Key Takeaways

Alaska Air Group ( ALK ) shares gained Thursday, a day after the airline beat profit and sales forecasts after it completed its acquisition of Hawaiian Airlines.

The carrier reported fourth-quarter adjusted earnings per share (EPS) of $0.97, more than double analysts' expectations and well above its own guidance. Operating revenue flew 38% higher year-over-year to $3.53 billion, also above estimates.

Passenger revenue gained 37% to $3.18 billion, loyalty program other revenue added 36% to $224 million, and cargo and other revenue skyrocketed 113% to $132 million. Capacity increased 2.5%, about 1 percentage point above what Alaska Air anticipated.

CEO Says 2024 Was 'Transformational Year'

CEO Ben Minicucci called 2024 "a transformational year as we brought Hawaiian Airlines into Alaska Air Group and began our journey to unlock $1 billion in incremental pretax profit over the next three years." The Hawaiian Airlines deal was finalized in September.

The company projects a current-quarter adjusted loss per share of $0.50 to $0.70. Analysts surveyed by Visible Alpha expect a loss of $0.70 per share.

Shares of Alaska Air Group rose about 5% Thursday morning to $70.60, a nearly four-year high.

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