Alaska Air Group reports 1Q net income of $37 million

Alaska Air Group, Inc. (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported first quarter 2013 GAAP net income of $37 million, or $0.51 per diluted share, compared to $41 million, or $0.56 per diluted share in 2012. Excluding the impact of mark-to-market fuel hedge adjustments of $12 million ($7 million after tax, or $0.11 per diluted share), the company reported record first quarter 2013 net income of $44 million, or $0.62 per diluted share, compared to net income excluding mark-to-market fuel hedge adjustments of $28 million, or $0.39 per diluted share, in 2012.

“Our record performance in what is seasonally our weakest quarter is due to steady demand that kept pace with our growth, and to the many changes we’ve made to improve our business over the last several years,” Alaska Air Group CEO Brad Tilden said. “Looking ahead, we’re facing increased competition in certain markets, and we will closely monitor the environment and continue to adjust our plans to appropriately address these challenges. Our first quarter results, and our ability to be flexible and adapt to an ever-changing industry landscape, would not be possible without the dedication and determination of our employees at Alaska and Horizon.”

The following table reconciles the company’s reported GAAP net income and earnings per diluted share (EPS) during the first quarters of 2013 and 2012 to adjusted amounts:

	Three Months Ended March 31,
	2013				2012
(in millions, except per-share amounts)	Dollars		Diluted EPS		Dollars		Diluted EPS
Reported GAAP net income	$	37	$	0.51	$	41	$	0.56
Mark-to-market fuel hedge adjustments, net of tax	7		0.11		(13)		(0.17)
Non-GAAP adjusted income and per-share amounts	$	44	$	0.62	$	28	$	0.39

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Pulling together, Boeing 737-490 N705AS (msn 29318) in the “Spirit of Alaska Statehood” livery approaches Los Angeles International Airport.

Alaska Airlines: