Tag Archives: Alaska Horizon

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

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

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

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

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

Financial Highlights:

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

Operational Highlights:

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

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

Alaska Airlines:

Alaska Horizon-Horizon Air:

Horizon Air to use Q400 warm air bridges at Fairbanks, Alaska

Alaska Airlines (Seattle/Tacoma) has issued this statement for its Alaska Horizon (Horizon Air) Bombardier DHC-8-402 (Q400) cold weather operations in Fairbanks, Alaska:

Fairbanks residents flying on Alaska Airlines’ Bombardier Q400s starting next March will board and deplane the aircraft using the existing jet bridge at Fairbanks International Airport. The carrier will modify the jet bridge at Gate 1 to provide passengers with warm, easy access to their flights on the turboprop aircraft.

“We listened to customer concerns about boarding the plane outside during the winter and took our time to carefully evaluate all of our options,” said Marilyn Romano, Alaska Airlines’ regional vice president – Alaska. “With slight modifications to the existing jet bridge, our customers traveling between Fairbanks and Anchorage will have a way to board and deplane that protects them from the cold winter weather and is also safe and accessible for travelers with limited mobility.”

Alaska Airlines is exploring a warm boarding solution for customers boarding and deplaning the Q400 at Ted Stevens International Airport in Anchorage, Romano said.

Starting next March, Alaska will increase service between Anchorage and Fairbanks from seven to nine daily flights; eight flights will be operated with the Q400 and one with a Boeing 737. Additionally, the Q400 will replace an Alaska 737 on one of two daily round-trip flights between Anchorage and Kodiak. Initial service to Kodiak will begin March 3 and end April 30, then resume again for seasonal service between October and April.

Alaska Horizon:

Alaska Airlines:

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

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

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

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

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

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

Alaska Airlines:

Horizon Air:

Alaska Horizon:

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

Horizon Air flight attendants ratify a new five-year contract

Horizon Air‘s (Alaska Horizon) (Seattle/Tacoma) flight attendants have approved a new five-year contract. The ratification vote concluded yesterday afternoon (July 18) with 75 percent of the participating flight attendants voting in favor of the agreement.

The new contract includes pay raises, quality of life improvements and more flexible scheduling. The agreement becomes amendable on July 18, 2018. The previous contract became amendable on December 21, 2011. Labor agreements in the airline industry do not expire; they become amendable and remain in effect until a new contract is ratified.

Horizon Air is a subsidiary of Alaska Air Group and flies to 39 cities across the United States, Canada and Mexico.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Bombardier DHC-8-402 (Q400) N437QX (msn 4240) in the special Boise State Broncos livery taxies to the runway at the Seattle/Tacoma hub.

Alaska Horizon:

Horizon Air:

Horizon Air and SkyWest to open up four new routes from Seattle/Tacoma and Portland for Alaska Airlines and two routes from San Diego

Alaska Airlines (Seattle/Tacoma) will inaugurate daily service between Seattle/Tacoma and Colorado Springs, Colorado, starting on November 1, and between Seattle/Tacoma and Omaha, Nebraska, starting on November 7. The carrier will also add nonstop flights between Portland, Oregon, and Tucson, Arizona, starting on November 1, and between Portland and Reno, Nevada, starting on November 8, 2013.

Summary of new service:
Seattle-Colorado Springs
Start date	City pair	Departs	Arrives	Frequency
Nov. 1	Seattle-Colorado Springs	6:20 p.m.	9:55 p.m.	Daily
Nov. 2	Colorado Springs-Seattle	8 a.m.	9:55 a.m.	Daily

Seattle-Omaha
Start date	City pair	Departs	Arrives	Frequency
Nov. 7	Seattle-Omaha	10:40 a.m.	3:45 p.m.	Daily
Nov. 7	Omaha-Seattle	4:15 p.m.	5:45 p.m.	Daily

Portland-Reno
Start date	City pair	Departs	Arrives	Frequency
Nov. 8	Portland-Reno	11:10 a.m.	12:45 p.m.	Daily
Nov. 8	Reno-Portland	1:15 p.m.	2:50 p.m.	Daily

Portland-Tucson
Start date	City pair	Departs	Arrives	Frequency
Nov. 1	Portland-Tucson	9:15 a.m.	1:05 p.m.	Daily
Nov. 1	Tucson-Portland	1:35 p.m.	3:30 p.m.	Daily

All times based on local time zones.

The new Portland-Reno flights will be flown for Alaska Airlines by Horizon Air (Alaska Horizon) (Seattle/Tacoma) using 76-seat Bombardier DHC-8-402s (Q400s). The remaining flights will be operated by SkyWest Airlines (Alaska SkyWest) (St. George) using 70-seat Bombardier CRJ700 regional jets.

Alaska Airlines last operated between Portland and Reno in 2009 and also served Portland-Tucson in 2003.

In addition, Alaska Airlines will begin new daily service between San Diego and Boise, Idaho, starting on November 1, and daily seasonal service between San Diego and Mammoth Mountain Ski Area in California, starting on December 19, 2013.

