Tag Archives: Alaska Airlines

Alaska Air Group returns to profitability in the third quarter

Alaska Air Group today reported financial results for its third quarter ending Sept. 30, 2021, and provided outlook for the fourth quarter ending Dec. 31, 2021.

The third quarter marks a significant stride forward in Alaska Air Group’s path to recovery. Alaska’s goal from the beginning of the pandemic has been deliberate – scaling the business back up in a measured way, leveraging the company’s strong balance sheet, and running a resilient operation, all with the aim of producing consistent industry-leading financial performance.

“We are thrilled to return to profitability this quarter, leading the industry with a 12% pretax profit margin,” said CEO Ben Minicucci. “Thanks to each one of our employees for running our operation and showing remarkable care for our guests, and credit to the leadership team for laying out a measured plan and executing it with discipline. We’re all feeling the momentum and look forward to building on our strong foundation for growth in 2022 and beyond.”

Financial Results:

  • Reported net income for the third quarter of 2021 under Generally Accepted Accounting Principles (GAAP) of $194 million, or $1.53 per share, compared to a net loss of $431 million, or $3.49 per share in the third quarter of 2020.
  • Reported net income for the third quarter of 2021, excluding special items and mark-to-market fuel hedge accounting adjustments, of $187 million, or $1.47 per share, compared to an adjusted net loss of $399 million or $3.23 per share, in the third quarter of 2020. This quarter’s adjusted results compare to the First Call analyst consensus estimate of $1.30 per share.
  • Generated adjusted pre-tax margin for the third quarter of 2021 of 12%.
  • Reported a debt-to-capitalization ratio of 51%, a reduction of 10 points from Dec. 31, 2020.
  • Made a $100 million voluntary contribution to the defined benefit plan for Alaska’s pilots in the third quarter, boosting estimated combined funded status of all defined benefit plans to 94%.
  • Held $3.2 billion in unrestricted cash and marketable securities as of Sept. 30, 2021.
  • Prepaid $425 million in debt from the 364-day term loan facility, bringing total debt payments to $1.2 billion for the year.

Operational Updates:

  • Exercised options for 12 Boeing 737-9 aircraft slated for delivery in 2023 and 2024, and added options for an additional 25 deliveries, bringing Alaska’s total firm commitments for 737-9 aircraft to 93 and available options to 52.
  • Ratified amended wage agreement for Horizon Air pilots, represented by the International Brotherhood of Teamsters.
  • Opened new San Francisco International Airport Lounge with 9,200 square feet of Bay-Area inspired amenities.
  • Announced new nonstop flights between San Francisco and Loreto and Ixtapa/Zihuatanejo, with service slated to begin Dec. 18. Since the onset of the pandemic, approximately 70 new markets have been announced or commenced operation.
  • Resumed and expanded inflight meals, snacks, and drinks in all classes of service.
  • Continued to exceed internal metrics for guest satisfaction, highlighting our commitment to providing our guests a smooth and safe experience throughout their journey.
  • Near the top of the industry for on-time arrivals and completion rates in the third quarter.

Environmental, Social and Governance Updates:

  • Appointed Adrienne Lofton, vice president of global marketing at Google, to the Company’s board of directors.
  • Announced formation of Alaska Star Ventures, an entity created to identify and further technologies that accelerate Alaska Airlines’ path to net zero carbon emissions.
  • Supported the Afghan Humanitarian Airlift Mission and the U.S. military by operating Civil Reserve Air Fleet flights in the evacuation of individuals and families from Afghanistan.
  • Awarded $260,000 in LIFT Grants to 25 nonprofits focused on a clear vision to provide the next generation of leaders with the knowledge, skills and providing pathways for success through the Alaska Airlines Foundation.

The following table reconciles the company’s reported GAAP net income (loss) per share (EPS) for the three and nine months ended Sept. 30, 2021 and 2020 to adjusted amounts.

