Alaska Airlines Gets Boost From Premium, Expects Hit From IT Outage

Key Points

• Alaska Airlines achieved record second quarter revenue, driven by strong performance in premium seating and its loyalty program.
• Nearly half of Alaska's revenue came from outside the main cabin, with premium and loyalty program revenue each up 5%.
• The airline forecasts a 10-cent per share earnings impact in the third quarter due to a recent IT outage, which was not a cybersecurity breach.

Summary

Alaska Airlines reported record revenue for the second quarter, fueled by increased demand for premium seating and its loyalty program, with 49% of revenue originating outside the main cabin. While the airline had previously forecasted a potential revenue hit due to softening demand, it instead saw a 28% increase in operating revenue. However, Alaska anticipates a 10-cent per share earnings impact in the third quarter as a result of a recent IT outage, which temporarily grounded flights but was not linked to a cybersecurity incident.