Alaska Air Sees Higher Q2 Revenues, Capacity; Backs FY23 Outlook - Update

(RTTNews) - Alaska Air Group, Inc. (ALK), while reporting narrower net loss in its first quarter with higher revenues, on Thursday issued outlook for the second quarter and reiterated fiscal 2023 view.

For the second quarter, the company anticipates double-digit adjusted pre-tax margin of 14 percent to 17 percent, and total revenue growth of 2.5 percent to 5.5 percent from the prior year.

Capacity or ASMs are expected to grow 6 percent to 9 percent.

The company said the second-quarter guidance reflects the continuation of improving operational and financial performance trends that it experienced in March.

Further, for fiscal 2023, the company continues to expect earnings per share of $5.50 to $7.50 and adjusted pre-tax margins of 9 percent to 12 percent.

On average, 14 analysts polled by Thomson Reuters expect earnings of $5.75 per share for the year. Analysts' estimates typically exclude special items.

Alaska CEO Ben Minicucci said, "This quarter we returned to pre-pandemic levels of flying and our roadmap to profitable growth is on track. As we progress through the year, we have taken deliberate steps to build momentum and we are well prepared for peak summer flying. ...We are well-positioned to deliver on our full-year financial targets, including a 9 percent to 12 percent adjusted pretax margin."

In its first quarter, Alaska Air's bottom line totaled a loss of $142 million or $1.11 per share, compared to loss of $143 million or $1.14 per share last year.

Adjusted loss was $79 million or $0.62 per share for the period.

Analysts expected a loss of $0.48 per share for the quarter.

The company's revenue for the quarter rose 31% to $2.20 billion from $1.68 billion last year.

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