Alaska Air Shares Slide On Mixed Q1 Results, Reaffirms FY23 Guidance

  • Alaska Air Group, Inc ALK reported first-quarter FY23 operating revenue growth of 31% year-over-year to $2.196 billion, marginally beating the consensus of $2.19 billion.
  • Passenger revenues improved by 31% Y/Y to $1.98 billion.
  • Adjusted EPS was $(0.62) compared to $(1.33) in 1Q22, missing the consensus of $(0.48).
  • Revenue passengers increased 13% Y/Y, traffic increased 19%, capacity increased 14% Y/Y, and load factor expanded 310 basis points to 79.9%.
  • Operating expenses increased by 27% Y/Y to $2.38 billion. 
  • The company reported an operating loss of $(186) million, compared to $(202) million in 1Q22.
  • ALK resumed the share repurchase program, purchasing 413,554 shares for ~$18 million in the quarter, and expects to repurchase at least $100 million in 2023.
  • Alaska Air generated cash from operating activities of $222 million in the quarter versus $287 million in 1Q22. 
  • Alaska Air held $2.4 billion in unrestricted cash and marketable securities as of March 31, 2023. It ended the quarter with a debt-to-capitalization ratio of 48%.
  • 2Q23 Outlook: Alaska Air expects 2Q23 capacity growth Y/Y of 6% to 9%; total revenue growth Y/Y of 2.5% to 5.5%; and CASMex +1% to +3%
  • FY23 Outlook: ALK reiterated its adjusted pre-tax margins of 9% to 12% and EPS of $5.50 to $7.50 versus the consensus of $5.75.
  • Price Action: ALK shares are trading lower by 1.49% at $43 premarket on Thursday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsGuidanceMarketsMoversBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!