Tag Archives: Horizon Air

Alaska Air Group reports fourth quarter 2019 and full-year results

Alaska Air Group reported its 4Q and full-year 2019 financial results:

Financial Highlights:

  • Reported net income for the fourth quarter and full year 2019 under Generally Accepted Accounting Principles (GAAP) of $181 million, or $1.46 per diluted share, and $769 million, or $6.19 per diluted share. These results compare to fourth quarter 2018 net income of $23 million, or $0.19 per diluted share, and full year 2018 net income of $437 million, or $3.52 per diluted share.
  • Reported adjusted net income, excluding merger-related costs and mark-to-market fuel hedging adjustments for the fourth quarter and full year 2019 of $181 million, or $1.46 per diluted share, and $798 million, or $6.42 per diluted share. These results compare to fourth quarter 2018 adjusted net income of $93 million, or $0.75 per diluted share, and full year 2018 adjusted net income of $554 million, or $4.46 per diluted share. This quarter’s adjusted results compare to the First Call analyst consensus estimate of $1.41 per share.
  • Paid a $0.35 per share quarterly cash dividend in the fourth quarter, bringing total dividends paid in 2019 to $173 million.
  • Repurchased a total of 1,192,820 shares of common stock for approximately $75 million in 2019.
  • Generated approximately $1.7 billion of operating cash flow, and used approximately $696 million for capital expenditures, resulting in approximately $1 billion of free cash flow in 2019, representing free cash flow conversion of 133%.
  • Grew passenger revenues by 8% compared to the fourth quarter of 2018, and by 6% compared to full-year 2018.
  • Generated full-year adjusted pretax margin of 12% in 2019, 3.1 points higher than the 8.9% in 2018.
  • Held $1.5 billion in unrestricted cash and marketable securities as of Dec. 31, 2019.
  • Achieved the goal of 75% repayment on the $2 billion debt borrowed to fund the acquisition of Virgin America, driving our debt-to-capitalization ratio to 41% as of Dec. 31, 2019, from 47% as of Dec. 31, 2018 and 51% as of Dec. 31, 2016.
  • Reduced net adjusted debt to EBITDAR to 0.9x as of Dec. 31, 2019 from 1.7x as of Dec. 31, 2018.

2019 Accomplishments and Highlights:

Recognition and Awards

  • Ranked “Highest in Customer Satisfaction Among Traditional Carriers” in 2019 by J.D. Power for the 12th year in a row.
  • Named “Best U.S. Airline” by Condé Nast Traveler in their 2019 Readers Choice Awards for the second consecutive year, a continuation of the ten consecutive years that Virgin America received the recognition.
  • Mileage Plan™ ranked first in U.S. News & World Report’s list of Best Travel Rewards Programs for the fifth time.
  • Ranked as top U.S. airline in Newsweek’s 2020 Best Customer Service awards.
  • Named “Best Mid-Size Airline” by TripAdvisor in their 2019 Travelers Choice awards.
  • Earned top spot for customer satisfaction on the American Customer Satisfaction Index Travel Report for 2018-2019.
  • Named “Best Airline” by Kayak in their 2019 Travel Hacker Awards.
  • Ranked the best U.S. airline in Money Magazine for the second year in a row.
  • Rated as one of only two U.S. airlines in the Top 20 safest airlines in the world for 2019 by AirlineRatings.com.
  • Ranked as the top U.S. airline in the Dow Jones Sustainability Index (DJSI) for the third consecutive year.

Our People

  • Ranked among Forbes’ 2019 global list for “World’s Best Employers” for the fifth year in a row.
  • Completed Flight Path, our leader-led program aimed at informing and engaging our employees, bringing over 95% of Air Group employees together to discuss our culture and future.
  • Awarded $163 million in incentive pay for 2019, an 11% increase over 2018.
  • Alaska technicians, represented by the Aircraft Mechanics Fraternal Association, ratified an integrated seniority list and a transition agreement, including a two-year contract extension, in July 2019. This completes a major integration milestone, in that all of our workgroups are under joint agreements, less than three years from our acquisition of Virgin America.
  • Alaska’s clerical, office, and passenger service, and Alaska’s ramp and stores employees, both represented by the International Association of Machinists, each ratified new five-year agreements in August 2019.

Our Guests and Product

  • Launched commercial service from Paine Field in Everett, Washington, to 10 West Coast destinations.
  • Finished painting the Alaska Airlines livery on all Airbus aircraft.
  • Completed cabin interior renovations on the 42nd Airbus aircraft, or approximately 60% of the Airbus fleet.
  • Installed high-speed satellite Wi-Fi on the 104th mainline aircraft, or approximately 45% of the mainline fleet.
  • Opened a new 15,000+ square foot flagship lounge in the North Satellite at Sea-Tac International Airport and announced plans to build a new lounge in Terminal 2 at San Francisco International Airport.
  • Added EL AL Israel Airlines as a new global Mileage Plan partner.
  • Added four Boeing 737-900ER aircraft and two Airbus A321neo aircraft in 2019.
  • Added four Embraer 175 (E175) aircraft to the Regional operating fleet in 2019.

