Tag Archives: Alaska Horizon

Despite increased competition from Delta, Alaska Airlines’ traffic and passenger numbers increase but the load factor drops

Alaska Air Group Inc. (Alaska Airlines and Horizon Air) (Seattle/Tacoma) despite increased competition, especially from Delta Air Lines (Atlanta) at its Seattle/Tacoma hub, has managed to increase its traffic and passenger numbers for the first nine months of 2014, mostly through its vigorous expansion. However the number of passengers has not kept up with the expansion and this has lead to a lower load factor.

The Group reported September and year-to-date operational results for its subsidiaries, Alaska Airlines and Horizon Air, and on a combined basis. Detailed information is provided below.

Air Group:

On a combined basis, Air Group reported a 9.0 percent increase in traffic on a 9.9 percent increase in capacity compared to September 2013. This resulted in a 0.7 point decrease in load factor to 81.9 percent. These statistics include flights operated by Alaska and those under capacity purchase agreements, including Horizon, SkyWest and PenAir.

The following table shows the operational results for September and year-to-date 2014, compared to the prior-year periods:

The Group and Alaska Airlines:

Alaska Horizon – Horizon Air:

Copyright Photo: Arnd Wolf/AirlinersGallery.com. Alaska Airlines’ Boeing 737-890 N569AS (msn 35184) in the 75th Anniversary retrojet scheme arrives in Las Vegas.

Alaska Airlines:

Alaska Horizon:

Alaska Airlines sponsors environmental entrepreneurship competition at the University of Washington

Alaska Airlines (Seattle/Tacoma) is sponsoring the University of Washington Foster School of Business’ Environmental Innovation Challenge. The airline issued this statement today:

Today, the University of Washington Foster School of Business announced Alaska Airlines as the naming sponsor of its annual Environmental Innovation Challenge.

In the Environmental Innovation Challenge, approaching its seventh year, student teams must define an environmental problem, develop a solution, produce a prototype, and create a business summary that demonstrates the commercial viability of their product, process or service. Teams are judged on their prototypes, the market opportunity, and their pitch to an audience of nearly 200 industry experts from the Seattle environmental and entrepreneurship communities.

“We’re thrilled that Alaska Airlines has chosen to sponsor the Environmental Innovation Challenge. With their history of innovation, Northwest roots and steadfast support of education, Alaska Airlines is a perfect sponsor for one of the region’s most elite student challenges,” said Connie Bourassa-Shaw, director of the Foster School’s Buerk Center for Entrepreneurship. “Their commitment to environmental responsibility aligns perfectly with the spirit of the competition.”

Alaska’s 10-year sponsorship commitment includes a reduced travel rate for out-of-state teams to Seattle to participate in the April competition and flying guest faculty instructors from other universities in the Pacific Northwest to observe or judge the challenge. The airline will also host the challenge at the Seattle Center House next April. More information about the 2015 Alaska Airlines Environmental Innovation Challenge can be found at http://www.foster.washington.edu .

“As a proud supporter of the University of Washington and industry leader in environmental stewardship, we’re thrilled to support the next generation of innovators whose ideas and concepts will no doubt improve our communities for years to come,” said Joe Sprague, senior vice president of communications and external relations for Alaska Airlines.

To date, the chance to compete in the Environmental Innovation Challenge has attracted hundreds of student teams from Washington and Oregon. Prize money is one draw; so are the opportunities to hone an idea through interaction with peers, prototype development and conversations with industry experts.

A number of teams have gone on to launch their companies. One such example is HydroSense. The team won the inaugural Environmental Innovation Challenge with a water-usage monitoring technology that screws onto a single valve in a home and can detect water use down to each specific toilet, shower and faucet. HydroSense was acquired by Belkin in 2010.

Alaska Airlines has supported the state’s largest university in various ways for more than five decades. The UW’s on-campus basketball arena, the “Alaska Airlines Arena at Hec Edmundson Pavilion,” is named after the carrier and is part of a multi-year agreement to sponsor the UW Athletics program. Last year Alaska Airlines donated nearly $1.4 million in cash and in-kind contributions to almost 100 youth and educational programs and schools in the greater Puget Sound area and throughout Washington.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Horizon Air’s Bombardier DHC-8-402 (Q400) N435QX (msn 4232) is painted in the special University of Washington Huskies college livery. N435QX taxies to the runway at the Seattle-Tacoma International Airport hub. Today N435QX wears Alaska Horizon titles.

Alaska Airlines:

Alaska Horizon-Horizon Air:

Horizon Air:

Horizon Air to operate seasonal flights from Las Vegas to Mammoth Lakes, California

Horizon Air (Alaska Horizon) (Seattle/Tacoma) will operate seasonal service between Las Vegas and Mammoth Lakes, California.

Horizon Air’s nonstop flight from Las Vegas to Mammoth Lakes will operate on Mondays and Thursdays between January 15 and April 6, 2015.

Horizon Air will operate the flights with the Bombardier DHC-8-402 (marketed as the Q400) turboprop aircraft on the new route.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Horizon Air now spreads its wings from Alaska to the U.S. Southwest. Bombardier DHC-8-402 (Q400) N443QX (man 4353) in the University of Alaska Seawolves college motif departs from Anchorage.

Alaska Horizon (Horizon Air):

Alaska Air Group reports a net profit of $165 million for the second quarter

Alaska Air Group, Inc., (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported second quarter 2014 GAAP net income of $165 million, or $1.19 per diluted share, compared to $104 million, or $0.74 per diluted share in the second quarter of 2013. Excluding the impact of mark-to-market fuel hedge adjustments of $13 million ($8 million after tax, or $0.06 per diluted share), the company reported record adjusted net income of $157 million, or $1.13 per diluted share, compared to adjusted net income of $105 million, or $0.74 per diluted share, in 2013.

Read the full report: CLICK HERE

Copyright Photo: Mark Durbin/AirlinersGallery.com. Alaska Airlines has already added Aviation Partners Boeing Split Scimitar Winglets to 12 Boeing 737 aircraft. Boeing 737-890 N588AS (msn 35685) with SS Winglets taxies at San Francisco.

Alaska Airlines:

Alaska Horizon:

Horizon Air:

Horizon Air orders another Bombardier Q400, Bombardier to maintain Horizon’s 52 Q400s

Bombardier Aerospace (Montreal) announced today that Horizon Air Industries, Inc. (Horizon Air) (Alaska Horizon) (Seattle/Tacoma) has signed a firm purchase agreement for one Bombardier DHC-8-402 (marketed as the Q400 NextGen) turboprop airliner. The airline retains its options on another seven Q400 NextGen aircraft as announced previously. Additionally, Bombardier and Horizon Air confirmed they have signed a five-year heavy maintenance agreement whereby Bombardier will perform heavy maintenance tasks for the airline’s fleet of 52 Q400 aircraft at Bombardier’s service centre in Tucson, Arizona.

Based on the list price of the Q400 NextGen aircraft, the aircraft agreement is valued at approximately $32.6 million US.

Established in 1981, Horizon Air was acquired in 1986 by Alaska Air Group, Inc., the parent company of Alaska Airlines. At its start, the airline operated two aircraft and served three destinations in Washington state. Today, Horizon flies 51 76-seat Q400 aircraft on behalf of Alaska Airlines and serves 43 cities in the western United States, Canada and Mexico.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Bombardier DHC-8-402 (Q400) N407QX (msn 4049) in the special University of Oregon Ducks livery prepares to land at Los Angeles International Airport (LAX).

Alaska Horizon:

Horizon Air:

Horizon Air’s aircraft technicians and fleet service agents ratify a new six-year contract

Horizon Air’s (Alaska Horizon) (Seattle/Tacoma) aircraft technicians and fleet service agents have ratified a new six-year contract.

About 94 percent of members participated, and 53 percent of those voted in favor of the agreement.

The contract, ratified well ahead of the amendable date of December 16, 2014, includes a ratification bonus, annual wage increases and contract language enhancements. Horizon Air and IBT reached tentative agreement on the new contract in May 2014.

Under the Railway Labor Act, which governs collective bargaining agreements in the airline industry, contracts do not expire. Instead they become amendable. The ratified agreement for Horizon’s technicians becomes amendable in 2020.

The Federal Aviation Administration (FAA) has awarded Horizon its highest honor, the Diamond Certificate of Excellence, 13 times since 1999 in recognition of the airline’s safety training efforts.

Horizon Air is a subsidiary of Alaska Air Group and flies to 44 cities across the United States, Canada and Mexico.

Copyright Photo: Bombardier DHC-8-402 (Q400) N401QX (msn 4031) taxies across the airfield at Los Angeles in the WSU Cougars university colors.

Alaska Horizon:

Horizon Air:

Horizon Air starts seasonal Portland-Kalispell, Montana flights

Alaska Airlines (Seattle/Tacoma) yesterday (June 9) launched seasonal daily service between Portland, Oregon, and Kalispell, Montana.

The flights will operate seasonally between Portland and Kalispell through August 23, connecting Portland-area residents to the natural beauty of northwest Montana, and Flathead Valley residents to the Rose City.

Kalispell is located in northwest Montana’s Flathead Valley, which encompasses the gateway to Glacier National Park, Whitefish Mountain Resort and Flathead Lake — the largest freshwater lake west of the Mississippi River. Alaska Airlines also operates daily year-round service between Kalispell and Seattle/Tacoma.

Alaska Airlines’ sister carrier, Horizon Air (Alaska Horizon) (Seattle/Tacoma), will operate the flights with the Bombardier DHC-8-402 (Q400) aircraft.

Alaska Airlines:

Alaska Horizon:

Horizon Air:

Alaska Airlines fights back to hold its Seattle/Tacoma market share

Alaska Airlines (Seattle/Tacoma) is fighting back trying to hold on to its market share in its home Seattle/Tacoma market. The airline issued this statement today:

Alaska Airlines, which provides travelers with more nonstop flights from Seattle/Tacoma than any other carrier, will increase its departures for its hometown customers by 11 percent next spring. Alaska’s daily departures out of Seattle-Tacoma International Airport will increase from 253 to 280, giving travelers more options to the places they want to fly most.

“Alaska Airlines has been flying out of Seattle for more than half a century and we’re proud to offer our customers nearly four times the departures to more destinations than any other airline,” said Joe Sprague, senior vice president of communications and external relations. “With convenient nonstop service to 79 destinations from Seattle/Tacoma, our customers can fly to 80 percent of the places they want to go and this increases to 99 percent when combining Alaska’s flights and those of our partner airlines.”

Alaska Airlines will add 27 new roundtrips, including one daily between Seattle/Tacoma and Boise, Idaho, Boston, Chicago, Denver, Fairbanks, Alaska, and Palm Springs and Sacramento, California. The airline will also add two more daily roundtrips between Seattle/Tacoma and Los Angeles, and three more roundtrip shuttle flights between Seattle/Tacoma and Portland, Oregon. A Boeing 737 will replace a Bombardier Q400 on two of the 16 daily roundtrip flights between Seattle/Tacoma and Spokane, Washington, increasing the number of seats on Alaska between the state’s largest two cities from 3,200 to 3,350 a day.

The 11 percent increase in Seattle/Tacoma departures also includes previously announced service to six new destinations, including Albuquerque, New Mexico, Baltimore, Detroit, New Orleans, Tampa, Florida, and Cancún, Mexico.

