Alaska Air Group Inc. Faces Operational Challenges Amid IT Outage
Alaska Air Group, Inc. (ALK), a leading airline holding company listed on the New York Stock Exchange, encountered significant operational disruptions on July 21, 2025, due to an IT outage. The incident led to the grounding of all flights for approximately three hours, as reported by multiple media outlets. This disruption marks the second such event in just over a year, highlighting ongoing challenges in the airline’s IT infrastructure.
The IT outage prompted Alaska Airlines to request a system-wide ground stop for its flights, including those operated by its subsidiary, Horizon Air. The Federal Aviation Administration (FAA) confirmed the ground stop, although the specific reasons for the IT failure were not immediately disclosed. Both Alaska Airlines and the FAA did not provide immediate comments outside regular business hours.
Despite resuming operations late on Sunday, Alaska Air Group anticipates that flight delays may continue as the airline works to stabilize its systems. This operational hiccup comes at a time when the company is also navigating financial challenges, including higher interest rates.
Financial Moves Amidst Operational Setbacks
In response to the financial pressures exacerbated by the pandemic, Alaska Air Group is actively seeking to refinance its pandemic-related loans. The company has also reached a settlement in a $1 billion lawsuit, which could provide some financial relief and stability.
As of July 17, 2025, Alaska Air Group’s stock closed at $53.15, with a 52-week high of $78.08 and a low of $32.62. The company’s market capitalization stands at $6.45 billion, with a price-to-earnings ratio of 19.28.
Healthcare Innovations by ALK-Abelló
In a separate development, ALK-Abelló, a subsidiary of Alaska Air Group, has achieved significant milestones in the healthcare sector. The UK’s National Institute for Health and Care Excellence (NICE) has recommended ALK’s tree pollen tablet, ITULAZAX, for use within the UK health system. This endorsement follows the approval of EURneffy, a needle-free adrenaline nasal spray for treating allergic reactions, by the UK’s Medicines and Healthcare products Regulatory Agency (MHRA). These advancements underscore ALK-Abelló’s growing influence in the healthcare industry.
As Alaska Air Group navigates these operational and financial challenges, its strategic moves in both the airline and healthcare sectors will be crucial in shaping its future trajectory.