Category Archives: Alaska Air Group

Alaska Air Group reports Third Quarter 2017 results

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Alaska Air Group, Inc., on October 25, 2017 reported third quarter 2017 GAAP net income of $266 million, or $2.14 per diluted share, compared to $256 million, or $2.07 per diluted share in the third quarter of 2016. Excluding the impact of merger-related costs and mark-to-market fuel hedge adjustments, the company reported adjusted net income of $278 million, or $2.24 per diluted share, compared to $272 million, or $2.20 per diluted share, in 2016.

“Our people delivered very strong results again this quarter,” said CEO Brad Tilden. “At roughly the halfway point in our integration with Virgin America, and despite some unrelated challenges in our regional operation, our business is performing well, and we are very happy with the response we’ve seen in California and throughout the West to our expanding network, our focus on hospitality, and to our industry-leading mileage plan. I want to thank our talented people for their commitment and dedication.”

Copyright Photo: Virgin America aircraft will shortly be taking on the Alaska brand. Virgin America Airbus A320-214 WL N283VA (msn 6787) JFK (Fred Freketic). Image: 935544.

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Alaska Air Group announces the closing of the acquisition of Virgin America, no decision on the Virgin America brand

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Alaska Air Group Inc. on December 14, 2016 announced it has closed its acquisition of Virgin America. The definitive merger agreement, which was signed in April and approved by Virgin America shareholders in July, brings together two of the country’s favorite airlines into a unified force that will provide an attractive alternative to the “Big 4” airlines that currently control 84 percent of the domestic market.

Alaska Airlines and Virgin America will spend the next year working to secure Federal Aviation Administration (FAA) certification to allow the two airlines to operate as a single carrier (with regional sister carrier Horizon Air remaining on its own separate operating certificate).

Today, Alaska Air Group boasts nearly 1,200 daily flights to 118 destinations, the most seats on flights from the West Coast and more than $7 billion annual revenues. Alaska Air Group will continue to provide customers the low fares, unmatched reliability and award-winning service they’ve come to enjoy, while offering a convenient schedule of flights to even more of the places they want to fly. Soon Virgin America customers will have access to a route network that offers six times more daily flights than before.

The combination expands service and provides more frequent connections to international airline partners in thriving technology markets in the Bay Area, Los Angeles and Seattle/Tacoma.

Together, the airlines offer 289 daily flights to 52 destinations from California, including 113 daily nonstop flights to 32 destinations from three Bay Area airports and 105 daily nonstop flights to 37 destinations from four Los Angeles area airports.

In addition, the combination opens up growth opportunities in important East Coast business markets by increasing Alaska Air Group’s access to high-demand airports like Ronald Reagan Washington National Airport and the three primary New York City-area airports: John F. Kennedy International Airport, LaGuardia Airport and Newark Liberty International Airport.

The company also announced new flights from its San Francisco hub to Orlando (daily), Minneapolis/St. Paul (twice daily) and Orange County, California (four times daily) beginning in the summer of 2017.

The combination expands service and provides more frequent connections to international airline partners in thriving technology markets in the Bay Area, Los Angeles and Seattle. Together, the airlines offer 289 daily flights to 52 destinations from California, including 113 daily nonstop flights to 32 destinations from three Bay Area airports and 105 daily nonstop flights to 37 destinations from four Los Angeles area airports.

In addition, the combination opens up growth opportunities in important East Coast business markets by increasing Alaska Air Group’s access to high-demand airports like Ronald Reagan Washington National Airport and the three primary New York City-area airports: John F. Kennedy International Airport, LaGuardia Airport and Newark Liberty International Airport.

The company also announced new flights from its San Francisco hub to Orlando (daily), Minneapolis (twice daily) and Orange County, California (four times daily) beginning in the summer of 2017.

To celebrate the merger of two beloved West Coast airlines, Alaska leaders will join employees from Virgin America, Alaska Airlines and Horizon Air on December 14, 2016 at San Francisco International Airport for the unveiling of a co-branded Boeing 737 featuring a special, one-time livery painted in shimmering red, purple and blue. The aircraft features the slogan “More to love” and will fly throughout Alaska Airlines’ route network starting the same day, in celebration of the increased customer benefits of the combination.

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Alaska launches four new routes today

Alaska SkyWest (SkyWest Airlines) Embraer ERJ 170-200LR (ERJ 175) N171SY (msn 17000485) SEA (Tony Storck). Image: 928989.

