STORY: Shares of Alaska Air soared as much as 18% on Tuesday after the carrier raised its fourth-quarter profit forecast.
The Seattle-based airline cited robust travel demand and improved pricing as tailwinds heading into 2025.
Alaska Air - which is hosting its 2024 investor day on Tuesday - forecast next year's profit above analysts' estimates.
An excess capacity of seats at the start of the summer had forced U.S. carriers to offer discounts, which hurt margins.
Airlines have since reduced their capacity and strengthened their pricing power.
Alaska Air also expects to benefit from its recently completed acquisition of rival Hawaiian Airlines, giving the company greater scale.
To expand its global presence, Alaska Air announced new non-stop services to Tokyo and Seoul using Hawaiian Airlines' widebody aircraft.
