Alaska Air Group, Inc. (Alaska Airlines and Horizon Air – Alaska Horizon) (Seattle/Tacoma) today reported first quarter 2014 GAAP net income of $94 million, or $1.35 per diluted share, compared to $37 million, or $0.51 per diluted share in the first quarter of 2013. Excluding the impact of mark-to-market fuel hedge adjustments of $8 million ($5 million after tax, or $0.07 per diluted share), the company reported record adjusted net income of $89 million, or $1.28 per diluted share, compared to adjusted net income of $44 million, or $0.62 per diluted share, in 2013.

“Our record first quarter results reflect strong demand for our service and the efforts we’ve taken to improve the value we bring to our customers,” CEO Brad Tilden said. “Our solid foundation of award-winning service, excellent operational performance, low costs and low fares, and the best employees in the business will help us sustain our success in the face of increasing competition.”

Financial Highlights:

Reported record first quarter net income, excluding special items, of $89 million, or $1.28 per diluted share, compared to adjusted net income of $44 million, or $0.62 per diluted share in the prior-year quarter. This quarter’s results compare to a First Call analyst consensus estimate of $1.24 per share.

Recorded net income for the first quarter under Generally Accepted Accounting Principles (GAAP) of $94 million or $1.35 per diluted share, compared to net income of $37 million, or $0.51 per diluted share in 2013.

Reported record adjusted pretax margin for the first quarter of 11.8%.

Achieved trailing 12-month return on invested capital of 14.8% compared to 13.4% in the 12 months ended March 31, 2013.

Paid a $0.25 per-share quarterly cash dividend on March 11 totaling $17 million. This is a 25% increase from the previous cash dividend payment of $0.20 per-share.

Repurchased 352,851 shares of common stock for $30 million in the first quarter of 2014.

Lowered adjusted debt-to-total-capitalization ratio by 3%, to 32%, from December 31, 2013.

Held $1.4 billion in unrestricted cash and marketable securities as of March 31, 2014.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Dedicated freighter operations at Alaska Air Cargo becomes very active in Alaska this time of the year. Boeing 737-490 (F) N709AS (msn 28896) touches down at Ted Stevens Anchorage International Airport (ANC).

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Alaska Horizon: 

Horizon Air: 

Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. Horizon Air’s (Alaska Horizon) Bombardier DHC-8-402 (marketed as the “Q400”) N440QX (msn 4347) in the special Oregon State University-OSU Beavers color scheme taxies to the runway at the Seattle-Tacoma International Airport (SEA) hub.