Tag Archives: Alaska Airlines

Alaska Airlines makes significant investment in sustainable aviation fuel

Alaska Airlines announced today it has finalized an agreement with biofuel company Gevo Inc., to purchase its most significant sustainable aviation fuel (SAF) offtake commitment to date โ€“ 185 million gallons of SAF over five years starting in 2026. This agreement was developed alongside others in the oneworld alliance.

In April 2021, Alaska announced the company’s commitment and roadmap to achieve carbon net zero by 2040, and established a five-part path to achieve that goal. The path includes operational efficiency, fleet renewal, sustainable aviation fuel, electric or hybrid-electric aircraft over the long term and credible carbon offsets only as needed to achieve our targets if technology does not advance fast enough to close the gap without. Of this path, sustainable aviation fuel provides the greatest opportunity to decarbonize in the near and medium term, and Alaska has been working for over a decade to first test and then use SAF.

In 2016, Alaska and Gevo made history by flying the world’s first commercial flight using forest residuals from Seattle-Tacoma International Airport to Reagan National Airport in Washington, D.C., powered by a 20 percent blend of SAF. Today, Alaska is using SAF in its operations in California and works with multiple producers and other partners to use and facilitate the development of additional SAF supply in the future.

In September 2020, oneworld became the first global airline alliance to announce a target of carbon neutrality by 2050, establishing its commitment to long-term sustainability for the industry. The alliance followed up that commitment with an intermediate goal to achieve 10% SAF use across the member airlines by 2030.

Alaska Airlines aircraft photo gallery:

Alaska Airlines cooks up new vegan and plant-based options

Alaska Airlines made this announcement:

This summer, Alaska Airlines guests can veg out on board with more gluten friendly, plant-based and vegan meal options available in all cabins.

We’re listening to our guests who told us that they are looking for more plant-based menu options when traveling. Our new vegan option, called the “Soy Meets World,” is a vegan salad developed in partnership with Evergreens, a West Coast-based company that makes gourmet, freshly chopped salads.

We serve freshly prepared meals and snacks for breakfast, lunch and dinner & always include a vegetarian option. This summer, weโ€™re excited to offer guests our โ€Soy Meets Worldโ€ salad, a new vegan friendly option.

Most comprehensive menu in the sky

 

We’re proud to offer our guests a variety of fresh and seasonal meal selections and thirst-quenching beverages on our flights.

Today, we have the most comprehensive domestic food and beverage program in the industry. We offer three meal options in First Class, including our Signature Fruit & Cheese on flights as short as 550 miles.

We also offer ample food options in Premium Class and Main Cabin, which include up to four fresh options on flights over 1,100 miles and up to five snack items on flights over 223 miles, such as the Mediterranean Tapas Pack (vegan and gluten-free).

Now through October, guests can enjoy fresh summer flavors that include berries, summer squash, corn, citrus and tomatoes.

Our Soy Meets World vegan salad includes roasted broccoli, fresh cucumber slices, scallions, pickled carrots, fried tofu and brown rice served over a bed of crisp romaine and baby lettuce greens, topped with roasted cashews, fried onions and paired with a Tamari Chili-Lime dressing.

Pre-order meals before takeoff

 

Alaska makes it easy to get the meal(s) you want. Enjoy fresh ingredients inspired by the West Coast, from snacks to freshly prepared meals, by pre-ordering your favorites ahead of your flight using your reservation on our app or alaskaair.com.

Meal orders can be made starting 14 days before your flight, and up to 20 hours prior to departure.

 

Snacks and Picnic packs do not require pre-order and are available on board most flights over 2 hours.

Alaska Airlines aircraft photo gallery (Airbus):

Alaska Air Group reports second quarter GAAP net income of $139 million

Alaska Airlines Boeing 737-900 ER SSWL N298AK (msn 60583) IAH (Jarrod Wilkening). Image: 958261.

Alaska Air Group today announced another quarter of improvement in its financial results for the second quarter ending Juneย 30, 2022, and provided outlook for the third quarter ending Sept. 30, 2022.

“It’s clear that travel is one of the things people have missed the most these past two years. They are excited to fly again and our team is delivering on the safe, reliable and caring experience they expect from us,” said CEO Ben Minicucci. “Revenue in June topped $1 billion, the highest single month in our history. Our 14% adjusted pretax margin in Q2 is near the top of the industry, and our operation is on track in June with the #1 on-time performance and a schedule completion rate over 99%. I’m feeling so much gratitude for the people of Alaska, Horizon and McGee for pulling together. We have a strong platform for growth in 2023 and a lot to be optimistic about.”

Financial Results for the Second Quarter:
  • Reported net income for the second quarter of 2022 under Generally Accepted Accounting Principles (GAAP) of $139 million, or $1.09 per share, compared to a net income of $397 million, or $3.13 per share, in the second quarter of 2021.
  • Reported net income for the second quarter of 2022, excluding special items and mark-to-market fuel hedge accounting adjustments, of $280 million, or $2.19 per share, compared to a net loss, excluding special items and mark-to-market fuel hedge accounting adjustments, of $38 million, or $0.30 per share, in the second quarter of 2021.
  • Reported adjusted pretax margin for the second quarter of 14%.
  • Recorded $2.7 billion in operating revenues for the second quarter, the highest revenue-generating quarter in company history.
Balance Sheet and Liquidity:
  • Generated $948 million in operating cash flow for the second quarter, inclusive of $231 million in net federal income tax refunds.
  • Held $3.4 billion in unrestricted cash and marketable securities as of June 30, 2022.
  • Maintained a debt-to-capitalization ratio of 50% as of June 30, 2022, within our target range of 40% to 50%.
Operational Updates and Milestones for the Second Quarter:
  • Flew a record load factor for the quarter of 88%, driven by high demand on reduced capacity.
  • Led the industry in on-time performance for the month of June, meeting our commitment to operational reliability.
  • Received nine Boeing 737-9 aircraft in the second quarter, bringing the total number of 737-9s in our mainline fleet to 28.
  • Ratified new contracts with Alaska Airlines dispatchers and Horizon Air aircraft technicians and fleet service agents; and reached a tentative agreement with Alaska Airlines IAM represented employees.
  • Expanded pilot training throughput by 20% from April, and added 100 active mainline pilots in the second quarter.
  • Began nonstop service to Miami and Cleveland from Seattle, bringing the total nonstop destinations served from Seattle to 100.
  • Launched $8 flat rate satellite Wi-Fi on mainline aircraft in partnership with Intelsat.
Awards and Employee Recognition:
  • Ranked as one of America’s Best Employers for Diversity by Forbes, recognizing our commitment to increasing diverse leadership representation and equity initiatives.
  • Named the Best Major Airline in North America by the Airline Passenger Experience Association, highlighting Alaska’s inflight experience.
  • Recognized the company’s workforce for their relentless commitment to caring for our guests for 90 years by giving each employee 90,000 miles redeemable for travel anywhere in the world.
Second Quarter Environmental, Social and Governance Updates:
  • Released our 2021 Care Report, highlighting the company’s progress in various environmental, social and governance areas and outlining ongoing initiatives and future goals.
  • Signed agreement with Aemetis to purchase 13 million gallons of sustainable aviation fuel to be delivered over the seven-year term of the agreement.
  • Subsequent to quarter end, announced a partnership with Microsoft and Twelve, a carbon transformation technology company, to advance the availability of sustainable aviation fuels.
  • Scored 100% in our first year participating in Disability:IN’s Disability Equality Index, which benchmarks companies on their disability inclusion and equality.

The following table reconciles the company’s reported GAAP net income (loss) per share (EPS) for the three and six months ended Juneย 30, 2022, and 2021 to adjusted amounts.

