06:31 AM EST, 01/23/2025 (MT Newswires) -- Alaska Air ( ALK ) shares rose early Thursday as the company reported fourth-quarter results that exceeded market estimates amid robust leisure and corporate travel demand, while the airline projects a smaller-than-expected loss for the ongoing three-month period.

The company anticipates a per-share adjusted loss between $0.50 and $0.70 for the first quarter, it said late Wednesday, while the current consensus on FactSet is for a non-GAAP loss of $0.75 a share. Revenue per available seat mile, or unit revenue, which is commonly used to compare the efficiency of various airlines, is expected to be up by high-single digits. Capacity is set to gain by 2.5% to 3.5% in the quarter.

The stock increased 3.9% in the most recent premarket activity.

The air carrier said momentum has continued into the new year with strength in early first-quarter bookings and a stable industry capacity backdrop. "We are encouraged by these early indications for (the first quarter) and a constructive start to 2025," according to the company.

For the three months through December, Alaska Air ( ALK ) posted adjusted EPS of $0.97, up from $0.30 the year before, ahead of the Street's view for $0.47. Operating revenue soared 38% year over year to $3.53 billion, ahead of analysts' $3.44 billion estimate, buoyed by sustained leisure demand and an increase in corporate travel, according to the company.

The fourth quarter includes results from Hawaiian Airlines, which Alaska Air ( ALK ) acquired in September for $1.9 billion.

"This was a transformational year as we brought Hawaiian Airlines into Alaska Air Group ( ALK ) and began our journey to unlock $1 billion in incremental pretax profit over the next three years," Chief Executive Ben Minicucci said in a statement. "Looking forward, our vision is clear and we're focused on executing our strategic plan."

Passenger revenue climbed to $3.18 billion from $2.33 billion in the prior-year quarter, while loyalty program and cargo and other revenue surged 36% and 113%, respectively. Capacity advanced 2.5% while unit revenue rose 7%. Total operating expenses rose to $3.46 billion from $2.52 billion.

For the full year 2025, the airline forecasts adjusted EPS of more than $5.75, while the Street is looking for $5.97. The company expects capacity to grow between 2% and 3% for the year.