Tag Archives: Alaska Airlines

Due to strong demand, Alaska will make its new Seattle/Tacoma – Rome route a daily Boeing 787 flight

Alaska Airlines is now selling tickets to Rome from our expanding global gateway in Seattle โ€“ another milestone as a growing global airline. Weโ€™ll offer daily, seasonal summer service between Seattle and Leonardo da Vinci Fiumicino International Airport in Rome beginning on April 28, 2026.

Due to strong guest response, we increased the Seattle-Rome flight frequency from 4 times a week to daily. Weโ€™re the only airline offering the convenience of a daily nonstop. On board, guests will enjoy a reimagined global travel experience on our widebody, long-haul 787 Dreamliner aircraft.

Guests can purchase roundtrip airfares to Rome as low as $599 at alaskaair.com. Weโ€™ll soon begin ticket sales for our new daily, year-round service between Seattle and London Heathrow, which also starts flying next spring.

Rome car image

Imagine exploring the sun-splashed ancient landmarks of Rome or strolling along the vibrant Thames in London. Alaskaโ€™s new international flights can take you to the heart of all the action โ€“ infused with the award-winning service, comfort and care that you expect from us as we connect the Pacific Northwest and Europe. Rome and London are two of the most popular and requested nonstop destinations from Seattle.

With our nonstop service from Seattle to Rome and London, weโ€™re opening the door to two of the worldโ€™s most iconic regions with the style and care our guests expect from us. These new routes mark a tremendous step in our global expansion and reflect our commitment to delivering a premium international experience from Seattle. Weโ€™re elated to connect the Pacific Northwest to more of the world.โ€

Andrew Harrison

Chief commercial officerAlaska Airlines

With Atmosโ„ข Rewards, our award-winning loyalty program designed to deliver more choice, more rewards and more global access than ever before to our members, trips to Rome and London will earn big points: 1 point and 1 status point per mile flown. (Points can be redeemed for flights, hotels and more, and status points track progress toward status levels and milestones.) Later in 2026, members can choose how they earn based on distance traveled, price paid or segments flown โ€“ whichever works best for them.

Plus, Atmos Titanium status holders will receive complimentary lie-flat upgrades on our intercontinental routes on the day of departure, beginning in spring 2026, subject to availability. Weโ€™re the only airline loyalty program to offer this upgrade type without requiring a certificate or points.

Rome car image
Gelato in Rome
Woman walking through Rome

New nonstop service to Italy

City pairStartEndDepartureArrival
Seattle โ€“ RomeApril 28, 2026October5:30 p.m.1:15 p.m. +1
Rome โ€“ SeattleApril 29, 2026October3:25 p.m.5:45 p.m.

All times local 

A new Alaska global experience

Alaska is introducing a new curb-to-cabin experience on our widebody aircraft that will set the bar for international journeys from the U.S. What weโ€™re sharing today is the first glimpse of the world-class experience weโ€™re curating.

This is the Alaska experience our guests already love โ€“ taken to an entirely new level. Weโ€™re building the most extraordinary guest experience of any U.S. airline flying internationally. Our guests will feel the difference from the moment they take off to the moment they arrive.โ€

Todd Traynor-Corey

Vice president of guest products and experienceAlaska Airlines

Business Class amenities

  • Ultimate comfort with 34 enclosed suitesย outfitted with fully lie-flat seats in a 1-2-1 seating configuration, privacy doors, direct aisle access from every seat, 18โ€ HD monitors to enjoy inflight entertainment with noise-reducing headsets, a power outlet at each seat and wireless charging
  • Enjoy Alaska Lounge accessย to kick off your journey in style with West Coast-inspired light meals, wines, brews and cocktails in a relaxing space
  • Multi-course, elevated dining on boardย with a variety of selections to choose from that can be pre-ordered, along with fine wines and inspired cocktails
  • Weโ€™re creating a culinary journeyย by bringing the best of the West Coast to the world with our Chefโ€™s (tray) Table program, and partnerships with Salt and Straw, Straightaway Cocktails and Stumptown Coffee, to name a few
  • Enhanced comfort and careย with Filson bedding and blankets, and amenity products by Salt & Stone โ€“ collaborations with our West Coast partners
Alaska Global Livery for the Boeing 787-9 Dreamliner

Premium Class and Main Cabin amenities

  • Premium Class seatingย that offers more legroom, priority boarding and personal power outlets
  • Two chef-inspired mealsย served in Premium Class and the Main Cabin during the flight, along with complimentary beer and wine (complimentary spirits are also offered in Premium Class)
  • An extra layer of comfortย with Filson blankets and comfort kits with Salt & Stone products
  • Free onboard entertainmentย provided with seatback monitors showcasing new release movies and classic films, as well as dozens of TV show

Alaska is set to bring ultra-fast Starlink Wi-Fi to our 787-9 aircraft in fall 2026. The service will be free for Atmos Rewards members thanks to T-Mobile.

