Alaska Air warns on impact of higher fuel costs
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Alaska Air Group (NYSE:ALK) warned that fuel prices have been volatile as a result of the conflict in Europe and Russia's ongoing invasion of Ukraine.
Due to the recent developments, the airline company said it now expects Q1 economic fuel cost to be $2.60 to $2.65 per gallon vs. a prior expectation of $2.45 to $2.50 per gallon.
"Given the sharp rise in fuel costs, we have slightly moderated our capacity outlook for the year, and now expect capacity to be down three percent to five percent in the first half of the year. We continue to plan for a return to 100% of pre-COVID capacity by summer followed by growth in the second half of the year, and will continue to prudently adjust capacity as necessary in response to the evolving fuel environment."
Shares of Alaska Air Group (ALK) are down 16.14% on a year-to-date basis vs. -19.82% for the U.S. Global Jets ETF. Following the slide, ALK trades below its 50-day, 100-day and 200-day moving averages.
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the US gets a very low percentage of its petroleum from Russia, including for jet fuel
True, but what little we get sure is impacting pump price