Category Archives: Alaska Horizon

Alaska Airlines expands West Coast service between Pacific Northwest and California

Alaska SkyWest (SkyWest Airlines) Embraer ERJ 170-200LR (ERJ 175) N400SY (msn 17000732) SNA (Michael B. Ing). Image: 947332.

Alaska Airlines has reaffirmed its commitment to the West Coast with new, nonstop service from the Pacific Northwest and the state of Alaska in the north, and from San Francisco, Los Angeles and San Diego in the south.

Starting in early January, guests will be able to travel eight new routes:

  • Spokane to Los Angeles (two daily departures)
  • Spokane to San Francisco (two daily departures)
  • Redmond / Bend, Oregon to Los Angeles
  • Redmond / Bend, Oregon to San Diego
  • Redmond / Bend, Oregon to San Francisco
  • Boise to Los Angeles (two daily departures)
  • Missoula, Montana to Los Angeles
  • Anchorage to San Francisco

New Spokane service:

Start Date Destination Departs Arrives Frequency Aircraft
Jan. 7 Spokane-Los Angeles 7:00 a.m. 9:40 a.m. Daily E175
Jan. 7 Spokane-Los Angeles 4:40 p.m. 7:20 p.m. Daily E175
Jan. 7 Los Angeles-Spokane 9:30 a.m. 12:10 p.m. Daily E175
Jan. 7 Los Angeles-Spokane 8:05 p.m. 10:45 p.m. Daily E175
March 19 Spokane-San Francisco 7:00 a.m. 9:28 a.m. Daily E175
March 19 Spokane-San Francisco 4:20 p.m. 5:49 p.m. Daily E175
March 19 San Francisco-Spokane 9:00 a.m. 11:12 a.m. Daily E175
March 19 San Francisco-Spokane 7:35 p.m. 9:47 p.m. Daily E175

New Redmond / Bend service:

Start Date Destination Departs Arrives Frequency Aircraft
Jan. 7 Redmond / Bend-

Los Angeles

6:00 p.m. 8:50 p.m. Daily E175
Jan. 7 Los Angeles-

Redmond / Bend

8:00 a.m. 10:39 p.m. Daily E175
March 19 Redmond / Bend-

San Diego

11:40 a.m. 2:08 p.m. Daily E175
March 19 San Diego-

Redmond / Bend

2:50 p.m. 5:19 p.m. Daily E175
March 19 Redmond / Bend-

San Francisco

7:00 a.m. 8:38 a.m. Daily E175
March 19 San Francisco-

Redmond / Bend

 6:35 p.m. 8:14 p.m. Daily E175

New Boise service:

Start Date Destination Departs Arrives Frequency Aircraft
March 19 Boise-Los Angeles 7:45 a.m. 8:58 a.m. Daily E175
March 19 Boise-Los Angeles 4:30 p.m. 5:45 p.m. Daily E175
March 19 Los Angeles-Boise 8:30 a.m. 11:33 a.m. Daily E175
March 19 Los Angeles-Boise 7:55 p.m. 10:58 p.m. Daily E175

New Missoula service:

Start Date Destination Departs Arrives Frequency Aircraft
March 19 Missoula-Los Angeles 7:00 p.m. 8:59 p.m. Daily E175
March 19 Los Angeles-Missoula 2:45 p.m. 6:24 p.m. Daily E175

New Anchorage service:

Start Date Destination Departs Arrives Frequency Aircraft
April 21 Anchorage-

San Francisco

11:45 a.m. 5:25 p.m. Daily 737
April 21 San Francisco-
Anchorage
9:45 a.m. 1:30 p.m. Daily 737

Alaska is also increasing the frequency of flights between certain markets:

  • Beginning January 7, there will be an additional flight between San Francisco and Orange County, California, for a total of seven daily nonstops. On March 19, there will be the addition of a second daily flight between San Francisco and Chicago O’Hare.
  • On January 7, the flight between San Diego and Orlando, which is currently flown five times a week, becomes daily nonstop service. Starting March 19, second daily flights will begin between San Diego and Boise, and San Diego and Santa Rosa, California. Also on March 19, nonstop service between San Diego and San Jose, California, increases from four to six flights daily. On May 21, a second daily flight between San Diego and Boston goes into service.

