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

Alaska Airlines announced higher-than-expected earnings forecasts for the second quarter and full year thanks to strong travel demand, despite a first-quarter loss due to an incident involving a Boeing 737 Max 9. The airline expects adjusted earnings per share between $2.20 and $2.40 for the second quarter, well above analyst estimates. For the full year, Alaska forecasts earnings of $3.25 to $5.25 per share, surpassing the average analyst estimate of $4.36. In the first quarter, the carrier reported a net loss of $132 million, in line with expectations, and revenue of $2.2 billion, slightly above estimates. Alaska received $162 million in compensation from Boeing for the incident and anticipates additional compensation. Both Delta and United Airlines have also predicted strong travel demand in 2024 will boost earnings.

Alaska Airlines announced strong second-quarter and full-year earnings forecasts on Thursday, exceeding analyst expectations thanks to robust travel demand. Despite a first-quarter loss stemming from an incident involving a Boeing 737 Max 9 aircraft in January, the Seattle-based carrier predicts adjusted earnings per share between $2.20 and $2.40 for the second quarter, and between $3.25 and $5.25 for the full year. The airline reported a net loss of $132 million in the first quarter, but received $162 million from Boeing for the incident. Alaska expects additional compensation from the manufacturer and is confident that strong travel demand will continue to drive earnings in 2024, a sentiment shared by Delta and United airlines.

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