Three Months Ended June 30,
2022 2021
(in millions, except per-share amounts) Dollars Diluted EPS Dollars Diluted EPS
GAAP net income per share $ย ย ย ย ย ย ย ย ย ย ย ย ย ย  139 $ย ย ย ย ย ย ย ย ย ย ย ย ย  1.09 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย  397 $ย ย ย ย ย ย ย ย ย ย ย ย ย  3.13
Payroll Support Program grant wage offset โ€” โ€” (503) (3.97)
Mark-to-market fuel hedge adjustments 40 0.31 (46) (0.36)
Special items – fleet transition and related charges(a) 146 1.14 (4) (0.03)
Special items – restructuring charges(b) โ€” โ€” (23) (0.18)
Income tax effect of reconciling items above (45) (0.35) 141 1.11
Non-GAAP adjusted net income (loss) per share $ย ย ย ย ย ย ย ย ย ย ย ย ย ย  280 $ย ย ย ย ย ย ย ย ย ย ย ย ย  2.19 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย  (38) $ย ย ย ย ย ย ย ย ย ย ย  (0.30)
Six Months Ended June 30,
2022 2021
(in millions, except per-share amounts) Dollars Diluted EPS Dollars Diluted EPS
GAAP net income (loss) per share $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  (4) $ย ย ย ย ย ย ย ย ย ย ย  (0.03) $ย ย ย ย ย ย ย ย ย ย ย ย ย ย  266 $ย ย ย ย ย ย ย ย ย ย ย ย ย  2.10
Payroll support program grant wage offset โ€” โ€” (914) (7.23)
Mark-to-market fuel hedge adjustments (67) (0.53) (68) (0.54)
Special items – fleet transition and related charges(a) 221 1.75 14 0.11
Special items – restructuring charges(b) โ€” โ€” (12) (0.09)
Income tax effect of reconciling items above (37) (0.30) 240 1.90
Non-GAAP adjusted net income (loss) per share $ย ย ย ย ย ย ย ย ย ย ย ย ย ย  113 $ย ย ย ย ย ย ย ย ย ย ย ย ย  0.89 $ย ย ย ย ย ย ย ย ย ย ย ย  (474) $ย ย ย ย ย ย ย ย ย ย ย  (3.75)
(a) Special items – fleet transition and related charges in the three and six months ended June 30, 2022 are primarily for impairment charges and accelerated costs associated with the retirement of the A320 and Q400 fleets. The A320 fleet is expected to be retired from operating service by the end of 2022; the Q400 fleet is expected to be retired from operating service in early 2023.
(b) Special items – restructuring charges in the three and six months ended June 30, 2021 are related to the estimated costs for pilot incentive leaves.

Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables. A glossary of financial terms can be found on the last page of this release.

Alaska will hold its quarterly conference call to discuss second quarter results at 8:30 a.m. PDT on Julyย 21, 2022. A webcast of the call is available to the public at www.alaskaair.com/investors. For those unable to listen to the live broadcast, a replay will be available after the call.

Third Quarter and Full Year 2022 Outlook

Q3 Expectation(a)
Capacity (ASMs) % change versus 2019(a) Down 5% to 8%
Revenue passengers % change versus 2019(a) Down 8% to 10%
Passenger load factor 85% to 88%
Total revenue % change versus 2019(a) Up 16% to 19%
Cost per ASM excluding fuel and special items (CASMex) % change versus 2019(a) Up 16% to 19%
Economic fuel cost per gallon $3.79 to $3.89
Non-operating expense $2 million to $4 million
Adjusted tax rate 24% to 25%
(a) Due to the unusual nature of 2021 and 2020, all 2022 comparisons are versus the third quarter of 2019.

For full year 2022, we expect our capacity to be down 8% to 9% versus 2019, and expect our CASMex to be up 15% to 17% versus 2019. We continue to expect our full year adjusted pre-tax margin to be between 6% and 9%.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Alaska Air Group, Inc.
Three Months Ended June 30, Six Months Ended June 30,
(in millions, except per share amounts) 2022 2021 Change 2022 2021 Change
Operating Revenues
Passenger revenue $ย ย ย ย ย ย ย  2,418 $ย ย ย ย ย ย ย  1,352 79ย % $ย ย ย ย ย ย ย  3,929 $ย ย ย ย ย ย ย  2,011 95ย %
Mileage Plan other revenue 175 118 48ย % 287 212 35ย %
Cargo and other 65 57 14ย % 123 101 22ย %
Total Operating Revenues 2,658 1,527 74ย % 4,339 2,324 87ย %
Operating Expenses
Wages and benefits 639 510 25ย % 1,245 1,003 24ย %
Variable incentive pay 56 34 65ย % 92 67 37ย %
Payroll Support Program grant wage offset โ€” (503) NM โ€” (914) NM
Aircraft fuel, including hedging gains and losses 776 274 183ย % 1,123 477 135ย %
Aircraft maintenance 104 102 2ย % 239 183 31ย %
Aircraft rent 73 62 18ย % 146 124 18ย %
Landing fees and other rentals 136 144 (6)ย % 274 273 โ€”ย %
Contracted services 82 54 52ย % 160 105 52ย %
Selling expenses 78 41 90ย % 136 74 84ย %
Depreciation and amortization 104 98 6ย % 206 195 6ย %
Food and beverage service 50 35 43ย % 91 58 57ย %
Third-party regional carrier expense 50 37 35ย % 92 67 37ย %
Other 177 117 51ย % 329 222 48ย %
Special items – fleet transition and related charges 146 (4) NM 221 14 NM
Special items – restructuring charges โ€” (23) . NM โ€” (12) NM
Total Operating Expenses 2,471 978 153ย % 4,354 1,936 125ย %
Operating Income (Loss) 187 549 (66)ย % (15) 388 (104)ย %
Non-operating Income (Expense)
Interest income 11 6 100ย % 18 13 38ย %
Interest expense (26) (39) (33)ย % (53) (71) (25)ย %
Interest capitalized 3 3 7ย % 5 6 (17)ย %
Other – net 10 9 10ย % 24 19 25ย %
Total Non-operating Income (Expense) (2) (21) (90)ย % (6) (33) (82)ย %
Income (Loss) Before Income Tax 185 528 (21) 355
Income tax expense (benefit) 46 131 (17) 89
Net Income (Loss) $ย ย ย ย ย ย ย ย ย ย  139 $ย ย ย ย ย ย ย ย ย ย  397 $ย ย ย ย ย ย ย ย ย ย ย ย ย  (4) $ย ย ย ย ย ย ย ย ย ย  266
Basic Earnings (Loss) Per Share $ย ย ย ย ย ย ย ย ย  1.10 $ย ย ย ย ย ย ย ย ย  3.18 $ย ย ย ย ย ย ย  (0.03) $ย ย ย ย ย ย ย ย ย  2.13
Diluted Earnings (Loss) Per Share $ย ย ย ย ย ย ย ย ย  1.09 $ย ย ย ย ย ย ย ย ย  3.13 $ย ย ย ย ย ย ย  (0.03) $ย ย ย ย ย ย ย ย ย  2.10
Shares used for computation:
Basic 126.543 124.977 126.265 124.640
Diluted 127.795 126.825 126.265 126.388

 

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
Alaska Air Group, Inc.
(in millions) June 30, 2022 December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  778 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  470
Marketable securities 2,647 2,646
ย ย  Total cash and marketable securities 3,425 3,116
Receivables – net 401 546
Inventories and supplies – net 93 62
Prepaid expenses and other current assets 313 196
Total Current Assets 4,232 3,920
Property and Equipment
Aircraft and other flight equipment 8,569 8,127
Other property and equipment 1,532 1,489
Deposits for future flight equipment 292 384
10,393 10,000
Less accumulated depreciation and amortization 3,922 3,862
Total Property and Equipment – Net 6,471 6,138
Other Assets
Operating lease assets 1,669 1,453
Goodwill and intangible assets 2,041 2,044
Other noncurrent assets 387 396
Other Assets 4,097 3,893
Total Assets $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  14,800 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  13,951

