Why Alaska Air Stock Is Losing Altitude Today
Alaska Air Group (NYSE: ALK) had a great quarter, but management's expectations for revenue growth from here fell short of what analysts had hoped for. Investors were disappointed, sending Alaska shares down about 12%.
It has been a good year for airlines, with post-pandemic demand continuing to fill planes through the busy summer months. But historically this has been a cyclical industry, and investors are keeping a watchful eye on future demand to gauge whether rising inflation will cut into demand from here.
Alaska, like many of its peers that have already reported second-quarter results, beat expectations in the April-to-June period. Alaska reported adjusted earnings of $3 per share on revenue of $2.84 billion, topping the consensus estimate of $2.70 per share on $2.77 billion in sales.
Source Fool.com
