Alaska Air Group, Inc.
ALK Industrials Airlines
Alaska Air Group, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $14.2 billion, up 21.3% from fiscal 2024. In the quarter to June 2026, revenue grew 9.75%, EPS fell 146.9%, free cash flow fell 14.6% and total debt rose 24.9%, each against the same quarter a year earlier. Dividend growth for three consecutive years, revenue growth for five; insiders bought in the last twelve months.
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Alaska Air Group, Inc. (ALK) Altman Z-score
Alaska Air Group, Inc.'s Altman Z-score for fiscal 2025 is 1.12, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 1.12 | (0.09) |
| FY2024 | 1.21 | (0.17) |
| FY2023 | 1.38 | 0.06 |
| FY2022 | 1.31 | (0.10) |
| FY2021 | 1.41 | 0.87 |
| FY2020 | 0.54 | (1.43) |
| FY2019 | 1.97 | (0.06) |
| FY2018 | 2.03 | (0.30) |
| FY2017 | 2.34 | (0.07) |
| FY2016 | 2.41 | (1.21) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.16) | — | −0.20 | |
| Retained earnings / total assets | 0.25 | — | 0.35 | |
| EBIT / total assets | 0.01 | — | 0.05 | |
| Market value of equity / total liabilities | 0.37 | — | 0.22 | |
| Sales / total assets | 0.70 | — | 0.70 | |
| Altman Z-score | Distress zone | 1.12 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | 0.10 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| CPA Copa Holdings, S.A. compare | 2.4× |
| SKYW SkyWest, Inc. compare | 1.8× |
| LTM LATAM Airlines Group S.A. compare | 1.8× |
| ALGT Allegiant Travel Company compare | 1.2× |
| ALK Alaska Air Group, Inc. | 1.1× |
| AERO Grupo Aeromexico SAB DE CV - Sponsored ADR compare | 0.8× |
| AAL American Airlines Group Inc. compare | 0.7× |
| JBLU JetBlue Airways Corporation compare | 0.5× |
| ULCC Frontier Group Holdings, Inc. compare | 0.4× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets