Alaska Air Group (Alaska Airlines) released this financial statement:
Alaska Air Group today reported financial results for the third quarter ending Sept. 30, 2022, and provided outlook for the fourth quarter ending Dec. 31, 2022.
Financial Results for the Third Quarter:
- Reported net income for the third quarter of 2022 under Generally Accepted Accounting Principles (GAAP) of $40 million, or $0.31 per share, compared to a net income of $194 million, or $1.53 per share, in the third quarter of 2021.
- Reported net income for the third quarter of 2022, excluding special items and mark-to-market fuel hedge accounting adjustments, of $325 million, or $2.53 per share, compared to a net income, excluding special items and mark-to-market fuel hedge accounting adjustments, of $187 million, or $1.47 per share, in the third quarter of 2021.
- Recorded $2.8 billion in operating revenues for the third quarter, the highest revenue-generating quarter in company history.
- Generated RASM in the third quarter of 2022 26.8% above the third quarter 2019 result, driven by strong pricing, a robust demand environment and the execution of our commercial roadmap.
- Reported adjusted pretax margin for the third quarter of 15.6%.
Balance Sheet and Liquidity:
- Held $3.2 billion in unrestricted cash and marketable securities as of Sept. 30, 2022.
- Maintained a debt-to-capitalization ratio of 49% as of Sept. 30, 2022, within the target range of 40% to 50%.
- Generated $174 million in operating cash flow for the third quarter.
Operational Updates and Milestones:
- First major carrier to ratify a new labor agreement with mainline pilots, recognizing Alaska’s more than 3,300 ALPA- represented employees for their contributions to the company’s success.
- Ratified a pilot retention agreement in September with 700 Horizon Air pilots represented by the IBT.
- Ratified a two-year contract extension in August with nearly 5,700 Alaska Airlines employees represented by the IAM.
- Delivered an excellent operation, with 99% completion rates for both mainline and regional for the quarter.
- Received five Boeing 737-9 aircraft in the third quarter, bringing the total number of 737-9s in our mainline fleet to 33.
- Retired six Airbus A320 aircraft and nine Q400 aircraft during the quarter, progressing on our transition to single fleets. By the end of January 2023, the remaining 23 A320 aircraft and 22 Q400 aircraft are expected to be retired.
- Began retrofit project for the 737-800 fleet to refresh interiors and add three main cabin seats.
- Announced new nonstop service between Everett’s Paine Field and Anchorage starting in November 2022.
Awards and Recognition:
- Mileage Plan ranked first in the U.S. News & World Report’s list of Best Airline Rewards Programs for the eighth consecutive year.
- Named to Forbes’ America’s Best Employers for Women list, receiving the highest ranking of all airlines.
- Named for the second year in a row to Newsweek’s list of America’s Best Customer Service.
- Recognized by Fast Company as one of the Best Workplaces for Innovators.
Environmental, Social and Governance Updates:
- Signed agreement with Gevo Inc. to purchase 185 million gallons of sustainable aviation fuel (SAF) over five years beginning in 2026.
- Launched a new SAF initiative in partnership with Microsoft, Boeing and Washington State University to expand the use of SAF and increase education on sustainable travel topics.
- Donated funds and miles to multiple organizations assisting disaster relief and recovery in Alaska, Florida and Puerto Rico.
Top Copyright Photo: Alaska Airlines Boeing 737-9 MAX 9 N924AK (msn 43333) SEA (Michael B. Ing). Image: 959067.
Alaska AIrlines aircraft photo gallery: