Alaska Air Group Cuts Full Year Capacity Expectations; Issues Q2 Outlook

(RTTNews) - Alaska Air Group (ALK) reduced its full year 2022 capacity expectations from up 1% to 3% versus 2019, to flat to down 3% versus 2019. As a result, the company now expects full year 2022 CASMex to be up 6% to 8% compared to prior expectation of up 3% to 5%.

The company recently reduced its second quarter scheduled capacity in response to shortfalls in throughput from pilot training department versus what was originally planned. For this reason, coupled with the commitment to exit the Airbus A320 fleet on an accelerated timeline, as well as persistent high oil prices, the company has reduced planned capacity growth modestly as compared to previous expectations.

Compared to 2019, the company estimates second quarter revenue to rise 5% to 8%. Capacity is expected to decline 6% to 9%, for the quarter.

First quarter net loss was $143 million, or $1.14 per share compared to a loss of $131 million, or $1.05 per share, a year ago. Excluding items, Alaska Air Group reported adjusted loss of $167 million or $1.33 per share for the period. Analysts on average had expected the company to posts a loss of $1.50 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company's revenue for the quarter rose 110.0% to $1.68 billion from $0.80 billion last year.

Shares of Alaska Air were up 3% in pre-market trade on Thursday.