- Alaska Air Group anticipates third-quarter adjusted EPS to be at the low end of the $1 to $1.40 range, with the market estimating $1.34.
- The expected economic fuel price is between $2.50 and $2.55 per gallon, slightly up from the previous $2.45 estimate.
- Unit revenue is projected to be near the higher end of flat to low single-digit growth, performing better than initial flat forecasts.
- The updated outlook is influenced by higher fuel costs and summer operational challenges increasing unit costs.
- Disruptions such as weather, air traffic control issues, and a July IT outage have led to increased costs due to overtime, premium pay, and passenger compensation.
- The IT outage alone is expected to negatively impact EPS by $0.10, with costs being more significant than revenue loss.
- Despite these pressures, revenue trends are strong, aligning with the higher end of previous guidance.
- Analyst sentiment is overwhelmingly positive, with 15 buy ratings and no holds or sells.
Alaska Air Group on Smartkarma
Analysts on Smartkarma have been closely covering Alaska Air Group, providing valuable insights on the company’s recent performance and future prospects. Baptista Research, one of the top independent analyst firms on the platform, published a report titled “Alaska Air Group Races to 50% Premium Revenue in A High-Stakes Market Gamble; What Lies Ahead?” The report highlights Alaska Air Group‘s successful financial performance in the second quarter of 2025, with robust GAAP net income and adjusted net income figures showcasing the benefits of the Alaska-Hawaiian merger.
In another report by Baptista Research titled “Alaska Air Group Eyes Massive Cost Synergies from Hawaiian Deal—Is a Profit Surge Coming?”, the analysts delve into the challenges faced by Alaska Air Group in the first quarter of 2025, including net losses attributed to changing air travel demand. Despite this, the company’s commitment to its strategic initiative, Alaska Accelerate, signal a focus on long-term profitability and value creation. These insights offer investors a comprehensive view of Alaska Air Group‘s trajectory in a dynamic market environment.
A look at Alaska Air Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have assessed Alaska Air Group, Inc. based on various factors to determine its long-term outlook. The company received a promising score of 4 for Growth, indicating strong potential for expansion in the future. This suggests that Alaska Air Group may experience significant development and progress over time, which could positively impact its overall performance in the airline industry.
Although Alaska Air Group scored lower in Dividend and Resilience, with scores of 1 and 2 respectively, its high momentum score of 5 indicates a strong upward trend in its stock price. This momentum could indicate a positive market sentiment and investor confidence in the company’s future prospects. Overall, the Smartkarma Smart Scores suggest that Alaska Air Group holds potential for growth and market momentum despite weaknesses in other areas.
Summary: Alaska Air Group, Inc. is an airline holding company that provides air services to passengers in various destinations. Its operations extend to freight and mail services, particularly in Alaska and the West Coast region. With a strong Growth score of 4 and high Momentum score of 5, Alaska Air Group shows promise for future expansion and market success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
