NEW YORK (AP) -- Shares of Alaska Air Group Inc. slid Wednesday as the company announced a big downward revision in third-quarter profit guidance.
The stock closed at $21.19 on the New York Stock Exchange, down $3.44, or 14 percent.
Alaska Air Group -- parent of 10th-largest United States carrier Alaska Airlines -- said it expects to earn 50 cents to 70 cents a diluted share in the third quarter ended Sept. 30. That's far below the consensus estimate of $1.26 a diluted share forecast by a First Call/Thomson Financial survey, Dow Jones News Service reported. In the same quarter last year, the company made $2.04 a share.
Alaska Air said the reasons for the anticipated decline include a 3.2 percent reduction in available seat miles at Alaska Airlines, higher fuel expenses, previously announced changes in accounting for the company's frequent-flyer program, and higher labor and maintenance costs.
Alaska Air Group also owns Horizon Air. Profits of that regional carrier also were affected by higher fuel prices.
Seattle-based Alaska Air Group reported $2.1 billion of revenue for the last 12 months.
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