ALASKA AIR GROUP, INC. Earnings Per Share Disclosure
(in millions, except per share amounts) | 2025 | 2024 | 2023 | ||||||||||||||
Net income | $ | 100 | $ | 395 | $ | 235 | |||||||||||
Basic weighted average shares outstanding | 118.171 | 126.136 | 127.375 | ||||||||||||||
Dilutive effect of employee stock awards | 1.755 | 1.886 | 0.967 | ||||||||||||||
Dilutive effect of stock warrants | — | 0.350 | 0.366 | ||||||||||||||
Diluted weighted average shares outstanding | 119.926 | 128.372 | 128.708 | ||||||||||||||
Basic earnings per share | $ | 0.85 | $ | 3.13 | $ | 1.84 | |||||||||||
Diluted earnings per share | $ | 0.83 | $ | 3.08 | $ | 1.83 | |||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.