Tag Archives: 737890

Alaska Air Group reports 3Q net income of $289 million

Alaska Air Group, Inc., (Alaska Airlines and Horizon Air) (Seattle/Tacoma) reported third quarter 2013 GAAP net income of $289 million, or $4.08 per diluted share, compared to $163 million, or $2.27 per diluted share in the third quarter of 2012. Excluding the impact of mark-to-market fuel hedge adjustments of $20 million ($12 million after tax, or $0.17  per diluted share), and a one-time special revenue item of $192 million ($120 million after tax, or $1.70 per diluted share) that primarily resulted from the application of new accounting rules associated with the modified affinity card agreement, the company reported record adjusted net income of $157 million, or $2.21 per diluted share, compared to adjusted net income of $150 million, or $2.09 per diluted share, in 2012.

“These results represent our best quarter ever and mark Alaska’s 18th consecutive quarterly profit,” Alaska Air Group CEO Brad Tilden said. “This is noteworthy given significant additional competition in some of our core markets. The balance and strength of our network combined with the ability of our people to respond quickly to changing business conditions are enabling us to succeed in this highly competitive industry.”

The following table reconciles the company’s reported GAAP net income and earnings per diluted share (EPS) during the third quarters of 2013 and 2012 to adjusted amounts:

Three Months Ended September 30,
2013 2012
(in millions, except per-share amounts) Dollars Diluted EPS Dollars Diluted EPS
Reported GAAP net income $ 289 $ 4.08 $ 163 $ 2.27
Mark-to-market fuel hedge adjustments, net of tax (12) (0.17) (13) (0.18)
Special revenue item, net of tax (120) (1.70)
Non-GAAP adjusted income and per-share amounts $ 157 $ 2.21 $ 150 $ 2.09

Financial Highlights:

  • Reported record third quarter net income, excluding special items, of $157 million, or $2.21 per diluted share, compared to adjusted net income of $150 million, or $2.09 per diluted share in the prior-year quarter. This quarter’s results compare to a First Call analyst consensus estimate of $2.14 per share.
  • Recorded net income for the third quarter under Generally Accepted Accounting Principles (GAAP) of $289 million or $4.08 per diluted share, compared to net income of $163 million, or $2.27 per diluted share in 2012.
  • Achieved trailing 12-month return on invested capital of 13.0 percent compared to 12.7 percent in the 12 months ended Sept. 30, 2012.
  • Lowered adjusted debt-to-total-capitalization ratio by 7.0 percentage points, to 47.0 percent, from Dec. 31, 2012.
  • Paid a $0.20 per-share quarterly cash dividend on August 22 totaling $14 million. This is the first time since 1992 that Alaska Air Group has paid a dividend.
  • Repurchased 537,008 shares of common stock for $32 million in the third quarter. For the year, the company has repurchased 1,454,790 shares for $83 million.
  • Modified the affinity card agreement with Bank of America and extended it through 2017, estimated to generate $55 million in additional cash flows on an annual basis.
  • Held $1.4 billion in unrestricted cash and marketable securities as of Sept. 30, 2013.

Operational Highlights:

  • Held the No. 1 spot in U.S. Department of Transportation on-time performance among the 10 largest U.S. airlines for the 12 months ended August 2013.
  • Named most fuel-efficient airline in the U.S. in a report released by the International Council on Clean Transportation.
  • Named Airline Industry Leader in the 2013 Temkin Customer Service Rankings.
  • Surpassed 1 million customer downloads of the Alaska Airlines mobile apps.
  • Began new routes between Portland and Atlanta and between Portland and Dallas.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Alaska Airlines’ Boeing 737-890 WL N560AS (msn 35179) in the “Spirit of the Islands” motif departs from Los Angeles.

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Alaska Horizon-Horizon Air: AG Slide Show

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Alaska Air Group achieves second quarter net income of $104 million

Alaska Air Group, Inc. (Alaska Airlines and Horizon AirAlaska Horizon) (Seattle/Tacoma) today reported second quarter 2013 GAAP net income of $104 million, or $1.47 per diluted share, compared to $68 million, or $0.93 per diluted share in the second quarter of 2012. Excluding the impact of mark-to-market fuel hedge adjustments of $1 million, the company reported adjusted net income of $105 million, or $1.47 per diluted share, compared to adjusted net income of $111 million, or $1.53 per diluted share, in 2012.

