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Alaska Air GroupALK +2.62%77 Degree of Operating Leverage is -12.36 as of Jun. 2026. GuruFocus rates ALK with a GF Score™ of 77/100 and a GF Value™ of $63.86 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 994 Transportation companies, Alaska Air Group ranks better than 92.05% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Alaska Air Group's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was -12.36. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Alaska Air Group's Degree of Operating Leverage or its related term are showing as below:
ALK's Degree of Operating Leverage is ranked better than 92.05% of 994
companies
in the Transportation industry
Industry Median: 1.11
vs ALK: -12.36
Alaska Air Group (NYSE:ALK) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Alaska Air Group Degree of Operating Leverage Related Terms
Alaska Air Group Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Alaska Air Group's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Alaska Air Group Degree of Operating Leverage Chart
ALK vs CPA, SKYW, ALGT: Degree of Operating Leverage Comparison
For the Airlines subindustry, Alaska Air Group's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alaska Air Group Degree of Operating Leverage vs Transportation Industry
For the Transportation industry and Industrials sector, Alaska Air Group's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Alaska Air Group's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of -12.36 mean?
Alaska Air Group (ALK) has a Degree of Operating Leverage of -12.36 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Alaska Air Group and its competitors. According to the industry distribution chart, Alaska Air Group ranks #79 out of 994 companies in the Transportation industry, placing it in the top 7.9%.
Is Alaska Air Group's Degree of Operating Leverage too high?
Alaska Air Group's current Degree of Operating Leverage is -12.36. Based on the distribution chart, Alaska Air Group ranks #79 out of 994 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Alaska Air Group has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Alaska Air Group's Degree of Operating Leverage compare to CPA and SKYW?
According to the Transportation industry distribution chart, Alaska Air Group ranks #79 out of 994 companies for Degree of Operating Leverage. This places Alaska Air Group in the top 8% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 1.11. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Transportation company?
The median Degree of Operating Leverage among Transportation companies is 1.11, based on 994 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Alaska Air Group and its competitors. For the Transportation industry, the median Degree of Operating Leverage is 1.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alaska Air Group's current Degree of Operating Leverage is -12.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alaska Air Group stock overvalued right now?
Based on GuruFocus' analysis, Alaska Air Group (ALK) is currently considered Possible Value Trap. The stock's GF Value™ is $63.86, compared to a current price of $41.16 — trading 35.5% below its estimated fair value. The current Degree of Operating Leverage is -12.36. Alaska Air Group's overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Alaska Air Group (ALK), the current Degree of Operating Leverage is -12.36 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alaska Air Group (ALK) Overvalued in 2026?
Based on GuruFocus' analysis, Alaska Air Group stock appears to be undervalued.
The current stock price of $41.16 is trading 35.5% below its estimated GF Value™ of $63.86.
GuruFocus considers Alaska Air Group to be Possible Value Trap.
Key valuation signals for ALK:
Degree of Operating Leverage: -12.36
GF Value™: $63.86 vs. price of $41.16 (35.5% below fair value)
No single metric tells the full story. See the ALK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alaska Air Group Inc operates two airlines, Alaska and Horizon, in three operating segments. The Alaska Airlines segment includes scheduled air transportation on Alaska's Boeing and Airbus jet aircraft for passengers and cargo throughout the U.S., and in parts of Mexico and Costa Rica. The Regional segment includes Horizon's and other third-party carriers' scheduled air transportation for passengers across a shorter distance network within the U.S. and Canada under capacity purchase agreements. The Hawaiian Airlines segment includes scheduled air transportation on Hawaiian's Boeing and Airbus aircraft for passengers and cargo. It earns revenues from Passenger tickets, including ticket breakage and net of taxes and fees, Passenger ancillary, and Mileage Plan passenger revenue.
77GF Score
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