By Josh Beckerman
Alaska Air Group Inc. reduced third-quarter guidance as booking trends have “deteriorated moderately” in the six weeks since it issued quarterly projections amid an increase in Covid-19 cases.
“The setbacks in demand are not unique to any single geography,” the company said.
Alaska Air expects third-quarter revenue to be 19% to 21% below its 2019 figure, compared with prior guidance for a decline of 17%-20%.
Cash flow from operations is expected to be between $0 and $50 million, compared with a previously expected range of $0 to $100 million.
On Aug. 25, American Airlines Group Inc.’s Chief Revenue Officer Vasu Raja said August revenue was trending below its previous internal forecast as an “uptick in Covid cases and related headlines” contributed to cancellations and softness in close-in bookings.
Also in August, Spirit Airlines Inc. reported softer-than-expected booking trends that it believes are related to Covid-19 cases as well as “short-term brand impact” related to operational issues.
Write to Josh Beckerman at [email protected] Zoom.com