Back to top

Image: Bigstock

Alaska Air (ALK) Issues Upbeat Cash Flow Projection for Q2

Read MoreHide Full Article

With air-travel demand improving in the United States, management at Alaska Air Group (ALK - Free Report) expects cash flow from operations for the June quarter in the $550-$650 million range. This represents an increase from its previous expectation in the $450-$550 million band.

Per management, better-than-expected cash inflows from this currently Zacks Rank #3 (Hold) carrier’s affinity card partner and receipt of additional funds, courtesy of the second round of the Payroll Support Program, also contributed to the bullish projection for cash flow.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

However, the company still expects second-quarter 2021 revenues to decline in the 32-37% band from the figure reported in second-quarter 2019. Capacity projection for the June quarter is also reaffirmed to contract roughly 20% from the second-quarter 2019 actuals. Load factor (% of seats filled with passengers) view is intact in the 70-75% band. Non fuel unit cost guidance is also reiterated at 15-17% growth from the second-quarter 2019-levels. Fuel cost per gallon is predicted in the $1.85-$1.90 band for the June quarter.

Notably, Alaska Air is not the only carrier to be aided by the uptick in travel demand in the United States. The overall optimism is also benefiting other airline heavyweights like Delta Air Lines (DAL - Free Report) , American Airlines (AAL - Free Report) and Southwest Airlines (LUV - Free Report) .

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency have sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>

Published in