Alaska Airlines Sends Warning After New Announcement

On April 23, Alaska Airlines offered a warning for investors after releasing its quarterly earnings - it's about to get worse before it gets better.

According to a report from CNBC, Alaska posted a net loss of $166 million in the first quarter, down from a loss of $132 million a year ago. Meanwhile, the company posted a revenue of more than $3.1 billion, which was up 41% from a year ago, but shy of analysts’ forecasts.

The company warned that softer travel demand will eat into earnings in the second quarter as well. According to CFO Shan Tackett, customers are still booking trips, but with lower-than-expected fares.

“The fares aren’t as strong as they were in the fourth quarter of last year and coming into January and first part of February,” he said in an interview Wednesday. “Demand is still quite high for the industry, but it’s just not at the peak that we all anticipated might continue coming into last year.”

While the company predicts a drop off in the second quarter, it also noted bookings have stabilized, but forecast a six-percentage-point stall due to what the company called softer demand. Despite its challenges, the company expects to be profitable over the second half of the year.

“Alaska is built for times like these with our relentless focus on safety, care and performance,” CEO Ben Minicucci said in an earnings release. “Amid the economic uncertainty, our teams controlled what they can control and delivered results that strengthen our foundation for the long term.”

The company's revenue came in at $3.14 billion, just short of the expected $3.17 billion.

Related: Southwest Airlines Receives Good News After 'Mass Layoffs'