Alaska Air Group Inc. elevated its money move targets for the second quarter as the corporate sees demand for future air journey enhancing.
The provider expects quarterly money move from operations to be within the vary of $550 million to $650 million, up from its prior view of $450 million to $550 million.
Along with improved journey demand, the corporate’s increased money move projections are supported by stronger-than-expected money inflows from its affinity card associate and extra funds from the Payroll Help Program, the corporate stated.
nonetheless expects its second-quarter pre-tax margin to be breakeven and its third-quarter pre-tax margin to be optimistic, it stated.
“These sequential enhancements are primarily pushed by demand for leisure journey that has reached 2019 ranges, and modest enhancements in demand for enterprise journey which is at roughly 25% of 2019 ranges,” Alaska Air stated in a securities submitting.
Air journey has been considerably affected by the Covid-19 pandemic as coronavirus-related restrictions and considerations of the illness’s unfold proceed to weigh on customers.
Alaska Air’s shares fall almost 3% after hours to round $67.20 on Monday.
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