Alaska Air Group Reports $193M Q1 Loss, Suspends Guidance, Expands Card Deal
Alaska Air Group posted a Q1 loss of $193 million, or $1.68 per share, missing forecasts despite $3.3 billion in revenue. The airline suspended annual guidance over jet fuel cost uncertainty and extended its Bank of America co-brand card deal expected to add more than $150 million in loyalty profit.
1. Q1 Financial Results
Alaska Air Group reported a net loss of $193 million in the first quarter, or $1.68 per share on an adjusted basis, compared with analyst expectations for a smaller loss. Revenue reached $3.3 billion, topping the $3.27 billion forecast, but was insufficient to offset higher operating costs.
2. Suspension of Guidance
The airline has paused its full-year guidance due to uncertainty around jet fuel prices, citing volatility and potential cost pressures. Management indicated that fuel cost trends will dictate when they can reinstate outlook targets for earnings and capacity growth.
3. Co-Branded Card Partnership Extension
Alaska Air Group and Bank of America agreed on a multi-year extension of their co-branded credit card agreement, consolidating issuance under a single bank. The deal is projected to generate in excess of $150 million in incremental loyalty profits through expanded benefits and new card offerings.
4. Stock Performance Context
Shares have declined approximately 14% year-to-date, trading near $43.50, reflecting investor concerns over rising costs and profitability challenges. The combination of an earnings miss and guidance suspension has weighed on market sentiment.