Three Months Ended September 30,
2021 2020
(in millions, except per-share amounts) Dollars Diluted EPS Dollars EPS
GAAP net income (loss) per share $ 194 $ 1.53 $ (431) $ (3.49)
Payroll support program wage offset (398) (3.22)
Mark-to-market fuel hedge adjustments (3) (0.02)
Special items – impairment charges and other (9) (0.07) 121 0.98
Special items – restructuring charges 322 2.60
Special items – merger-related costs 1 0.01
Income tax effect of reconciling items above 2 0.01 (11) (0.09)
Non-GAAP adjusted net income (loss) per share $ 187 $ 1.47 $ (399) $ (3.23)
Nine Months Ended September 30,
2021 2020
(in millions, except per-share amounts) Dollars Diluted EPS Dollars Diluted EPS
GAAP net income (loss) per share $ 460 $ 3.64 $ (877) $ (7.12)
Payroll support program wage offset (914) (7.24) (760) (6.16)
Mark-to-market fuel hedge adjustments (68) (0.54)
Special items – impairment charges and other 5 0.04 350 2.84
Special items – restructuring charges (12) (0.09) 322 2.61
Special items – merger-related costs 5 0.04
Income tax effect of reconciling items above 242 1.92 20 0.16
Non-GAAP adjusted net loss per share $ (287) $ (2.27) $ (940) $ (7.63)

Alaska Airlines adds two new routes from Boise

Alaska Airlines has made this announcement:

Alaska Airlines is growing again in Boise with a pair of new nonstops we know our guests have been eager to see. Starting June 16, we’ll begin year-round, daily flights to Idaho Falls and Las Vegas from Boise. With these additional routes, we’ll fly up to 36 daily departures from Boise to 15 destinations by next summer – all nonstop.

Starts City Pair Departs Arrives Frequency Aircraft
June 16 Idaho Falls – Boise 9:00 a.m. 10:05 a.m. Daily Q400
June 16 Boise – Idaho Falls 7:35 p.m. 8:35 p.m. Daily Q400
June 16 Boise – Las Vegas 11:30 a.m. 12:10 p.m. Daily E175
June 16 Las Vegas – Boise 3:00 p.m. 5:45 p.m. Daily E175

 

All times are local times

Starting Nov. 19, Alaska will begin flying daily nonstop service from Boise to another heavily requested destination in the desert: Phoenix. Originally scheduled for seasonal flying during the winter, we’ll now fly the route year-round.

Alaska Airlines launches investment arm to accelerate progress to net zero

Alaska Airlines has announced the formation of a new LLC, Alaska Star Ventures, to advance emerging technology that will accelerate the airline’s progress toward net zero carbon emissions.

For the inaugural investment by Alaska Star Ventures, the company partnered with UP.Partners, an early-stage investor in sustainable, multi-dimensional mobility technologies that are transforming the moving world.

Alaska announced in April its commitment to reach net zero carbon emissions by 2040 with a five-part strategy to decarbonize. Alaska’s deployment of Flyways, artificial intelligence and machine learning software that supports our dispatchers’ route optimization efforts, inspired the pursuit of additional technologies to accelerate our path to net zero and enable efforts of Alaska employees across our system.

The company’s commitments to reduce its impact on carbon, waste and water build on a track record of progress in environmental sustainability including industry-leading onboard recycling, eliminating plastic straws and stir sticks, enabling touchless and paper-less guest experiences through technology, advancing the use of sustainable aviation fuels, and partnering with the Boeing ecoDemonstrator program to evaluate and test sustainability-focused technology.

Alaska Airlines introduces a Seattle Kraken logo jet on 737 MAX 9 N915AK

Alaska Airlines has made this announcement:

Hockey is back in Seattle, and Alaska Airlines is celebrating by welcoming a new Seattle Kraken theme plane into its fleet. The plane is just the beginning of a long-term major partnership between the hometown airline, the new hockey team, and new arena, which includes the naming of the Alaska Airlines Atrium at the Climate Pledge Arena and early boarding for Kraken fans wearing their jerseys for flights departing from Seattle-Tacoma International Airport (SEA) and Paine Field (PAE).

Designed in collaboration between lead Kraken designers and our own creative team, the Boeing 737-9 MAX (N915AK) features a partial Kraken logo to lean into the mystery of the actual “Kraken” brand and mascot. The plane was unveiled this morning to fans and guests awaiting a flight to Las Vegas, where the team will play its first regular season away game. In addition to its inaugural flight to Las Vegas, the plane, tail number N915AK, will fly on routes to Kraken away games in cities Alaska serves.

Guests entering the main entrance on south side of the Climate Pledge Arena will enter through The Alaska Airlines Atrium. The 21,300 square-foot glass atrium features stories and images reflecting the Pacific Northwest region and travel opportunities within our region and around the globe that will be displayed on over 8,000 square feet of LED. The atrium aids the arena in reaching it’s net-zero carbon goals as it houses 475 solar panels that provide electricity to the building. Fans will also see Alaska branding on the ice and on several boards around the hockey rink during game.

