Alaska Airlines 2024 Forecast Tops After Damage From Boeing Max Grounding

Alaska Airlines Second-quarter and full-year earnings forecasts came in well ahead of estimates Thursday, with executives predicting a strong peak travel season, with door plugs on the new Boeing 737 Max 9 nearly mid-air in January. Despite the loss in the first quarter from the eruption.

Alaska received $162 million from Boeing for the Jan. 5 crash, which caused the Federal Aviation Administration to briefly ground the planes. Alaska said it expects additional compensation from the manufacturer.

The Seattle-based carrier reported a loss of $132 million, or $1.05 per share, in the first quarter, down from $142 million, or $1.11 per share, a year earlier.

The crash has added additional regulator scrutiny to Boeing and slowed deliveries of its new Max planes, of which Alaska is a major customer. Alaska CEO Ben Menecki stood by Boeing on Thursday’s earnings call but reiterated that he expects Boeing to fall short of its plan to deliver planes to the carrier this year.

“We will remain a committed partner but we will hold Boeing to the highest standards for quality out of the factory and to that end we have increased our personal oversight of our 737 production line,” Minicucci said. said

“Alaska [Airlines] Boeing is needed, our industry needs Boeing and our country needs Boeing to be a leader in aircraft manufacturing.”

Minicucci told CNBC’s “The Exchange” on Thursday that Boeing leadership was “encouraged” after visiting the Alaska offices in Seattle on Monday to outline the manufacturer’s quality improvement plan.

Boeing’s safety crisis has drawn criticism from lawmakers and its customers. Boeing CEO Dave Calhoun said last month he would step down by the end of the year, part of a broader shakeup at the manufacturer with airline CEOs expressing frustration.

Airline leaders say quality problems at Boeing have forced the schedule changes as a result of the delays. Alaska is “delivering a schedule with the high level of service and reliability that our guests have come to expect and know from us,” Minicucci said.

Alaska forecast adjusted earnings per rabbit between $2.20 and $2.40, higher than the $2.12 analysts expected from LSEG. For 2024, the carrier expects earnings of $3.25 to $5.25 per share, higher than the average of $4.36.

Shares of Alaska closed up 4% at $44.44 on Thursday.

Delta And united Strong travel demand is also predicted for 2024 this spring and summer.

Alaska reported revenue of $2.2 billion for the first quarter, slightly higher than LSEG’s $2.19 billion analyst estimate and up 2% from last year. Adjusted for one-time items, Alaska posted a second-quarter net loss of 62 cents per share, less than analysts expected for a loss of $1.05 per share, according to LSEG. According to G.