The following is a summary of the Alaska Air Group, Inc. (ALK) Q1 2024 Earnings Call Transcript:
Financial Performance:
Alaska Air Group reported a Q1 GAAP net loss of $132 million, however, on exclusion of special items and fuel hedge adjustments, the net loss was $116 million.
The company saw a record first quarter revenue of $2.2 billion, marking an increase of 1.6% YOY.
Despite the grounding of a third of the fleet following an accident, the company managed to post a small profit.
The company has increased its full-year adjusted EPS outlook from $3.25 to $5.25 and expects an improvement in Q2 unit costs.
Fuel costs for the year are slightly higher than expected.
Business Progress:
Despite Q1 setbacks, the company made significant strides towards reaching a break-even point in traditionally weak Q1 earnings within a three-year timeframe.
Q2 capacity is expected to increase 5% to 7% YOY.
The acquisition of Hawaiian Airlines is underway and expected to unlock domestic and international opportunities.
Corporate travel showed rapid improvement owing to large tech companies while last-minute leisure travel increased.
The company is further investing in the expansion and diversification of products and services, including the investment in 1% of its total fuel supply in the form of SAF in 2024.
Expansion of the dedicated freighter fleet to five units is planned, with anticipation of better supply-demand balance in core markets later this year.
More details: Alaska Air IR
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