A majority of the new routes will be served by the Embraer 175 jet, an aircraft with only window and aisle seating – no middle seats. On all of the new routes, guests will enjoy award-winning service in a three-class cabin that includes First Class and Premium Class; a fresh, seasonal food and beverage menu; Most Free Movies in the Sky with hundreds of movies and TV shows available for viewing on personal devices; free texting on most flights; and Wi-Fi connectivity for purchase.

Alaska Airlines and its regional partners fly 46 million guests a year to more than 115 destinations with an average of 1,200 daily flights across the United States and to Mexico, Canada and Costa Rica.

Top Copyright Photo: Alaska SkyWest (SkyWest Airlines) Embraer ERJ 170-200LR (ERJ 175) N400SY (msn 17000732) SNA (Michael B. Ing). Image: 947332.

Alaska SkyWest aircraft photo gallery:

Current routes flown by SkyWest Airlines for Alaska Airlines:

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Alaska Airlines announces new service between Paine Field and Spokane

Alaska Horizon (Horizon Air) Embraer ERJ 170-200LR (ERJ 175) N629QX (msn 17000683) PAE (Nick Dean). Image: 947300.

Alaska Airlines announced today it will launch daily nonstop service between Spokane International Airport and Paine Field-Snohomish County Airport in Everett on November 4.

 

Spokane becomes the 10th destination served by Alaska at the new terminal in Everett.

Effective Date City Pair Departs Arrives Frequency Aircraft
Nov. 4, 2019 Everett-Spokane 7:55 p.m. 9:10 p.m. Daily E175
Nov. 5, 2019 Spokane-Everett 7:40 a.m. 8:55 a.m. Daily E175

Alaska started commercial service at Paine Field on March 4, 2019. In that short time, flying in and out of Everett has become a popular, convenient option for many travelers, especially those who live north of Seattle who don’t want to drive to Sea-Tac Airport. As of late July, nearly 300,000 guests have flown Alaska’s flights at Paine Field.

All Alaska flights at Paine Field are operated by Horizon Air with jet service using the Embraer 175 aircraft, which features a three-class cabin. From Paine Field, guests can currently fly to eight destinations: Las Vegas; Los Angeles; Orange County, California; Phoenix; Portland, Oregon; San Diego; San Francisco; and San Jose, California.

Top Copyright Photo: Alaska Horizon (Horizon Air) Embraer ERJ 170-200LR (ERJ 175) N629QX (msn 17000683) PAE (Nick Dean). Image: 947300.

Alaska Horizon aircraft slide show:

Alaska Air Group returns two Q400 to service due to the 737 MAX 9 delays

Alaska Horizon (Horizon Air) Bombardier DHC-8-402 (Q400) N447QX (msn 4364) SEA (Michael B. Ing). Image: 947263.

The Alaska Air Group has announced in its filing that two of the three Boeing 737-MAX 9 aircraft that were originally scheduled for delivery in 2019 have been shifted to 2020 in light of the recent MAX grounding, based on the best estimate of the expected delivery dates.

Two Bombardier Q400 aircraft (above) that were previously removed from the operating fleet will be returning to revenue service. The expect changes are expected to occur in late 2019.

The Group also updated and outlined its fleet plans in the filing below:

The Alaska Air Groups, Inc. quarterly report to the United States Securities and Exchange Commission:

At June 30, 2019, the Company had operating leases for 10 Boeing 737 (B737), 62 Airbus, and 9 Bombardier Q400 aircraft. Additionally, the Company operates 32 Embraer 175 (E175) aircraft through its capacity purchase arrangement with SkyWest Airlines, Inc. (SkyWest). Remaining lease terms for these aircraft extend up to 12 years, with options to extend, subject to negotiation at the end of the term. As extension is not certain, and rates are highly likely to be renegotiated, the extended term is only capitalized when it is reasonably determinable. While aircraft rent is primarily fixed, certain leases contain rental adjustments throughout the lease term which would be recognized as variable expense as incurred. Variable lease expense for aircraft was $1 million and $2 million for the three and six months ended June 30, 2019, respectively.

