Alaska Air Group reinstated its full-year profit forecast, citing improved passenger traffic and pricing power. Despite forecasting a lower third-quarter profit, they see increased bookings since June, especially from West Coast tech companies, leading to stronger yields. The company is cautiously optimistic about sustained recovery in travel demand through the year.

Alaska now expects a full-year 2025 adjusted profit greater than $3.25 per share, slightly lower than analysts’ estimates. In the third quarter, they predict an adjusted profit between $1.00 and $1.40 per share, impacted by an IT outage and higher operating costs. The company, like others, sees improved demand trends and expects unit revenue to be flat to slightly up in the coming quarter.

Alaska faces higher costs due to the tariff war, with potential challenges to aircraft deliveries from Embraer. The proposed 50% tariff on imports from Brazil could increase costs by $9 million per aircraft for U.S. airlines. Alaska reported better-than-expected adjusted profit in the second quarter, with discussions on financial results set for Thursday with analysts and investors.

Read more at Yahoo Finance: Alaska Air reinstates profit forecast as travel demand improves