Categories AlphaGraphs, Earnings, Other Industries

Alaska Air Q2 earnings rise 31% on traffic growth, exceed estimates

Benefitting from an increase in passenger traffic, Alaska Air Group (NYSE: ALK) reported stronger than expected earnings for the second quarter. Revenues rose 6% and came in slightly above estimates.

Revenue passenger miles, a measure of passenger traffic, rose 1% from last year to 14.64 billion during the June quarter. At 16.98 billion, capacity, or available seat miles, was up 1% year-over-year.

Alaska Air (ALK) Q2 earnings rise 31% on traffic growth, exceed estimates

Reflecting the traffic growth, total revenues advanced 6% to $2.29 billion and came in slightly above the consensus forecast. Total load factor edged up by 0.2 points to 86.2% during the period.

Related: JetBlue’s Q2 results beat market expectations

Second-quarter earnings, excluding one-off items, rose to $2.17 per share from $1.66 per share last year. Unadjusted profit was $262 million or $2.11 per share, compared to $193 million or $1.56 per share in the second quarter of 2018. Analysts were looking for a lower profit.

“The three-percentage point improvement in our adjusted pretax margin shows that our revenue initiatives and cost management efforts are paying off. We set an ambitious plan and are executing it. But what our people really do best is provide genuine, caring service for our guests, and that’s why they earned our 12th-straight J.D. Power award this year,” said Alaska CEO Brad Tilden.

During the quarter, the company paid a quarterly cash dividend of 0.35$ per share, representing a 9% increase compared to the same period of last year. In the year-to-date period, it repurchased 408,665 shares of common stock for about $25 million.

Also see: Alaska Air Group Q1 2019 Earnings Call Transcript

Earlier this month, the airline’s technicians, represented by the Aircraft Mechanics Fraternal Association, approved the integrated seniority list and a transition agreement, including a two-year contract extension.

Shares of Alaska Air closed Thursday’s regular session sharply lower. The stock has gained about 19% since mid-march when it slipped to the lowest level in more than four years. Currently, it is trading close to the levels seen a year earlier.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

Important takeaways from Paychex’s (PAYX) Q2 2025 earnings report

Paychex Inc. (NASDAQ: PAYX), a leading provider of human resources and payroll services, reported better-than-expected revenue and profit for the second quarter of fiscal 2025, sending the stock higher soon

Lamb Weston’s (LW) challenges may not end soon, a few points to note

Shares of Lamb Weston Holdings, Inc. (NYSE: LW) turned red in mid-day trade on Friday. The stock has dropped 19% in the past one month. The company delivered disappointing results

CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%

Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top