At Extreme Investor Network, we bring you the latest updates in the world of business news, and today we have some exciting news to share about Alaska Airlines.
Despite facing challenges in the first quarter due to a midair blowout incident, Alaska Airlines has forecasted second-quarter and full-year earnings that surpass expectations. The airline reported a loss in the first quarter following a door plug blowout on one of its Boeing 737 Max 9 planes in January. However, strong travel demand has helped the airline bounce back, with forecasted adjusted earnings per share for the second quarter between $2.20 and $2.40, exceeding analysts’ expectations. For the full year of 2024, Alaska Airlines expects earnings ranging from $3.25 to $5.25 per share, well above the average estimate of $4.36. This positive outlook has already seen the company’s shares rise by more than 3% in premarket trading.
Alaska Airlines is not the only airline bullish about its financial performance for 2024. Delta and United Airlines have also forecasted strong travel demand that will drive earnings for the year. The compensation received by Alaska Airlines from Boeing for the January incident, as well as expected additional compensation, have further boosted investor confidence in the airline.
In its financial report, Alaska Airlines reported a net loss of $132 million or $1.05 per share for the first quarter, a slight improvement from the previous year. Despite the loss, the airline’s revenue of $2.2 billion in the first quarter was slightly above analyst expectations and 2% higher than the previous year. Adjusting for one-time items, Alaska Airlines posted a net loss of 62 cents per share, lower than analysts’ expectations.
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