Alaska Air Group reports 4Q net income of $44 million, $316 net income for 2012

Alaska Air Group, Inc. (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported fourth quarter 2012 GAAP net income of $44 million, or $0.61 per diluted share, compared to GAAP net income of $64 million, or $0.88 per diluted share in 2011. Excluding mark-to-market fuel hedge losses of $10 million ($6 million after tax, or $0.09 per diluted share), the company reported record fourth quarter 2012 net income of $50 million, or $0.70 per diluted share, compared to net income excluding mark-to-market fuel hedge gains of $37 million, or $0.51 per diluted share, in 2011.

The company reported full-year 2012 GAAP net income of $316 million, compared to $245 million in the prior year. Excluding the impact of the items noted in the table below, the company reported record net income of $339 million, or $4.73 per diluted share for 2012, compared to net income of $287 million, or $3.92 per diluted share in 2011. This marks the company’s ninth consecutive year of adjusted profits and the third year in a row the company has exceeded its goal of a 10 percent return on invested capital.

The following table reconciles the Company’s adjusted net income and earnings per diluted share (EPS) during the full year and fourth quarters of 2012 and 2011 to amounts as reported in accordance with GAAP:

Three Months Ended December 31,
2012 2011
(in millions, except per share amounts) Dollars Diluted EPS Dollars Diluted EPS
Reported GAAP net income $ 44 $ 0.61 $ 64 $ 0.88
Mark-to-market fuel hedge adjustments, net of tax 6 0.09 (27) (0.37)
Non-GAAP adjusted income and per share amounts $ 50 $ 0.70 $ 37 $ 0.51
Twelve Months Ended December 31,
2012 2011
(in millions, except per share amounts) Dollars Diluted EPS Dollars Diluted EPS
Reported GAAP net income $ 316 $ 4.40 $ 245 $ 3.33
Fleet transition costs, net of tax 24 0.33
Mark-to-market fuel hedge adjustments, net of tax 23 0.33 18 0.26
Non-GAAP adjusted income and per share amounts $ 339 $ 4.73 $ 287 $ 3.92

Copyright Photo: Michael B. Ing. Newly-painted Boeing 737-890 N559AS (msn 35178) displays the updated Wild Alaska Seafood “Salmon-Thirty-Salmon 2” as it climbs at Los Angeles International Airport.

Alaska Airlines: AG Slide Show

Alaska Horizon: AG Slide Show

Horizon Air: AG Slide Show