Alaska Air Group (NYSE:ALK) reduced its third quarter earnings guidance on Monday, citing elevated fuel costs and operational challenges during the summer, which included weather and air traffic control issues.
The air carrier said it now expects its adjusted earnings per share for the quarter to come in at the low end of its previous $1 to $1.40 forecast.
For fiscal 2025, Alaska Air expects adjusted earnings of about $3.25 per share, less than the $3.81 analyst consensus estimate.
The company, though, said revenue trends remain solid, with unit revenue tracking near the high end of guidance and yields turning positive in August.
Alaska Air also noted that it is benefitting from demand for premium seating along, with a sharp rebound in corporate travel since the second quarter.
Alaska Air Group shares fell 5% to about $60 in midday trading on Monday but have climbed 45% over the past 52 weeks.