Executives from Alaska Air Group—which now includes Alaska Airlines and Hawaiian Airlines—on Thursday spoke of "demand fluctuations" and "uncertainty" on their first-quarter earnings call, but suggested business travel demand had "stabilized."
"Managed corporate revenue after posting a record January ended the quarter up 3 percent," said Alaska chief revenue officer and chief commercial officer Andrew Harrison. He also noted that the segment has "stabilized," implying a reversal of momentum.
"We've seen material improvements from two of our largest accounts in the last several weeks after a meaningful step back in February and March," Harrison said. "And total forward bookings are up low single digits, improved from where they seem to have bottomed out in March."
Further on corporate stabilization, Harrison added that there remained some softness in manufacturing and technology clients but noted "others in professional services that are doing well," he said. "Overall, flat to down mid-single digits is sort of what we're seeing today," he said of corporate bookings.
Alaska Q1 Metrics
Alaska Air Group reported first-quarter passenger revenue of $2.8 billion, up 40 percent year over year. Total revenue increased 41 percent to nearly $3.14 billion. The company's net loss was $166 million, compared with a net loss of $132 million a year prior.
The group carried 13.2 million passengers during the first quarter, up 34.6 percent year over year, figures affected by the acquisition of Hawaiian. Capacity increased 38 percent. The average fuel cost was $2.61 per gallon.
Second-quarter guidance includes a capacity increase of 2 percent to 3 percent year over year, with revenue per available seat mile projected to be flat to down by a low single-digit percentage.
Like other carriers, Alaska did not update its full-year guidance for 2025, but it remains firm it is on the right path. "We remain confident in our outlook even in the event of a recession," Alaska president and CEO Ben Minicucci said. "We are executing with discipline, focusing on long-term value creation, and taking the right steps to strengthen our business through any cycle."
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