- Alaska Air’s second-quarter adjusted earnings per share (EPS) forecast is between $1.15 and $1.65, falling short of the $2.41 estimate.
- The company projects a 2% to 3% increase in capacity.
- In the first quarter, Alaska Air reported an adjusted loss per share of 77 cents, an improvement from last year’s 92 cents, but slightly below the estimated loss of 75 cents.
- Operating revenue for the first quarter rose by 41% year-over-year to $3.14 billion, just below the $3.16 billion estimate.
- Passenger revenue increased by 40% year-over-year, reaching $2.81 billion, compared to the $2.82 billion estimate.
- Revenue passenger miles climbed by 38% year-over-year to 17.26 billion, slightly under the estimated 17.32 billion.
- Available seat miles also increased by 38% year-over-year to 21.22 billion, exceeding the estimate of 21.06 billion.
- The load factor slightly decreased to 81.3% from 81.4% year-over-year, below the 82% estimate.
- Revenue per available seat mile (RASM) was 14.79 cents.
- The consolidated yield rose by 1.7% year-over-year to 16.28 cents.
- Cost per available seat mile (CASM), excluding fuel and special items, went up by 2.5% year-over-year to 11.89 cents.
- The company aims to deliver $1 billion in additional profit by 2027.
- Premium revenues remain strong.
- Alaska Air anticipates second-quarter RASM to be flat or decrease in low single digits.
- Second-quarter CASM excluding fuel costs is expected to rise in mid to high single digits.
- The company is not reaffirming its previous full-year guidance for 2025 and plans to update it later in the year.
- Alaska Air foresees profitability in 2025, even if revenue pressures persist in the second half of the year.
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Alaska Air Group on Smartkarma
Analysts at Baptista Research on Smartkarma have been closely covering Alaska Air Group, providing valuable insights into the company’s growth trajectory and strategic endeavors. In a report titled “Alaska Air Group: International Expansion & Fleet Modernization As A Critical Factor Driving Growth! – Major Drivers,” the analysts highlighted the company’s financial performance for the fourth quarter of 2024. Post-acquisition of Hawaiian Airlines, Alaska Air Group reported a GAAP net income of $71 million for the quarter, reaching $395 million for the full year when adjusted for special items and fuel hedge adjustments.
In another report titled “Alaska Air Group: Leveraging Oneworld Alliance Partnerships To Up Their Game! – Major Drivers,” Baptista Research delved into the company’s second-quarter financial outcomes and strategic outlook for 2024. Alaska Air Group disclosed a GAAP net income of $220 million, with an adjusted net income of $327 million, excluding special items and mark-to-market fuel hedge adjustments. The company marked a significant milestone with a record $2.9 billion in quarterly revenue, mainly driven by premium segments, showcasing its strongest quarterly performance to date.
A look at Alaska Air Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Alaska Air Group, Inc., a leading airline holding company offering air services to passengers in various destinations, presents a mixed outlook based on the Smartkarma Smart Scores. With a solid Value score of 4, the company is perceived as having good potential relative to its current stock price. However, its Dividend score of 1 indicates a lower focus on dividend payouts, which may not appeal to income-seeking investors. In terms of Growth, Resilience, and Momentum, Alaska Air Group scores moderately with scores of 3 for each category, suggesting a stable growth trajectory, resilience to market challenges, and a steady momentum in its operations.
Looking ahead, Alaska Air Group can leverage its strengths in value and solid performance across growth, resilience, and momentum factors to drive long-term success in the airline industry. While the lower dividend score may deter some income-oriented investors, the company’s overall outlook remains positive, positioning it well for future growth and sustainable operations in the competitive air travel sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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