Alaska Air Group, Inc. (NYSE: ALK) shares are trading higher on Thursday in the premarket session.
Alaska Air Group has made a bold move, significantly raising its adjusted earnings per share forecast for the entire third quarter, now projecting a range of $2.15 to $2.25-well above the analyst consensus estimate of $1.60 and the earlier range of $1.40 to $1.60.
The announcement was made in an exchange filing. Revenue available per seat mile for the third quarter is expected to be up 2%, compared with the prior view of flat to positive.
According to Alaska Air Group, the summer travel season saw strong demand, with the airline operating a record schedule and achieving a 99.3% completion rate quarter-to-date.
While capacity held steady as anticipated, revenue exceeded expectations, partly fueled by a surge in July due to CrowdStrike Holdings (NASDAQ: CRWD) disruptions across the industry and a strong performance in August and September.
With unit revenue making a positive turn in August and continuing its robust momentum into September, the company now projects a 2% year-over-year increase in total unit revenue for the third quarter of 2024.
Additionally, moderating crude oil and West Coast refining margins have led the company to lower its economic fuel cost expectations to $2.60 to $2.70 per gallon for the quarter (prior view: $2.85 to $2.95).
According to Benzinga Pro, ALK stock has lost over 1% in the past year. Investors can gain exposure to the stock via Renaissance IPO ETF (NYSE: IPO) and ARK Fintech Innovation ETF (NASDAQ: ARKF).
Price Action: ALK shares are trading higher by 4.33% to $41.20 premarket at last check Thursday.