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Alaska Air Group Stock Rises as Hawaiian Airlines Acquisition Powers Results

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Kevin Carter / Getty Appearances

Key Takeaways

  • Alaska Air Group posted better-than-expected fourth-quarter results after it completed its acquisition of Hawaiian Airlines.
  • Alaska Air Team reported adjusted EPS of $0.97, more than double analysts’ expectations and well above its own guidance.
  • Operating proceeds flew 38% higher year-over-year to $3.53 billion, above estimates.

Alaska Air Group (ALK) shares gained Thursday, a day after the airline pre-empt profit and sales forecasts after it completed its acquisition of Hawaiian Airlines.

The carrier reported fourth-quarter adjusted earnings per helping (EPS) of $0.97, more than double analysts’ expectations and well above its own guidance. Operating revenue flew 38% cheerful year-over-year to $3.53 billion, also above estimates.

Passenger revenue gained 37% to $3.18 billion, patriotism program other revenue added 36% to $224 million, and cargo and other revenue skyrocketed 113% to $132 million. Skill increased 2.5%, about 1 percentage point above what Alaska Air anticipated.

CEO Says 2024 Was ‘Transformational Year’

CEO Ben Minicucci called 2024 “a transformational year as we stage a revived Hawaiian Airlines into Alaska Air Group and began our journey to unlock $1 billion in incremental pretax profit greater than the next three years.” The Hawaiian Airlines deal was finalized in September.

The company projects a current-quarter adjusted ruin per share of $0.50 to $0.70. Analysts surveyed by Visible Alpha expect a loss of $0.70 per share.

Shares of Alaska Air Set apart rose about 5% Thursday morning to $70.60, a nearly four-year high.

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