Alaska Air Earnings: A Strong Recovery
As earnings season has gotten underway, many U.S. airlines have reported improving revenue and earnings trends, paving the way for a return to profitability this summer. However, excluding the impact of payroll support grants, the biggest U.S. airlines still recorded sizable losses last quarter.
By contrast, Alaska Air (NYSE: ALK) is ahead of the curve. Thanks to its domestic-focused route network and cost containment efforts, the Alaska Airlines parent nearly broke even last quarter, putting it in position to post strong profits in the second half of the year.
In the first quarter, Alaska Air recorded a huge adjusted net loss of $436 million on just $797 million of revenue: significantly less than half of pre-pandemic levels. Fortunately, demand accelerated as the quarter progressed. That trend continued over the past few months.
Source Fool.com
