Alaska Air sees 50% fuel-cost recovery in Q3 as bookings hold up
Alaska Air sees 50% fuel-cost recovery in Q3 as bookings hold up CHICAGO, July 21 (Reuters) - Alaska Air Group ALK.N expects to recover about half of its higher fuel costs through fares and other revenue in the third quarter at current prices, after recouping "very little" of the increase in the second quarter, a senior finance executive told Reuters on Tuesday.
Ryan St. John, Alaska Air's vice president of finance, planning and investor relations, said the carrier's exposure to elevated Singapore refining margins had limited its ability to offset the second-quarter fuel hit. He said September and October bookings were "just as strong" as summer despite higher fares, but fuel-price volatility had prompted Alaska Air not to restore full-year guidance.
(Reporting by Rajesh Kumar Singh; Editing by Chris Reese)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
Recent news on Alaska Air
See all newsUS carriers fall as oil rises after Houthi attacks stoke Middle East supply fears
Analysis: US airlines favor higher fares over fuller planes as fuel costs squeeze profits
Wrapup 1: US airlines struggle to offset soaring fuel costs with big fare hikes
Alaska Air Group Inc reports results for the quarter ended September 30 - Earnings Summary
Alaska Air Q3 swings to net loss on higher fuel costs