Alaska Air Group Swings to $147 Million Q3 Loss on Fuel Costs, Guides to Wider Q4 Loss

Alaska Air Group (ALK) reported a net loss of $147 million for the quarter ended September 30, compared with net income of $73 million a year earlier. Diluted loss per share was $1.32 versus a profit of $0.62. Adjusted net loss was $35 million, or $0.31 per share; excluding certain tax impacts, adjusted net income was $49 million, or $0.36 per share. Total operating revenue rose to $4.308 billion from $3.766 billion, up 14% year-over-year on 2.4% capacity growth, with unit revenue up nearly 12%. For the fourth quarter, the carrier expects capacity growth of roughly 1% to 1.5% year-over-year, concentrated in international flying, and low-double-digit unit revenue growth. Adjusted loss per share is projected at $2.50 to $2.00. Full-year adjusted loss per share is now expected between $5.50 and $5.00, including $1.8 billion in fuel expense above plan. CEO Ben Minicucci said the company is "not satisfied" with the quarter or the fuel headwind but is confident in controlling what it can. ALK closed at $34.36 on the NYSE.