Alaska Air CEO Warns Fuel Spike Will Push Q3 Profit Below Guidance Midpoint
ALK sits 21% above its 52-week low of $33.03.
Summary
CEO Ben Minicucci says Q3 results will land below the midpoint of guidance, blaming a fuel spike that pushed prices to $4.28/gallon versus the $3.75 budgeted. The company had guided Q3 earnings between breakeven and $1 per share; now the lower end is likely. This follows a Q2 loss of $76M driven by an 85% fuel cost surge, so the fuel headwind is a continuing theme. Separately, Alaska Air and American Airlines signed a revenue-sharing agreement that brings Alaska into American's Atlantic and Pacific joint businesses, giving Alaska access to international routes and American more Seattle presence. Q3 earnings are due October 22 after the close.
At the time of this announcement, ALK was trading at $40.08 on NYSE in the Trade & Services sector, with a market capitalization of approximately $4.5B. The 52-week trading range was $33.03 to $60.63. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Seeking Alpha.