025 was $95 million, or $0.77 per share, compared to a net loss of $116 million, or $0.92 per share, in Q1 2024[11]. - Total operating revenue for the three months ended March 31, 2025, was $3,137 million, a 9% increase from $2,877 million in the same period of 2024[45]. - Passenger revenue increased to $2,808 million, up 9% from $2,585 million year-over-year[45]. - The operating loss for the three months ended March 31, 2025, was $197 million, a 39% improvement from a loss of $325 million in the same period of 2024[45]. - The company reported a net loss of $166 million in Q1 2025, compared to a net loss of $132 million in Q1 2024[26]. Cash Flow and Liquidity - The company generated operating cash flow of $459 million in Q1 2025 and held $2.5 billion in unrestricted cash and marketable securities as of March 31, 2025[15]. - Net cash provided by operating activities was $459 million in Q1 2025, compared to $292 million in Q1 2024, an increase of 57.1%[26]. - Adjusted net debt decreased to $3,812 million from $3,918 million as of December 31, 2024[39]. - The debt-to-capitalization ratio remained stable at 58% for both March 31, 2025, and December 31, 2024[39]. Capacity and Operations - Capacity (ASMs) increased by approximately 3.9% in Q1 2025, exceeding prior expectations of 2.5% to 3.5% growth[5]. - Revenue passengers increased by 34.6% to 13,159,000 in Q1 2025 from 9,774,000 in Q1 2024[31]. - Revenue passenger miles (RPMs) increased by 4.0% to 17,257 million from 16,597 million in the previous year[45]. - The load factor for the three months ended March 31, 2025, was 81.3%, slightly up from 81.2% in the same period of 2024[45]. Expenses and Cost Management - Total operating expenses increased to $3,334 million in Q1 2025, up from $2,398 million in Q1 2024, a rise of 39.1%[36]. - Total operating expenses rose to $3,334 million, a 4% increase compared to $3,202 million in the prior year[45]. - The company reported a 10% decrease in aircraft fuel expenses, totaling $681 million compared to $759 million in the prior year[45]. - Economic fuel cost per gallon decreased by 15.3% to $2.61 in Q1 2025 from $3.08 in Q1 2024[31]. Strategic Initiatives - Alaska Air Group aims to deliver $1 billion in incremental profit by 2027 as part of its Alaska Accelerate strategic plan[2]. - The integration of Hawaiian Airlines is showing strong initial progress, with Hawaiian unit revenue increasing by 8.8% year-over-year[9]. - The company ratified a three-year collective bargaining agreement with over 6,900 flight attendants, enhancing employee engagement and benefits[15]. Shareholder Actions - The company repurchased 1.8 million shares for approximately $107 million in Q1 2025, with year-to-date repurchases totaling $149 million[15]. - The average full-time equivalent employees (FTEs) increased by 29.4% to 29,773 in Q1 2025 from 23,013 in Q1 2024[31].

Acquisition and Integration - In 2024, Alaska Air Group acquired Hawaiian Holdings, Inc., and integration efforts are underway, including plans for a single operating certificate and combined loyalty programs [15]. - The integration of Alaska and Hawaiian under a single operating certificate is underway, aiming to streamline operations and enhance safety management systems [55]. - The integration of Hawaiian Airlines is expected to incur substantial expenses, with potential liabilities and unforeseen costs that may exceed initial estimates [179]. - The integration of Hawaiian Airlines' workforce into Alaska's collective bargaining agreements may lead to delays in achieving expected synergies and could result in labor disputes [176]. - The National Mediation Board has exclusive authority to resolve representation disputes arising from the merger, which could delay integration benefits [177]. Passenger and Revenue Statistics - Alaska Airlines carried 36 million revenue passengers in 2024, an increase from 35 million in 2023 [19]. - Hawaiian Airlines carried 11 million revenue passengers in the full year of 2024, with 3 million in the post-acquisition period from September 18, 2024, to December 31, 2024 [22]. - Regional operations carried approximately 10 million revenue passengers in 2024, up from 9 million in 2023 [26]. - Passenger revenue accounted for 91% of consolidated revenue in 2024, consistent with the previous two years [17]. - Loyalty program revenue represented approximately 16% of Air Group's total revenue in 2024 [33]. Operational Performance and Costs - The average stage length for Alaska Airlines increased to 1,395 miles in 2024, compared to 1,387 miles in 2023 [20]. - The percentage of consolidated passenger capacity in the domestic market was 91% in 2024, down from 94% in 2023 [18]. - The company's CASMex (cost per available seat mile excluding fuel and special items) rose to 10.80 cents in 2024 from 10.06 cents in 2023, indicating increased operational costs [211]. - Total operating expenses increased to $11,165 million in 2024 from $10,032 million in 2023, with aircraft fuel costs slightly decreasing from $2,641 million to $2,506 million [211]. - Special items related to operating costs were $345 million in 2024, down from $443 million in 2023, reflecting improved cost management [210]. Fuel Costs and Management - Alaska's economic fuel cost per gallon for 2024 is projected to be $2.74, compared to $3.18 in 2023 and $3.40 in 2022 [59]. - Hawaiian's economic fuel cost per gallon for 2024 is projected to be $2.43, down from $2.58 in 2023 and $2.89 in 2022 [59]. - Aircraft fuel expenses for Alaska and Hawaiian totaled $2,506 million in 2024, accounting for 22% of total operating expenses, down from 26% in 2023 and 28% in 2022 [59]. - Alaska's fuel hedge program was suspended in 2023, while Hawaiian's program was paused as of September 30, 2024 [60]. Financial Performance - In 2024, the company reported a net income of $395 million, an increase from $235 million in 2023, resulting in a per share increase from $1.83 to $3.08 [210]. - Adjusted net income for 2024 was $625 million, up from $583 million in 2023, with adjusted earnings per share rising from $4.53 to $4.87 [210]. - The pretax margin improved to 4.6% in 2024 from 3.1% in 2023, while the adjusted pretax margin slightly decreased from 7.5% to 7.1% [210]. - The company reported an adjusted income before income tax of $836 million in 2024, compared to $782 million in 2023 [210]. Employee and Labor Relations - In 2024, Alaska and Horizon employees earned $325 million under incentive programs based on profitability, safety, and guest satisfaction metrics [84]. - As of December 31, 2024, Alaska employed 33,941 active employees, with wages and benefits representing approximately 46% of total non-fuel operating expenses [83]. - Alaska and Hawaiian are negotiating joint collective bargaining agreements for workgroups represented by the same unions [86]. Environmental and Safety Initiatives - Alaska and Hawaiian are working towards net zero carbon emissions by 2040, with a focus on increasing operational efficiency and investing in new technologies [78][81]. - The company is committed to reducing greenhouse gas emissions, which may require significant investments in emerging technologies [130]. - Alaska Airlines is committed to carbon neutral growth starting in 2020, aligning with international agreements through the CORSIA program [113]. - The company has agreements to purchase Sustainable Aviation Fuel (SAF) to support their emissions reduction goals [79]. Competitive Landscape - The airline industry is highly competitive, with Alaska's largest competitor being Delta Air Lines, which accounts for approximately 79% of Alaska's capacity to and from Seattle [63]. - The airline industry is highly competitive, and failure to attract and retain guests could materially adversely affect the company's results of operations [133]. - The company has a significant capacity overlap with competitors, particularly in key West Coast and Hawaiian markets, which may adversely affect its financial condition and operating results [133]. Regulatory and Risk Management - The airline industry is highly regulated, with significant oversight from the DOT, TSA, and FAA, impacting operational and financial aspects [107]. - The company is subject to extensive regulatory requirements that could increase costs and operational complexity, impacting revenue [168]. - The company has adopted an enterprise-wide risk analysis program to manage various risks, aligning them with Board oversight [122]. - The company is subject to extensive cybersecurity regulations, and the Chief Information Security Officer (CISO) leads efforts to manage cybersecurity risks [185]. Charitable Contributions - The Alaska Airlines Foundation donated over $500,000 in grants in 2024, supporting educational and career-development programs [95]. - In 2024, Air Group companies donated $15 million in cash and in-kind travel to approximately 1,300 charitable organizations [94].

