02:47 PM EDT, 07/22/2025 (MT Newswires) -- Alaska Air Group's ( ALK ) bar for forward guidance inched higher after the stock price gained on positive results from peers due to improvement in demand in recent weeks, UBS said in a Monday research report.
UBS modeled Q2 EPS of $1.56, assuming a 2.5% growth in available seat miles, a 1% drop in revenue per available seat mile, a 7.5% rise in cost per available seat mile, and fuel prices of $2.50 per gallon.
For full-year fiscal 2025 guide, the brokerage believes the bar is at $3.25 to $3.75, compared with its estimate of $3.26 and the Street consensus of $3.31.
United Airlines (UAL) recently highlighted an acceleration in domestic corporate travel demand, which bodes well for Alaska Air ( ALK ), considering its leverage to corporate travel on the West Coast, according to the note.
The brokerage maintained its neutral rating on the stock and price target of $49 per share.
Price: 52.95, Change: +0.34, Percent Change: +0.65