ALASKA AIR GROUP Business Summary

Alaska Air Group, Inc. (ALK) operates as a major aviation holding company, generating revenue primarily through passenger air services (90%), the Atmos Rewards loyalty program (16%), and expanded cargo operations via an ATSA structure with Amazon. Following its $1.9 billion acquisition of Hawaiian Airlines in late 2024 and the attainment of a single FAA operating certificate in late 2025, the company has transitioned from a West Coast regional powerhouse into the fifth-largest U.S. carrier. Its business is segmented into Mainline operations (Alaska and Hawaiian brands) and Regional services (Horizon Air and McGee Air Services). Positioned as the "fourth global U.S. airline," Alaska now leverages a widebody fleet of Boeing 787 Dreamliners to compete on long-haul international routes to Tokyo, Seoul, and London. It maintains a unique market fit by offering premium service and high operational reliability at a lower cost structure than legacy peers, directly competing with American Airlines, Delta Air Lines, United Airlines, and Southwest Airlines. Originally founded in 1932 by Linious "Mac" McGee and Harvey Barnhill as McGee Airways, the company is currently led by President and CEO Ben Minicucci, a 20-year veteran who previously served as COO and CEO of Virgin America. The executive team includes EVP and CFO Shane Tackett, EVP and Chief Commercial Officer Andrew Harrison, and newly appointed COO Jason Berry, a 30-year industry veteran who assumed the role in November 2025. Strategic leadership is further bolstered by Diana Birkett Rakow, CEO of Hawaiian Airlines, and Andy Schneider, a 35-year veteran serving as CEO of Horizon Air. The company is governed by a board chaired by Patricia M. Bedient and featuring prominent members such as former Boeing Vice Chairman Raymond L. Conner and Microsoft EVP Kathleen T. Hogan. Major institutional backers include Vanguard Group, BlackRock, and D1 Capital Partners, reflecting strong investor confidence in the "Alaska Accelerate" strategic plan targeting $10 EPS by 2027.