CHICAGO (Reuters) -Alaska Air Group on Wednesday reinstated its full-year profit forecast, citing improvements in passenger traffic and pricing power. The Seattle-based airline, however, forecast a lower-than-expected profit for the third quarter. Like most U.S. airlines, Alaska pulled its full-year financial forecast in April as President Donald Trump’s trade war created the biggest uncertainty for […]
Business
Alaska Air reinstates profit forecast as travel demand improves
Audio By Carbonatix
CHICAGO (Reuters) -Alaska Air Group on Wednesday reinstated its full-year profit forecast, citing improvements in passenger traffic and pricing power.
The Seattle-based airline, however, forecast a lower-than-expected profit for the third quarter.
Like most U.S. airlines, Alaska pulled its full-year financial forecast in April as President Donald Trump’s trade war created the biggest uncertainty for the industry since the COVID-19 pandemic.
Alaska Chief Financial Officer Shane Tackett told Reuters reduced macroeconomic uncertainty has driven up bookings since late June.
U.S. West Coast-based technology companies have started to travel more, bolstering bookings closer to the travel date.
Tackett said the company was “cautiously optimistic” that the recovery in travel demand would be sustained through the rest of the year.
Alaska now expects its full-year 2025 adjusted profit to be greater than $3.25 a share. That compares with analysts’ average estimate for a profit of $3.41 a share, according to LSEG data.
In the third quarter, the company expects an adjusted profit in the range of $1.00 a share to $1.40 a share. The midpoint of the forecast is $1.20 per share, compared with analysts’ average estimate of $1.65, according to LSEG data.
(Reporting by Rajesh Kumar Singh; Editing by Chris Reese and Jamie Freed)