Why is Alaska Air Group (ALK) gaining attention in pre-market trading?

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Why is Alaska Air Group (ALK) gaining attention in pre-market trading?

 Why is Alaska Air Group (ALK) gaining attention in pre-market trading?
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Highlights 

  • Alaska Air Group’s COO released an apology video to its customers for travel issues during the holiday season.
  • The company is expected to cut its flight by 10% through to the end of January.
  • The company will release its fourth-quarter fiscal 2021 results on January 27.

The stocks of Alaska Air Group, Inc. (NYSE: ALK) were trending on Wall Street Thursday, a day after the company's Chief Operating Officer Constance Von Muehlen released an apology video to its customers for the travel issues during the holiday.

Meanwhile, the company had previously said that it would cut its flights by 10% through the end of January due to staffing challenges the company is facing. The Omicron variant of Covid-19 has affected the airline industry, evident by the hurdles the companies are facing.

The COO of Alaska Air Group apologized to customers for the troubles they faced during the holiday. The company canceled over 10,000 of its domestic flights since Christmas because of staff shortages and bad weather. However, the company said that it has started working on making improvements in its operations to avoid the hurdles.

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Stock performance & financials of Alaska Air Group, Inc. (NYSE: ALK):

The ALK stock was priced at US$55.26 at 6:27 am ET on January 13, up 0.2% from its previous closing price when it closed at US$55.15. It has a market cap of US$6.91 billion, with a P/E ratio of 344.69.

Its EPS is US$0.16. The ALK stock saw the highest price of US$74.25 and lowest price of US$46.26 in the last 52-week. Its trading volume on January 12 was 1,207,630.

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The company will release its fourth-quarter fiscal 2021 results on Thursday, January 27, at 11:30 am ET. Meanwhile, in the third quarter of fiscal 2021, the company's revenue was US$1.95 billion, representing an increase of 179% YoY. Its net income came in at US$194 million, or US$1.53 per diluted share, against a loss of US$431 million, or a loss of US$3.49 per diluted share in Q3, FY20.

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Bottom line:

The company has witnessed significant growth in recent days, evident by the surge in its stock prices. The ALK stock grew 9.64% over the past 30 days. However, the outbreak of the Omicron variant of Covid-19 is expected to affect the airline sector in the coming days. So, an investor should closely evaluate the company before investing in stock.

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