Alaska Airlines (Seattle/Tacoma) today began flying four new routes that enhance its West Coast network. The new routes are between: Portland, Oregon, and Austin, Texas; Eugene, Oregon, and San Jose, California; Los Angeles and Monterey, California; and Boise, Idaho and Reno, Nevada.

All flights, except the Portland-Austin route, will be operated by Alaska’s sister carrier Horizon Air, using a 76-seat Bombardier Q400 aircraft.

The Portland-Austin flights will be operated for Alaska by SkyWest Airlines, using new 76-seat Embraer 175 jets. The E175 jet features 12 seats in first class and 64 in coach, and with cabin dimensions on par with a 737.

Copyright Photo: Tony Storck/AirlinersGallery.com. Alaska SkyWest (SkyWest Airlines) Embraer ERJ 170-200LR (ERJ 175) N171SY (msn 17000485)

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Alaska Air Group reports 3Q GAAP net income of $274 million

Alaska Air Group, Inc., (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported third quarter 2015 GAAP net income of $274 million, or $2.14 per diluted share, compared to $198 million, or $1.45 per diluted share in the third quarter of 2014. Excluding the impact of mark-to-market fuel hedge adjustments of $5 million ($3 million after tax, or $0.02 per diluted share), the company reported record adjusted net income of $277 million, or $2.16 per diluted share, compared to adjusted net income of $200 million, or $1.47 per diluted share in 2014.

“This was the busiest summer in our 83 year history and represents our highest quarterly profit ever,” said CEO Brad Tilden. “I want to thank our employees who are building a fundamentally strong business and our customers for their incredible loyalty and support.”

Read the full report: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Alaska Airlines is gradually phasing out its aging Boeing 737-400s. The type is expected to be gone by the end of 2017. Boeing 737-4Q8 N755AS (msn 25096) arrives at Los Angeles International Airport.

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Alaska Air Group reports a record second quarter

Alaska Air Group (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported a record second quarter GAAP net profit of $234 million.

The group issued this report:

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Alaska Air Group, Inc., today reported second quarter 2015 GAAP net income of $234 million, or $1.79 per diluted share, compared to $165 million, or $1.19 per diluted share in the second quarter of 2014. Excluding the impact of mark-to-market fuel hedge adjustments of $6 million ($4 million after tax, or $0.03 per diluted share), the company reported record adjusted net income of $230 million, or $1.76 per diluted share, compared to adjusted net income of $157 million, or $1.13 per diluted share, in 2014.

“We’re pleased to report our 25th consecutive quarterly profit and our best quarterly result ever,” said CEO Brad Tilden. “I want to thank our employees for their hard work and for always putting our customers first. We are focused on running a strong and balanced company that will produce the right outcomes for all of the stakeholders who depend on us, not just this quarter but over the long-term.”

Financial Highlights:

  • Reported record second quarter net income, excluding special items, of $230 million, a 46% increase over the second quarter of 2014.
  • Reported adjusted earnings per share of $1.76 per diluted share, a 56% increase over the second quarter of 2014 and ahead of First Call analyst consensus estimate of $1.73 per share.
  • Earned net income for the second quarter under Generally Accepted Accounting Principles (GAAP) of $234 million or $1.79 per diluted share, compared to net income of $165 million, or $1.19 per diluted share in 2014.
  • Recorded $58 million of employee incentive pay in recognition of Air Group employees’ progress on meeting customer service, safety, operational and financial goals.
  • Generated record adjusted pretax margin in the second quarter of 25.7% compared to 18.3% in 2014.
  • Generated 20.9% adjusted pretax margin for the trailing 12-month period ended June 30, 2015, compared to 14.9% for the same period in the prior year.
  • Achieved trailing 12-month after-tax return on invested capital of 22.0% compared to 16.1% in the 12-month period ended June 30, 2014.
  • Repurchased 2.5 million shares of common stock for $160 million in the second quarter of 2015, and 4.1 million shares of common stock for $262 million during the first six months of 2015, representing 3.1% of the total shares outstanding at the beginning of the year.
  • Paid a $0.20 per-share quarterly cash dividend on June 4, 2015, a 60% increase over the dividend paid in the second quarter of 2014.

