Alaska Air Gets $162M In Initial Compensation From Boeing For January Incident, Issues Robust Q2 Outlook
Portfolio Pulse from Akanksha Bakshi
Alaska Air Group, Inc. (NYSE:ALK) reported a 2% year-over-year increase in Q1 2024 operating revenue to $2.232 billion, surpassing consensus estimates. Despite a decline in adjusted EPS to $(0.92) from $(0.62) a year ago, it beat the consensus of $(1.05). The quarter was significantly impacted by the grounding of the Boeing 737-9 MAX, leading to a $162 million compensation from Boeing. ALK also announced the acquisition of Hawaiian Airlines and provided positive Q2 and full-year 2024 guidance, despite revising growth expectations due to reduced aircraft deliveries from Boeing.
April 18, 2024 | 12:47 pm
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Alaska Air Group reported strong Q1 2024 results with revenue growth and a significant compensation from Boeing, alongside providing an optimistic outlook for Q2 and the full year.
The positive earnings report, coupled with the initial compensation received from Boeing and the optimistic future guidance, are likely to instill investor confidence in the short term. The acquisition of Hawaiian Airlines and the ratification of a new labor agreement further demonstrate ALK's strategic growth initiatives and operational stability.
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