Alaska Air Q3 swings to net loss on higher fuel costs

Alaska Air

Tue 23:51

Overview
US airline's Q3 revenue rose 14% yr/yr, driven by premium and loyalty growth
Company posted Q3 net loss due to elevated fuel costs
Announced intent to join Atlantic and Pacific Joint International Businesses with oneworld partners

Outlook
Alaska Air expects Q4 capacity to grow 1% to 1.5% year-over-year
Company sees Q4 unit revenue up low double digits year-over-year
Alaska Air forecasts Q4 adjusted loss per share of $2.50 to $2.00

Result Drivers
ELEVATED FUEL COSTS - Co said higher fuel prices drove Q3 net loss and reduced profitability
PREMIUM AND LOYALTY GROWTH - Premium revenue grew 25% and loyalty program cash remuneration rose 21% yr/yr, contributing to revenue growth
INTERNATIONAL EXPANSION - Co expanded international network with new routes to Paris, Athens, Osaka and Papeete, supporting capacity and revenue growth

Company press release: ID:nPn1HrXR3a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Total Operating Revenue
 
$4.31 bln
 
Q3 Adjusted Loss Per Share Excluding Tax Impact
 
$0.36
 
Q3 Loss Per Share
 
$1.32
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the airlines peer group is "buy"
Wall Street's median 12-month price target for Alaska Air Group Inc is $51.00, about 48.4% above its October 20 closing price of $34.36
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads
Oct 20 - Alaska Air forecasts bigger-than-expected fourth-quarter loss on soaring fuel costs
Oct 20 - United Airlines profit outlook well below estimates, hit by fuel costs
Oct 20 - LATAM says capacity growth tracking to lower end of guidance as fuel stays high 

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)