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

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

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

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