Alaska Air Q2 Results Surpass Street View

Alaska Air Q2 Results Surpass Street View
  • Alaska Air Group, Inc.ALK reported second-quarter FY22 operating revenue growth of 74% year-over-year to $2.66 billion, beating the consensus of $2.58 billion.
  • Passenger revenues improved by 79% Y/Y to $2.42 billion.
  • Adjusted EPS was $2.19 compared to $(0.30) in 2Q21, beating the consensus of $1.95.
  • Operating expenses increased by 153% Y/Y to $2.47 billion. The company reported an operating income of $187 million, down 66% Y/Y, operating margin fell to 7% from 36% in 2Q21.
  • The company reported an adjusted pre-tax margin of 14% for the quarter and a debt-to-cap ratio of 50%.
  • Revenue passengers increased by 26.3% Y/Y, traffic increased by 33%, capacity increased by 16.4% Y/Y, and load factor increased 1,110 basis points to 88.1%.
  • Alaska Air generated cash from operating activities of $948 million. It held $3.4 billion in cash and equivalents as of June 30, 2022.
  • 3Q22 Outlook versus 3Q19: Alaska Air expects Capacity (ASMs) to be down 5% - 8%, Revenue passengers down 8% - 10%. Passenger load factor of 85% - 88%.
  • It expects total revenue to be up 16% - 19%, Cost per ASM excluding fuel and special items to be up 16% - 19%, and Economic fuel cost per gallon of $3.79 to $3.89.
  • Price Action: ALK shares are trading lower by 1.98% at $42.54 on the last check on Thursday.

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