Airlines Face Pressure, Analysts Adjust Expectations After Q1 - Alaska Air Gr (NYSE:ALK), Southwest Airlines (NYSE:LUV)

American Airlines Group Inc (NASDAQ:AAL), Alaska Air Group Inc (NYSE:ALK) and Southwest Airlines Co (NYSE:LUV) reported their quarterly results broadly in-line with the tone set by Delta Air Lines Inc (NYSE:DAL) and United Airlines Holdings Inc (NASDAQ:UAL), according to JPMorgan.

The Airlines Analyst: Analyst Jamie Baker maintained ratings, while cutting price targets.

American Airlines: Overweight, price target reduced from $26 to $19
Alaska Air Group: Overweight, price target cut from $89 to $73
Southwest Airlines: Underweight, price target trimmed from $30 to $23

"Low-end domestic demand is under significant pressure, premium and international remain the bright spots for now, and loyalty returns continue to help cushion the aggregate impact to earnings," Baker said in a note.

Check out other analyst stock ratings.

American: The company reported adjusted loss of 59 cents per share, slightly better than consensus of 69 cents per share, the analyst stated. "Passenger revenue was roughly flat, on capacity down 1pt YoY," he added. While American Airlines continue to make progress in recapturing its historical share of indirect revenue by yearend, its margin performance has been flat, Baker said.

Alaska Air Group: The company's adjusted loss came in at 77 cents per share, worse than its January guidance of between 70 and 50 cents per share, the analyst stated. "Management cited a 3pt top-line disruption from demand softness during the quarter, which (all things being equal) would have placed the company comfortably ahead of its guidance," he wrote.

Southwest: The company reported an adjusted loss of 13 cents per share. That’s better than the consensus of 18 cents per share. Total EBIT minus cost of initiatives implies an EBIT loss of $100 million — $447 million worse than in 2024, Baker said.

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