Alaska Air Group, parent of Alaska Airlines, on Friday said it expects first quarter costs per available seat mile, including fuel, to increase 2.9 percent.
In a regulatory filing, the company forecast quarterly fuel costs per available seat mile to rise 28.2 percent, but noted that actual results will likely differ from estimates because of fuel price volatility.
The Seattle-based airline, which has been cutting costs aggressively for the past few years, also said first quarter costs per seat mile, excluding fuel, will fall 2.4 percent.
The airline in January said it has achieved about USD$185 million of its targeted USD$340 million in savings, and plans to achieve almost all of the remaining from cost cuts in labor.
Alaska Air, like many other airlines, has been in negotiations with its pilots to reduce wages and benefits.
At its regional unit, Horizon Air, the carrier expects first quarter CASM, excluding fuel, to fall 5.4 percent.
Including fuel, Alaska Air expects costs per available seat mile at Horizon to fall 2.7 percent.
