Alaska Air Group (Alaska Airlines and Horizon Air) reported its financial results for the second quarter ending June 30, 2023, and provided outlook for the third quarter ending September 30, 2023.
“People are hungry to travel and our frontline employees are delivering the safe, reliable and caring experience that people expect when they fly with us,” said CEO Ben Minicucci. “I’m so proud of our team for knocking it out of the park and delivering industry-leading operational and financial outcomes. We chose to prioritize reliability, which is imperative to restoring stability, improving predictability for our guests and employees, capturing record revenue, and serving as the foundation for our long-term profitable growth.”
- Reported net income for the second quarter of 2023 under Generally Accepted Accounting Principles (GAAP) of $240 million, or $1.86 per share, compared to a net income of $139 million, or $1.09 per share, for the second quarter of 2022.
- Reported net income for the second quarter of 2023, excluding special items and mark-to-market fuel hedge accounting adjustments, of $387 million, or $3.00 per share, compared to $280 million, or $2.19 per share, for the second quarter of 2022. This quarter’s adjusted results exceed the First Call analyst consensus estimate of $2.70 per share.
- Generated adjusted pre-tax margins of 18.3%, a 250-basis point increase over the same period in 2019.
- Recorded $2.8 billion in operating revenue for the second quarter, the highest quarterly total in company history.
- Received $435 million in bank card partner commissions driven by increased consumer spending.
- Repurchased 871,987 shares of common stock for approximately $39 million in the second quarter, bringing total repurchases to $57 million for the six months ended June 30, 2023. The company continues to expect share repurchases of at least $100 million in 2023.
- Generated $610 million in operating cash flow for the second quarter.
- Held $2.4 billion in unrestricted cash and marketable securities as of June 30, 2023.
- Ended the quarter with a debt-to-capitalization ratio of 48%, within the target range of 40% to 50%.
- Received eight 737-9 aircraft and six E175 aircraft during the quarter, bringing the totals in the Alaska and Horizon fleets to 51 and 39, respectively.
- Announced new routes to Nassau, Bahamas from Seattle and Los Angeles and Guatemala City, Guatemala from Los Angeles, marking six countries that Alaska will fly to and from its West Coast hubs.
- Launched partnership with STARLUX Airlines, whose flights between Los Angeles and Taipei allow Mileage Plan members to connect to 16 destinations across Asia.
- Reopened the renovated D Concourse Lounge in Seattle, offering 50% more seating and improved amenities.
- Completed Intelsat satellite Wi-Fi installation across the Mainline fleet.
Top Copyright Photo: Alaska Airlines Boeing 737-9 MAX 9 N933AK (msn 44098) SEA (Michael B. Ing). Image: 961008.
Alaska Airlines aircraft photo gallery (Boeing):