Alaska Air Group (ALK) Stock Plunges 10% on Earnings Miss

Alaska Air Group's (ALK) stock price plummeted 9.98% today, reaching its lowest level since September 2024, with an intraday decline of 13.71%.

Alaska Air Group reported a first-quarter loss of $77 million, or $1.35 per share, which exceeded market expectations. This financial performance has dampened investor confidence, contributing to the stock's decline.

The company's revenue for the first quarter was $3.14 billion, falling short of analysts' projections of $3.17 billion. Although this figure represents a 41% increase from the previous year, the shortfall has added to the negative sentiment surrounding the stock.

Alaska Air's forecast for the second quarter also fell below Wall Street estimates, leading to a 6.3% drop in its stock price during extended trading. This weaker-than-expected outlook has further eroded investor trust in the company's financial prospects.

In response to macroeconomic uncertainty, Alaska Air withdrew its full-year financial forecast, adding to the overall negative outlook. This decision has heightened concerns about the company's ability to navigate the current economic environment and maintain profitability.

Softer travel demand has also impacted Alaska Air's earnings, with lower-than-expected fares despite high industry demand. This trend has contributed to the company's financial challenges and has weighed on its stock price.