Alaska Air Soars in Q2 2024 with Record Revenue and Industry

Saturday, July 20, 2024

Alaska Air Group Announces Q2 2024 Financial Results

Key Highlights:

• Industry-leading adjusted pretax margin of 15.8%.
• Completion rate of 99.5%, among the best in the industry.
• Tentative agreement with Alaska flight attendants represented by AFA.

Financial Overview:

Alaska Air Group released its financial results for Q2 ending June 30, 2024, and provided projections for Q3 and the full year.

CEO Ben Minicucci stated, “Alaska’s performance this quarter demonstrates our premium positioning in the airline industry. Our 23,000 employees ensured safety and exceptional service during our busiest summer season ever, achieving record quarterly revenue and a 15.8% adjusted pretax margin, expected to lead the industry.”

Financial Performance:

• Net Income (GAAP): $220 million ($1.71 per share) compared to $240 million ($1.86 per share) in Q2 2023.
• Adjusted Net Income: $327 million ($2.55 per share), down from $387 million ($3.00 per share) in Q2 2023.
• Operating Cash Flow: $580 million.
• Stock Repurchases: 663,177 shares for $28 million, totaling $49 million in the first half of 2024.
• Cash Reserves: $2.5 billion in unrestricted cash and marketable securities.
• Debt-to-Capitalization Ratio: 45%.

Operational Achievements:

• Tentative agreement with flight attendants, with voting concluding by mid-August.
• Compliance with DOJ’s information request regarding the Hawaiian Airlines acquisition.
• Fleet Updates:
• Six new 737-9 and three 737-8 aircraft, totaling 70 and four respectively.
• One new E175 aircraft, increasing Horizon’s fleet to 44.
• Addition of a second 737-800 freighter, expanding cargo service to Los Angeles.
• Facility and Service Enhancements:
• Purchased a new 600,000 sq. ft. facility in Renton, WA, for training and operations by 2025.
• Relocated operations at San Francisco International Airport to Harvey Milk Terminal 1.
• Reintroduced hot meals in the Main Cabin.
• Began expanding the Anchorage lounge, doubling seating capacity and amenities.

Network and Commercial Developments:

• Announced 20 new nonstop routes, including new destinations in Vail, Colorado, and Mexico.
• New daily service from Portland to New Orleans starting January 2025.
• Expanded partnership with British Airways for booking nonstop flights between London and various U.S. cities.

Sustainability Initiatives:

• Released the 2023 Sustainability Report, outlining progress in sustainability, safety, and workforce goals.
• Introduced sustainable aviation fuel credits for customers, with rewards for Mileage Plan members.

Recognition and Awards:

• Best U.S. Airline Frequent Flier Program by WalletHub for 2024.
• Forbes’ Best Employers for Diversity list, ranking highest among U.S. airlines.
• Highest customer satisfaction score for 2024 by the American Customer Satisfaction Index.
• Fewest customer complaints per 100,000 passengers among U.S. airlines, 75% better than the industry average.

Forward-Looking Statements:
This release contains forward-looking statements based on current expectations. Actual results may vary due to risks and uncertainties, including competition, labor relations, economic conditions, operating costs, and regulatory changes. For a detailed discussion of risk factors, refer to Alaska Air Group’s Annual Report on Form 10-K for the year ended December 31, 2023.

About Alaska Air Group:

Alaska Airlines and its regional partners serve over 120 destinations across the U.S., Bahamas, Belize, Canada, Costa Rica, Guatemala, and Mexico. Known for award-winning customer service and a leading loyalty program, Mileage Plan, Alaska Airlines offers extensive travel options through the oneworld Alliance and other global partners.

Financial Tables:

Condensed Consolidated Statements of Operations:

Condensed Consolidated Balance Sheets:

Conclusion

Alaska Air Group’s second quarter of 2024 showcases the company’s robust financial health and operational excellence. With industry-leading metrics, strategic fleet expansions, and significant sustainability initiatives, Alaska Airlines continues to set benchmarks for performance and customer satisfaction in the airline industry. The company’s ongoing investments in infrastructure, enhanced service offerings, and expanded route networks underline its commitment to growth and excellence. As Alaska Air Group navigates through 2024, it remains well-positioned to deliver strong results and provide exceptional value to its customers and shareholders.

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