Summary of new daily Seattle/Tacoma service:

Seattle – New Orleans: starting June 12

Seattle – Tampa: starting June 20

Seattle – Baltimore: starting September 2

Seattle – Detroit: starting September 4

Seattle – Albuquerque: starting September 18

Seattle – Cancún: starting November 6 pending governmental approval
Alaska Airlines expects the new flying will add approximately 100 jobs to the region, in addition to the 6,300 Alaska and Horizon Air employees who currently work in the Puget Sound area.

Copyright Photo: Steve Bailey/AirlinersGallery.com. The all-Boeing relationship at Alaska Airlines should not be overlooked as the Alaska-Delta “battle of Seattle” escalates for market share in the home of Boeing. The pictured brand new Boeing 737-990 ER N467AS (msn 36362) was handed over to hometown Alaska Airlines on May 22, 2014.

Alaska Airlines:

Alaska Airlines starts its “I am Alaska” campaign

Alaska Airlines (Seattle/Tacoma) has started its “I am Alaska” campaign, first with employees and later for loyal customers.

The airline offered this brief statement and video:

“I am Alaska” celebrates the great people of Alaska Airlines and Horizon Air. Their hard work and perseverance has kept the airlines safe and on time. Their award-winning customer service and innovation has earned their customers’ loyalty. Throughout the company, employees everywhere are proud to say, “I am Alaska.”

Video: Alaska Airlines.

Alaska Airlines:

Alaska Air Group reports GAAP net income of $94 million for the first quarter

Alaska Air Group, Inc. (Alaska Airlines and Horizon Air – Alaska Horizon) (Seattle/Tacoma) today reported first quarter 2014 GAAP net income of $94 million, or $1.35 per diluted share, compared to $37 million, or $0.51 per diluted share in the first quarter of 2013. Excluding the impact of mark-to-market fuel hedge adjustments of $8 million ($5 million after tax, or $0.07 per diluted share), the company reported record adjusted net income of $89 million, or $1.28 per diluted share, compared to adjusted net income of $44 million, or $0.62 per diluted share, in 2013.

“Our record first quarter results reflect strong demand for our service and the efforts we’ve taken to improve the value we bring to our customers,” CEO Brad Tilden said. “Our solid foundation of award-winning service, excellent operational performance, low costs and low fares, and the best employees in the business will help us sustain our success in the face of increasing competition.”

Financial Highlights:

Reported record first quarter net income, excluding special items, of $89 million, or $1.28 per diluted share, compared to adjusted net income of $44 million, or $0.62 per diluted share in the prior-year quarter. This quarter’s results compare to a First Call analyst consensus estimate of $1.24 per share.

Recorded net income for the first quarter under Generally Accepted Accounting Principles (GAAP) of $94 million or $1.35 per diluted share, compared to net income of $37 million, or $0.51 per diluted share in 2013.

Reported record adjusted pretax margin for the first quarter of 11.8%.

Achieved trailing 12-month return on invested capital of 14.8% compared to 13.4% in the 12 months ended March 31, 2013.

Paid a $0.25 per-share quarterly cash dividend on March 11 totaling $17 million. This is a 25% increase from the previous cash dividend payment of $0.20 per-share.

Repurchased 352,851 shares of common stock for $30 million in the first quarter of 2014.

Lowered adjusted debt-to-total-capitalization ratio by 3%, to 32%, from December 31, 2013.

Held $1.4 billion in unrestricted cash and marketable securities as of March 31, 2014.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Dedicated freighter operations at Alaska Air Cargo becomes very active in Alaska this time of the year. Boeing 737-490 (F) N709AS (msn 28896) touches down at Ted Stevens Anchorage International Airport (ANC).

Alaska Airlines:

Alaska Horizon:

Horizon Air:

Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. Horizon Air’s (Alaska Horizon) Bombardier DHC-8-402 (marketed as the “Q400”) N440QX (msn 4347) in the special Oregon State University-OSU Beavers color scheme taxies to the runway at the Seattle-Tacoma International Airport (SEA) hub.