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3w ago

Alaska Air Guides Q3 Profit to Low End as Fuel Costs Climb

Refinery outages on the West Coast have pushed Alaska’s fuel bill higher, pressuring its profit outlook.

Alaska Airlines commercial airplanes are shown parked off to the side of the airport in San Diego, California, U.S. January 18, 2024, REUTERS/Mike Blake/File Photo
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Overview

  • Alaska now expects third-quarter adjusted EPS at the low end of its prior $1.00–$1.40 range.
  • The carrier lifted its Q3 fuel price outlook to $2.50–$2.55 per gallon from about $2.45 due to regional refinery disruptions.
  • Weather and air-traffic-control issues increased expenses through overtime, premium pay and passenger compensation.
  • A July 20 IT outage tied to a faulty software update is projected to reduce the quarter’s EPS by roughly $0.10.
  • Unit revenue is tracking near the high end of guidance, August yields turned positive on premium and corporate demand, and 2025 EPS is guided to above $3.25, below some analyst estimates.