Alaska Air Group has engaged Accenture to conduct a comprehensive audit of its technology systems following two major IT outages that grounded flights across the United States.
The outages occurred on July 2025, when a hardware failure caused 200 cancellations and an estimated $17 million cost, and on October 23 2025, when a primary data‑center failure led to 400 cancellations and an estimated $26 million cost. A third disruption on October 29 2025, linked to a Microsoft Azure outage, also caused significant operational disruptions.
The audit will assess core platforms that support flight operations, scheduling, and customer service, and will identify and remediate weaknesses in critical systems. Alaska Air Group has increased IT investment by nearly 80 percent since 2019, focusing on redundant data centers and cloud migration.
The company expects to provide updated fourth‑quarter guidance in early December after assessing the financial impact of the outages, which total estimated costs over $40 million. The audit follows the acquisition of Hawaiian Airlines in September 2024 and the integration of its operations.
Alaska Air Group will not reschedule its third‑quarter earnings call, which reported adjusted earnings per share of $1.05 versus analyst expectations of $1.11 and revenue of $3.77 billion versus $3.75 billion expected. The company lowered its annual profit forecast due to higher fuel costs and the outage‑related expenses.
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