Alaska Air Cargo | World Airline News

Alaska Air Group (Alaska Airlines) reported financial results for the first quarter ending March 31, 2024, and provided outlook for the second quarter ending June 30, 2024.

“I want to recognize Alaska’s employees for their uncompromising prioritization of safety, for taking great care of our guests, and for delivering strong performance in the first quarter,” said CEO Ben Minicucci. “Despite significant challenges to start the year our results have far exceeded initial expectations. Thanks to thoughtful capacity planning, network optimization, and diligent cost control, we are well positioned to carry our strong performance into the second quarter and beyond.”

Impact of Flight 1282:

Air Group’s first quarter operation and results were significantly impacted by Flight 1282 in January and the Boeing 737-9 MAX grounding which extended into February. The Company has received $162 million in initial cash compensation from Boeing to address the financial damages incurred during the first quarter.

The table below illustrates the financial impact of the Flight 1282 accident and 737-9 MAX grounding compared to the three months ended March 31, 2023:

Financial Results:

Reported net loss for the first quarter of 2024 under Generally Accepted Accounting Principles (GAAP) of $132 million, or $1.05 per share, compared to a net loss of $142 million, or $1.11 per share, for the first quarter of 2023.
Reported net loss for the first quarter of 2024, excluding special items and mark-to-market fuel hedge accounting adjustments, of $116 million, or $0.92 per share, compared to a net loss of $79 million, or $0.62 per share, for the first quarter of 2023.
Repurchased 561,086 shares of common stock for approximately $21 million in the first quarter.
Generated $292 million in operating cash flow for the first quarter.
Held $2.3 billion in unrestricted cash and marketable securities as of March 31, 2024.
Ended the quarter with a debt-to-capitalization ratio of 47%, within the target range of 40% to 50%.

Operational Updates:

Agreement to purchase Hawaiian Airlines for $18 per share was approved by Hawaiian shareholders. The proposed combination remains subject to regulatory approval.
Ratified a five-year collective bargaining agreement with approximately 1,000 Alaska Airlines employees represented by AMFA.
Completed inspections of all 737-9 MAX aircraft and returned the fleet to service in February.
Enhanced quality oversight program at the Boeing production facility to validate the work and quality of our aircraft as they progress through the manufacturing process.
Received two E175 aircraft during the quarter, bringing the total in the Horizon fleet to 43.

Commercial Updates:

Launched partnership with Bilt Rewards, which adds Alaska’s Mileage Plan as a transfer partner and later in 2024 will allow Alaska Airlines Visa Signature® cardholders to earn 3x miles when paying rent via Bilt.
Announced growth plans out of Portland to provide guests with more travel options, including 25% increased capacity and a new daily nonstop flight to Atlanta, beginning later this year.
Announced new daily nonstop service between Santa Rosa and Las Vegas, which will be Air Group’s seventh destination from Sonoma County.
Introduced Alaska Access, a monthly subscription program for price-conscious travelers that offers Wi-Fi vouchers, early access to sales, and a personalized fare page.

Alaska Airlines Cargo is expanding its dedicated cargo fleet with the addition of two converted Boeing 737-800F freighters.

The airline will expand its dedicated freighter service south to Los Angeles from its Seattle/Tacoma (SEA) hub starting April according to FreightWaves.

Previously the airline made this announcement:

Alaska Air Cargo has added a new Boeing 737-800BCF to our dedicated cargo fleet, increasing the capacity and flexibility on our routes serving communities across the state of Alaska and connecting them to the lower 48. A second 737-800 freighter will join our existing lineup of three 737-700 freighters early next year, essentially doubling our current fleet’s payload capacity and laying the foundation for future growth.

Ketchikan (KTN), Sitka (SIT), Juneau (JNU) and Bethel (BET) will be among the first in Alaska to benefit from the increased capacity, with expanded freighter service coming to their communities by mid-December.

The new freighters are also in the process of becoming ETOPS-certified, which will enable them to fly long ranges over open water. The aircraft’s expanded range will allow the cargo team to explore new routes, such as a possible nonstop from King Salmon (AKN) to Seattle (SEA). 

“We are excited about the potential to create new connections between the 20 communities we serve in Alaska and the lower 48.” Adam Drouhard, Alaska Air Cargo managing director

The 737-800 freighter can carry more containers and 10,000 pounds more cargo than our 737-700 freighters.

Each 737-800 freighter can carry 10,000 pounds more than a 737-700. With a configuration that also holds more containers, our fleet will have 40% additional space for those holiday gifts flying to and from the North Pole — as well as for essential goods like groceries, medical supplies and building materials traveling to communities in Alaska. With both bigger freighters in service next year, we’ll also be able to transport more of the state’s abundant fresh seafood, including the hundreds of thousands of pounds of sustainable Bristol Bay sockeye salmon that we carry to the lower 48 at the height of summer. 

“With a fleet of five, we’ll have the flexibility and capacity to do even more drop-ins for fishing communities when the salmon are running,” said Shannon Stevens, Alaska Air Cargo sales manager for the state of Alaska. “We’ll be ready to fill those freighters full of fish!”

As the only domestic passenger airline with a dedicated cargo fleet, Alaska Air Cargo carries more than 200 million pounds of freight each year to more than 100 destinations across North America. The addition of the 737-800 freighters – converted from Alaska Airlines’ passenger aircraft by our partner Boeing – sets the stage for continued growth, Drouhard said.

Our first new 737-800BCF freighter went into service in November 2023, boosting capacity for the 20 communities we serve in the state of Alaska.

We are now flying twice a week from Anchorage (ANC) to Unalakleet (UNK), the one destination in our network that is served only by our cargo teams, without passenger service. Located on the Norton Sound 395 miles northwest of Anchorage, Unalakleet is known for its salmon and crab harvests.

Ketchikan (KTN), Sitka (SIT), Juneau (JNU) and Bethel (BET) will also start receiving increased freighter service this month. With a second converted 737-800 freighter poised to enter service next year, we’ve also improved infrastructure at stations across the state as part of our ongoing commitment to the communities we serve.

Alaska Air Cargo schedule February – April 2024