Alaska Air Sees Demand Offsetting Fuel Price Volatility
Chief Financial Officer Shane Tackett says the carrier could reach neutral or positive cash flow in the second half of the year as corporate bookings rise significantly. The airline plans to reinstate its financial guidance once fuel markets show more stability following recent price shocks.
ALASKA AIR GROUP INC expects resilient travel demand and higher fares to offset fuel price volatility during the second half of the year. The carrier anticipates a more difficult second quarter than originally projected, but corporate bookings for the next 90 days have risen 20% to 30%. Management targets neutral to positive operating cash flow for the final six months of the year despite elevated refining margins.
### Fuel Volatility Delays Financial Guidance Chief Financial Officer Shane Tackett said ALASKA AIR GROUP INC is waiting for more stability before restoring its full-year outlook. While fuel markets calmed in recent weeks, prices still fluctuated 5% over 48-hour periods. Tackett spoke on the sidelines of the International Air Transport Association meeting in Brazil.
