Alaska Airlines (NYSE:ALK) noticed its shares progressing on Thursday. This, after the carrier 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 mishap, which caused the Federal Aviation Administration to briefly ground the planes. Alaska said it expects additional compensation from the manufacturer.
“I want to recognize Alaska’s employees for their uncompromising prioritization of safety, for taking great care of our guests, and for delivering strong performance in the first quarter,” said CEO Ben Minicucci. “Despite significant challenges to start the year our results have far exceeded initial expectations. Thanks to thoughtful capacity planning, network optimization, and diligent cost control, we are well positioned to carry our strong performance into the second quarter and beyond.”
ALK shares gained $1.16, or 2.7%, to $43.88.