Capacity purchase agreements with aircraft (CPA aircraft)

At June 30, 2019, Alaska had CPAs with three carriers, including the Company’s wholly-owned subsidiary, Horizon. Horizon sells 100% of its capacity under a CPA with Alaska. Alaska also has CPAs with SkyWest to fly certain routes in the Lower 48 and Canada, and with Peninsula Aviation Services, Inc., (PenAir) to fly certain routes in the state of Alaska. Under these agreements, Alaska pays the carriers an amount which is based on a determination of their cost of operating those flights and other factors intended to approximate market rates for those services. As Horizon is a wholly-owned subsidiary, intercompany leases between Alaska and Horizon have not been recognized under the standard. The agreement with PenAir does not contain a leasing arrangement, resulting in no asset or liability recognized.

Remaining lease terms for CPA aircraft range from 8 years to 11 years. Financial arrangements of the CPAs include a fixed component, representing the costs to operate each aircraft and is capitalized under the new lease accounting standard. CPAs also include variable rent based on actual levels of flying, which is expensed as incurred. Variable lease expense for CPA aircraft for the three and six months ended June 30, 2019 was not material.

As of June 30, 2019, the Company has one scheduled lease delivery of an A321neo aircraft remaining in 2019, valued at $52 million. We also had three scheduled lease deliveries of E175 aircraft in 2021 to be operated by SkyWest. Subsequent to June 30, 2019, the Company canceled these aircraft deliveries through an amendment to the capacity purchase agreement. All future lease contracts have remaining non-cancelable lease terms ranging from 2019 to 2033.

Aircraft purchase commitments include non-cancelable contractual commitments for aircraft and engines.

As of June 30, 2019, the Company had commitments to purchase 32 Boeing 737 MAX 9 aircraft, with deliveries in the remainder of 2019 through 2023. Future minimum contractual payments for these aircraft have been updated to reflect the most current anticipated delivery timing for Boeing 737 MAX 9 aircraft, which has been delayed as a result of the grounding order mandated by the FAA on March 13, 2019.

The Company also has commitments to purchase five E175 aircraft with deliveries in the remainder of 2019 through 2021 and has cancelable purchase commitments for 30 Airbus A320neo aircraft with deliveries from 2023 through 2025. In addition, the Company has options to purchase 37 B737 MAX aircraft from 2021 through 2024 and 30 E175 aircraft from 2021 through 2023. The Company also has the option to increase capacity flown by SkyWest with eight additional E175 aircraft with deliveries from 2021 to 2022.

Aircraft Commitments

As of June 30, 2019, we have firm orders to purchase or lease 41 aircraft. We also have cancelable purchase commitments for 30 Airbus A320neo with deliveries from 2023 through 2025. We could incur a loss of pre-delivery payments and credits as a cancellation fee. We also have options to acquire 37 B737 aircraft with deliveries from 2021 through 2024 and 30 E175 aircraft with deliveries from 2021 through 2023. In addition to the 32 E175 aircraft currently operated by SkyWest in our regional fleet, we have options in future periods to add regional capacity by E175 aircraft.

The following table summarizes expected fleet activity by year as of June 30, 2019, and are subject to change:

Top Copyright Photo: Alaska Horizon (Horizon Air) Bombardier DHC-8-402 (Q400) N447QX (msn 4364) SEA (Michael B. Ing). Image: 947263.

Alaska Horizon aircraft slide show:


Alaska Airlines adds a new destination from Everett

Alaska Horizon (Horizon Air) Embraer ERJ 170-200LR (ERJ 175) N620QX (msn 17000640) PAE (Nick Dean). Image: 946631.

