Alaska Air Raises Fuel Cost Estimates, Expects Capacity To Be Down In 1H

• Alaska Air Group, Inc. (NYSE:ALK) updated its first-quarter economic fuel cost to be $2.60 - $2.65 per gallon versus the prior expectation of $2.45 - $2.50 per gallon, citing fuel price volatility due to the conflict in Europe and Russia's ongoing invasion of Ukraine.
• The company has slightly moderated its capacity outlook for the year, given the sharp rise in fuel costs. The airline expects capacity to be down 3% - 5% in the year's first half.
• Meanwhile, Alaska Air continues to plan for a return to 100% of pre-COVID capacity by summer, followed by growth in the second half of the year.
• Price Action: ALK shares are trading higher by 1.21% at $44.22 during the premarket session on Tuesday.