Alaska Air Q1 Net Loss Narrows; Sees Q2 Earnings Above Market, Issues FY24 View - Update

(RTTNews) - Alaska Air Group, Inc. (ALK) reported Thursday narrower net loss in its first quarter with higher revenues. The company also provided earnings outlook for the second quarter above market estimates, as well as for fiscal 2024.

Net loss for the first quarter was $132 million or $1.05 per share, compared to a net loss of $142 million or $1.11 per share last year.

Air Group's first quarter operation and results were significantly impacted by Flight 1282 in January and the Boeing 737-9 MAX grounding which extended into February. The company has received $162 million in initial cash compensation from Boeing to address the financial damages incurred during the first quarter.

Adjusted net income was $116 million or $0.92 per share, compared to a net loss of $79 million or $0.62 per share last year.

Analysts on average expected the company to report loss of $1.05 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Total Operating Revenue grew 2 percent to $2.23 billion from last year's $2.20 billion. The Street was looking for revenues of $2.19 billion for the quarter.

Passenger revenue edged up 1 percent from last year to $2.004 billion.

Looking ahead for the second quarter, the company projects earnings per share of $2.20 to $2.40, while analysts estimate $2.12 per share.

Capacity is expected to change up 5 percent to 7 percent.

For fiscal 2024, the company projects earnings per share of $3.25 to $5.25, while analysts estimate $4.36 per share. Capacity is expected to change above 3 percent.

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