Our Seattle Global Gateway: Home base for the Dreamliner

In addition to serving Rome and London from Seattle next spring, we currently fly the Dreamliner to Seoul Incheon. The aircraft will begin serving Seattle-Tokyo Narita in 2026, a route that has been flown with the A330 since May. (We start flying to Reykjavik, Iceland, on May 28, 2026, with a 737 MAX 8 aircraft.)

Alaska Global Livery for the Boeing 787-9 Dreamliner

Future Plans

By 2030, we plan to serve at least 12 intercontinental destinations from Seattle, with additional routes to be announced in the years to come. We currently have four 787-9s in our fleet; a fifth is scheduled to be delivered by the end of this year.

To support Alaskaโ€™s transformation, weโ€™re establishing a 787 hub in Seattle, deploying up to 17 Dreamliners across our global network. Our Seattle home base is the largest airline hub on the West Coast, serving 109 nonstop destinations across our network for convenient travel options and connections.

Hawaiian Airlinesโ€™ widebody A330s, dedicated to long-haul flights to and from Hawaiโ€˜i and based in Honolulu, will undergo substantial upgrades over the next few years, including all-new interiors, updated lie-flat seats and refreshed main cabin seating.

Alaska Airlines launches new era of inflight dining with Chefโ€™s (tray) Table โ€“ a First Class experience

  • Alaska Airlines launches Chefโ€™s (tray) Table, a new rotating First Class dining experience featuring seasonal menus crafted by celebrated West Coast chefs, starting with James Beard Award-winner Chef Brady Ishiwata Williams of Seattleโ€™s Tomo restaurant.
  • Born from the success of last yearโ€™s collaboration with Chef Brandon Jew, the program will spotlight regional culinary talent and culturally rooted cuisine, reflecting the West Coastโ€™s rich food scene and deepening Alaskaโ€™s commitment to community and quality.
Two chefs in white uniforms stand confidently with their arms crossed in front of an Alaska Airlines plane, featuring the airline's logo and colorful design.

Alaska Airlines is further elevating inflight dining with the launch of its newest culinary initiative,ย Chefโ€™s (tray) Table, a First Class dining program designed by celebrated chefs up and down the West Coast. The program debuts with a thoughtfully crafted menu by Chef Brady Ishiwata Williams, the James Beard award-winning talent behind Seattleโ€™s renowned Tomo restaurant.

A chef in a white uniform is preparing a colorful plated dish in a professional kitchen setting, showcasing vibrant vegetables on a white plate.

Alaska Airlinesโ€™ new Chefโ€™s (tray) Table program was born from the overwhelming success of its collaboration with San Franciscoโ€™s Chef Brandon Jew that launched last year. What began as a single partnership to elevate the onboard dining experience made it clear: guests are hungry for meals that reflect the West Coastโ€™s rich, diverse culinary culture.

An overhead view of a beautifully arranged dining table featuring a variety of dishes including a fish entree, soba noodles, edamame, assorted pickles, and dessert, alongside a menu from the restaurant Tomo.

That success laid the groundwork for an expanded, rotating chef series featuring menus that change seasonally and spotlight regional talent. As a natural next step, Chef Jew is now part of the official Chefโ€™s (tray) Table program, which will grow into a lineup of top chefs whose signature styles and culinary stories are thoughtfully woven into the inflight experience.

A flight attendant wearing a chef's jacket presents a wooden tray with a gourmet meal, featuring glazed short ribs, sautรฉed greens, and pickled vegetables, inside an airplane cabin.

Honoring Heritage and Community: The Story Behind Chef Bradyโ€™s Tomo

Chef Brady Ishiwata Williams stands in front of his restaurant, Tomo, decorated with colorful flyers on a pole in a vibrant neighborhood.

Chef Bradyโ€™s Seattle restaurant, Tomo, is named in honor of his grandmother, Tomoko Ishiwata Bristol, whose cooking deeply influenced his culinary journey. A self-taught chef, Brady got his start in his grandparentโ€™s diner before rising through the ranks to become executive sous chef at a Michelin-rated restaurant in Brooklyn, and later, executive chef at Seattleโ€™s iconic Canlis where he earned a James Beard Award for Best Chef. He opened Tomo in 2021 to much anticipation in the vibrant, diverse neighborhood of White Center, aiming to offer the community a rich culinary experience that reflects his Japanese American heritage and creativity.

Chef Brady Ishiwata Williams, wearing a white uniform, poses inside an Alaska Airlines cabin, showcasing his tattoos and a welcoming smile.

