Alaska Air Forecasts Q4 Loss Wider Than Expected on Fuel Costs

Alaska Air Group reported a third-quarter net loss of $147 million, compared with net income a year earlier, as revenue rose 14% to $4.3 billion on 2.4% capacity growth. Its adjusted loss was $35 million, or 31 cents per share; excluding a 67-cent-per-share tax adjustment tied to its revised annual outlook, adjusted earnings were 36 cents per share. The airline forecasts an adjusted fourth-quarter loss of $2 to $2.50 per share, well below analysts’ average expectation, despite anticipating low-double-digit unit-revenue growth and healthy demand. It expects capacity to increase 1% to 1.5%, mainly through international flying, while higher fuel costs remain a major headwind: Alaska estimates fuel expense will be $1.8 billion above plan for the year and projects a full-year adjusted loss of $5 to $5.50 per share.