Summary of new service:
San Diego-Boise
Start date	City pair	Departs	Arrives	Frequency
Nov.1	Boise-San Diego	10:20 a.m.	11:25 a.m.	Daily
Nov.1	San Diego-Boise	5:35 p.m.	8:40 p.m.	Daily

San Diego-Mammoth Lakes
Start date	City pair	Departs	Arrives	Frequency
Dec. 19-April 13	San Diego-Mammoth	5:30 p.m.	7 p.m.	Mon, Tue, Wed,
				Thu, Fri, Sun
Dec. 19-April 13	Mammoth-San Diego	7:30 p.m.	9 p.m.	Mon, Tue, Wed,
				Thu, Fri, Sun
Dec. 21-April 12	San Diego-Mammoth	9:30 a.m.	11 a.m.	Saturdays only
Dec. 21-April 12	Mammoth-San Diego	11:30 a.m.	1 p.m.	Saturdays only
All times based on local time zones.

The new 90-minute flight to Mammoth Lakes is estimated to save residents more than 6 hours of driving. Horizon Air (Alaska Horizon) will operate the Mammoth Lakes flights for Alaska Airlines using 76-seat Bombardier DHC-8-402s (Q400s). SkyWest Airlines (Alaska SkyWest) will operate the new San Diego-Boise flights for Alaska using 70-seat Bombardier CRJ700 regional jets.

With these flights, Alaska Airlines will offer 25 peak-daily departures from San Diego with nonstop service to 12 domestic and two international destinations.

Top Copyright Photo: Bruce Drum/AirlinersGallery.com. Horizon Air’s Bombardier DHC-8-402 (Q400) N441QX (msn 4348) pushes from the gate at the Seattle-Tacoma International Airport hub.

Alaska Airlines:

Alaska Horizon:

Alaska SkyWest:

Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. SkyWest Airlines’ Bombardier CRJ700 (CL-600-2C10) N215AG (msn 10009) lands at Long Beach.

Horizon Air orders three additional Bombardier Q400s

Horizon Air (Alaska Horizon) (Seattle/Tacoma) has signed a firm contract to acquire three 76-seat Bombardier DHC-8-402 (Q400) NextGen turboprop airliners. The transaction represents the conversion of three previously booked options on the aircraft. The airline also reconfirmed its options on another seven Q400 NextGen aircraft.

The three new aircraft will increase Horizon Air’s orders for Q400 and Q400 NextGen airliners to 51 aircraft – the world’s largest fleet. Including the order announced today, Horizon Air has ordered a total of 100 Bombardier Dash 8/Q-Series aircraft since 1985.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Bombardier DHC-8-402 (Q400) N440QX (msn 4347) in the special Oregon State University-OSU Beavers collegiate livery departs from Los Angeles International Airport.

Alaska Horizon:

Horizon Air:

Horizon Air and the flight attendants reach a tentative agreement on a new contract

Horizon Air (Alaska Horizon) (Seattle/Tacoma) and theAssociation of Flight Attendants (AFA) announced they have reached tentative agreement on a new five-year contract for the carrier’s nearly 500 flight attendants.

The proposed contract includes pay raises, quality of life improvements and more flexible scheduling. It still must be presented to union members for review and a ratification vote, which is expected to be completed in mid-July. The current contract was ratified on Dec. 21, 2009 and became amendable on Dec. 21, 2011.

Horizon Air is a subsidiary of Alaska Air Group and flies to 39 cities across the United States, Canada and Mexico.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Bombardier DHC-8-402 (Q400) N429QX (msn 4161) prepares to land at Los Angeles International Airport.

Alaska Horizon:

Horizon Air:

Alaska Airlines to fly from Anchorage to Phoenix and Las Vegas, Horizon Air to operate in Alaska

Alaska Airlines (Seattle/Tacoma) will begin flying nonstop between Anchorage and Phoenix, starting on December 18, and Anchorage and Las Vegas, starting on December 19, 2013.

Flights will operate on each route three times a week. Anchorage-Las Vegas service will be offered year-round while Anchorage-Phoenix flights will operate seasonally through April 19, 2014.

Summary of new service:

Start date	City pair	Departs	Arrives	Frequency

Dec. 18	Anchorage-Phoenix	9:10 a.m.	4:35 p.m.	Mon, Wed, Sat
Dec. 18	Phoenix-Anchorage	5:35 p.m.	9:30 p.m.	Mon, Wed, Sat
Dec. 19	Anchorage-Las Vegas	10:05 a.m.	4:10 p.m.	Thu, Fri, Sun
Dec. 19	Las Vegas-Anchorage	5:10 p.m.	9:45 p.m.	Thu, Fri, Sun

Times based on local time zones.

