An Alaska Airlines Boeing 737 MAX 9 taxied at Seattle-Tacoma International Airport on March 25, 2024 in Seattle, Washington.
Stephen Brashear | Getty Images
Alaska Airlines expects second-quarter and full-year revenues to be well above Thursday's expectations on strong travel demand, despite a first-quarter loss due to a mid-air blow from a door plug on a nearly new Boeing 737 Max 9 in January.
Alaska expects adjusted earnings per share between $2.20 and $2.40, higher than analysts surveyed by LSEG expected of $2.12. For 2024, the airline expects earnings ranging from $3.25 to $5.25 per share, well above the average of $4.36.
The company's shares rose more than 3% in pre-market trading.
Delta And United have also predicted that strong travel demand will boost profits in 2024.
The airline received $162 million from Boeing for the Jan. 5 accident, which prompted the Federal Aviation Administration to briefly ground the planes. Alaska said it expects additional compensation from the manufacturer.
The Seattle-based airline reported a net loss of $132 million, or $1.05 per share, for the first quarter, compared with $142 million, or $1.11 per share, a year earlier. It also reported revenue of $2.2 billion for the first quarter, slightly above the estimated $2.19 billion expected by analysts surveyed by LSEG and up 2% from last year.
Adjusted for one-time items, Alaska posted a net loss of 62 cents per share, less than the $1.05 per share loss that analysts had expected, according to LSEG.
