Alaska Airlines: Hope for a Revival

- Alaska Airlines $ALK+1.3% has unveiled earnings forecasts for the second quarter and full year that significantly beat estimates.

- Despite an initial loss in the first quarter caused by the Boeing 737 Max 9 door plug damage incident, Alaska Airlines $ALK+1.3% expects adjusted earnings per share in the range of $2.20 to $2.40, up from the $2.12 expected .

- For 2024, the company projects earnings per share in the range of $3.25 to $5.25, significantly higher than the average $4.36 estimated by experts.

- The Jan. 5 accident, in which the plane's door stopper ruptured, led to a temporary grounding of the aircraft, but the company received a hefty damage award from Boeing in of $162 million.

- For the first quarter of 2024, Alaska Airlines $ALK+1.3% reported a net loss of $132 million, but revenue was $2.2 billion, exceeding analysts' forecasts.

- After accounting for one-time items, the adjusted net loss was just 62 cents per share, well below expectations.

- Future earnings estimates signal a positive outlook for Alaska Airlines $ALK+1.3% and boost investor confidence.

- Despite the difficulties caused by the pandemic, the company appears to be on track to recover and perhaps even excel in the post-pandemic era, which may be a positive signal for the entire airline industry.

Although this is an airline whose actions I am, frankly, slightly skeptical of after the Boeing scandals, I believe this airline might not be a misstep. What do you think?

ALK
$38.42 $0.51 +1.35%

Forward doesn't look bad, but I'd probably prefer to go with larger companies when investing in this sector, which is pretty erratic.

It's hard to say, it could be a nice opportunity, however, I think I like $AAL-0.5% and $DAL-3.0% the most from this sector so far.

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