โ€œEvery dish and ingredient carries a story, and Iโ€™m incredibly proud to partner with an airline that champions local business owners like me to bring elevated and culturally rooted cuisine to the skies,โ€ said Chef Brady Ishiwata Williams. โ€œThis collaboration has shown me how deeply Alaska cares about every detail โ€” from carefully selecting its partners to food sourcing โ€” and how committed they are to transforming your tray table into the chefโ€™s table. These are dishes I make in the kitchen, and thanks to Alaska, I now get to share them with guests in the sky.โ€

โ€œWe know that food connects people to the world, different cultures and a sense of place. The Chefโ€™s (tray) Table brings that connection to life onboard, before our guests even reach their destinations,โ€ said Traynor-Corey. โ€œWeโ€™re thrilled to kick off our next culinary chapter with Chef Brady, who brings the flavors of the Pacific Northwest and his Japanese American heritage to the skies in a way thatโ€™s both innovative and delicious.โ€

Last month, Alaska unveiled Chef Jewโ€™s new spring menu and expanded his Cantonese-inspired First Class dishes to more East Coast routes from San Francisco, building on a successful partnership that launched last year to an overwhelmingly positive response from guests.

Preorders begin today.

The exclusive menu launches in First Class on June 5 with preorders starting today.

Available on flights between Seattle and John F. Kennedy International Airport, Newark Liberty International Airport and Ronald Reagan Washington National Airport.

No matter where our guests sit, Alaska delivers a premium dining experience with a variety of chef-curated cuisine. That includes our Main Cabin.

Alaska also recently unveiled its newest 100% plant-based and gluten-free The Best Laid Plants grain bowl for Main Cabin guests on most flights over 1,100* miles. Created in collaboration with the culinary team at Seattle-based Evergreensโ„ข โ€” The Best Laid Plants grain bowl features Chimichurri Tofu, avocado, quinoa, and a side of Mango Habanero Dressing.

Fueled by Alaskaโ€™s industry leading pre-order program, the airline continues to offer more inflight dining choices than any other U.S. carrier. Guests can now choose from up to five chef-curated dishes, including at least one hot meal option on flights over 1,100* miles. In addition to Alaskaโ€™s freshly prepared selectionsโ€”like the guest-favorite Signature Fruit & Cheese Platterโ€”fresh meals are available exclusively through pre-order purchase.

For Alaskaโ€™s spring menu available in First Class, Premium Class and Main Cabin, click here.

Full Chef Brady Ishiwata Williams First Class Menu:

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Route: SEA to EWR/JFK; EWR/JFK to SEA; SEA to DCA; DCA to SEA

Departures 5-9:59 a.m. 

Breakfast: Mochi Waffle & Fried Chicken: rice flour bubble waffle topped with crispy tempura fried chicken. Served with an apple miso butter and a tamari-maple syrup.

Routes: SEA to DCA/EWR/JFK

Departures 10 a.m. โ€“ 11:59 p.m. 

Dinner: Klingemann Farms Glazed Short Rib: Klingemann Farms Short Rib, from Central Washington, glazed with a balanced serrano jaew sauce. Complemented with soy and Shaoxing Wine stir-fried rice cakes, spinach, & hon-shimeji mushrooms and steamed baby bok choy. Served with tangy pickles and radishes.

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Route: DCA/EWR/JFK to SEA

Departures 10 a.m. โ€“ 10:59 p.m. 

Dinner: Buckwheat Soba with Ahi-tuna Tataki: buckwheat soba noodles in a cold ponzu broth, served chilled and topped with edamame, scallions, pickled seaweed, tofu, cucumber and shiso leaf. Seared ahi-tuna tataki served on the side with a spicy chili crisp.

*Certain meal options may not be available on some flights, including redeye flights or where catering is not available

Alaska Airlines aircraft photo gallery:

A collage of Alaska Airlines' Boeing aircraft displaying their current livery, featuring an artistic design that represents the airline's brand, with various angles and colors of the planes on display.
Alaska Airlines aircraft photo gallery (Boeing)

Both new books now available on Amazon:

FedEx:

Cover of the book 'The Aircraft of FedEx The Purple Promise', showcasing a FedEx aircraft with the company logo in purple, discussing the history and global network of the airline.

Boeing 727 Part 1:

Book cover of 'The Complete History of the Boeing 727: Part 1 Development, Flight Testing and Entry into Service' by Brian Worthington, featuring an illustration of a Boeing 727 aircraft.

