03:49 PM EDT, 09/12/2024 (MT Newswires) -- Alaska Air Group ( ALK ) raised its expectations for third-quarter earnings and a key revenue metric on Thursday, pointing to a busy travel season and lower fuel costs.

The Alaska Airlines parent now expects adjusted earnings per share in the $2.15 to $2.25 range, up from between $1.40 and $1.60 previously projected, according to a filing with the Securities and Exchange Commission. Analysts on average were modeling for adjusted EPS of $1.66 in the ongoing period.

The company now expects total unit revenue as measured by revenue per available seat mile to be up about 2% year over year in the third quarter, compared with a prior view that RASM would be flat to positive, according to the filing.

"Throughout the summer travel period, we continued to experience strong demand as we flew a record schedule and delivered a reliable operation for guests," Alaska Air Group ( ALK ) wrote.

A technology outage caused by CrowdStrike's ( CRWD ) software update in July brought in additional business for Alaska Air ( ALK ) from more-impacted competitors, according to the filing. Unit revenue "inflected positively" in August and has shown continued strength into September, it said.

Capacity remains in line with prior expectations of 2% to 3% growth in the third quarter.

Further padding the bottom line are moderating crude oil and West Coast refining margins, according to Alaska Air ( ALK ). It lowered its economic fuel cost to between $2.60 and $2.70 per gallon from a prior guidance of $2.85 to $2.95 per gallon.

JetBlue ( JBLU ) , citing similar demand tailwinds, improved its revenue outlook for the September quarter last week. It now expects sales to range from falling 2.5% to increasing 1%, compared with its prior forecast that revenue would drop between 1.5% and 5.5%. The airline lowered its fuel cost estimate for the third quarter to between $2.70 and $2.80 per gallon.

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