Alaska Air expects higher fuel costs to add $600 million in expenses in Q2
Alaska Airlines on Monday kicked off a big week for airline earnings, reporting its first-quarter results after the bell. The stock ticked down after-hours.
Alaska Air reported:
An adjusted loss of $1.68 per share, compared to Wall Street estimates of a loss of $1.65 per share.
$3.3 billion in revenue, compared to estimates of $3.29 billion.
A 17% year-over-year increase in fuel costs to $796 million.
Looking ahead, Alaska said it expects a second-quarter loss per share of $1, deeper than the Wall Street consensus of a $0.15 loss. The company expects April fuel costs of $4.75 per gallon and for fuel across the second quarter to add $600 million in expenses.
“Absent the fuel price spike, we would have guided to a solidly profitable quarter,” the airline said in its release.
Alaska Air, like the rest of the commercial airline industry, has been pummeled by fuel costs since the beginning of the war in Iran. Along with Delta Air Lines, United Airlines, American Airlines, Southwest Airlines, and JetBlue, the carrier recently hiked its bag fees to offset higher fuel costs.
