Alaska Air Predicts Higher-Than-Expected Second-Quarter Profit Due to Robust Travel Demand

Alaska Air Group Soars with Strong Travel Demand and Profit Forecast

Alaska Air Group, the operator of the Boeing plane that experienced a mid-air cabin blowout in January, is on track for a better-than-expected profit in the current quarter. The airline reported a smaller loss in the first quarter, despite facing a $162 million impact from the grounding of its 737 MAX 9 aircraft for over two weeks.

The company’s first-quarter loss narrowed to $132 million, or $1.05 per share, from $142 million, or $1.11 per share, a year ago. Operating revenue also saw a 1.6% increase to $2.23 billion. Alaska Air would have reported an adjusted profit of about $5 million for the quarter if not for the MAX 9 groundings.

To address the financial setbacks, Alaska Air received $162 million in initial cash compensation from Boeing, which was not included in its first-quarter results. Despite these challenges, many airline executives are optimistic about strong travel demand for both domestic and international routes during the upcoming summer season.

Alaska Air is forecasting a second-quarter profit of $2.20 to $2.40 per share, surpassing analysts’ average estimate of $2.12 per share. CEO Ben Minicucci credited the company’s success to capacity planning, network optimization, and cost control measures.

Additionally, the airline has implemented enhanced quality oversight at Boeing’s production facility to ensure the work and quality of its aircraft during the manufacturing process. With a positive outlook for the future, Alaska Air Group is poised for continued success in the aviation industry.