Sept 15 - Alaska Air ( ALK ) expects its quarterly

profit to be at the low end of its previous forecast, as high

fuel costs and operational challenges weigh on margins, the U.S.

carrier said on Monday.

Refinery outages on the U.S. West Coast have tightened fuel

supplies and lifted prices. Alaska now expects to pay up to

$2.55 per gallon, up from its earlier projections of about $2.45

per gallon.

Alaska also flagged weather and air traffic control issues

driving up costs such as passenger compensation and crew

overtime expenses.

Operational disruptions have increasingly pressured U.S.

carriers this year, with storms and strained air traffic control

capacity leading to costly disruptions across the industry.

Alaska was also hit by a major IT outage in July that

disrupted hundreds of flights and stranded thousands of

passengers during the peak summer travel season.

The airline later linked the outage to a faulty software

update.

Alaska now expects its third-quarter adjusted profit per

share at the lower end of its previously issued forecast of $1

to $1.40.

The airline, however, pointed to improving revenue trends on

the back of strong premium demand and a rebound in corporate

bookings.

It said unit revenue, a key gauge of pricing power, was

tracking toward the upper end of its prior forecast.