Alaska Airlines: Hope for a Revival
- Alaska Airlines $ALK+0.0% has unveiled earnings forecasts for the second quarter and full year that significantly beat estimates.
- Despite an initial loss in the first quarter caused by the Boeing 737 Max 9 door plug damage incident, Alaska Airlines $ALK+0.0% expects adjusted earnings per share in the range of $2.20 to $2.40, up from the $2.12 expected .
- For 2024, the company projects earnings per share in the range of $3.25 to $5.25, significantly higher than the average $4.36 estimated by experts.
- The Jan. 5 accident, in which the plane's door stopper ruptured, led to a temporary grounding of the aircraft, but the company received a hefty damage award from Boeing in of $162 million.
- For the first quarter of 2024, Alaska Airlines $ALK+0.0% reported a net loss of $132 million, but revenue was $2.2 billion, exceeding analysts' forecasts.
- After accounting for one-time items, the adjusted net loss was just 62 cents per share, well below expectations.
- Future earnings estimates signal a positive outlook for Alaska Airlines $ALK+0.0% and boost investor confidence.
- Despite the difficulties caused by the pandemic, the company appears to be on track to recover and perhaps even excel in the post-pandemic era, which may be a positive signal for the entire airline industry.
Although this is an airline whose actions I am, frankly, slightly skeptical of after the Boeing scandals, I believe this airline might not be a misstep. What do you think?
Forward doesn't look bad, but I'd probably prefer to go with larger companies when investing in this sector, which is pretty erratic.
It's hard to say, it could be a nice opportunity, however, I think I like $AAL+0.1% and $DAL+1.0% the most from this sector so far.