Alaska Air Shares Plunge 12.90% on IT Outage Fallout and Legal Probe as Investor Confidence Erodes

The share price fell to its lowest level since September 2024 today, with an intraday decline of 2.56%.

The selloff follows a systemwide IT outage on October 23 that grounded all Alaska Airlines and Horizon Air flights, triggering a 6.13% drop in ALK shares the next day. The disruption, coupled with a class-action securities fraud investigation by Pomerantz LLP, has eroded investor confidence, with the stock now down 12.90% over six consecutive trading days.

Investors are weighing concerns over operational resilience and corporate governance. The outage exposed vulnerabilities in critical infrastructure, while the ongoing legal probe—focused on potential mismanagement of IT risks—introduces uncertainty. Analysts note airlines face heightened scrutiny over digital dependencies, with Alaska Air’s case underscoring the financial and reputational stakes of operational failures in a technology-driven sector.