Carrier introducing Bombardier Q400s to the state of Alaska

Alaska Airlines will add flying within the state of Alaska using Bombardier DHC-8-402 (Q400) aircraft flown by Horizon Air (Alaska Horizon) (Seattle/Tacoma), starting on March 3, 2014. The Q400 will operate eight daily round-trip flights between Anchorage and Fairbanks currently flown with Boeing 737 aircraft. Additionally, the Q400 will replace an Alaska Airlines Boeing 737 on one of two daily round-trip flights between Anchorage and Kodiak seasonally from October through April. Initial service will begin on March 3 and continue through April 30, 2014.

“Flying the fast and efficient Q400 enables Alaska Airlines to increase our frequency from seven to nine roundtrips a day for Anchorage-Fairbanks travelers, giving them more options for traveling between the state’s two largest cities,” Romano said. “It also gives us the flexibility to fly our larger aircraft to new destinations out of Anchorage, such as the new nonstop routes to Las Vegas and Phoenix.”

With a crew of two pilots and two flight attendants, the Q400 is configured with 76 seats in an all-coach cabin. The aircraft also is equipped with the Head-Up Guidance system and satellite-based navigation technology similar to Alaska’s Boeing 737s.

Horizon Air, a wholly-owned subsidiary of Alaska Air Group, will have 60 employees (30 flight attendants and 30 pilots) based in Anchorage to fly the aircraft. Alaska Airlines employees will provide ground-based customer service and maintenance support.

Top Copyright Photo: Mark Durbin/AirlinersGallery.com. Boeing 737-790 WL N644AS (msn 30795) taxies at San Francisco with a Wi-Fi sticker by the forward door.

Alaska Airlines:

Alaska Horizon:

Horizon Air:

Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. Bombardier DHC-8-402 (Q400) N401QX (msn 4031) in the WSU Cougars – Washington State University special scheme climbs away from Los Angeles International Airport.

Alaska Air Group reports 4Q net income of $44 million, $316 net income for 2012

Alaska Air Group, Inc. (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported fourth quarter 2012 GAAP net income of $44 million, or $0.61 per diluted share, compared to GAAP net income of $64 million, or $0.88 per diluted share in 2011. Excluding mark-to-market fuel hedge losses of $10 million ($6 million after tax, or $0.09 per diluted share), the company reported record fourth quarter 2012 net income of $50 million, or $0.70 per diluted share, compared to net income excluding mark-to-market fuel hedge gains of $37 million, or $0.51 per diluted share, in 2011.

The company reported full-year 2012 GAAP net income of $316 million, compared to $245 million in the prior year. Excluding the impact of the items noted in the table below, the company reported record net income of $339 million, or $4.73 per diluted share for 2012, compared to net income of $287 million, or $3.92 per diluted share in 2011. This marks the company’s ninth consecutive year of adjusted profits and the third year in a row the company has exceeded its goal of a 10 percent return on invested capital.

The following table reconciles the Company’s adjusted net income and earnings per diluted share (EPS) during the full year and fourth quarters of 2012 and 2011 to amounts as reported in accordance with GAAP:

	Three Months Ended December 31,
	2012				2011
(in millions, except per share amounts)	Dollars		Diluted EPS		Dollars		Diluted EPS
Reported GAAP net income	$	44	$	0.61	$	64	$	0.88
Mark-to-market fuel hedge adjustments, net of tax	6		0.09		(27)		(0.37)
Non-GAAP adjusted income and per share amounts	$	50	$	0.70	$	37	$	0.51

	Twelve Months Ended December 31,
	2012				2011
(in millions, except per share amounts)	Dollars		Diluted EPS		Dollars		Diluted EPS
Reported GAAP net income	$	316	$	4.40	$	245	$	3.33
Fleet transition costs, net of tax	—		—		24		0.33
Mark-to-market fuel hedge adjustments, net of tax	23		0.33		18		0.26
Non-GAAP adjusted income and per share amounts	$	339	$	4.73	$	287	$	3.92

Copyright Photo: Michael B. Ing. Newly-painted Boeing 737-890 N559AS (msn 35178) displays the updated Wild Alaska Seafood “Salmon-Thirty-Salmon 2” as it climbs at Los Angeles International Airport.

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Alaska Horizon:

Horizon Air:

Horizon Air’s pilots ratify to extend the current contract for six more years

Horizon Air (Alaska Horizon) (Seattle/Tacoma) and the International Brotherhood of Teamsters have announced the carrier’s 610 pilots ratified an agreement to extend the current contract for three years, creating a new six-year pact. Among pilots who voted, 77 percent approved ratification.

“The fact that the extension was achieved three years before the contract became amendable demonstrates the effectiveness of our sincerely collaborative approach with our union-represented workgroups,” Horizon President Glenn Johnson said.

The new contract includes wage increases, improvements in productivity and quality of life, and better job security. The extended contract becomes amendable on December 14, 2018, and was originally ratified in November 2010.

Copyright Photo: Michael B. Ing. Bombardier DHC-8-402 (Q400) N403QX (msn 4037) dressed in the school colors of the Montana State Bobcats taxies to the runway at the Seattle-Tacoma International Airport hub.

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