Revenue Surges, Losses

Alaska Air Group reported Q2 operating revenue of $4.07 billion, up 9.8 % year‑over‑year, yet the figure fell short of consensus by 0.73 %. Adjusted earnings posted a loss of $0.92 per share, 5.16 % above the Zacks consensus estimate of –$0.97. The loss was largely driven by an 85 % jump in fuel costs to $1.31 billion, adding $600 million in incremental fuel expense, and a 24 % rise in total operating expenses to $4.23 billion from $3.43 billion. Passenger revenue grew 9 % year‑over‑year to $3.64 billion; loyalty‑program revenue increased 23 % and cargo revenue rose 17 %. Revenue per available seat mile (RASM) climbed 9.6 % to 18.21 cents, while RASM of 16.72 cents remained slightly below the consensus of 16.87 cents. The passenger load factor fell to 82.3 %, below analysts’ estimate of 84.1 %, and consolidated traffic declined 0.8 % as capacity grew 1 %.