Alaska Air Rings Up Big Earnings Beat
Last month, Alaska Air (NYSE: ALK) dramatically boosted its second-quarter revenue forecast, as a sharp rebound in air travel demand led to packed planes and surging airfares. As a result, the carrier projected that it would post a double-digit adjusted pre-tax margin for the quarter, despite soaring fuel costs.
On Thursday, the Alaska Airlines parent reported that costs increased even more than expected in Q2. Nevertheless, it posted a strong earnings beat, as revenue growth continued to accelerate.
Alaska Air's revenue reached a new record of $2.66 billion last quarter -- up 74% year over year and 16% higher than Q2 2019. Alaska achieved this revenue growth despite operating at less capacity than it did before the COVID-19 pandemic. Unit revenue skyrocketed 26% compared to Q2 2019.
Source Fool.com
