Alaska Airlines 2024 forecast tops estimates after loss from Boeing Max grounding

Alaska
Airlines
forecast
second-quarter
and
full-year
earnings
well
ahead
of
estimates
on
Thursday
thanks
to

strong
travel
demand,
despite
a
first-quarter
loss
stemming
from
a
midair
blowout
of
a
door
plug
on
a
nearly
new
Boeing
737
Max
9
in
January.

Alaska
forecast
adjusted
earnings
per
share
of
between
$2.20
and
$2.40,
above
the
$2.12
analysts
polled
by
LSEG
expected.
For
2024,
the
carrier
expects
earnings
ranging
from
$3.25
to
$5.25
a
share,
well
above
the
average
of
$4.36.

The
Seattle-based
carrier
reported
a
net
loss
of
$132
million,
or
$1.05
a
share
in
the
first
quarter,
in
line
with
what
analysts
had
been
expecting.
It
also
reported
revenue
of
$2.2
billion
in
the
first
quarter,
slightly
above
the
estimated
$2.19
billion
analysts
polled
by
LSEG
expected.

The
airline
received
$162
million
from
Boeing
for
the
Jan.
5
accident,
which
caused
the
Federal
Aviation
Administration
to
briefly
ground
the
planes.
Alaska
said
it
expects
additional
compensation
from
the
manufacturer.

Delta
and


United
have
also
forecast
strong
travel
demand
for
2024
will
drive
earnings.