Alaska Air Group (NYSE:ALK) shares jumped in the early trading session today after the airline operator posted better-than-anticipated first-quarter numbers.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
ALK’s Promising Numbers
Revenue increased by 1.4% year-over-year to a record $2.23 billion. The figure exceeded expectations by $50 million. Moreover, net loss per share of $0.92 came in narrower than estimates by $0.13. During the quarter, Passenger revenue increased by 1%, and Mileage Plan revenue ticked up by 6%. The company’s Cargo and other revenue, while making up a small portion of its overall top line, rose by 10%.
At 9.77 million, the airline flew 1% fewer passengers than the comparable year-ago period. However, its RASM (Operating Revenue per Available Seat Mile) ticked up by 4% during this period.
Moving Past Boeing’s Woes
In recent months, air carriers have seen an impact from the operational incidents involving Boeing’s (NYSE:BA) planes. ALK received an initial compensation of $162 million from Boeing as a result of the impact. The company has also enhanced the quality oversight program at Boeing’s production facility to validate the work and quality of its aircraft as they undergo manufacturing.
ALK’s Optimistic Outlook
For Fiscal year 2024, ALK expects EPS to be in the range of $3.25 to $5.25. For the upcoming quarter, the airline foresees EPS of $2.20 to $2.40. Capacity growth in Q2 is pegged between 5% and 7%.
Is Alaska Airlines a Good Stock to Buy Now?
Alaska Air’s share price has rallied by nearly 31% over the past six months. Overall, the Street has a Strong Buy consensus rating on the stock, alongside an average ALK price target of $44.08. However, analysts’ views on the company could see a revision following today’s earnings report.
Read full Disclosure
