Alaska Air Group Inc. (ALK) Posts Record Revenue but Misses Profit Targets

Core Insights - Alaska Air Group Inc. reported third-quarter revenue of $3.8 billion, marking a 23% year-over-year increase and slightly exceeding expectations [1] - Despite strong revenue, GAAP net income was $0.62 per share, significantly lower than last year's $1.84 and below analyst estimates [2] - The company repurchased 10.6 million shares for $540 million, indicating confidence in its long-term outlook [3] Financial Performance - Revenue reached a record high of $3.8 billion, a 23% increase compared to the previous year [1] - GAAP net income fell to $0.62 per share, down from $1.84 year-over-year, missing analyst forecasts [2] - Adjusted EPS was reported at $1.05, also below expectations [2] - Operating cash flow was $229 million, with liquidity at $2.3 billion at the end of the quarter [2] Operational Insights - Unit costs increased by 8.6% due to IT recovery expenses and adverse weather conditions [3] - The airline operates major airlines including Alaska Airlines, Hawaiian Airlines, and Horizon Air, providing extensive passenger and cargo air transportation services [4]