Alaska tweaks Q2 guidance, sees capacity dropping further

Dow Jones2021-07-16

Alaska Air Group Inc. $(ALK)$ said late Thursday it expects its capacity to decline a bit more than it expected for its second quarter, as compared with 2019, and that it expects second-quarter revenue to drop 33%, the lower end of a previously expected decline between 33% and 35%, also as compared with 2019. Capacity dropped 21% in the quarter, compared with expectations of about 20%, Alaska said in a filing.

From the beginning of the pandemic, "the recovery path has been volatile and difficult to predict," Alaska said. Second-quarter operating cash flow results, however, were better than expected thanks to strength in demand for future travel, improvements in affinity partner cash flows as consumers spent more than in 2019, and other working capital tailwinds, the airline said.

Shares of Alaska were flat in the extended session Thursday after ending the regular trading day down 1.1%.

Alaska is expected to report second-quarter results on July 22.

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