Read the full report: CLICK HERE

Copyright Photo: Ken Petersen/AirlinersGallery.com. Alaska Airlines Boeing 737-990 ER N471AS (msn 41703) with APB Split Scimitar Winglets lands in Anchorage.

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Alaska Air Group reports record first quarter results

Alaska Air Group, Inc., (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported first quarter 2015 GAAP net income of $149 million, or $1.12 per diluted share, compared to $94 million, or $0.68 per diluted share in the first quarter of 2014. Excluding the impact of mark-to-market fuel hedge adjustments, the company reported record adjusted net income of $149 million, or $1.12 per diluted share, compared to adjusted net income of $89 million, or $0.64 per diluted share, in 2014.

“Our record first quarter results reflect lower fuel prices, but more importantly the tremendous loyalty of our customers in Seattle and across our system” said CEO Brad Tilden. “It is gratifying to see such strong growth and financial results given unprecedented competition. I want to thank our incredible employees who continue to rise to the challenge and deliver outstanding experiences to our customers.”

Financial Highlights:

Reported record first quarter net income, excluding special items, of $149 million – a 67% increase over the first quarter of 2014.

Reported adjusted earnings per share of $1.12 per diluted share, a 75% increase over the first quarter of 2014 and ahead of First Call analyst consensus estimate of $1.10 per share.

Earned net income for the first quarter under Generally Accepted Accounting Principles (GAAP) of $149 million or $1.12 per diluted share, compared to net income of $94 million, or $0.68 per diluted share in 2014.

Recorded $26 million of employee incentive pay in recognition of Air Group employees’ progress on meeting customer service, safety, operational and financial goals.

Increased fuel efficiency (as measured by seat-miles per gallon) by 2.5% compared to the first quarter of 2014, as part of our effort to be the airline leader in environmental stewardship.

Generated record adjusted pretax margin in the first quarter of 18.9% compared to 11.8% in 2014.

Generated 18.8% adjusted pretax margin for the trailing 12-month period ended March 31, 2015, compared to 13.6% for the same period in the prior year.

Achieved trailing 12-month after-tax return on invested capital of 20.1% compared to 14.8% in the 12-month period ended March 31, 2014.

Repurchased 1.6 million shares of common stock for $102 million in the first quarter of 2015, representing 1.2% of the total shares outstanding at the beginning of the year.

Paid a $0.20 per-share quarterly cash dividend on March 10, 2015, a 60% increase over the dividend declared in the first quarter of 2014.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Alaska Airlines’ Boeing 737-890 N535AS (msn 35200) with Split Scimitar Winglets climbs away from Los Angeles International Airport.

Alaska Airlines aircraft slide show: AG Airline Slide Show

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Alaska Air Group to reward its employees with a 9%+ bonus

Alaska Air Group (Alaska Airlines and Horizon Air) (Seattle/Tacoma) had a good financial year in 2014. The group is now rewarding its employees and has issued this statement:

Employees at Alaska Airlines and Horizon Air are receiving annual bonuses today of more than 9 percent of their annual pay, or more than five weeks’ pay for most workers. The bonus is in addition to the approximately $1,000 in 2014 monthly bonuses that most employees earned for achieving on-time and customer satisfaction goals.

The combined monthly and annual bonuses amounted to nearly $116 million, the highest in Alaska’s history, and are part of the company’s incentive-based pay program.

“We’re really excited to reward our employees for all the great work they’ve done this year,” said Tammy Young, Alaska Airlines’ vice president of human resources. “This is the sixth year in a row Alaska and Horizon employees have exceeded their payout targets for performance-based pay.”

Nearly $51 million in annual bonuses — 55 percent of the total — is being paid to nearly 6,000 Alaska and Horizon employees in the Puget Sound area. Another $12 million is being paid to 2,122 employees in the Portland, Oregon, area, while $9 million is going to workers throughout the state of Alaska.

Bonuses in Alaska Air Group’s Performance Based Pay Plan are determined by meeting specific company-wide goals for safety, customer satisfaction, cost control and profit that are approved annually by the board of directors. Since the inception of the program in 2003, Alaska has paid employees $624 million in combined incentive-based pay and monthly bonuses.

As part of its philosophy to provide employees with rewarding careers and good retirement benefits, Alaska Air Group has contributed $620 million over the past 6 years to its defined benefit pension plans, which were fully funded in 2013.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-990 ER N469AS (msn 41702) prepares to land in Anchorage.

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