 

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
Alaska Air Group, Inc.
(in millions, except share amounts) June 30, 2022 December 31, 2021
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  286 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  200
Accrued wages, vacation and payroll taxes 416 457
Air traffic liability 1,778 1,163
Other accrued liabilities 794 625
Deferred revenue 1,012 912
Current portion of operating lease liabilities 274 268
Current portion of long-term debt 342 366
Total Current Liabilities 4,902 3,991
Long-Term Debt, Net of Current Portion 1,961 2,173
Noncurrent Liabilities
Long-term operating lease liabilities, net of current portion 1,505 1,279
Deferred income taxes 552 578
Deferred revenue 1,429 1,446
Obligation for pension and postretirement medical benefits 299 305
Other liabilities 353 378
Total Noncurrent Liabilities 4,138 3,986
Commitments and Contingencies
Shareholders’ Equity
Preferred stock, $0.01 par value, Authorized: 5,000,000 shares, none issuedย or outstanding โ€” โ€”
Common stock, $0.01 par value, Authorized: 400,000,000 shares, Issued: 2022 – 136,109,649 shares; 2021 – 135,255,808 shares, Outstanding: 2022 – 126,759,705 shares; 2021 – 125,905,864 shares 1 1
Capital in excess of par value 542 494
Treasury stock (common), at cost: 2022 – 9,349,944 shares; 2021 – 9,349,944 shares (674) (674)
Accumulated other comprehensive loss (308) (262)
Retained earnings 4,238 4,242
3,799 3,801
Total Liabilities and Shareholders’ Equity $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  14,800 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  13,951

 

SUMMARY CASH FLOW (unaudited)
Alaska Air Group, Inc.
(in millions) Six Months
Ended

June 30, 2022

Three Months Ended
March 31,
2022(a)
Three Months Ended
June 30,
2022(b)
Cash Flows from Operating Activities:
Net income (loss) $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  (4) $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  (143) $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  139
Non-cash reconciling items 447 182 265
Changes in working capital 792 248 544
Net cash provided by (used in) operating activities 1,235 287 948
Cash Flows from Investing Activities:
Property and equipment additions (632) (288) (344)
Other investing activities (89) 327 (416)
Net cash provided by (used in) investing activities (721) 39 (760)
Cash Flows from Financing Activities: (206) (168) (38)
Net increase (decrease) in cash and cash equivalents 308 158 150
Cash, cash equivalents, and restricted cash at beginning of period 494 494 652
Cash, cash equivalents, and restricted cash at end of the period $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  802 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  652 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  802
(a) As reported in Form 10-Q for the first quarter of 2022.
(b) Cash flows for the three months ended June 30, 2022, can be calculated by subtracting cash flows for the three months ended March 31,
2022, as reported in Form 10-Q for the first quarter 2022, from the six months ended June 30, 2022.

 

OPERATING STATISTICS SUMMARY (unaudited)
Alaska Air Group, Inc.
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 Change 2022 2021 Change
Consolidated Operating Statistics:(a)
Revenue passengers (000) 11,005 8,712 26.3ย % 19,700 13,379 47.2ย %
RPMs (000,000) “traffic” 13,746 10,334 33.0ย % 24,332 15,727 54.7ย %
ASMs (000,000) “capacity” 15,611 13,413 16.4ย % 29,394 23,810 23.5ย %
Load factor 88.1ย % 77.0ย % 11.1 pts 82.8ย % 66.1ย % 16.7 pts
Yield 17.59ยข 13.09ยข 34.4ย % 16.15ยข 12.79ยข 26.3ย %
RASM 17.03ยข 11.38ยข 49.6ย % 14.76ยข 9.76ยข 51.2ย %
CASMex(b) 9.92ยข 9.20ยข 7.8ย % 10.24ยข 9.95ยข 2.9ย %
Economic fuel cost per gallon(b) $3.76 $1.90 97.9ย % $3.23 $1.85 74.6ย %
Fuel gallons (000,000) 196 168 16.7ย % 368 294 25.2ย %
ASMs per gallon 79.6 79.8 (0.3)ย % 79.9 81.0 (1.4)ย %
Average full-time equivalent employees (FTEs) 22,603 19,001 19.0ย % 22,092 18,071 22.3ย %
Mainline Operating Statistics:
Revenue passengers (000) 8,321 6,151 35.3ย % 14,887 9,302 60.0ย %
RPMs (000,000) “traffic” 12,460 8,966 39.0ย % 21,972 13,555 62.1ย %
ASMs (000,000) “capacity” 14,052 11,611 21.0ย % 26,439 20,464 29.2ย %
Load factor 88.7ย % 77.2ย % 11.5 pts 83.1ย % 66.2ย % 16.9 pts
Yield 16.28ยข 11.96ยข 36.1ย % 14.89ยข 11.64ยข 27.9ย %
RASM 16.02ยข 10.59ยข 51.3ย % 13.81ยข 9.09ยข 51.9ย %
CASMex(b) 8.98ยข 8.48ยข 5.9ย % 9.29ยข 9.17ยข 1.3ย %
Economic fuel cost per gallon(b) $3.74 $1.88 98.9ย % $3.21 $1.84 74.4ย %
Fuel gallons (000,000) 165 135 22.2ย % 311 233 33.5ย %
ASMs per gallon 85.2 86.0 (0.9)ย % 85.0 87.8 (3.2)ย %
Average number of FTEs 17,315 14,021 23.5ย % 16,825 13,247 27.0ย %
Aircraft utilization 10.1 9.9 2.0ย % 9.8 9.2 6.5ย %
Average aircraft stage length 1,363 1,320 3.3ย % 1,349 1,313 2.7ย %
Operating fleet(d) 233 202 31 a/c 233 202 31 a/c
Regional Operating Statistics:(c)
Revenue passengers (000) 2,685 2,562 4.8ย % 4,813 4,077 18.1ย %
RPMs (000,000) “traffic” 1,285 1,367 (6.0)ย % 2,360 2,172 8.7ย %
ASMs (000,000) “capacity” 1,559 1,802 (13.5)ย % 2,955 3,346 (11.7)ย %
Load factor 82.4ย % 75.9ย % 6.5 pts 79.9ย % 64.9ย % 15.0 pts
Yield 30.35ยข 20.48ยข 48.2ย % 27.88ยข 19.95ยข 39.7ย %
RASM 26.04ยข 16.41ยข 58.7ย % 23.21ยข 13.84ยข 67.7ย %
Operating fleet(d) 104 94 10 a/c 104 94 10 a/c
(a) Except for FTEs, data includes information related to third-party regional capacity purchase flying arrangements.
(b) See a reconciliation of this non-GAAP measure and Note A for a discussion of the importance of this measure to investors in the accompanying pages.
(c) Data presented includes information for flights operated by Horizon and third-party carriers.
(d) Excludes all aircraft removed from operating service.

 

Given the unusual nature of 2021 and 2020, we believe that some analysis of specific financial and operational results compared to 2019 provides meaningful insight. The table below includes comparative results from 2022 to 2019.

