(Reuters) – Alaska Air Group on Tuesday forecast its annual revenue below estimates on early signs of cooling ticket prices, sending its shares down 6.3% in premarket trading.
U.S. inflation data in July showed a third consecutive monthly decline in airline fares, with prices dropping at their fastest pace since February 2021.
The company expects its total revenue in 2023 to grow about 8% to 10%, compared with analysts’ average expectations of a 11.13% growth.
The carrier also reiterated its forecast for 2023 profit in the range of $5.50 to $7.50 per share, below a Wall Street consensus of $6.60 at its midpoint.
However, Alaska reported an adjusted profit of $3 per share for the quarter ended June 30, beating analysts’ average estimate of $2.70 per share.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Krishna Chandra Eluri)