Alaska Air Group Inc (NYSE:ALK) shares flew over more than 5% higher in New York as the company posted a first-quarter profit, which beat analysts' and management expectations.
Profit for the three months was US$0.14 a share, which beat consensus estimates by US$0.03 a share, on revenue of US$1.8bln. Proft came in in the same period last year at US$93 million, or US$0.75 a share. The fall was attributed to higher costs.
Management itself had forecast a loss at the end of 2017 due to the continuing costs of the merger with Virgin America and the competitive airline market.
The firm also told Investors that the integration of the company with Virgin America was going well.
"We’re excited to get the biggest integration milestones behind us in the next couple of months and then turn our full focus to running a great airline,” CEO Brad Tilden had said.
In the period, the Federal Aviation Administration (FAA) gave the company a single operating certificate, recognizing Alaska Airlines and Virgin America as one airline.
And due this week is the merging of the passenger service systems of the two airlines.
Reportedly, the overall remake of the Virgin fleet to make its look consistent with Alaska’s won’t be complete until late in 2019.
Alaska shares added 5.7% to US$69.11.