FINANCIAL INFORMATION AND OPERATING STATISTICS – 2022 Compared to 2019 (unaudited)
Alaska Air Group, Inc.
Three Months Ended June 30, Six Months Ended June 30,
2022 2019 Change 2022 2019 Change
Passenger revenue $ย ย ย ย ย ย ย  2,418 $ย ย ย ย ย ย ย  2,111 15ย % $ย ย ย ย ย ย ย  3,929 $ย ย ย ย ย ย ย  3,827 3ย %
Mileage plan other revenue 175 118 48ย % 287 228 26ย %
Cargo and other 65 59 10ย % 123 109 13ย %
Total Operating Revenues 2,658 2,288 16ย % 4,339 4,164 4ย %
Operating expenses, excluding fuel and special items 1,549 1,414 10ย % 3,010 2,819 7ย %
Aircraft fuel, including hedging gains and losses 776 502 55ย % 1,123 922 22ย %
Special items 146 8 NM 221 34 NM
Total Operating Expenses 2,471 1,924 28ย % 4,354 3,775 15ย %
Total Non-operating Expense (2) (13) (85)ย % (6) (32) (81)ย %
Income (Loss) Before Income Tax $ย ย ย ย ย ย ย ย ย ย ย  185 $ย ย ย ย ย ย ย ย ย ย ย  351 (47)ย % $ย ย ย ย ย ย ย ย ย ย ย  (21) $ย ย ย ย ย ย ย ย ย ย ย  357 (106)ย %
Consolidated Operating Statistics:
Revenue passengers (000) 11,005 12,026 (8)ย % 19,700 22,442 (12)ย %
RPMs (000,000) “traffic” 13,746 14,638 (6)ย % 24,332 27,087 (10)ย %
ASMs (000,000) “capacity” 15,611 16,980 (8)ย % 29,394 32,487 (10)ย %
Load Factor 88.1ย % 86.2ย % ย ย ย ย ย ย ย ย  1.9 pts 82.8ย % 83.4ย % ย ย ย ย ย ย  (0.6) pts
Yield 17.59ยข 14.43ยข 22ย % 16.15ยข 14.13ยข 14ย %
RASM 17.03ยข 13.48ยข 26ย % 14.76ยข 12.82ยข 15ย %
CASMex 9.92ยข 8.33ยข 19ย % 10.24ยข 8.68ยข 18ย %
FTEs 22,603 21,921 3ย % 22,092 21,876 1ย %

 

OPERATING SEGMENTS (unaudited)
Alaska Air Group, Inc.
Three Months Ended June 30, 2022
(in millions) Mainline Regional Horizon Consolidating
& Other(a)
Air Group
Adjusted(b)
Special
Items(c)
Consolidated
Operating Revenues
Passenger revenues $ย ย ย ย  2,028 $ย ย ย ย ย ย ย  390 $ย ย ย ย ย ย ย ย ย  โ€” $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  โ€” $ย ย ย ย  2,418 $ย ย ย ย ย ย ย ย ย  โ€” $ย ย ย ย ย ย ย  2,418
CPA revenues โ€” โ€” 101 (101) โ€” โ€” โ€”
Mileage Plan other revenue 159 16 โ€” โ€” 175 โ€” 175
Cargo and other 64 โ€” โ€” 1 65 โ€” 65
Total Operating Revenues 2,251 406 101 (100) 2,658 โ€” 2,658
Operating Expenses
Operating expenses, excluding fuel 1,262 289 98 (100) 1,549 146 1,695
Fuel expense 617 119 โ€” โ€” 736 40 776
Total Operating Expenses 1,879 408 98 (100) 2,285 186 2,471
Non-operating Income (Expense) 3 โ€” (5) โ€” (2) โ€” (2)
Income (Loss) Before Income Tax $ย ย ย ย ย ย ย  375 $ย ย ย ย ย ย ย ย ย ย  (2) $ย ย ย ย ย ย ย ย ย ย  (2) $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  โ€” $ย ย ย ย ย ย ย  371 $ย ย ย ย ย ย  (186) $ย ย ย ย ย ย ย ย ย ย  185
Pretax Margin 14.0ย % 7.0ย %
Three Months Ended June 30, 2021
(in millions) Mainline Regional Horizon Consolidating
& Other(a)
Air Group
Adjusted(b)
Special
Items(c)
Consolidated
Operating Revenues
Passenger revenues $ย ย ย ย  1,072 $ย ย ย ย ย ย ย  280 $ย ย ย ย ย ย ย ย ย  โ€” $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  โ€” $ย ย ย ย  1,352 $ย ย ย ย ย ย ย ย ย  โ€” $ย ย ย ย ย ย ย  1,352
CPA revenues โ€” โ€” 111 (111) โ€” โ€” โ€”
Mileage Plan other revenue 102 16 โ€” โ€” 118 โ€” 118
Cargo and other 55 โ€” โ€” 2 57 โ€” 57
Total Operating Revenues 1,229 296 111 (109) 1,527 โ€” 1,527
Operating Expenses
Operating expenses, excluding fuel 984 286 91 (127) 1,234 (530) 704
Fuel expense 253 66 โ€” 1 320 (46) 274
Total Operating Expenses 1,237 352 91 (126) 1,554 (576) 978
Non-operating Income (Expense) (16) โ€” (5) โ€” (21) โ€” (21)
Income (Loss) Before Income Tax $ย ย ย ย ย ย ย ย  (24) $ย ย ย ย ย ย ย ย  (56) $ย ย ย ย ย ย ย ย ย  15 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  17 $ย ย ย ย ย ย ย ย  (48) $ย ย ย ย ย ย ย  576 $ย ย ย ย ย ย ย ย ย ย  528
Pretax Margin (3.1)ย % 34.6ย %

 

Six Months Ended June 30, 2022
(in millions) Mainline Regional Horizon Consolidating
& Other(a)
Air Group
Adjusted(b)
Special
Items(c)
Consolidated
Operating Revenues
Passenger revenues $ย ย ย ย  3,271 $ย ย ย ย ย ย ย  658 $ย ย ย ย ย ย ย ย ย  โ€” $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  โ€” $ย ย ย  3,929 $ย ย ย ย ย ย ย ย ย  โ€” $ย ย ย ย ย ย ย  3,929
CPA revenues โ€” โ€” 195 (195) โ€” โ€” โ€”
Mileage Plan other revenue 259 28 โ€” โ€” 287 โ€” 287
Cargo and other 121 โ€” โ€” 2 123 โ€” 123
Total Operating Revenues 3,651 686 195 (193) 4,339 โ€” 4,339
Operating Expenses
Operating expenses, excluding fuel 2,456 551 197 (194) 3,010 221 3,231
Fuel expense 998 192 โ€” โ€” 1,190 (67) 1,123
Total Operating Expenses 3,454 743 197 (194) 4,200 154 4,354
Non-operating Income (Expense) 4 โ€” (10) โ€” (6) โ€” (6)
Income (Loss) Before Income Tax $ย ย ย ย ย ย ย  201 $ย ย ย ย ย ย ย ย  (57) $ย ย ย ย ย ย ย ย  (12) $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  1 $ย ย ย ย ย ย  133 $ย ย ย ย ย ย  (154) $ย ย ย ย ย ย ย ย ย ย ย  (21)
Pretax Margin 3.1ย % (0.5)ย %
Six Months Ended June 30, 2021
(in millions) Mainline Regional Horizon Consolidating
& Other(a)
Air Group
Adjusted(b)
Special
Items(c)
Consolidated
Operating Revenues
Passenger revenues $ย ย ย ย  1,578 $ย ย ย ย ย ย ย  433 $ย ย ย ย ย ย ย ย ย  โ€” $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  โ€” $ย ย ย  2,011 $ย ย ย ย ย ย ย ย ย  โ€” $ย ย ย ย ย ย ย  2,011
CPA revenues โ€” โ€” 215 (215) โ€” โ€” โ€”
Mileage Plan other revenue 182 30 โ€” โ€” 212 โ€” 212
Cargo and other 99 โ€” โ€” 2 101 โ€” 101
Total Operating Revenues 1,859 463 215 (213) 2,324 โ€” 2,324
Operating Expenses
Operating expenses, excluding fuel 1,877 551 179 (236) 2,371 (912) 1,459
Fuel expense 427 118 โ€” โ€” 545 (68) 477
Total Operating Expenses 2,304 669 179 (236) 2,916 (980) 1,936
Non-operating Income (Expense) (23) โ€” (10) โ€” (33) โ€” (33)
Income (Loss) Before Income Tax $ย ย ย ย ย ย  (468) $ย ย ย ย ย ย  (206) $ย ย ย ย ย ย ย ย ย  26 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  23 $ย ย ย ย ย  (625) $ย ย ย ย ย ย ย  980 $ย ย ย ย ย ย ย ย ย ย  355
Pretax Margin (26.9)ย % 15.3ย %
(a) Includes consolidating entries, Air Group parent company, McGee Air Services, and other immaterial business units.
(b) The Air Group Adjusted column represents the financial information that is reviewed by management to assess performance of operations
and determine capital allocation and excludes certain charges. See Note A in the accompanying pages for further information.
(c) Includes payroll support program grant wage offsets, special items, and mark-to-market fuel hedge accounting adjustments.

 

GAAP TO NON-GAAP RECONCILIATIONS (unaudited)
Alaska Air Group, Inc.
CASM Excluding Fuel and Special Items Reconciliation
Three Months Ended June 30, Six Months Ended June 30,
(in cents) 2022 2021 2022 2021
Consolidated:
CASM ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  15.84 ยข ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  7.29 ยข ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  14.81 ยข ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  8.13 ยข
Less the following components:
Payroll Support Program grant wage offset โ€” (3.75) โ€” (3.84)
Aircraft fuel, including hedging gains and losses 4.98 2.04 3.82 2.00
Special items – fleet transition and related charges(a) 0.94 (0.03) 0.75 0.07
Special items – restructuring charges(b) โ€” (0.17) โ€” (0.05)
CASM excluding fuel and special items ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  9.92 ยข ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  9.20 ยข ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  10.24 ยข ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  9.95 ยข
Mainline:
CASM ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  15.06 ยข ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  6.24 ยข ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  13.69 ยข ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  6.72 ยข
Less the following components:
Payroll Support Program grant wage offset โ€” (3.79) โ€” (4.21)
Aircraft fuel, including hedging gains and losses 5.06 1.78 3.84 1.75
Special items – fleet transition and related charges(a) 1.02 (0.03) 0.56 0.07
Special items – restructuring charges(b) โ€” (0.20) โ€” (0.06)
CASM excluding fuel and special items ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  8.98 ยข ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  8.48 ยข ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  9.29 ยข ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  9.17 ยข
(a) Special items – fleet transition and related charges in the three and six months ended June 30, 2022 are primarily for impairment charges and accelerated costs associated with the retirement of the A320 and Q400 fleets. The A320 fleet is expected to be retired from operating service by the end of 2022; the Q400 fleet is expected to be retired from operating service in early 2023.
(b) Special items – restructuring charges in the three and six months ended June 30, 2021 are related to the estimated costs for pilot incentive leaves.

 

Fuel Reconciliation
Three Months Ended June 30,
2022 2021
(in millions, except for per-gallon amounts) Dollars Cost/Gallon Dollars Cost/Gallon
Raw or “into-plane” fuel cost $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  824 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  4.20 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  330 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  1.96
Losses (gains) on settled hedges (88) (0.44) (10) (0.06)
Consolidated economic fuel expense 736 3.76 320 1.90
Mark-to-market fuel hedge adjustment 40 0.20 (46) (0.27)
GAAP fuel expense $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  776 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  3.96 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  274 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  1.63
Fuel gallons 196 168
Six Months Ended June 30,
2022 2021
(in millions, except for per gallon amounts) Dollars Cost/Gallon Dollars Cost/Gallon
Raw or “into-plane” fuel cost $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  1,328 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  3.61 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  552 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  1.87
Losses (gains) on settled hedges (138) (0.38) (7) (0.02)
Consolidated economic fuel expense 1,190 3.23 545 1.85
Mark-to-market fuel hedge adjustment (67) (0.18) (68) (0.23)
GAAP fuel expense $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  1,123 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  3.05 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  477 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  1.62
Fuel gallons 368 294

 

Debt-to-capitalization, including operating leases
(in millions) June 30, 2022 December 31, 2021
Long-term debt, net of current portion $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  1,961 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  2,173
Long-term and current capitalized operating leases 1,779 1,547
Adjusted debt, net of current portion of long-term debt 3,740 3,720
Shareholders’ equity 3,799 3,801
Total Invested Capital $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  7,539 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  7,521
Debt-to-capitalization ratio, including operating leases 50ย % 49ย %

 

Adjusted net debt to earnings before interest, taxes, depreciation, amortization, rent and special items
(in millions) June 30, 2022 December 31, 2021
Current portion of long-term debt $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  342 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  366
Current portion of operating lease liabilities 274 268
Long-term debt 1,961 2,173
Long-term operating lease liabilities, net of current portion 1,505 1,279
Total adjusted debt 4,082 4,086
Less: Total cash and marketable securities (3,425) (3,116)
Adjusted net debt $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  657 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  970
(in millions) Twelve Months Ended
June 30, 2022
Twelve Months Ended
December 31, 2021
GAAP Operating Income(a) $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  282 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  685
Adjusted for:
Payroll Support Program grant wage offset and special items 208 (925)
Mark-to-market fuel hedge adjustments (46) (47)
Depreciation and amortization 405 394
Aircraft rent 276 254
EBITDAR $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  1,125 $ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  361
Adjusted net debt to EBITDAR 0.6x 2.7x
(a) Operating income can be reconciled using the trailing twelve month operating income as filed quarterly with the SEC.

 

Note A:ย Pursuant to Regulation G, we are providing reconciliations of reported non-GAAP financial measures to their most directly comparable financial measures reported on a GAAP basis. We believe that consideration of these non-GAAP financial measures may be important to investors for the following reasons:

  • By eliminating fuel expense and certain special items (including Payroll Support Program wage offset, fleet transition and related charges, and restructuring charges) from our unit metrics, we believe that we have better visibility into the results of operations. Our industry is highly competitive and is characterized by high fixed costs, so even a small reduction in non-fuel operating costs can result in a significant improvement in operating results. In addition, we believe that all domestic carriers are similarly impacted by changes in jet fuel costs over the long run, so it is important for management (and thus investors) to understand the impact of (and trends in) company-specific cost drivers such as labor rates and productivity, airport costs, maintenance costs, etc., which are more controllable by management.
  • Cost per ASM (CASM) excluding fuel and certain special items, such as Payroll Support Program wage offset, fleet transition and related charges, and restructuring charges, is one of the most important measures used by management and by the Air Group Board of Directors in assessing quarterly and annual cost performance.
  • Adjusted income before income tax (and other items as specified in our plan documents) is an important metric for the employee incentive plan, which covers the majority of Air Group employees.
  • CASM excluding fuel and certain special items is a measure commonly used by industry analysts, and we believe it is the basis by which they have historically compared our airline to others in the industry. The measure is also the subject of frequent questions from investors.
  • Disclosure of the individual impact of certain noted items provides investors the ability to measure and monitor performance both with and without these special items. We believe that disclosing the impact of these items as noted above. Industry analysts and investors consistently measure our performance without these items for better comparability between periods and among other airlines.
  • Although we disclose our passenger unit revenues, we do not (nor are we able to) evaluate unit revenues excluding the impact that changes in fuel costs have had on ticket prices. Fuel expense represents a large percentage of our total operating expenses. Fluctuations in fuel prices often drive changes in unit revenues in the mid-to-long term. Although we believe it is useful to evaluate non-fuel unit costs for the reasons noted above, we would caution readers of these financial statements not to place undue reliance on unit costs excluding fuel as a measure or predictor of future profitability because of the significant impact of fuel costs on our business.

Top Copyright Photo: Alaska Airlines Boeing 737-900 ER SSWL N298AK (msn 60583) IAH (Jarrod Wilkening). Image: 958261.

