Alaska Air Group reported Q3 2025 revenue of $3.7666 billion, up 22.6% year-over-year and up 1.7% quarter-over-quarter, signaling continued demand recovery as capacity and yields normalize in the post-pandemic environment. The period shows a robust gross profit of $3.615 billion and an exceptionally high gross margin of roughly 96%, with operating income of $148 million and EBITDA of $376 million, translating into an operating margin of ~3.9% and an EBITDA margin of about 9.9%. Net income was $73 million, or ~1.94% net margin, a material YoY decline of about 69% versus Q3 2024, driven by substantial “other expenses” totaling $3.36 billion that weighed on the bottom line despite strong top-line performance. Diluted earnings per share stood at $0.58, with 121.2 million diluted shares outstanding. Management commentary is not provided in the supplied transcript data, limiting direct quotes in this iteration; nonetheless, the quarterly sequence shows meaningful YoY revenue gains amid ongoing cost discipline on the core operating structure. The company also reports positive per-share operating cash flow ($1.923) and modest free cash flow per share ($0.0588), alongside a leveraged balance sheet characterized by a debt-to-capitalization ratio of ~0.616 and a debt-to-equity ratio of ~1.606, indicating meaningful leverage that will require continued liquidity management as the industry standardizes post-pandemic capacity. The following analysis integrates these quantitative results with qualitative interpretation based on standard industry dynamics and Alaska’s competitive positioning.