Photos: Alaska Airlines.

Alaska Airlines adds new nonstop service between Anchorage and Salt Lake City

Alaska Airlines announced today the start of new nonstop service between Anchorage, our key hub in the state of Alaska, and Salt Lake City. With this flight – and our new one between Anchorage and Minneapolis-St. Paul – we will offer nonstop service connecting Alaska to the top 10 travel destinations in the continental U.S. this summer. That’s in addition to our nonstop flights from Anchorage to Honolulu and Maui.

Starts City Pair Departs Arrives Frequency Aircraft
June 18 Anchorage – Salt Lake City 12:40 p.m. 7:10 p.m. Sat, Sun 737-900
June 18 Salt Lake City – Anchorage 8:30 a.m. 11:10 a.m. Sat, Sun 737-900
All times are local times

This summer, Alaska will fly nonstop to 12 destinations between Anchorage and the Lower 48 and Hawaii: Chicago; Denver; Honolulu; Las Vegas; Los Angeles; Maui; Minneapolis-St. Paul; Phoenix; Portland; Salt Lake City; San Francisco and Seattle. Los Angeles, Portland, San Francisco and Seattle are Alaska hubs on the West Coast, which allow for improved connectivity for guests traveling to other destinations in our network.

Alaska Airlines launches new codeshare agreement with alliance partner Iberia Airlines

Alaska Airlines further expanded its global reach today with the announcement of a new codeshare agreement with Iberia Airlines, a fellow member of the oneworld alliance. The agreement further strengthens the existing partnership between the two airlines by providing flyers with exciting and convenient travel options.

The agreement allows passengers on Iberia to book travel and easily connect to more than 40 routes throughout Alaska’s network for travel on or after October 7, 2021. On the West Coast, Iberia has nonstop service between Los Angeles and its Madrid hub, and seasonal service between San Francisco and Barcelona – enabling seamless connectivity to the Alaska network beyond both California cities.

Alaska launched its partnership with Iberia on March 31, 2021, the same day Alaska formally became a member of the oneworld global alliance.

Iberia issued this statement:

  • Following the integration of Alaska Airlines into the oneworld alliance in March this year, the airlines are further strengthening their collaboration by announcing a new codeshare.
  • This agreement will strengthen the connectivity of Iberia and LEVEL in the United States and, more specifically, on routes with the west coast and will allow customers to offer more destinations
  •  Iberia operates three weekly frequencies between Madrid and Los Angeles and, from there, its customers will be able to continue to more than 20 routes in the United States operated by Alaska Airlines
  • In the case of San Francisco, the agreement with Alaska Airlines includes more than 15 other codeshare routes, which will connect with flights from Barcelona operated by LEVEL and with Iberia’s Madrid-San Francisco route, as soon as the airline recovers it.
  • All these flights are now available for sale and can be booked from today
  • As a next step, Alaska Airlines will add its code to Iberia and LEVEL’s transatlantic flights to Los Angeles and San Francisco, maximizing its collaboration with both airlines.
  •  Among other advantages, this codeshare agreement will allow frequent customers of Iberia and Alaska Airlines to continue accumulating and redeeming points in their respective loyalty programs,and enjoy all the advantages and benefits of being part of oneworld.

 

Iberia, LEVEL and Alaska Airlines expand their global network by announcing today a new codeshare agreement that will strengthen connectivity between Spain and the west coast of the United States, specifically, with 37 new routes from Los Angeles and San Francisco.

Iberia operates three weekly flights to Los Angeles -with the Airbus A330/200with capacity for 288 passengers- and, thanks to this collaboration agreement, the spanish airline’s customers will be able to connect with more than 20 routes that Alaska Airlines offers in the United States:Anchorage, Boise, Bozeman, Eugene, Fresno, Kalispell, Spokane, Honolulu, Kona, Las Vegas, Lihue, Medford, Maui-Kahului, Everett-Paine Field, Portland, Redmond, Reno-Tahoe, Seattle-Tacoma, San Francisco, San Jose, Salt Lake City and Santa Rosa-Sonoma County.

