Alaska Air projections Q4 profit below Street expectations due to cost pressures

Alaska Air Group forecast its fourthquarter profit below experts' expectations on Thursday, as higher costs connected with overstaffing and aircraft delivery hold-ups dented margins.

The Seattle, Washington-based carrier has been struck by delayed jet shipments, which have minimized its airplane usage and left it with excess staffing, adding to its expense problem.

We remain resourced for higher capacity and are experiencing the lowest attrition rates throughout the company because 2019, Alaska Air said.

It anticipates a high single-digit percentage boost to its system costs in the fourth quarter over the year earlier.

Alaska expects the expense pressure from excess staffing and lower capacity to be transitory and to go back to resource levels relative to its capability throughout 2025.

The carrier, which finished the acquisition of its peer Hawaiian Airlines last month, forecast a fourth-quarter profit of 20 cents to 40 cents per share. Analysts usually estimated 63 cents per share, according to data assembled by LSEG.

Third-quarter adjusted profit of $2.25 per share, nevertheless, gone beyond estimates of $2.17 per share, helped by enhanced pricing power in the latter half of the duration.

Overall operating revenue rose 8% to $3.07 billion for the 3 months ended Sept. 30, also beating Wall Street expectations of $2.99 billion.

Shares of the company were up 3% in morning trading.

(source: Reuters)