Alaska adds new routes from Los Angeles and San Diego

Alaska Airlines is expanding service at two of its major hubs in Southern California with new routes and additional capacity to popular West Coast destinations as part of the carrierโ€™s ongoing commitment to growth in the state.ย 
ย 
Starting this fall, weโ€™re adding our 39thย nonstop destination from San Diego with service to Las Vegas. Weโ€™re also starting new service between Los Angeles and Pasco, as well as bringing back guest favorite Los Angeles to Reno. Guests can now book these new, nonstop routes onย alaskaair.comย with service beginning Oct. 1, 2024.
ย 
Alaska also announced it is adding more flights to destinations already serve out of Los Angeles International Airport, increasing capacity by more than 25%, including to Boise, Medford, Portland, San Jose, Santa Rosa and Seattle/Tacoma.

In Los Angeles, weโ€™ll start to fly our expanded schedule on Oct. 1, 2024 when weโ€™ll offer the most daily flights to West Coast destinations of any airline from LAX.ย 

Alaska Airlines aircraft photo gallery:

Screenshot

Alaska Airlines corporate sustainable aviation fuels program adds Deloitte as participant with business travel emissions-reduction agreement

Alaska Airlines and Deloitte on August 11 announced an agreement to advance purchase and use of sustainable aviation fuels (SAF) through Alaska’s new corporate SAF program, part of the company’s Ever Green program to advance environmental sustainability. As a participant in the program, Deloitte will reduce the emissions of their business travel with Alaska by approximately 1,050 metric tons of carbon dioxide.

Alaska and Deloitte will collaborate on the purchase of SAF certificates which provide an accounting framework to expand the market for SAF and capture the emissions reduction value for corporate purchasers.

By Chad Slattery.

SAF is currently available in volumes amounting to less than one percent of total fuel use but is a safe, certified fuel that meets all jet fuel standards and can reduce carbon emissions by as much as 80% on a lifecycle basis. Through their corporate SAF program, Alaska intends to address some of the key barriers to scaling SAF production such as feedstock accessibility, facilities, transportation and storage, pricing, engine infrastructure and demand from operations and customers.

Alaska Airlines aircraft photo gallery (Airbus):

Alaska Airlines launches new program to advance sustainable aviation fuels through corporate partnerships, shared learning

Alaska Airlines is taking the next step in advancing sustainable aviation fuels (SAF) as part of Alaska’s Ever Green program for improvements in environmental sustainability. On August 11 Alaska launched a program to engage its corporate customers in the decarbonization journey through purchase of SAF credits and continued efforts to expand education and awareness about opportunities to improve the sustainability of business travel including through use of SAF. The program builds on a first-in-the-US program launched with Microsoft in 2020 to reduce corporate business travel emissions through corporate partnerships.

The program launches with participation from Microsoft, Boeing and Washington State University (WSU). Microsoft has also committed to reducing the scope 3 emissions of their business travel with Alaska. Program participants will further deepen the experience with pilot book and claim systems and build upon those efforts to advance awareness and education on sustainable travel topics among all corporate customers.

Alaska’s program includes Boeing and WSU as aviation and academic value chain partners to share knowledge and advancements in sustainable business travel with corporate participants. Together, participants will collaborate to advance sustainability in business travel, increase education and awareness, and identify and act on opportunities for collective action.

“WSU has long been a national leader in climate and sustainability research, including in the development and adoption of SAF,” said Kirk Schulz, president of WSU. “We look forward to supporting this coalition of forward-looking companies committed to decarbonizing air travel.”

SAF is currently available in volumes amounting to less than one percent of total fuel use but is a safe, certified fuel that meets all jet fuel standards and can reduce carbon emissions by as much as 80% on a lifecycle basis. Through the program, Alaska intends to expand understanding of and action to address some of the key barriers to scaling SAF production such as feedstock accessibility, facilities, transportation and storage, pricing, engine infrastructure and demand from operations and customers. Additionally, participants may tackle other topics related to sustainability in travel.

Last year, Alaska announced its commitment and five-part roadmap to reduce the company’s carbon emissions to net-zero by 2040, including SAF as the most significant opportunity to reduce carbon emissions over the next few decades. Additionally, Alaska set 2025 goals to improve its impact relative to carbon, waste, and water.

Alaska Airlines aircraft photo gallery:

IAM-represented employees at Alaska Airlines ratify two-year contractโ€ฏextension

Alaska Airlines’ airport customer service agents, stores, cargo, ground service and reservations agents, who are represented by the International Association of Machinists and Aerospace Workers (IAM), have ratified a two-year contract extension. The contract passed overwhelmingly and includes increased pay with market reviews to ensure wage rates stay competitive, as well as increases in longevity pay. Job security has also been extended until Sept. 27, 2028.

Alaska’s airport customer service agents, stores, cargo, ground service and reservation agents are responsible for assisting guests with upcoming and day-of travel, managing aircraft material and parts, loading cargo and readying aircraft for departures and arrivals.

The previous contract became amendable on Sept. 27, 2024. Contracts in the airline industry do not expire. Once they become amendable, the current contract remains in effect until a new agreement is ratified.

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:

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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€