Alaska Air Stock Hits Over 3-Year Highs On Upbeat Q4: Retail Sentiment Flies High

Total operating revenue rose 38% year-over-year (YoY) to $3.53 billion and came in better than a Wall Street estimate of $3.51 billion, according to FinChat data.

Shares of Alaska Air Group Inc (ALK) surged over 6% on Thursday morning to hit three-and-a-half-year highs after the company reported better-than-expected fourth-quarter earnings.

The consolidated fourth-quarter and full-year 2024 results include Hawaiian Airlines as of Sept. 18, 2024, while prior comparable periods exclude any Hawaiian results.

According to FinChat data, total operating revenue rose 38% year-over-year (YoY) to $3.53 billion, better than a Wall Street estimate of $3.51 billion. The airline noted that fourth-quarter (Q4) revenue was stronger than expected across  Alaska and Hawaiian.

Adjusted earnings per share (EPS) stood at $0.97 versus an analyst estimate of $0.47. Net income stood at $71 million compared to a net loss of $2 million in the same quarter a year ago.

The company’s unit revenues improved by nearly six percentage points sequentially, from 1% in the third quarter to 7% in the fourth quarter.

“This momentum has continued, with ongoing close-in strength in early Q1 bookings. Combined with a stable industry capacity backdrop, we are encouraged by these early indications for Q1 and a constructive start to 2025,” the company stated.

On Stocktwits, retail sentiment climbed into the ‘extremely bullish’ territory (94/100) from ‘bullish’ a day ago, hitting a year-high level. Message volumes also shot up to ‘extremely high’ levels.

Stocktwits user comments indicate an optimistic take on the stock.

Alaska Air shares have gained over 11% year-to-date and have almost doubled over the past year.

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