Alaska Airlines is adding a new route from Paine Field in Everett, WA. A new route from PAE to Palm Springs will be launched on November 5, 2019.

All Alaska flights at Paine Field are operated by Horizon Air with jet service using the Embraer 175 aircraft, which features a three-class cabin.

From Paine Field, guests can currently fly to eight destinations: Las Vegas; Los Angeles; Orange County, California; Phoenix; Portland, Oregon; San Diego; San Francisco; and San Jose, California.

Top Copyright Photo: Alaska Horizon (Horizon Air) Embraer ERJ 170-200LR (ERJ 175) N620QX (msn 17000640) PAE (Nick Dean). Image: 946631.

Alaska Horizon aircraft slide show:

 

Alaska Air Group reports its first quarter 2019 results

Alaska Horizon (Horizon Air) Embraer ERJ 170-200LR (ERJ 175) N636QX (msn 17000749) PAE (Nick Dean). Image: 946086.

Alaska Air Group made this announcement today:

Financial Highlights:

  • Reported net income under Generally Accepted Accounting Principles (GAAP) of $4 million, or $0.03 per diluted share for the first quarter of 2019 and 2018.
  • Reported net income for the first quarter of 2019, excluding special items such as merger-related costs and mark-to-market fuel hedge accounting adjustments, of $21 million, or $0.17 per diluted share, compared to $18 million or $0.14 per diluted share, in the first quarter of 2018. This quarter’s adjusted results compare to the First Call analyst consensus estimate of $0.12 per share.
  • Paid a $0.35 per-share quarterly cash dividend in the first quarter, a 9% increase over the dividend paid in the first quarter of 2018.
  • Repurchased a total of 214,891 shares of common stock for approximately $13 million in the first three months of 2019.
  • Generated approximately $470 million of operating cash flow in the first three months of 2019, including merger-related costs.
  • Held $1.4 billion in unrestricted cash and marketable securities as of March 31, 2019.
  • Maintained debt-to-capitalization ratio of 47% as of March 31, 2019, similar to the 47% as of Dec. 31, 2018.

Operational Highlights:

  • Launched commercial service from Paine Field in Everett, Washington, to eight West Coast destinations and began service from Seattle to Columbus, Ohio, and El Paso, Texas.
  • Completed painting 25 Airbus aircraft in Alaska livery, and expect to complete the remainder of the fleet in the second quarter.
  • Announced plans to build a new Alaska Lounge in Terminal 2 at San Francisco International Airport.
  • Introduced a new Alaska Airlines Visa Signature Card sign-up promotion offering up to 40,000 miles to new cardholders.
  • Added four Boeing 737-900ER aircraft to the mainline operating fleet in the first quarter of 2019.

Recognition and Awards:

  • Ranked the best U.S. Airline by Money Magazine for the second year in a row.
  • Named “Best Mid-Size Airline” by TripAdvisor in their 2019 Travelers Choice awards.
  • Ranked as the No. 2 Airline in America by The Points Guy.

Alaska Air Group Inc., today reported first quarter 2019 GAAP net income of $4 million, or $0.03 per diluted share, compared to $4 million, or $0.03per diluted share in the first quarter of 2018. Excluding the impact of merger-related costs and mark-to-market fuel hedge adjustments, the company reported adjusted net income of $21 million, or $0.17 per diluted share, compared to $18 million, or $0.14 per diluted share, in 2018.

“We performed well in the first quarter despite severe winter storms in the Pacific Northwest,” said Alaska CEO Brad Tilden. “The leadership team and I want to thank our employees for running the operation safely, and as smoothly as possible, and for taking great care of our guests throughout the quarter. Our margin improvement initiatives gained traction despite the storms, and we are optimistic about the rest of 2019.”

The following table reconciles the company’s reported GAAP net income and earnings per diluted share (diluted EPS) for the three months ended March 31, 2019 and 2018 to adjusted amounts.