The Company has made reference in this presentation to financial metrics which are not in accordance with GAAP. Pursuant to Regulation G, we have provided reconcliliations of non-GAAP financial measures to their most directly comparable financial measures reported on a GAAP basis within the Fourth Quarter 2024 Earnings Release filed concurrently with this presentation. Prior year non-GAAP financial metrics have been reconciled in previous SEC filings, and can be referenced therein. ALASKA AIR GROUP Q4 2024 ...

Financial Data and Key Metrics - The company reported its fourth quarter 2024 earnings, with detailed results available in the earnings release and accompanying slides on the investor relations website [4] Business Line Data and Key Metrics - No specific data or metrics related to individual business lines were mentioned in the provided content [4] Market Data and Key Metrics - No specific data or metrics related to individual markets were mentioned in the provided content [4] Company Strategy and Industry Competition - No specific details on company strategy, development direction, or industry competition were mentioned in the provided content [4] Management Commentary on Operating Environment and Future Outlook - No specific commentary from management on the operating environment or future outlook was mentioned in the provided content [4] Other Important Information - The earnings call included updates from Ben Minicucci (President and CEO), Andrew Harrison (Chief Revenue Officer and CCO), and Shane Tackett (Chief Financial Officer) [4] - Several other members of the management team were also available to answer questions during the Q&A portion of the call [4] Q&A Session Summary - No specific questions or answers from the Q&A session were mentioned in the provided content [4]

Revenue and Earnings Performance - Record full year revenue of $11.7 billion in 2024[1] - Fourth quarter adjusted earnings per share of $0.97, exceeding guidance by $0.50 at the midpoint[5] - Full year adjusted pretax margin of 7.1%, among the highest in the industry[2] - Full year 2025 adjusted earnings per share guidance of >$5.75[10] - Total operating revenue increased by 38% to $3.534 billion in Q4 2024 compared to $2.553 billion in Q4 2023[22] - Passenger revenue grew by 37% to $3.178 billion in Q4 2024 from $2.326 billion in Q4 2023[22] - Cargo and other revenue surged by 113% to $132 million in Q4 2024 from $62 million in Q4 2023[22] - Operating income rose by 128% to $73 million in Q4 2024 compared to $32 million in Q4 2023[22] - Net income improved significantly to $71 million in Q4 2024 from a net loss of $2 million in Q4 2023[22] - Passenger revenue for Q4 2024 increased by 9% to $3.178 billion compared to the pro forma $2.928 billion in Q4 2023[57] - Total operating revenue for Q4 2024 grew by 10% to $3.534 billion from the pro forma $3.221 billion in Q4 2023[57] Cash Flow and Financial Position - Generated $1.5 billion in operating cash flow for the full year 2024[12] - Total assets increased to $19.768 billion as of December 31, 2024, up from $14.613 billion as of December 31, 2023[23] - Cash and cash equivalents grew substantially to $1.201 billion as of December 31, 2024, compared to $281 million as of December 31, 2023[23] - Net cash provided by operating activities was $1.464 billion for the full year 2024, with $274 million generated in Q4 2024[26] Share Repurchases and Capital Allocation - Repurchased $250 million in outstanding shares in Q4 2024, totaling $312 million for the year[16] Operational Metrics and Performance - Q4 2024 RASM increased by 7.0% compared to pro forma 2023[5] - Q4 2024 CASMex increased by 8.6% compared to pro forma 2023[5] - Revenue passengers increased by 32% to 14,339,000 in Q4 2024 compared to 10,903,000 in Q4 2023[36] - RPMs (traffic) grew by 35% to 19,068,000,000 in Q4 2024 from 14,153,000,000 in Q4 2023[36] - ASMs (capacity) rose by 33% to 22,744,000,000 in Q4 2024 from 17,077,000,000 in Q4 2023[36] - Load factor improved by 0.9 percentage points to 83.8% in Q4 2024 compared to 82.9% in Q4 2023[36] - Economic fuel cost per gallon decreased by 26% to $2.54 in Q4 2024 from $3.42 in Q4 2023[36] - Adjusted income before income tax increased to $137 million in Q4 2024 from $57 million in Q4 2023[40] - Adjusted pretax margin improved to 3.9% in Q4 2024 from 2.2% in Q4 2023[40] - Revenue passengers increased by 5.8% to 14.339 million in Q4 2024 from 13.559 million in Q4 2023[57] - RPMs (traffic) grew by 3.8% to 19.068 billion in Q4 2024 from 18.374 billion in Q4 2023[57] - ASMs (capacity) increased by 2.5% to 22.744 billion in Q4 2024 from 22.181 billion in Q4 2023[57] - Load factor improved by 1.0 percentage point to 83.8% in Q4 2024 from 82.8% in Q4 2023[57] - Yield increased by 4.7% to 16.67 cents in Q4 2024 from 15.92 cents in Q4 2023[57] - RASM grew by 7.0% to 15.54 cents in Q4 2024 from 14.52 cents in Q4 2023[57] - CASMex increased by 8.6% to 11.57 cents in Q4 2024 from 10.65 cents in Q4 2023[57] - Total operating expenses for Q4 2024 were $3,461 million, compared to $3,312 million in Q4 2023[59] - Aircraft fuel costs decreased to $702 million in Q4 2024 from $919 million in Q4 2023[59] - CASMex (operating costs excluding fuel, freighter costs, and special items per ASM) increased to 11.57¢ in Q4 2024 from 10.65¢ in Q4 2023[59] - ASMs (available seat miles) increased to 22,744 million in Q4 2024 from 22,181 million in Q4 2023[59] - Freighter costs increased to $37 million in Q4 2024 from $15 million in Q4 2023[59] - Special items - operating increased to $91 million in Q4 2024 from $15 million in Q4 2023[59] - Total operating expenses, excluding fuel, freighter costs, and special items, increased to $2,631 million in Q4 2024 from $2,363 million in Q4 2023[59] Strategic Initiatives and Future Plans - Announced plans to add 12 international widebody destinations by 2030[16] - Launched Huaka'i by Hawaiian, offering exclusive travel benefits to HawaiianMiles members[16] Debt and Leverage - Debt-to-capitalization ratio, including leases, increased to 58% in 2024 from 46% in 2023[47] - Adjusted net debt to EBITDAR ratio rose to 2.4x in 2024 from 1.4x in 2023[49] Integration and Transition Costs - Integration costs related to the acquisition of Hawaiian Airlines totaled $80 million in Q4 2024 and $208 million for the full year 2024[33] - Fleet transition costs resulted in a benefit of $40 million in Q4 2024 compared to an expense of $30 million in Q4 2023[33] Key Metrics and Management Focus - CASMex is a key metric used by management and the Air Group Board of Directors to assess cost performance[61] - Adjusted pretax income is a critical metric for the employee incentive plan, covering the majority of Air Group employees[61] - Fuel expense represents a significant percentage of total operating expenses, and fluctuations in fuel prices impact unit revenue in the mid-to-long term[61]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-8957 ALASKA AIR GROUP, INC. Delaware 91-1292054 (State of Incorporation) (I.R.S. Employer Identification No.) 19300 International Boulevard ...

Exhibit 99.1 October 31, 2024 Media contact: Investor/analyst contact: Media Relations Ryan St. John (206) 304-0008 VP Finance, Planning and Investor Relations ALKInvestorRelations@alaskaair.com Alaska Air Group reports third quarter 2024 results Completed acquisition of Hawaiian Airlines Led the industry in adjusted pretax margin SEATTLE — Alaska Air Group (NYSE: ALK) today reported financial results for the third quarter ending September 30, 2024. Air Group closed out a strong third quarter, generating GA ...