Alaska Airlines aircraft slide show:

Alaska Airlines aircraft photo gallery:

 

Alaska Airlines becomes first U.S. airline to launch electronic bag tag program

Alaska Airlines made this announcement:

Today, weโ€™re announcing that we will become the first U.S. airline to launch an electronic bag tag program later this year.

Electronic bag tags will allow guests to skip the step of printing traditional bag tags at the airport. Travelers will be able to activate the devices from anywhereโ€”their home, office or even carโ€”up to 24-hours before their flight through our mobile app.

โ€œThis technology allows our guests to tag their own bags in just seconds and makes the entire check-in process almost all off-airport,โ€ said Charu Jain, senior vice president of merchandising and innovation at Alaska.โ€

Not only will our electronic bag tags allow our guests to quickly drop-off their luggage after they arrive at the airport, the devices will also give our employees the opportunity to spend more one-on-one time with guests who ask for assistance and reduce lines at our lobbies,โ€ says Jain.

The activation is done by simplyย  touching the phone used for check-in to the electronic bag tag, which has an antenna that powers and reads the information transmitted from the phone. The e-paper bag tagโ€™s screen will then display the guestโ€™s flight information.

Alaskaโ€™s electronic bag tags will display the guestโ€™s flight information.ย 

Our electronic bag tag program is expected to reduce the time spent dropping-off checked luggage by nearly 40%.ย 

In March, we launched a new self-bag drop system at San Jose International Airport, where guests can save up to a little more than four minutes. Our goal is to modernize travel at every major city we fly, from reimagining the lobby to testing innovative technology that streamlines the airport experience.

Alaska Airlines is the first U.S. airline to pioneer this innovative electronic bag tag program here at SJC,โ€ said San Josรฉ Mayor Sam Liccardo. โ€œThis program will modernize the check-in process and provide a more sustainable option for travelers.โ€

Rollout of the electronic bag tag program will happen in several phases. The first phase will initially include 2,500 Alaska Airlinesโ€™ frequent fliers who will begin using the electronic bag tags in late 2022. Mileage Plan members will have the option to purchase the devices early next year.

We are very proud to announce the first American carrier adopting our EBT solutions,โ€ said BAGTAG Managing Director Jasper Quak. โ€œAlaska Airlinesโ€™ relentless efforts to make their passenger journey a true 21st century experience makes us very confident in a successful rollout among their guests.โ€

Alaska Airlines to explore fossil-free jet fuel made from CO2

Alaska Airlines made this announcement:

Carbon transformation company Twelve, Alaska Air Group Inc., and Microsoft Corp. (Nasdaq: MSFT) have signed a Memorandum of Understanding (MOU) to collaborate on advancing the market for sustainable aviation fuels (SAF) to include fuels derived from recaptured CO2 and renewable energy, and working toward the first commercial demonstration flight in the United States powered by Twelve’s E-Jetยฎ.

Through the first-of-its-kind agreement, Twelve, Alaska, and Microsoft will work to advanceย production and use of Twelve’s E-Jetยฎ, a low carbon jet fuel produced by a power-to-liquids process leveraging the company’s carbon transformation technology, which uses only renewable energy, water, and CO2 as inputs to transform CO2 into a variety of critical chemicals and materials conventionally made from fossil fuels. As part of the work outlined to advance the scalability and use of the technology, the companies will work toward a demonstration flight using E-Jetยฎ, and to supply the fuel to address some of Microsoft’s business travel on Alaska.

“By producing our drop-in E-Jetยฎย fuel from captured CO2, we can rapidly and efficiently close the carbon cycle and allow businesses to sustainably use emissions to power their own business travel,”. said Nicholas Flanders, Co-Founder and CEO of Twelve. “Partnering with progress-minded brands like Alaska Airlines and Microsoft adds thrust as we work towards delivering industrial-scale volumes of E-Jetยฎ.”

“Alaska is on a path to net zero by 2040, which will require sustainable aviation fuels like Twelve’s E-Jetยฎ,” said Diana Birkett Rakow, senior vice president of public affairs and sustainability at Alaska Airlines. “We are committed to making SAF more widely available, at an affordable price, helping bring new alternatives to market, and using these fuels in our operation โ€“ a path that requires public policy action and private partnerships like this one. We’re excited to work with Twelve and Microsoft to advance Twelve’s E-Jetยฎย fuel, turning captured CO2 and renewable energy into fuel for our airplanes.”

“Addressing emissions from the economy’s hardest-to-abate sectors, such as aviation, will take commitment from all stakeholders,”ย said Elizabeth Willmott, Carbon Program Director at Microsoft. “Building on our Climate Innovation Fund investment in Twelve and relationship with Alaska Airlines,ย this collaboration provides an opportunity to accelerate decarbonization in the aviation industry byย exploring how to useย low carbon fuels produced by renewable electricity, like Twelve’s E-Jetยฎ.”

Produced using Twelve’s carbon transformation technology and in partnership with Emerging Fuels Technology, E-Jetยฎย is a fuel with over 80 percent lower lifecycle emissions. Transitioning to E-Jet will not only reduce reliance on fossil fuels but will release fewer particulates and reduce impacts on neighboring communities. In March, Shopify, one of the largest corporate purchasers of long-term carbon removal, announced the first purchase of E-Jetยฎย through the company’s Sustainability Fund.

SAF is a core part of Alaska’s five-part pathway to net zero by 2040. Since 2010, Alaska has worked with various public and private partners to advance public policies needed to jumpstart the nascent SAF market, create new offtake agreements and cultivate partnerships to accelerate market development. Alaska was also a founding member of the Aviators Group of the Sustainable Aviation Fuel Buyers Alliance, announced at COP26, bringing an operator’s perspective to collaborations driving demand and supply.

Alaska Airlijnes aircraft photo gallery:

Alaska Airlines surprises employees with 90,000 miles to travel the globe

Alaska Airlines is celebrating its 90th anniversary by giving all employees the gift of travel:

While many of us were instructed to stay home during the pandemic, airline employees were part of the essential workforce who remained on the front lines. Each day brought new challenges, regulations and precautions that our people had to carefully navigate while continuing to care for our guests, communities and each other.

As we inch our way to a new normalโ€”happily seeing travelers’ pent-up desire to hop on a planeโ€”Alaska is taking a moment to thank each employee for their relentless commitment to caring for our guests for 90 years & counting by giving them 90,000 miles to fly anywhere in the world.

“As we celebrate 90 years of flying, we wouldn’t be where we are today without our incredible people who work nonstop to keep things moving, even throughout a global pandemic,” said CEO Ben Minicucci. “When you think about how many airlines have come and gone since 1932, it’s an amazing achievement that we’re still here and stronger than everโ€”it’s because of the genuine care and hard work our people bring to our operation every day.”

The great thing about miles is they never expire and offer flexibility to travel not just on Alaska, but also on our oneworld partners like British Airways, Qantas, Qatar Airways, Finnair and our other airline partners. Travel awards begin at just 5,000 miles, and can be used to book First Class tickets, a relaxing stay at a hotel or tickets to an anticipated eventโ€”there are so many ways to use airline miles!

With 90,000 miles, you can plan a trip to almost anywhere in the world:

  • For instance, a roundtrip flight from Seattle up and down the West Coast starts at just 10,000 roundtrip, which means you can get you up to nine roundtrip flights!
  • Roundtrips from Seattle to New York start at 25,000 miles, or even visit Hawaii from San Francisco starting at 30,000 miles roundtrip.
  • Want to travel internationally? A roundtrip flight to Europe from the West Coast starts at 60,000 miles through our oneworld partners. Mileage prices do vary so search for your travel dates to see the prices for the dates and cabins you want to travel in.

Alaska Airlines aircraft photo gallery (Boeing):

Machinists Union reaches tentative agreement extension for 5,300 members at Alaska Airlines

The International Association of Machinists and Aerospace Workers (IAM) has reached a tentative agreement with Alaska Airlines that, for the first time in the carrierโ€™s history, will put approximately 5,300 Alaska Airlines workers at the top of the airline industryโ€™s pay scale.

