Alaska lowers fuel guidance as oil stabilises

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Alaska Air Group has lowered its guidance for the cost of fuel in the third quarter, as the price of oil begins to stabilise.

The Seattle-based owner of Alaska Airlines and Horizon Air expects to pay $3.23 per gallon during the period, according to an investor update released today. It anticipated that it would pay $3.26 per gallon on 14 August.

The five-day moving average of jet fuel has remained slightly above $135 per barrel since 30 August, according to data compiled by Airlines for America. This is up significantly from the low of about $110 per barrel at the end of June but on par with where prices were during March and April.

Alaska also lowered its cost per available seat mile guidance to between 8.15 cents and 8.25 cents from between 8.2 cents and 8.3 cents in August, in the investor update.

Advance bookings at the carrier are up 0.5 percentage points in September and up four points in October and 1.5 points in November compared to a year earlier. It previously reported that bookings were down 0.5 points in September and up 1.5 points in October.