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Alaska Air raises Q4 revenue projection on strong travel demand, enhanced costs

Alaska Air raised its fourthquarter revenue projection on Tuesday, owing to robust travel need and enhanced rates, sending the provider's shares rising 13% in early trading.

Excess supply of seats at the start of this year's. summertime travel season required airlines to offer discount rates to fill. their aircrafts, injuring their margins. Since then, U.S. airline companies. have decreased their capability and managed to reinforce rates. power.

The Seattle, Washington-based provider anticipates its revenue per. share for the fourth quarter to be in between 40 cents and 50. cents, compared to the range of 20 cents to 40 cents forecast. previously.

Alaska Air, which is hosting its 2024 investor day on. Tuesday, also forecast its 2025 profit above experts' estimate.

Besides, the company expects to gain from its just recently. finished acquisition of competing Hawaiian Airline companies.

The mix with Hawaiian offers us the scale to be. stronger than either of us might have been on our own-- offering. guests what they want, where and when they want it, Alaska. Chief Financial Officer Shane Tackett said.

To expand its worldwide existence, Alaska announced new non-stop. services to Tokyo, Japan and Seoul, South Korea utilizing Hawaiian's. widebody aircraft.

Alaska Air expects its revenue for 2025 to be at least $5.75. per share, compared with experts' average expectation of $5.50. per share, according to data compiled by LSEG.

(source: Reuters)