Alaska Air Posts $76M Q2 Loss on 85% Fuel Spike, Guides Q3 Recovery
ALK sits 35% above its 52-week low of $33.03.
Summary
Alaska Air swung to a $76M loss in Q2 as fuel costs surged 85% to $4.43/gallon, adding $600M in incremental costs. Adjusted loss of 92c/sh beat consensus by 7c, but revenue of $4.07B missed estimates slightly. Management issued Q3 guidance for breakeven to $1.00 EPS, with fuel expected to ease to $3.75/gallon and capacity up 2-3%. The company also announced fleet moves: leasing four 737-800 freighters for cargo and replacing Hawaiian's 717s with 737-800s on neighbor island routes. Shares fell 2.1% after hours.
At the time of this announcement, ALK was trading at $44.50 on NYSE in the Trade & Services sector, with a market capitalization of approximately $5.1B. The 52-week trading range was $33.03 to $65.88. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.