Categories Analysis, Markets, Technology

Alaska Airlines stock jumps 3% on better-than-expected Q4 earnings

Alaska Airlines (ALK) Thursday reported fourth-quarter earnings that surpassed analysts’ estimates. Earnings rose to 75 cents per share from 71 per share in the same quarter last year. This came in above the average analysts’ estimate of 73 cents per share.

Meanwhile, total revenues improved 6% to $2.06 billion, in line with the analysts’ consensus. Passenger revenues were up 6% to $1.9 billion.

Alaska Airlines fourth quarter 2018 earnings infographic

During the holiday quarter, traffic/RPM grew a modest 1% to about 13.4 billion, while capacity increased by 1.1% to 16.08 billion. The load factor was 83.3% during the period, down 0.1 point compared to last year, primarily attributable to capacity overexpansion.

CEO Brad Tilden said, “In 2018, we achieved the vast majority of our integration milestones and passed through an inflection point in our financial performance.”

The company’s margins were squeezed by higher jet fuel prices in Q4. Though fuel prices declined by the end of the year, it was still higher than the levels witnessed during the same time last year.

ALK shares rose 3% during aftermarket trading on Thursday. The stock has traded mostly sideways throughout the trailing 52 weeks and is currently down 8%.

Alaska Air Q3 profit tops street view despite cost pressure

Earlier today, shares of rivals American Airlines (AAL) and JetBlue (JBLU) gained after both companies reported better-than-expected results. Meanwhile, Southwest Airlines (LUV) stock slipped despite the company surpassing projections. Investors remained worried about the profit slide at the airline firm.

Last week, bigger rivals United Airlines (UAL) and Delta Air Lines (DAL) had reported earnings results. United shares jumped 5% after the company surpassed analysts’ estimates, while Delta shares slipped after it missed the expectations on the outlook.

 

Follow our Google News edition to get the latest stock market, earnings, and financial news at your fingertips

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

One thought on “Alaska Airlines stock jumps 3% on better-than-expected Q4 earnings

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top