Alaska Air GroupLTS:0HC3 +2.42%83 Gross Margin % is 4.79% as of Mar. 2026, which is 75% below its 10-year median of 19.15. GuruFocus rates LTS:0HC3 with a GF Score™ of 83/100 and a GF Value™ of $62.43 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 977 Transportation companies, Alaska Air Group ranks worse than 67.96% on this metric.
The historical rank and industry rank for Alaska Air Group's Gross Margin % or its related term are showing as below:
LTS:0HC3'
s Gross Margin % Range Over the Past 10 Years
Min: -11.61 Med: 19.15 Max: 34.4
Current: 13.34
During the past 13 years, the highestGross Margin % of Alaska Air Group was 34.40%. The lowest was -11.61%. And the median was 19.15%.
LTS:0HC3's Gross Margin % is ranked worse than 67.96% of 977
companies
in the Transportation industry
Industry Median: 20.42
vs LTS:0HC3: 13.34
Alaska Air Group had a gross margin of 4.79% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Alaska Air Group was 0.00% per year.
Alaska Air Group (LTS:0HC3) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Alaska Air Group had a gross margin of 4.79% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Alaska Air Group Gross Margin % Related Terms
Alaska Air Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Alaska Air Group's Gross Margin % 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.
LTS:0HC3 vs CPA, SKYW, ALGT: Gross Margin % Comparison
For the Airlines subindustry, Alaska Air Group's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Alaska Air Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alaska Air Group's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Alaska Air Group (LTS:0HC3) has a Gross Margin % of 4.79% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Alaska Air Group and its competitors. This is 75% below median its historical median of 19.15. According to the industry distribution chart, Alaska Air Group ranks #664 out of 977 companies in the Transportation industry, placing it in the top 68%.
Is Alaska Air Group's Gross Margin % too high?
Alaska Air Group's current Gross Margin % of 4.79% is 75% below median its 10-year median of 19.15. The Transportation industry median Gross Margin % is 20.42. Alaska Air Group's value of 4.79% is 76.5% below this industry median. Based on the distribution chart, Alaska Air Group ranks #664 out of 977 companies in the Transportation industry, which is below the industry midpoint. Overall, Alaska Air Group has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alaska Air Group's Gross Margin % compare to CPA and SKYW?
According to the Transportation industry distribution chart, Alaska Air Group ranks #664 out of 977 companies for Gross Margin %. This places Alaska Air Group in the lower half of its industry. The industry median Gross Margin % is 20.42. Alaska Air Group's value of 4.79% is 76.5% below this benchmark. While the company's 10-year median is 19.15 vs. the industry median of 20.42, Alaska Air Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Transportation company?
The median Gross Margin % among Transportation companies is 20.42, based on 977 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alaska Air Group's current Gross Margin % of 4.79% is 76.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Alaska Air Group and its competitors. For the Transportation industry, the median Gross Margin % is 20.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alaska Air Group's current Gross Margin % is 4.79%, which is 75% below median its own 10-year median of 19.15. 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 (LTS:0HC3) is currently considered Modestly Undervalued. The stock's GF Value™ is $62.43, compared to a current price of $53.37 — trading 14.5% below its estimated fair value. The current Gross Margin % is 4.79%, which is 75% below median its 10-year median of 19.15 and 76.5% below the Transportation industry median of 20.42. Alaska Air Group's overall GF Score™ is 83/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Alaska Air Group (LTS:0HC3), the current Gross Margin % is 4.79% as of Mar. 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 (LTS:0HC3) Overvalued in 2026?
Based on GuruFocus' analysis, Alaska Air Group stock appears to be undervalued.
The current stock price of $53.37 is trading 14.5% below its estimated GF Value™ of $62.43.
GuruFocus considers Alaska Air Group to be Modestly Undervalued.
Key valuation signals for LTS:0HC3:
Gross Margin %: 4.79% (75% below median its 10-year median of 19.15)
GF Value™: $62.43 vs. price of $53.37 (14.5% below fair value)
Industry Position: 76.5% below the Transportation median (#664 of 977)
No single metric tells the full story. See the LTS:0HC3 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.
83GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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