Revenue
Earnings
Alaska has guided for adjusted loss per share of $1.15-1.05 for Q1 2024. The consensus estimate is for a loss of $0.93 per share. This compares to a loss of $0.62 per share reported in Q1 2023. In Q4 2023, adjusted EPS amounted to $0.30.
Points to note
On its last quarterly call, Alaska said it was seeing strong performance from its high-frequency business markets as well as several leisure markets. In a recent investor update, the company said its business performance benefited from strategic network adjustments, strong demand, and continued recovery of West Coast business travel.
Alaska lost around $160 million in Q1 pretax profit, due to the Flight 1282 accident and the Boeing 737-9 MAX grounding, mainly comprising lost revenues, costs due to irregular operations, and costs to restore its fleet to operating service. Although the company received compensation from Boeing, this is not included in the adjusted loss per share outlook. The outlook reflects approx. $0.95 of lost earnings caused by these events.
It is also worth looking out for updates on the company’s proposed acquisition of Hawaiian Airlines which is expected to provide significant opportunities for expansion and is being seen as a positive point amid the negative events.