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Alaska Air Group has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Alaska Air Group Inc displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Alaska Air Group did not have earnings to cover the interest expense.
Alaska Air Group's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.47.
As of today, Alaska Air Group's Altman Z-Score is 1.00.
Alaska Air Group (NYSE:ALK) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Alaska Air Group has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Alaska Air Group Financial Strength Related Terms
ALK vs CPA, SKYW, ALGT: Financial Strength Comparison
For the Airlines subindustry, Alaska Air Group's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Transportation Industry
For the Transportation industry and Industrials sector, Alaska Air Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where Alaska Air Group's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Alaska Air Group has a Z-score of 1.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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 (ALK) has a Financial Strength of 3 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Alaska Air Group and its competitors. This is 50% below median its historical median of 6.00. Over the past decade, Alaska Air Group's Financial Strength has ranged from 3.00 to 8.00.
Is Alaska Air Group's Financial Strength too high?
Alaska Air Group's current Financial Strength of 3 is 50% below median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 8.00. Overall, Alaska Air Group has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alaska Air Group's Financial Strength compare to CPA and SKYW?
Alaska Air Group's Financial Strength of 3 can be compared against companies in the Transportation industry. Historically, Alaska Air Group's own Financial Strength has ranged from 3.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Transportation company?
A good Financial Strength depends on the Transportation industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Alaska Air Group and its competitors. Alaska Air Group's current Financial Strength is 3, which is 50% below median its own 10-year median of 6.00. 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 Modestly Undervalued. The stock's GF Value™ is $63.06, compared to a current price of $52.05 — trading 17.5% below its estimated fair value. The current Financial Strength is 3, which is 50% below median its 10-year median of 6.00. Alaska Air Group's overall GF Score™ is 81/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Alaska Air Group (ALK), the current Financial Strength is 3 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 $52.05 is trading 17.5% below its estimated GF Value™ of $63.06.
GuruFocus considers Alaska Air Group to be Modestly Undervalued.
Key valuation signals for ALK:
Financial Strength: 3 (50% below median its 10-year median of 6.00)
GF Value™: $63.06 vs. price of $52.05 (17.5% 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.
81GF Score
Get the complete analysis for ALK
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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