Alaska Air Group (ALK) shares soared by over 5% in the pre-market trading session on Thursday, January 23, 2025, following the company's impressive fourth-quarter 2024 earnings and revenue beat, coupled with an optimistic outlook for the first quarter of 2025.
The airline reported adjusted earnings per share (EPS) of $0.97 for the fourth quarter, surpassing the consensus estimate of $0.44. Revenue for the quarter stood at $3.53 billion, exceeding analysts' expectations of $3.41 billion. The strong performance was driven by sustained leisure demand and a rebound in corporate travel.
Looking ahead, Alaska Air provided guidance for the first quarter of 2025, projecting an adjusted EPS loss in the range of $0.50 to $0.70, which is better than the consensus expectation of a $0.75 loss. The company expects revenue per available seat mile (RASM) to increase by a high-single-digit percentage compared to the previous year.
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