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Alaska Air Group posts bigger-than-expected loss as costs mount

Shares of Alaska Air fell 1.49% in premarket trading on Thursday after the company forecast second-quarter CASM, excluding fuel, to rise between 1% and 3%

Alaska Air is set to pay between $56 and $58 per share to acquire Virgin America

Reuters

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Alaska Air Group on Thursday reported a bigger-than-expected quarterly loss as higher expenses related to labor and fuel dented the carrier's margins.

As more people plan their travel after the pandemic kept them at home for a long period, airlines are struggling to capitalize on rising demand with limited capacity coupled with elevated cost pressures.

Earlier this month, American Airlines Group Inc forecast first-quarter profit below market expectations, joining rival United Airlines Holdings Inc in signaling a hit from increasing costs.

In January, Alaska Air warned that it would face pressures from higher labor costs and expenses related to pilot training as it phases out Airbus SE jets in favor of Boeing Co planes.

Shares of Alaska Air fell 1.49% in premarket trading on Thursday after the company forecast second-quarter cost per available seat mile (CASM), excluding fuel, to rise between 1% and 3%.

On an adjusted basis, the company posted a loss of 62 cents per share in the first quarter ended March 31, compared with analysts' average estimate of 48 cents per share, according to Refinitiv data.

Operating revenue for the quarter rose 31% to $2.19 billion.

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First Published: Apr 20 2023 | 4:17 PM IST

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