Alaska Air Group, Inc. (ALK) reported stable fourth-quarter 2024 outcomes, whereby each earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share (EPS) of 97 cents outpaced the Zacks Consensus Estimate of 47 cents and improved greater than 100% on a year-over-year foundation. The reported determine exceeded the guided vary of 40-50 cents.
The underside line benefited from stable income progress, price and operational efficiency all through the quarter and vacation journey durations. ALK additionally benefited from a renegotiation of sure curiosity funds and favorability in its fourth-quarter tax price.
Discover the newest EPS estimates and surprises on Zacks Earnings Calendar.
Working revenues of $3.53 billion beat the Zacks Consensus Estimate of $3.51 billion. The highest line jumped 38.4% yr over yr, with passenger revenues accounting for 89.9% of the highest line and growing 37% owing to the continued restoration in air-travel demand.
Passenger revenues totaled $3.17 billion within the reported quarter. On a year-over-year foundation, cargo and different revenues of $132 million grew 113% yr over yr. Mileage plan different revenues grew 36% to $224 million.
Fourth-quarter revenues have been stronger than anticipated throughout Alaska and Hawaiian, backed by sustained leisure demand and an uptick in company journey, which improved shut in demand. ALK delivered dependable operational efficiency for its visitors all through the vacation journey interval, with higher-than-expected completion price and cargo issue.
Alaska Air Group, Inc. Value, Consensus and EPS Shock
Alaska Air Group, Inc. price-consensus-eps-surprise-chart | Alaska Air Group, Inc. Quote
Alaska Airways’ chief govt officer, Ben Minicucci, acknowledged, “This was a transformational yr as we introduced Hawaiian Airways into Alaska Air Group and started our journey to unlock $1 billion in incremental pretax revenue over the following three years. We’re proud that our incentive plan will reward Alaska Airways and Horizon Air workers with almost six weeks of pay, which we consider will lead the trade. Trying ahead, our imaginative and prescient is evident and we’re targeted on executing our strategic plan – leveraging the strengths of our mixed community, enhancing the end-to-end journey expertise for our visitors, and delivering worth for everybody who relies on us.”
Different Particulars of ALK’s This fall Earnings
All comparisons have been offered on a year-over-year foundation except talked about in any other case.
Income per obtainable seat mile (RASM: a key measure of unit revenues) grew 4% to fifteen.54 cents. Yield elevated 1% to 16.67 cents.
Reflecting the uptick in air-travel demand, consolidated visitors (measured in income passenger miles) grew 35% to 19.06 billion. To cater to this elevated demand, capability (measured in common seat miles) rose 33% to 22.74 billion. As visitors outpaced capability enlargement, the consolidated load issue (share of seat occupancy) rose 0.9 share factors to 83.8%. Our estimate is pegged at 84.3%.
Within the fourth quarter, complete working bills (on a reported foundation) elevated 37% to $3.46 billion.
Financial gasoline value per gallon fell 26% to $2.54. The reported determine lies under the guided vary of $2.55-$2.65. Our estimate is pegged at $2.63.
Consolidated working prices per obtainable seat mile (excluding gasoline and particular gadgets) grew 8.6% as disciplined non-fuel price efficiency offset larger performance-based pay accruals and higher completion charges drove larger capability.
Liquidity
As of Dec. 31, 2024, Alaska Air had $1.20 billion of money and money equivalents in contrast with $1.01 billion on the finish of the prior quarter. ALK exited the fourth quarter of 2024 with long-term debt (internet of present portion) of $4.49 billion in contrast with $4.15 billion on the prior-quarter finish. Debt-to-capitalization ratio was 45%.
Throughout the fourth quarter, ALK repurchased 3.9 million shares for $250 million, bringing the entire repurchases to five.5 million shares for $312 million in 2024.
ALK approved a brand new $1 billion greenback share repurchase plan to be executed over the following 4 years, with repurchases beginning in January 2025
ALK’s Outlook
ALK anticipates first-quarter 2025 adjusted loss per share within the vary of 50-70 cents. The Zacks Consensus Estimate is presently pegged at a lack of 20 cents per share.
The corporate expects obtainable seat miles (a measure of capability) to extend within the vary of two.5%-3.5% within the first quarter of 2025 from the primary quarter of 2024 actuals. CASM is predicted to extend within the vary of low-single digits to mid-single digits, and RASM is predicted to develop within the excessive single digits.
For 2025, EPS is anticipated to stay above $5.75.The Zacks Consensus Estimate is pegged at $5.93.
For 2025, capability is predicted to be up 2% to three% yr over yr.
ALK’s Zacks Rank and Value Efficiency
At the moment, ALK sports activities a Zacks Rank #1 (Robust Purchase). You may seethe complete list of today’s Zacks #1 Rank stocks here.
ALK’s encouraging value efficiency just isn’t restricted to the post-fourth-quarter earnings launch. Over the previous six months, shares of ALK have gained 86.3%, outperforming the industry’s surge of 25.9%.
Six-Month Value Comparability
Picture Supply: Zacks Funding Analysis
Performances of Different Transportation Corporations
Delta Air Traces DAL reported fourth-quarter 2024 earnings (excluding 56 cents from non-recurring gadgets) of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.76. Earnings elevated 44.5% on a year-over-year foundation resulting from low gasoline prices.
DAL’srevenues of $15.56 billion surpassed the Zacks Consensus Estimate of $14.99 billion and elevated 9.4% on a year-over-year foundation, pushed by robust vacation journey demand. Adjusted working revenues (excluding third-party refinery gross sales) totaled $14.44 billion, up 5.7% yr over yr. Passenger revenues, which accounted for 82.4% of complete revenues, elevated 5% yr over yr at $12.82 billion.
J.B. Hunt Transport Providers (JBHT) reported fourth-quarter 2024 earnings per share of $1.53, which fell in need of the Zacks Consensus Estimate of $1.62. Nevertheless, the underside line elevated 4.1% on a year-over-year foundation.
JBHT’s complete working revenues of $3.15 billion narrowly beat the Zacks Consensus Estimate of $3.13 billion however declined 4.8% yr over yr. The decline was primarily resulting from decrease gasoline surcharge revenues and yield stress in its Intermodal section.
JBHT’s fourth-quarter 2024 working revenues of $2.78 billion, excluding gasoline surcharge income, decreased 2% from the year-ago reported quarter. Complete working revenue for the reported quarter elevated 2% yr over yr to $207 million.
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
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