Top Copyright Photo (all others by the airline): Alaska Horizon (Horizon Air) Embraer ERJ 170-200LR (ERJ 175) N636QX (msn 17000749) PAE (Nick Dean). Image: 946086.

Alaska Horizon aircraft slide show:

Horizon Air celebrates its 1981 beginnings with this special livery on N421QX

"Alaska celebrates Horizon Air" in a 1981 livery

Horizon Air launched regional operations on September 1, 1981 as an independent carrier in the Pacific Northwest. Now the Alaska Airlines-owned carrier is celebrating its past with this Q400 now painted in a 1981-like livery.

Horizon Air made this announcement and photos on social media:

New paint, old-school. N421QX

In celebration of Horizon Air’s heritage, we’ve debuted a new themed-aircraft. N421QX flew on its inaugural flight from Yakima, WA to Seattle on Tuesday, which was also Horizon’s first flight ever in 1981.

The livery was the idea of Andrew S. (above), a Seattle-based crew scheduler. “I pitched the idea of a Horizon livery to Gary [Gary Beck, Horizon Air CEO] when he took over the helm of Horizon in January 2018,” Andrew said. “I was impressed with his genuine willingness to listen to employees, and he was keen on the idea.

“Creating an airline people love happens when we’re all working together as one team, valuing and appreciating each other’s contributions,” says Horizon President & CEO Gary Beck. “This livery celebrates the people of Horizon and the essential role the company has played in Air Group’s success.”

Top Copyright Photo: Alaska Horizon (Horizon Air) Bombardier DHC-8-402 (Q400) N421QX (msn 4149) SEA (Royal S. King). Image: 945910.

Alaska Horizon aircraft slide show:

Horizon Air aircraft slide show:

Bottom Copyright Photo: Horizon Air Fairchild F-27 N271PH (msn 14) BFI (Christian Volpati Collection). Image: 934396.

Horizon Air Fairchild F-27 N271PH (msn 14) BFI (Christian Volpati Collection). Image: 934396.

Alaska Airlines and Horizon Air employees receive nearly 3.5 weeks extra pay in bonuses

Alaska Airlines Boeing 737-990 ER SSWL N268AK (msn 36365) JFK (Fred Freketic). Image: 945414.

Alaska Airlines has made this announcement:

Employees of Alaska Air Group companies Alaska Airlines and Horizon Air are receiving $120 million in incentive bonuses today. For most employees, this equates to more than 6.5 percent of their annual pay in 2018.

The company’s annual bonus, called Performance Based Pay (PBP), is determined by meeting or exceeding specific company-wide goals for safety, customer satisfaction, cost control, customer loyalty and profit.

“After a year of hard work, we’re incredibly grateful for our 22,000 fantastic employees who go the extra mile to put safety first and deliver the kind-hearted service we’re known for,” said Ben Minicucci, Alaska Airlines’ president and COO. “For the 10th year in a row, our employees have earned bonuses by exceeding targets for meeting our annual and monthly goals. On behalf of the entire leadership team, thank you for another incredible year.”

The PBP bonus is in addition to the approximately $15.7 million in monthly operational bonuses that employees earned over 2018 for achieving monthly on-time and customer satisfaction goals. The combined monthly, annual and one-time bonuses paid to employees total $136 million.

Geographic breakdown:

  • About $66 million in annual bonuses — nearly 55 percent of the total — is being paid to Alaska Airlines and Horizon Air employees across Washington
  • $28 million — or 24 percent of the total — is going to employees throughout California
  • $12 million is being paid to employees in Oregon
  • $8 million is going to employees throughout the state of Alaska

The employee bonuses come two weeks after the airline announced its 2019 jobs forecast and Washington economic impact study, highlighting the $7 billion Alaska has contributed to the state economy.

Top Copyright Photo (all others by Alaska): Alaska Airlines Boeing 737-990 ER SSWL N268AK (msn 36365) JFK (Fred Freketic). Image: 945414.

Alaska Airlines aircraft slide show (Boeing):

Video: