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In the past week, Alaska Air Group ALK and SkyWest SKYW reported better-than-expected earnings per share and revenues for the third quarter of 2024. SkyWest also inked a fleet-related deal with United Airlines UAL. ALK’s quarterly results included almost 13 days of Hawaiian Airlines’ results, which was acquired on Sept.18.
Allegiant Travel Company ALGT reported a wider-than-expected loss in the third quarter of 2024 due to high costs. European carrier Ryanair Holdings’ RYAAY results were hurt by high costs as well. RYAAY reported lower-than-expected earnings and revenues in second-quarter fiscal 2025 (ended Sept. 30, 2024).
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1. Alaska Air’s third-quarter 2024 earnings per share of $2.25 outpaced the Zacks Consensus Estimate of $2.20 and improved 22.9% on a year-over-year basis. Operating revenues of $3.07 billion beat the Zacks Consensus Estimate of $2.98 billion. The top line jumped 8% year over year, with passenger revenues accounting for 91.8% of the top line and increasing 8% on continued air-travel demand recovery.
Passenger revenues totaled $2.82 billion in the reported quarter. On a year-over-year basis, cargo and other revenues of $80 million grew 29%. ALK anticipates fourth-quarter 2024 adjusted EPS between 20 cents and 40 cents.
ALK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. SkyWest reported third-quarter 2024 earnings of $2.16, outpacing the Zacks Consensus Estimate of $1.92 and surging more than 100% year over year. Revenues of $912.8 million beat the Zacks Consensus Estimate of $887.5 million and grew 19.1% year over year due to flying contract rate increases. Additionally, SKYW had $19 million of deferred revenues in the reported quarter under its flying contracts.
Revenues from flying agreements (contributing 96.7% to the top line) grew 19.1% year over year to $883.5 million The airline carried 10.3% more passengers in the reported quarter on a year-over-year basis. Departures grew 11.8% year over year. SkyWest also announced that it inked a deal with United Airlines to place 40 CRJ550s under a multi-year contract. Per the deal, SKYW will purchase 11 used CRJ550s and convert 29 of its CRJ700s to CRJ550s.
3. Ryanair’s earnings per share of $2.82 lagged the Zacks Consensus Estimate of $2.92 and declined year over year in second-quarter fiscal 2025. Revenues of $5.56 billion missed the Zacks Consensus Estimate of $5.59 billion. However, the top line improved year over year.