Alaska Air CFO ‘Cautiously Optimistic’ About Sustained Travel Demand Recovery For Remainder Of 2025

Alaska Air Group (ALK) Chief Financial Officer Shane Tackett reportedly said he was ‘cautiously optimistic’ that recovery in travel demand will be sustained for the rest of the year.

Tackett also said to Reuters that a relatively stable macroeconomic outlook has driven up bookings since late June. The bullish commentary from the fifth-largest U.S. airline echoed that of larger peers, such as United Airlines and Delta Air Lines, which have also projected a rebound in demand.

Executives at technology companies on the U.S. West Coast are increasing their travel, leading to more last-minute bookings, Tackett reportedly said. He also believes that the airline's yields, which are a proxy for pricing power, have improved compared to the first two quarters of the year.

Retail sentiment on Stocktwits about Alaska Air was in the ‘extremely bullish’ territory at the time of writing, while retail chatter was ‘extremely high.’

On Wednesday, the company reported an adjusted quarterly profit of $1.78 per share, which exceeded the $1.54 per share expected by analysts, according to Fiscal.ai data. However, it projected third-quarter earnings between $1.00 and $1.40 per share, which was below Wall Street’s estimated $1.63 per share.

After a robust start to the year, consumer sentiment declined as President Donald Trump’s tariffs raised concerns about a recession, leading customers to cut back on their leisure travel. The uncertainty had forced several airlines, including Alaska, to withdraw their forecasts.

The company stated on Wednesday that it now expects its full-year 2025 adjusted profit to exceed $3.25 per share, while analysts expect it to post $3.41 per share in full-year earnings.

It also stated that a system-wide IT issue, which led to the grounding of its fleet for a few hours on Sunday evening, would result in a negative impact of $0.10 per share.

The Reuters report stated that Alaska Airlines anticipates receiving three Embraer jets early next year. However, according to Tackett, the proposed tariff on Brazil could negatively impact the financial viability of these aircraft, and the company might consider postponing the delivery of the planes.

Alaska Air’s stock has fallen nearly 17% this year.

Also See: Southwest Airlines Stock Slips Premarket After Q2 Profit Miss, Says Baggage Policy Change Not Affecting Demand

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