Financial Performance - Total operating revenue for Q2 2024 was $2,897 million, a 2.1% increase from $2,838 million in Q2 2023[16] - Passenger revenue reached $2,651 million, up from $2,598 million year-over-year, reflecting a 2.0% growth[16] - Net income for the quarter was $220 million, compared to $240 million in the same quarter last year, representing a decrease of 8.3%[16] - Basic earnings per share (EPS) for Q2 2024 was $1.74, down from $1.88 in Q2 2023, a decline of 7.4%[16] - Total operating revenue for the three months ended June 30, 2024, was $2,897 million, a decrease from $2,838 million in the same period of 2023, representing a decline of 2.1%[78] - Passenger revenue for the three months ended June 30, 2024, was $2,651 million, compared to $2,598 million in the same period of 2023, reflecting an increase of 2.0%[78] - Total operating expenses for the three months ended June 30, 2024, were $2,575 million, up from $2,501 million in the same period of 2023, indicating an increase of 2.9%[78] - Income before income tax for the three months ended June 30, 2024, was $316 million, compared to $325 million in the same period of 2023, showing a decrease of 2.8%[78] - The pretax margin for the three months ended June 30, 2024, was 10.9%, down from 15.8% in the same period of 2023[78] - Total operating revenue for the six months ended June 30, 2024, was $5,129 million, a decrease from $5,034 million in the same period of 2023, reflecting a year-over-year decline of 0.2%[1] - Passenger revenue for the six months ended June 30, 2024, was $4,655 million, compared to $4,582 million in the same period of 2023, indicating an increase of 1.6%[1] - Total operating expenses for the six months ended June 30, 2024, were $4,973 million, up from $4,883 million in the same period of 2023, representing a year-over-year increase of 1.8%[1] - The income before income tax for the six months ended June 30, 2024, was $138 million, a significant decrease from $126 million in the same period of 2023, reflecting a year-over-year increase of 9.5%[1] - The pretax margin for the six months ended June 30, 2024, was 2.7%, a decrease from 8.0% in the same period of 2023[1] Assets and Liabilities - Total current assets increased to $3,376 million from $2,705 million at the end of 2023, a growth of 24.8%[12] - Total assets rose to $15,342 million, up from $14,613 million at the end of 2023, an increase of 5.0%[14] - Total current liabilities increased to $4,968 million, compared to $4,459 million at the end of 2023, a rise of 11.5%[14] - The company reported a total of $1,115 million in cash and cash equivalents, significantly up from $281 million at the end of 2023[12] - Retained earnings as of June 30, 2024, were $4,623 million, an increase from $4,535 million as of June 30, 2023[20] - Total long-term debt increased to $2,313 million as of June 30, 2024, up from $2,182 million at December 31, 2023, representing a 6% increase[50] - The company incurred $348 million in new debt during the six months ended June 30, 2024, including $280 million secured by aircraft and flight simulators[51] - The weighted-average fixed-interest rate for long-term debt was 3.3% as of June 30, 2024, slightly down from 3.4% at the end of 2023[50] - The company has total principal payments of $2,686 million due over the next five years, with the largest payment of $666 million due in 2027[52] Cash Flow and Investments - Cash provided by operating activities for the six months ended June 30, 2024, was $872 million, an increase of 4.81% from $832 million in the same period of 2023[23] - The company reported a net cash increase of $824 million for the six months ended June 30, 2024, compared to $188 million in the prior year, representing a significant increase[23] - The balance of cash, cash equivalents, and restricted cash at the end of the period was $1,132 million, up from $557 million at the end of June 30, 2023[25] - The company repurchased common stock totaling $49 million during the six months ended June 30, 2024, compared to $57 million in the same period of 2023[23] - The company repurchased 1.2 million shares for $49 million during the six months ended June 30, 2024, with a total of $262 million remaining under the share repurchase program[65] Revenue and Traffic - Ancillary passenger revenue increased to $135 million for the three months ended June 30, 2024, from $123 million in 2023, and for six months it rose to $243 million from $227 million[35] - Mileage Plan passenger revenue reached $290 million for the three months ended June 30, 2024, up from $268 million in 2023, and $538 million for six months compared to $500 million in 2023[36] - Total deferred revenue