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

[Pelican Press 0]

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

An Alaska Airlines Boeing 737 MAX 9 taxis at Seattle-Tacoma International Airport on March 25, 2024 in Seattle, Washington. 

Stephen Brashear | Getty Images

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

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