Last fall, COVID-19 case numbers surged in the U.S., undermining a nascent recovery in air travel demand. Many airlines -- including Alaska Air (NYSE: ALK) -- have reported that booking activity leveled off in November, following several months of steady improvement.
This setback drove a steep revenue decline for the Alaska Airlines parent and caused it to continue burning cash last quarter. Nevertheless, Alaska Airlines executives expect air travel demand to rebound in 2021. The airline is well positioned to cash in on that potential opportunity.
Alaska Air's revenue fell 64% to $808 million last quarter, missing the average analyst estimate of $825 million. Furthermore, the company posted a sizable adjusted loss of $2.55 per share and burned an average of $3.7 million of cash per day.
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Alaska Air Is Gearing Up for a Demand Recovery