Alaska Air Group Revenue Flies In Q3

Alaska Air Group, Inc. ALK reported second-quarter operating revenue growth of 263% year-over-year to $1.53 billion, beating the consensus of $1.50 billion.
Adjusted loss per share of $(0.30) compared to a $(3.57) loss last year, beat the consensus for $(0.73) loss.
Passenger revenue improved by 338% Y/Y to $1.35 billion.
Operating expenses increased by 38% Y/Y to $978 million.
Net cash provided by operating activities year-to-date totaled $1.01 billion.
Revenue passengers increased by 486.7% Y/Y, RPMs increased by 524.8%, ASMs increased by 211.4% Y/Y, and Load factor increased 3,860 basis points to 77%.
CASM excluding fuel and special items was 9.20¢, compared to 21.87¢ a year ago.
During the quarter, the company announced plans to grow mainline and regional fleets, exercising options for Boeing Co's BA 13 737-9 MAX with deliveries in 2023 and 2024, and nine E175 to be operated by Horizon Air with deliveries in 2022 and 2023.
The company had $4 billion in unrestricted cash and marketable securities as of June 30, 2021, and a debt-to-capitalization ratio of 56%.
Raymond James maintained Strong Buy on Alaska Air but lowered the price target to $78, implying a 40% upside.
Price Action: ALK shares are down 0.89% at $57.08 during the premarket session on the last check Thursday.
Photo by Tomás Del Coro via Wikimedia

Earnings Calendar