The tentative agreementย extensionย covers IAM members who work in Ramp, Stores, Clerical, Office and Passenger Service at the carrier. Alaska Airlines hubs include Anchorage, Alaska; Seattle-Tacoma; Portland, Ore.; San Francisco; and Los Angeles.

If ratified by IAM members at Alaska Airlines, the four-year contract would:

  • Raise base wage rates for all classifications to between 8.9% and 17.4% on Aug. 10, 2022.
  • Further raise all base wages rates for all classifications by 2.5% on Aug. 10, 2023
  • Base wage rate will also increase a minimum of 2.5% on Aug. 10, 2024 and Aug. 10 2025, subject to an industry review.
  • In 2024 and 2025, the agreement calls for an industry review, which will give employees a minimum 2.5% base wage rate or the percentage required to match the top of the scale as the No. 4 airline, whichever is greater.
  • No changes to strong existing medical and other benefits.
  • Longevity pay increases starting after year 6 at 5 cents per hour, and topping out after year 12 and beyond at 35 cents per hour.
  • Strong existing job security language extended until Sept. 27, 2028.

Alaska Airlines/IAMAW

TENTATIVE AGREEMENT HIGHLIGHTS

DURATION

Existing Collective Bargaining Agreements extended 2-years with a new amendable date of 9/27/26

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BASE WAGE RATE INCREASES

  • All Base Wage Rates will be increased on August 10, 2022 between 8.9% to 17.4% for all classifications.
  • All Base Wage Rates will be increased on August 10, 2023 by 2.5% for all classifications.
  • All Base Wage Rates will be increased on August 10, 2024 by a minimum of 2.5% for all classifications, subject to industry wage review.
  • All Base Wage Rates will be increased on August 10, 2025 by a minimum of 2.5% for all classifications, subject to industry wage review.

    LONGEVITY INCREASE

  • $.05 cents after 6 years
  • $.10 cents after 7 years
  • $.15 cents after 8 years
  • $.20 cents after 9 years
  • $.25 cents after 10 years
  • $.30 cents after 11 years
  • $.35 cents after 12 years and beyond

INDUSTRY WAGE REVIEW

Existing Wage review LOA in both agreements modified to reflect a review in 2024 and 2025, which will give us a minimum 2.5% raise or an increase that will match the Top of Scale to number 4 in the industry, whichever is greater.

BENEFITS INCLUDING MEDICAL

No changes to existing language in the Collective Bargaining Agreements.

JOB SECURITY

Existing work security in current Collective Bargaining Agreements extended to September 27, 2028, which is two years past the new amendable date of September 27, 2026.

Alaska Airlines adds Cleveland and returns to Miami, will also fly Salt Lake City – Anchorage

Alaska Airlines made this announcement:

With the official start of summer just days away, Alaska Airlines is once again expanding its horizons with the launch of five new routes this week as many of us are eager for fun in the sun in different places.

We’re now flying to two new cities: Cleveland and Miami with daily nonstop service from our hometown hub in Seattle/Tacoma. Plus, we keep growing in Boise with new nonstops to both Idaho Falls and Las Vegas. And we have a new nonstop flight between Anchorage and Salt Lake City.

We begin flying between Seattle/Tacoma and Cleveland on June 16. This summer, we’re the only airline connecting the vibrant city in Northeast Ohio with nonstop service to the Pacific Northwest. Cleveland becomes the third city we’ll serve in the Buckeye State with daily nonstops to Seattle joining Columbus and Cincinnati.

Alaska also launched June 16 its new daily nonstop flight between Seattle/Tacoma and Miami. The popular South Florida vacation spot becomes the airline’s 100thnonstop destination from Seattle โ€“ a cultural hub for travelers around the world with its incredible nightlife, art, music, architecture and food. Since 2012, we’ve provided nonstop service between Seattle and Fort Lauderdale, just to the north of Miami.

Alaska Airlines returns to Miami International Airport for the first time in 10 years.

In Boise, Alaska keeps growingย with a pair of new flights. Starting on June 16, Alaska now offers daily nonstop service to both Idaho Falls and Las Vegas from the Idaho capital city. With these additional routes, Alaska flies an average of 31 daily departures fromย Boiseย to 15 destinations โ€“ all nonstop.

The added route joins its existing flights from the Spokane/Coeur d’Alene andย Pullman/Moscowย areas to link all key population centers across the state toย Boise,

Starting June 18, Alaska will connect two summertime spots that are famous for outdoor adventures: Anchorage and Salt Lake City. Alaska will fly nonstop every week. This summer, Alaska will offer a wide variety of 22 nonstop destinations from Anchorage.

MIA made this announcement:

Water cannon salute to Alaska Airlines plane

Water cannon salute to Alaska Airlines plane

Officials from Alaska Airlines and Miami International Airport doing the coffee exchange as a symbolic gesture representative of both cities: Miami and Seattle. From left: Thomas McMahon, Director of Airport Operations, Alaska Airlines; David Asher, Senior Network Analyst, Alaska Airlines; and, Dan Agostino, Assistant Director of Operations, Miami-Dade Aviation Department

Officials from Alaska Airlines and Miami International Airport doing the coffee exchange as a symbolic gesture representative of both cities: Miami and Seattle. From left: Thomas McMahon, Director of Airport Operations, Alaska Airlines; David Asher, Senior Network Analyst, Alaska Airlines; and, Dan Agostino, Assistant Director of Operations, Miami-Dade Aviation Department

Ribbon-cutting ceremony. From left: Thomas McMahon, Director of Airport Operations, Alaska Airlines; David Asher, Senior Network Analyst, Alaska Airlines; and, Dan Agostino, Assistant Director of Operations, Miami-Dade Aviation Department

Ribbon-cutting ceremony. From left: Thomas McMahon, Director of Airport Operations, Alaska Airlines; David Asher, Senior Network Analyst, Alaska Airlines; and, Dan Agostino, Assistant Director of Operations, Miami-Dade Aviation Department

On June 16, Alaska Airlines resumed daily Seattle-Miami service for the first time since 2012, making Miami the airlineโ€™s 100th nonstop destination from its ยญยญยญยญยญยญhometown airport in Seattle and ยญยญยญยญgiving South Florida residents another travel option to the Pacific Northwest. Alaska Airlines will serve its newest route with Boeing 737-8 and -9 aircraft that seat 159 and 178 passengers, respectively.

Alaska Airlines aircraft photo gallery:

Alaska Airlines pilots vote overwhelmingly to authorize a strike

ALPA issued this statement:
Alaska Airlines pilots, represented by the Air Line Pilots Association, Intโ€™l (ALPA), said firmly today that theyโ€™re willing to strike if agreement on a new employment contract cannot be reached. With nearly 96 percent of members participating, an overwhelming 99 percent of Alaska pilots authorized union leaders to call a strike if necessary and when the parties are permitted by the National Mediation Board (NMB) to take that action.

The vote follows informational picketing last month where over 1,500 off-duty pilots, nearly half of the pilots employed by the airline, and their supporters, lined airports and streets at every Alaska Airlines base, the largest event of its kind in ALPAโ€™s history.

โ€œFor three years, Alaska pilots have been resolved in their commitment to reach a new agreement and today, we spoke with one unified voice, just like we did with our recent informational picketing event,โ€ said Capt. Will McQuillen, chairman of the Alaska Airlines ALPA Master Executive Council. โ€œFor years, we have been working toward a market-based contract with reasonable solutions that address work rules, scheduling flexibility, and career-security issues that pilots at other companies enjoy, not a strike. Now is the time for management to respond and engage constructively at the bargaining table.โ€

Before a strike can take place, the NMB must first decide that additional mediation efforts would not be productive and offer the parties an opportunity to arbitrate the contract dispute. If either side declines the arbitration, both parties enter a 30-day โ€œcooling offโ€ period, after which pilots and management can engage in self-helpโ€”a strike by the union or a lockout by management.

