Alaska Air Group Inc. forecast losses that were better than expected, even as the grounding of Boeing 737 Max 9 planes following its January fuselage blowout curtailed profits at the airline by at least $150 million.
Alaska Air sees a first-quarter adjusted loss per share of about 45 cents to 55 cents, the company said in a regulatory filing on Tuesday. That compared to the average analyst estimate of loss of $1.18.
The airline said its performance was now back on track to “exceed expectations” for the rest of the year, thanks to spring break and West Coast business travel.
The company, which is currently cooperating in a US Justice Department investigation on the incident, said it’s returned its fleet to service and restored its schedule. Alaska said it has received partial compensation from Boeing and its adjusted loss per share expectation reflects the outlay from Boeing Co.
Alaska said full-year capacity expectations are still in flux due to uncertainty around the timing of aircraft deliveries as a result of increased Federal Aviation Administration and Department of Justice scrutiny on Boeing and its operations.