In the case of San Francisco, the agreement with Alaska Airlines includes more than 15 other codeshare routes, which will connect with flights from Barcelona operated by LEVEL from March 2022, and also with the Madrid-San Francisco route, as soon as Iberia recovers it. Specifically, the 15 routes operated by Alaska from San Francisco are: Boise, Bozeman, Spokane, Honolulu, Jackson Hole, Las Vegas, Los Angeles, Missoula, Maui-Kahului, Portland, Phoenix, Palm Springs, San Diego, Seattle-Tacoma, Salt Lake City and Santa Ana-Orange County.

All these codeshare flights are now available through Iberia’s usual sales channels. In addition, in the short term, Alaska Airlines will add its code to the transatlantic flights of both airlines, which will further expand the collaboration of the three in the Spain-West Coast market of the USA.

 

American, Alaska Airlines and JetBlue will require their employees to be vaccinated

From NPR:

“American Airlines, Alaska Airlines and JetBlue are joining United Airlines in requiring employees to be vaccinated against COVID-19, as the Biden administration steps up pressure on major U.S. carriers to require the shots.”

Read the full article:

https://www.npr.org/sections/coronavirus-live-updates/2021/10/02/1042697933/vaccinations-american-alaska-airlines-jetblue

Alaska Airlines introduces a second Airbus A320 Giants logo jet

 

Alaska Airlines, the official airline partner of the San Francisco Giants, is taking postseason celebrations to new heights with the debut of its new Giants-themed livery. Just in time for the Giants’ upcoming playoff run, the Airbus A320 aircraft (N855VA) was introduced on September 29 to fans departing San Francisco (SFO) for Seattle/Tacoma (SEA).

San Francisco Giants legend Barry Bonds signs Alaska Airlines’ new Giants-themed aircraft at San Francisco International Airport

This is the second livery dedicated to the San Francisco Giants. The plane, tail number N855VA, will fly throughout Alaska’s network now through 2022. The new Giants-themed livery is one of many ways guests can celebrate the team’s playoff run. Alaska just announced that fans who wear Giants’ apparel can board early for all San Francisco departing flights for the duration of the team’s postseason play.

Alaska employees dedicated the plane along with a $100,000 check to the Willie Mays Scholarship Fund, in honor of the ‘Say Hey Kid’s’ 90th birthday. The fund assists in making college aspirations come true for San Francisco’s Black youth and empowers them to pursue their goals to achieve success in high school, college and beyond. Terminal 2 flyers were also treated to a surprise celebration complete with DJ entertainment on-site, prizes, giveaways and a visit from the Giants’ mascot “Lou Seal” joining in on the festivities.

The Giants-inspired wrapped aircraft and early boarding are among many ways Alaska is deepening its presence in the Bay. Alaska recently unveiled a new premium Lounge at SFO. The 9,200 square feet Lounge features Bay-inspired amenities and top-notch hospitality – giving Alaska and oneworld guests a comfortable place to work and relax. The Lounge also features the first and only co-branded professional sports-themed Lounge space in the country. A treat for young Giants fans, the space includes a children’s play area featuring baseball-themed games and art celebrating mascot Lou Seal.

Alaska Airlines unveils new San Francisco Giants livery with celebration at San Francisco International Airport featuring Giants mascot “Lou Seal”

San Francisco is Alaska Airlines’ third largest hub. With 108 daily flights to 39 destinations to and from San Francisco, go ahead and cross something off the wander-list today with Alaska including popular flights to Maui, Cabo, Anchorage and San Diego. Starting Dec. 18, sun seekers can escape winter doldrums and enjoy three new nonstop destinations south of the border from SFO – Loreto, Mazatlán and Ixtapa/Zihuatanejo.

ALC announces the delivery of first of 13 new Boeing 7379 MAX 9 aircraft to Alaska Airlines

Delivered on February 20, 2021

Air Lease Corporation (ALC) today announced the delivery of one new Boeing 737-9 aircraft on long-term lease to Alaska Airlines.

Featuring CFM International LEAP -1B engines, this is the first of 13 new 737-9 aircraft confirmed to deliver to the airline as announced in November 2020 from ALC’s order book with Boeing.

This new 737-9 from ALC joins six 737-9s currently flying in Alaska Airlines’ fleet.

Top Copyright Photo: Alaska Airlines Boeing 737-9 MAX 9 N918AK (msn 44081) SEA (Michael B. Ing). Image: 953800.

Alaska Airlines aircraft slide show (Boeing):