Alaska Air Group said it is maintaining first-quarter guidance despite higher fuel costs, with strong demand and fare increases helping to offset pressure from volatile West Coast refining margins.
Speaking at the JPMorgan Industrials Conference, chief executive Benito Minicucci said that, absent the recent Middle East-driven fuel spike, the airline would have finished the quarter above the midpoint of its guidance range.
“At this point in time, we’re not going to change our Q1 guidance,” Minicucci said.
Alaska said it remains exposed to structurally higher fuel costs on the US west coast, where refinery closures have widened the gap with the rest of the industry. Minicucci said the carrier is now looking to reduce that disadvantage by cutting its reliance on West Coast fuel supply and potentially tankering more fuel from Singapore into Seattle over the next two years.
The airline also said demand remains resilient, with Minicucci noting that fare increases have so far held. He added that Alaska saw a brief acceleration in bookings as customers moved quickly to buy tickets before prices rose further.
Alaska also highlighted strong momentum in its international build-out from Seattle, with Tokyo and Seoul already posting spring-break load factors in the 90s and Rome, due to launch in five weeks, “booking fantastic”.
Alaska holds guidance as demand offsets fuel pressure