Alaska Airlines aircraft photo gallery:

 

Alaska Airlines: Here’s how to become a pilot with Alaska Airlines and Horizon Air

Facing a possible strike by its pilots, Alaska Airlines is stepping up its efforts to hire more pilots:

Austen Pyle was 13 when he knew he wanted to fly โ€” it was his first brush with the sky in a glider. Today, less than 10 years after that first flight, heโ€™s starting his pilot training with Horizon Air, Alaskaโ€™s regional airline in the Pacific Northwest. Within a few months, heโ€™ll be a first officer โ€“ following in his mentorโ€™s flight path.

Lawrence and Austen at Aviation Day, 2015
Lawrence and Austen at Aviation Day, 2022

Like many pilots, it took just one flight to inspire a career. Lawrence Pavlinovic, then a Horizon Air captain and now an Alaska captain, was the glider flight instructor that auspicious day. He saw Pyleโ€™s passion for flight immediately and took him under his wing โ€“ inviting him to Aviation Day, an annual event hosted by Alaska and Horizon to inspire careers in aviation.

โ€œLawrence really pushed me to explore aviation as an option,โ€ says Pyle. โ€œHe opened my eyes, and Iโ€™m so glad he did.โ€ย 

Pyle, once the mentee attending Aviation Day, became the mentor over the weekend, discussing the journey to becoming a pilot.

Nowโ€™s the best time to become a pilot

The need for the next generation of pilots is greater than ever. Alaska and Horizon expect to hire more than 900 pilots by the end of 2022 to replace thousands of pilots who retired during the pandemic or are approaching the mandatory retirement age of 65. Across the industry, mainline airlines are hiring about 10,000 pilots this year alone.

Alaska Airlines First Officer Mallory C

But in between the moment a love of flying is sparked and a career, aspiring pilots like Pyle face a journey that requires a daunting investment of time and money. On average, it can cost around $90,000 for education, flight training and certifications, and pilots must log hundreds of flying hours before they can fly for commercial airlines.โ€ฏHowever, the opportunities for financial and other support while navigating this journey are growing.

Alaska has launched several pilot-development programs โ€“ including most recently True North, a partnership with two historically black colleges and universities (HBCUs), and Ascend Pilot Academy, a partnership with Hillsboro Aero Academy in Oregon โ€“ to encourage aspiring pilots from diverse backgrounds to follow their dream.

โ€œIf youโ€™re going to do this, do it 100 percent,โ€ โ€“ Austen Pyle at Alaska Airlines Aviation Day May 2022

Want to fly? Here are some tips and resources to get you off the ground:

Find your passion: Take a discovery flight

Flight schools and many flying clubs offer an hour with a flight instructor who includes an introduction to ground school as well as time at the controls in the air. Pilots say this is the best way to determine if a curiosity about flying will transform into a passion and commitment to do the work.

โ€œDo one flight. Thatโ€™s all it will take for you to decide if you want to become a pilot or not,โ€ says Pyle.

Alaskaโ€™s annual Aviation Day events in Seattle and Portland also provide an opportunity for young people to explore careers across the industry. Seattleโ€™s event was May 7, but thereโ€™s still time to attend the event in Portland, coming up Saturday, May 21. Learn more about registering.

Plan your pathway: Explore Alaskaโ€™s pilot-development programs

Pyle started out at the Evergreen Soaring Club and worked toward his pilotโ€™s license while still in high school. โ€œI actually got my private pilotโ€™s license before my driverโ€™s license,โ€ he said.

When he started Central Washington Universityโ€™s aviation program, Pyle interviewed right away for the Horizon Air Pilot Development Program, which partners with universities while providing a stipend, mentorship and a pathway to a future job at Horizon.

โ€œThat was really special for me as a freshman in college to know that I had an airline job waiting for me when I was ready,โ€ said Pyle.

And Alaskaโ€™s newest pilot-development programs are designed to recruit students with diverse backgrounds, part of our commitment to increase the diversity of our workforce at all levels by 2025.

The True North pilot-development program was launched in fall 2021 in partnership with Delaware State University and University of Maryland-Eastern Shore, two historically black colleges and universities (HBCUs). True Northโ€™s goal is to recruit and support BIPOC pilots on their journeys, and students receive guaranteed first officer positions at Horizon upon graduation, along with a confirmed path to Alaska.

Ascend Pilot Academy launched in March in partnership with Hillsboro Aero Academy in Oregon to provide resources and a career path for aspiring pilots, including those who donโ€™t yet have flight experience. Once accepted, cadets receive a stipend and financial assistance for training, as well as a confirmed job with Horizon once qualified. โ€œAviation is for everyone,โ€ says Carlos Zendejas, vice president of flight operations for Horizon Air. โ€œOur programs help navigate the how-to of becoming a pilot, and we know that finances are a barrier, so our programs have stipends to help with that as well.โ€

We need to find the youngย pilots and weโ€™ve got to grow them. Thatโ€™s where True North came from.โ€ โ€“ Captain Ron Limes, one of the founders of True North and Alaskaโ€™s director base chief pilot in Seattle.

Captain Limes loved planes as a child, but knew as a teen he was destined to fly them when he took a discovery flight over the New York City skyline.

Seek out support through pilot associations and flying clubs

Aerospace associations and flying clubs offer a wealth of resources โ€“ from scholarships to assistance in sorting through education options, to job opportunities. For example, Alaska Airlines Captain JP Wilson found a job at Horizon Air through a career fair sponsored by the Organization of Black Aerospace Professionals.

Captain Wilson knew he wanted to fly planes from the time he was a kid angling for the window seat while tagging along on his dadโ€™s business trips.ย 

Limes says associations provide vital guidance from mentors who have already navigated the journey to becoming a pilot, which is especially valuable for diverse students who are entering a field long dominated by white male pilots.

โ€œYou can find a group where somebody has already broken the barrier for you. Iโ€™m so thankful for the generations ahead of me who made the way smoother for me,โ€ says Limes.

A few of the associations and clubs with Alaska and Horizon members:ย 

Find a mentor to help you stay the course

As a young man, Pavlinovic chased his aviation dreams for years, but kept running into roadblocks โ€“ from his parents, who initially pushed him to be a doctor or lawyer instead of a pilot, to the Air Force recruiter who told him he couldnโ€™t fly because he wore glasses (not true). He credits a naval aviator who was a flight instructor in the Civil Air Patrol for encouraging him to not give up. It took many years, along with money from the veteransโ€™ benefits he earned through 21 years of service in the Marines and Army, to achieve his dream of becoming a commercial pilot.

Now when he meets young people like Pyle who have a passion for flying, heโ€™s eager to help them on their way. โ€œBecause of my experience in the military and the civilian world, which is where I did all my flying, I can tailor my mentorship to a young man or woman and talk through the different ways they can pursue this,โ€ says Pavlinovic.

Across Alaska and Horizon, pilots take mentorship to heart, and veteran pilots are matched with students in all our associated pilot-development programs.

We look for pilots who want to be mentors, who want to give back. We ask about it in interviews. A lot of our pilots love to give back.โ€ โ€“ Captain JP Wilson

Pyle has already found ways to mentor up-and-coming pilots. While still in high school, he put together a presentation on aviation careers for a class of fifth graders โ€“ complete with metal wings donated from Alaska and Horizon. And as a flight instructor, he would tell his students: โ€œIf youโ€™re going to do this, do it 100 percent until you are done and nothing less.โ€

Now that heโ€™s achieved one goal, Pyle has his sights set on another: โ€œIโ€™ve told Lawrence, โ€˜On your retirement flight, I want to be your first officer.โ€™โ€

Photos by Joe Nicholson