Alaska Air Raises Q3 Earnings Outlook on Strong Revenue, Lower Fuel Costs

Alaska Air (ALK) said in a regulatory filing Thursday that it raised Q3 adjusted earnings outlook to $2.15 to $2.25 from the previous expectation of $1.40 to $1.60, citing improved revenue and lower fuel cost outlook.

Analysts surveyed by Capital IQ expect $1.61.

The company said revenue has performed better than anticipated throughout the summer travel period driven by additional revenue in July amid the industry-wide CrowdStrike disruptions and stronger performance in August and September, while capacity has remained in line with prior expectations.

Alaska Air said it now anticipates a 2% year-over-year increase in total unit revenue for Q3 and expects fuel cost of $2.60 to $2.70 per gallon for the quarter, down from a prior estimate of $2.85 to $2.95 per gallon.

Alaska Air shares were up almost 4% in recent premarket trading.

Price: 41.00, Change: +1.51, Percent Change: +3.82