Alaska Air Raises Fuel Cost Estimates, Expects Capacity To Be Down In 1H

Alaska Air Group, Inc. ALK updated its first-quarter economic fuel cost to be $2.60 - $2.65 per gallon versus the prior expectation of $2.45 - $2.50 per gallon, citing fuel price volatility due to the conflict in Europe and Russia's ongoing invasion of Ukraine.
The company has slightly moderated its capacity outlook for the year, given the sharp rise in fuel costs. The airline expects capacity to be down 3% - 5% in the year's first half.
Meanwhile, Alaska Air continues to plan for a return to 100% of pre-COVID capacity by summer, followed by growth in the second half of the year.
Price Action: ALK shares are trading higher by 1.21% at $44.22 during the premarket session on Tuesday.