Alaska Air Group (NYSE:ALK) shares are down on Tuesday after the company reported worse-than-expected first-quarter fiscal year 2026 results and suspended guidance.
Earnings Snapshot
On Monday, Alaska Air reported quarterly losses of $(1.68) per share, which missed the analyst consensus estimate of $(1.34).
Also, the company reported sales of $3.30 billion, which marginally missed the analyst consensus estimate of $3.31 billion.
For the full-year 2026, the company said earnings visibility remains constrained mainly due to continued volatility in fuel prices.
Given the uncertain outlook beyond the current quarter, it has suspended full-year guidance until conditions become more stable.
For the second quarter, the company expects capacity to be up ~1% YoY, slightly below prior guidance due to planned reductions in May and June.
Unit revenue is tracking to rise in the high single digits, with potential to reach ~10% growth if demand holds, despite a 2-point impact from Hawaiʻi storm disruption.
Alaska Air projects unit costs to be ~1.5 points higher sequentially. This is due to near-term capacity cuts and temporary items, including pilot training for international widebody expansion, the absence of prior-year asset sale gains, and one-time integration-related employee costs.
Costs are expected to ease to …