Alaska Air Group Affirms Q1 Capacity, Revenue, CASMex Guidance

(RTTNews) - Alaska Air Group, Inc. (ALK) announced, for the first quarter, capacity, revenue, and CASMex have developed in line with its previously guided expectations. Versus prior year, capacity growth guidance continues to be 11% to 14%, and total revenue growth remains 29% to 32%.

Alaska Air said full quarter adjusted pre-tax margin expectations have softened slightly primarily due to elevated fuel costs which endured longer in the period than originally expected, impacting into-plane fuel as well as on-hand fuel inventories. Adjusted pre-tax margin decline is now projected in a range of 6% to 3%, revised from prior outlook of 4% to 1%.

Economic fuel cost per gallon is now estimated in a range of $3.35 to $3.45, revised from prior outlook range of $3.15 to $3.35. Alaska Air expects fuel costs will continue to be difficult to predict given market volatility for both crude oil prices and refining margins.

Shares of Alaska Air Group are up 2% in pre-market trade on Tuesday.