Seattle-based airline Alaska Air Group announced its financial results for the second quarter, showcasing impressive revenue growth and increased travel demand. The company reported a profit of $240 million, or $1.86 per share, compared to $139 million, or $1.09 per share, in the same period last year. Analysts had anticipated a profit of $2.66 per share, but Alaska Air exceeded expectations, reporting a profit of $3 per share after adjusting for certain one-time expenses.
Alaska Air’s total operating revenue also saw a notable increase, rising by 7% to reach $2.84 billion, surpassing the estimated $2.77 billion predicted by industry analysts. While costs experienced a moderate 1% increase, the company managed to offset this with decreases in fuel costs and aircraft rental fees. However, food and beverage costs as well as aircraft maintenance fees saw upward adjustments.
Despite these positive results, Alaska Air’s load factor slightly decreased from 88.1% to 87.0% when compared to the previous year. On the other hand, capacity witnessed a substantial 10% increase.
Looking ahead to the third quarter, Alaska Air projects revenues to remain flat or increase up to 3% while expecting costs to stabilize. The company maintains its full-year earnings per share guidance range of $5.50 to $7.50 and anticipates an 8% to 10% revenue growth in 2022.
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