Alaska Airlines Expects Higher Earnings Despite Recent Setbacks
Alaska Airlines is forecasting a strong second quarter and full-year earnings, despite experiencing a loss in the first quarter. The airline received $162 million from Boeing as compensation for the January accident involving a Boeing 737 Max 9, and expects additional compensation from the aircraft manufacturer for the incident.
CEO Ben Minicucci expressed the company’s commitment to Boeing, but also anticipates delays in airplane deliveries due to the ongoing safety crisis at Boeing, which has led to criticism and leadership changes within the company. Alaska Airlines is taking these delays into account for schedule changes in order to maintain a high level of service and reliability for its customers.
The airline is forecasting adjusted earnings per share above analyst expectations for both the second quarter and full year, with the company’s shares up more than 5% in Thursday trading. Delta and United are also anticipating strong travel demand for 2024, boosting results in the spring and summer months.
Alaska Airlines reported revenue of $2.2 billion for the first quarter, slightly higher than analyst expectations and last year’s figures. Despite recent setbacks, the airline remains optimistic about its future performance and is working to overcome challenges posed by the Boeing safety crisis. Stay tuned to KP Insider for more updates on Alaska Airlines and the aviation industry.
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