“These results represent our 17th consecutive quarter of profitability and the second-best June quarter in our history. I want to thank our employees at Alaska and Horizon who are continuing to work hard to keep us safe and reliable, provide a great experience for our customers, and produce results that make Alaska a great place to invest,” CEO Brad Tilden said. “Although our quarterly results were down slightly, our financial performance continues to be very strong. This is why we were very pleased to recently announce the initiation of a quarterly dividend which, combined with our share repurchases, will be a key component of our capital deployment program.”

The following table reconciles the company’s reported GAAP net income and earnings per diluted share (EPS) during the second quarters of 2013 and 2012 to adjusted amounts:

Three Months Ended June 30,
2013 2012
(in millions, except per-share amounts) Dollars Diluted EPS Dollars Diluted EPS
Reported GAAP net income $ 104 $ 1.47 $ 68 $ 0.93
Mark-to-market fuel hedge adjustments, net of tax 1 43 0.60
Non-GAAP adjusted income and per-share amounts $ 105 $ 1.47 $ 111 $ 1.53

Top Copyright Photo: Brian McDonough/AirlinersGallery.com. Banking on its final approach, Alaska Airlines’ Boeing 737-890 N514AS (msn 35193) prepares to straighten up for landing at Washington (Reagan National).

Alaska Airlines: AG Slide Show

Horizon Air: AG Slide Show

Alaska Horizon: AG Slide Show

Bottom Copyright Photo: Bruce Drum/AirlinersGallery.com. Horizon Air’s (Alaska Horizon) Bombardier DHC-8-402 (Q400) N436QX (msn 4236) exits the runway at Seattle-Tacoma International Airport.

Alaska Airlines’ pilots ratify a new five-year contract

Alaska Airlines‘ (Seattle/Tacoma) pilots yesterday (July 10) approved a new five-year contract. With nearly 94 percent of 1,343 eligible pilots casting a ballot, 67 percent voted in favor of the agreement. The contract increases pay by nearly 20 percent over the life of the agreement and contains job security and work rule improvements. It also protects pilots’ retirement and insurance benefits.

The airline stated, “It is particularly significant that the pilots and Alaska management reached agreement on a new contract a little more than a month beyond the last agreement’s April 1, 2013, amendable date. Contracts in the airline industry do not expire, they only become amendable, and it is common for negotiations to last for years beyond the amendable date. The parties’ full negotiating teams began meeting in summer 2012.”

Alaska’s pilots and management now will begin the process of implementing the new agreement and preparing to discuss changes needed to accommodate new flight-time/duty-time rules that are scheduled to go into effect on January 4, 2014.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 737-890 WL N532AS (msn 36347) completes the final approach from the south into Washington (Reagan National).

Alaska Airlines: AG Slide Show

Alaska Airlines launches seasonal San Diego-Lihue, Kauai flights

Alaska Airlines (Seattle/Tacoma) inaugurates nonstop service today (June 7) between San Diego and Lihue, Kauai. The flight operates daily through August 26, and then will operate four days a week. Alaska also flies nonstop from San Diego to Honolulu and Maui.

Alaska Airlines now offers 171 flights a week from San Diego to a dozen cities stretching from Hawaii to Mexico to the East Coast.

Summary of new service:
Start date City pair Departs Arrives Frequency
June 7 San Diego-Kauai 10 a.m. 1:10 p.m. Daily until Aug. 26,
then Mon, Tue, Thu, Sat
June 7 Kauai-San Diego 11:10 a.m. 7:30 p.m. Daily until Aug. 26,
then Mon, Wed, Fri, Sun
Times based on local time zones.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-890 WL N558AS (msn 35177) climbs away from Anchorage.

Alaska Airlines: AG Slide Show

Alaska Airlines and ALPA tentatively agree on a new five-year contract

Alaska Airlines (Seattle/Tacoma) and the Air Line Pilots Association (ALPA), International announced today they have reached tentative agreement on a new five-year contract for the carrier’s 1,480 pilots.

The proposed contract includes pay raises, and quality of life and productivity improvements. ALPA’s leadership is unanimously recommending that Alaska pilots ratify the tentative agreement, and a vote is expected to be completed in mid-July. The current contract was ratified in May 2009 and became amendable on April 1. Negotiators for ALPA and Alaska Airlines have been working on a new contract since last summer.

Copyright Photo: Royal S. King/AirlinersGallery.com. Here is another view of Alaska Airlines’ new Boeing 737-890 WL N560AS (msn 35179) in the special “Spirit of the Islands” Hawaiian color scheme.

