EADSY - Alaska Air Group Earnings Preview: Look Past An Ugly Quarter

2024-04-16 08:45:48 ET

Summary

• Alaska Air Group is expected to report flattish top-line growth in Q1, with revenues projected at $2.2 billion and a per-share loss of $1.05.
• Alaska Air's Q1 operating metrics should be impacted by the grounding of the 65 MAX 9 aircraft, which will likely result in weak capacity and occupancy, leading to revenue and margin pressures.
• Despite the challenges, Alaska Air Group is a solid airline with a low-cost structure, strong unit economics, and a good balance sheet, making ALK stock at 6.8x next year's earnings attractive.

Alaska Air Group, Inc. ( ALK ), the parent company of Alaska Airlines, Horizon Air, and soon Hawaiian Airlines ( HA ), is scheduled to report and discuss Q1 earnings on Thursday, April 18. In this seasonally slower quarter, the Seattle-based company is expected to deliver flattish top-line growth with revenues likely to come in at $2.2 billion and per-share loss projected at $1.05 (while net loss was guided earlier this month at a range of $1.05 to $1.15 per share)....

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