Fuel Cost Impact

The Hawaii rainstorms in March cut system unit revenue by roughly three points, though demand stayed resilient elsewhere. CEO Ben Minicucci emphasized that the Q2 loss was largely due to an uncontrolled fuel spike; without it, the company would have posted a solid profit. Alaska Air projects for Q3 a breakeven to $1.00 a share net earnings outlook, 2–3 % capacity growth and low‑double‑digit RASM growth. Fuel prices are expected to average $3.75 per gallon in the current quarter, compared to $3.60 this month and spot averages of $3.85 for August and September. The airline noted that fuel costs should decline from Q2 levels as refining margins moderate, contrasting with United’s projected $6 billion additional fuel expense for 2026 and Delta’s projected all‑in fuel price of $3.15 per gallon in September.