balance as of June 30, 2024, was $2.641 billion, an increase from $2.577 billion at the end of June 2023[41] - The company recorded $150 million and $717 million in passenger revenue from prior year-end air traffic liability for the three and six months ended June 30, 2024, respectively[39] - The company reported a total of 2,651 million in passenger revenue for the Mainline segment, while the Regional segment generated $477 million in passenger revenue for the same period[78] - The Horizon segment reported $112 million in CPA revenue for the three months ended June 30, 2024[78] Acquisition and Integration - The company has agreed to acquire Hawaiian Holdings, Inc. for $18.00 per share, totaling approximately $1.0 billion in cash, and will assume Hawaiian's debt and lease obligations[30] - Integration costs incurred by the company were $30 million for the three months and $38 million for the six months ended June 30, 2024, primarily for professional services[32] - The company expects to continue incurring integration costs as activities supporting the proposed acquisition proceed[33] Market and Risk - There have been no material changes in market risk from the previous disclosures in the Annual Report for the year ended December 31, 2023[2]

Financial Data and Key Metrics Changes - The company reported a GAAP net income of $220 million for Q2 2024, with an adjusted net income of $327 million excluding special items and mark-to-market fuel hedge adjustments [5][6] - Revenue reached a record $2.9 billion, marking a 2% increase year-over-year, with an adjusted pre-tax margin of 15.8%, expected to lead the industry [8][16] - Unit costs decreased by nearly 2% year-over-year, reflecting strong cost management and productivity [9][29] Business Line Data and Key Metrics Changes - Premium segment revenues contributed nearly $1 billion to total revenue, with First Class and Premium Class revenues up 8% and 6% year-over-year, respectively [8][17] - Load factors increased sequentially to 87% in June, although the overall load factor for the quarter was 84%, impacted by capacity additions [16][17] Market Data and Key Metrics Changes - Competitive capacity in the Alaska long-haul market was up over 20%, but overall capacity growth is expected to moderate in Q3 and Q4 [42][50] - The company anticipates a 2% to 3% year-over-year capacity increase in Q3, down from 6% in Q2 [22][23] Company Strategy and Development Direction - The company is focused on enhancing its premium offerings, with plans to increase the premium seat mix from 25% to 28% [14][25] - The planned acquisition of Hawaiian Airlines is expected to broaden the company's presence in both domestic and international markets, pending regulatory approval [10][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining industry-leading margins despite challenges from rising labor costs and a softer domestic demand environment [34][82] - The company is adjusting its full-year EPS guidance down by $0.25 to reflect the impact of the flight attendant deal and current market conditions [10][33] Other Important Information - The company achieved a completion rate of 99.5% or better each month in Q2, demonstrating operational excellence [9][11] - Total liquidity at the end of the quarter was $3.1 billion, with a debt-to-cap ratio of 45% [28] Q&A Session Summary Question: Update on the acquisition discussions with the DOJ - Management confirmed they are in the final stages of discussions with the DOJ and are awaiting feedback [38] Question: Yield comparison for Premium Class - Management indicated that the paid Premium Class yields are approximately 40% higher than the Main Cabin [40] Question: Competitive capacity growth in Q2 and outlook for Q3 - Competitive capacity was elevated in Q2, but is expected to moderate in Q3 and Q4 [42] Question: Cost increase breakdown for Q3 - Labor costs, particularly from the flight attendant contract, are expected to account for about one-third of the cost increase [45] Question: Capacity expectations for 2025 - Management indicated that capacity growth in 2025 is likely to remain below medium to long-term targets due to delivery delays [54] Question: Contribution from oneworld partnerships - Revenue from partnerships is approximately 7% of total revenue, with expectations for growth [84]

ALASKA AR GROUP 02 2024 Earnings Alaska U Safe Harbor This presentation may contain forward-looking statements subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. These statements relate to future events and involve known and unknown risks and uncertainties that may cause actual outcomes to be materially different from those indicated by our forward-locking s ...