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 company’s shares were up more than 3% in premarket trading.
Delta and United have also forecast strong travel demand for 2024 will drive earnings.
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.
The Seattle-based carrier reported a net loss of $132 million, or $1.05 a share for the first quarter, down from $142 million, or $1.11 a share a year earlier. It also reported revenue of $2.2 billion for the first quarter, slightly above the estimated $2.19 billion analysts polled by LSEG expected and 2% above last year.
Adjusting for one-time items, Alaska posted a net loss of 62 cents a share, less than the $1.05 per-share loss analysts were expecting, according to LSEG.