Alaska Air Stock Gains On Q1 Beat

  • Alaska Air Group, Inc.ALK reported first-quarter FY22 operating revenue growth of 111% year-over-year to $1.68 billion, beating the consensus of $1.66 billion.
  • Passenger revenues improved by 129% Y/Y to $1.51 billion.
  • Adjusted EPS loss narrowed to $(1.33) compared to $(3.51) in 1Q21, beating the consensus of $(1.50).
  • Operating expenses increased by 97% Y/Y to $1.88 billion. The company reported an operating loss of $(202) million, compared to a $(161) million loss last year.
  • The company reported an adjusted pre-tax margin of (12.3)% for the quarter and a debt-to-cap ratio of 50%.
  • Revenue passengers increased by 86.3% Y/Y, traffic increased by 96.3%, capacity increased by 32.6% Y/Y, and load factor increased 2,490 basis points to 76.8%.
  • Alaska Air generated cash from operating activities of $287 million. It held $2.9 billion in cash and equivalents as of March 31, 2022.
  • 2Q22 Outlook versus 2Q19: Alaska Air expects Capacity (ASMs) to be down 6% - 9%, Revenue passengers down 10% - 12%. Passenger load factor of 85% - 88%.
  • It expects total revenue to be up 5% - 8%, Cost per ASM excluding fuel and special items to be up 16% - 19%, and Economic fuel cost per gallon of $3.25 - $3.30.
  • Price Action: ALK shares are trading higher by 2.73% at $60.16 during the market session on Thursday.
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