CHICAGO, July 23 (Reuters) - Alaska Air Group ( ALK ) on

Wednesday reinstated its full-year profit forecast, citing

improvements in passenger traffic and pricing power.

The Seattle-based airline, however, forecast a

lower-than-expected profit for the third quarter.

Like most U.S. airlines, Alaska pulled its full-year

financial forecast in April as President Donald Trump's trade

war created the biggest uncertainty for the industry since the

COVID-19 pandemic.

Alaska Chief Financial Officer Shane Tackett told

Reuters reduced macroeconomic uncertainty has driven up bookings

since late June.

U.S. West Coast-based technology companies have started to

travel more, bolstering bookings closer to the travel date.

Tackett said the company was "cautiously optimistic" that

the recovery in travel demand would be sustained through the

rest of the year.

Alaska now expects its full-year 2025 adjusted profit to be

greater than $3.25 a share. That compares with analysts' average

estimate for a profit of $3.41 a share, according to LSEG data.

In the third quarter, the company expects an adjusted profit

in the range of $1.00 a share to $1.40 a share. The midpoint of

the forecast is $1.20 per share, compared with analysts' average

estimate of $1.65, according to LSEG data.