Video: The “Spirit of the Islands” contest:

Alaska Airlines:

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Alaska Airlines’ “Spirit of the Islands” logojet is painted and unveiled

Alaska Airlines (Seattle) today (June 3) officially unveiled this colorful “Spirit of the Islands” logojet. The pictured Boeing 737-890 N560AS (msn 35179) is a special salute to the state of Hawaii. The airline issued this statement:

A specially painted Alaska Airlines jet adorned with a Honolulu high school student’s winning design honoring the culture of the Aloha State touched down today in Honolulu before a crowd of students, educators and travelers. The unique paint theme, dubbed the “Spirit of the Islands,” was created by 17-year-old Aaron Nee.

Winning designer Aaron Nee sees N560AS for the first time at Honolulu.

Winning designer Aaron Nee sees N560AS for the first time at Honolulu.

Nee’s design was selected from among more than 2,700 submissions by students across the Hawaiian Islands in a statewide “Paint-the-Plane” contest sponsored by Alaska Airlines, in partnership with the Hawaii State Department of Education and Hawaii Association of Independent Schools. A 10-member judging panel, comprised of Hawaii artists, educators and other local community members, carefully scored and selected the three top designs, which were then voted on by Hawaii residents in an online public vote.

As the grand prize winner, Nee received a trip for four to any of the carrier’s destinations and a $5,000 scholarship.

“This has been an incredible opportunity to share Hawaii’s beauty with people throughout the country,” said Nee. “This contest helped me to sharpen my graphic design skills and demonstrated that with hard work, attention to detail and determination, great things are possible.”

Nee’s winning design displays a voyaging canoe depicting the cultural diversity of the Islands, a bright yellow hibiscus (the state flower), the Hawaiian Island chain and the phrase “Spirit of the Islands.”

The soon-to-be Kaiser High School senior is a nearly straight-A student and a decorated member of the school’s Air Force ROTC program. Known for his artistic ability and interest in graphic design and athletics, Nee said he plans to invest his $5,000 for college and take his family to visit relatives in New York, where he hopes to see snow for the first time.

The “Spirit of the Islands” Boeing 737-800 was revealed to Nee at Honolulu International Airport on June 3, where he was joined by his parents, Robin and Mitch Connell, and father Aaron Garrett Nee, as well as Hawaii Lt. Gov. Shan Tsutsui, Hawaii Tourism Authority President and CEO Mike McCartney, Kaiser High School Principal John Sosa and several of Nee’s teachers. Also joining the welcoming ceremony were the 12 finalists and honorable mention winners, who received prizes and scholarships for their entries, as well.

Izabela Hamilton, a 12th grader at Seabury Hall on the island of Maui, placed second for her design featuring a male and female hula dancer against a backdrop of ocean waves and windswept mountain cliffs. Sophia Cleek, a sixth grader at Kapolei Middle School on Oahu, placed third for her design depicting a voyaging canoe sailing around the Islands. Hamilton and Cleek will each receive a trip for four to any Alaska Airlines destination and a $1,000 scholarship. The 10 other honorable mention winners were awarded a $1,000 scholarship each.

“Spirit of the Islands” trivia

  • The 129-foot-long Boeing 737-800 has a wingspan of 117 feet and a cruising speed of 530 mph.
  • A crew of 18 worked around the clock for 24 days at Aviation Technical Services in Everett, Wash., to paint the plane, which required 26 colors and about 140 gallons of paint, including 20 gallons of primer. In addition, 28,800 yards of masking tape were used.
  • The plane accommodates 157 passengers and six crew members.

The aircraft will fly throughout most of Alaska Airlines’ network, connecting destinations from Hawaii to San Diego and from Anchorage as far south as Mexico.

The “Spirit of the Islands” contest is the third time Alaska Airlines has turned to the public to paint a plane. The Spirit of Alaska Statehood aircraft paint scheme was created by a 16-year-old Sitka student in a similar statewide contest celebrating Alaska’s 50-year anniversary of statehood. In 2011, two soccer fans designed the MLS Portland “Timbers Jet” to celebrate the airline’s jersey sponsorship of the Portland, Ore., soccer team.

Copyright Photo: Royal S. King/AirlinersGallery.com. Please click on the photo for the full-size view.

What does it take to paint an aircraft like this? Here is a previous video on the painting of “Salmon-Thirty-Salmon II“:

Alaska Airlines: AG Slide Show

New York Times looks at the winter weather challenges of Alaska Airlines

Alaska Airlines (Seattle/Tacoma) was favorably examined by the New York Times and the challenges it faces including flying in tough winter conditions in Alaska.

Read the full article: CLICK HERE

Copyright Photo: Brandon Farris. Boeing 737-890 N569AS (msn 35184) in the “Starliner 75” (75th Anniversary) scheme arrives at Anchorage in the low winter light and its snowy conditions.

Alaska Airlines: AG Slide Show