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Alaska Air Group (NYSE:ALK) Envisions Narrower Q1 Loss, Share Price Takes Off

Analyst Team trader
Updated 13 Mar 2024

Alaska Air Group Inc. (NYSE: ALK) share price, one of the major American airline operators, witnessed its stock price ascend over 3% in the Tuesday session following an optimistic revision of its expectations for the first quarter. This upward momentum indicates a buoyant response from investors to the airline's updated guidance, which now forecasts a less severe loss for the quarter than previously anticipated.

Alaska Air Group anticipates it will report a slimmer margin of loss for the first quarter when compared to the corresponding period of the prior year. The company has conveyed a projection for an adjusted loss per share to be in the bracket of $0.45 and $0.55. This projection beats the first quarter's loss figures from the preceding year, which stood at $0.62 per share. Furthermore, it sharply contrasts with analysts' expectations, who had initially predicted a substantially higher first-quarter loss of $1.16 per share, positioning Alaska Air Group's updated outlook in a far more positive light.


ALK investors (along with ourselves) are keyed into the April 18 date, set by Alaska Air Group, to release its first-quarter results, which will provide further insights into the company’s financial performance.

In an airline industry still grappling with the aftershocks of the Boeing 737 MAX incidents, Alaska Air Group has managed to navigate through the challenges with an adjusted forecast inclusive of partial compensation received from Boeing. Although the setback from the incident in January was palpable, the airline has leveraged strategic network adjustments and robust travel demand to buttress its first-quarter performance.

From an analytical perspective, industry experts have coalesced around a Strong Buy consensus rating for Alaska Air Group. This collective endorsement by analysts is further bolstered by an average price target of $47.33, signaling a substantial 22.6% upside potential in the next year. The street high NYSE:ALK price target is set at a lofty $55, with the low still sitting on the runway at $40.

Closing the session out more than 3% up above $38 is worth attention but despite the outlook, the reality bears noting that over the past 12 months, shares of Alaska Air Group have endured a downturn of approximately 12% with a pretty flat start to 2024 overall.

Nevertheless, we will be watching to see if Alaska Air Group flutters its wings with renewed vigour, trimming its anticipated losses, and navigates the ongoing quarter as announced on April 18th.

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.