Our Communities

  • Launched LIFT, Alaska’s newly renamed social and environmental impact program, complete with a week of employee volunteer events in eight cities across our network.
  • Donated over $15 million and contributed more than 41,000 volunteer hours to support nonprofits in our local communities, focusing on youth and education, medical (research/transportation) and community outreach.

Alaska Air Group Inc. today reported fourth quarter 2019 GAAP net income of $181 million, or $1.46 per diluted share, compared to $23 million, or $0.19 per diluted share in 2018. Excluding the impact of merger-related costs and mark-to-market fuel hedge adjustments, the company reported fourth quarter adjusted net income of $181 million, or $1.46 per diluted share, compared to adjusted net income of $93 million, or $0.75 per diluted share in the fourth quarter of 2018.

The company reported full-year 2019 GAAP net income of $769 million, compared to $437 million in the prior year. Excluding the impact of merger-related costs and mark-to-market fuel hedge adjustments, the company reported adjusted net income of $798 million, or $6.42 per diluted share for 2019, compared to adjusted net income of $554 million, or $4.46 per diluted share in 2018.

“When we announced our intention to purchase Virgin America in the spring of 2016, we launched a body of work that was designed to make Alaska the ‘Go To’ airline for people living up and down the West Coast,” said Brad Tilden, Alaska’s CEO. “2019 was a fantastic year as we completed the majority of that work and began to see significant returns from our investment. We’re grateful to our people for pulling together to produce this strong financial performance, and proud that they are sharing in this financial success through our incentive pay program.”

Alaska Airlines to launch daily nonstop service between Seattle/Tacoma and Monterey, California

Alaska Airlines announced today it will begin daily nonstop service between Seattle-Tacoma International Airport and Monterey Regional Airport (MRY) in central California, further solidifying Alaska as the number one airline between the Pacific Northwest and the Bay Area. The new, year-round service is scheduled to begin June 18, and it will be the only nonstop flight offered between the two cities.

Alaska remains committed to offering the most nonstop flights from Sea-Tac, with Monterey becoming the 92nd nonstop destination this summer.

Alaska currently offers nonstop jet service between San Diego and Monterey. So, in addition to flyers along the Central Coast traveling south to sunny San Diego, they’ll soon be able to head north to the spectacular scenery of the Pacific Northwest.

The all-jet service between Seattle and Monterey will be provided by Alaska’s sister carrier, Horizon Air, flying the Embraer 175 aircraft featuring first class and premium class cabins. On the E175, every seat is either a window or aisle – there are no middle seats. Guests will enjoy Wi-Fi connectivity, hundreds of free movies and TV shows that can be streamed on personal devices and free texting while onboard. It’s all part of Alaska’s award-winning service and focus on offering low fares and great value to our guests.

 

Horizon Air celebrates its 1981 beginnings with this special livery on N421QX

"Alaska celebrates Horizon Air" in a 1981 livery

Horizon Air launched regional operations on September 1, 1981 as an independent carrier in the Pacific Northwest. Now the Alaska Airlines-owned carrier is celebrating its past with this Q400 now painted in a 1981-like livery.

Horizon Air made this announcement and photos on social media:

New paint, old-school. N421QX

In celebration of Horizon Air’s heritage, we’ve debuted a new themed-aircraft. N421QX flew on its inaugural flight from Yakima, WA to Seattle on Tuesday, which was also Horizon’s first flight ever in 1981.

The livery was the idea of Andrew S. (above), a Seattle-based crew scheduler. “I pitched the idea of a Horizon livery to Gary [Gary Beck, Horizon Air CEO] when he took over the helm of Horizon in January 2018,” Andrew said. “I was impressed with his genuine willingness to listen to employees, and he was keen on the idea.

“Creating an airline people love happens when we’re all working together as one team, valuing and appreciating each other’s contributions,” says Horizon President & CEO Gary Beck. “This livery celebrates the people of Horizon and the essential role the company has played in Air Group’s success.”

Top Copyright Photo: Alaska Horizon (Horizon Air) Bombardier DHC-8-402 (Q400) N421QX (msn 4149) SEA (Royal S. King). Image: 945910.

Alaska Horizon aircraft slide show:

Horizon Air aircraft slide show:

Bottom Copyright Photo: Horizon Air Fairchild F-27 N271PH (msn 14) BFI (Christian Volpati Collection). Image: 934396.

Horizon Air Fairchild F-27 N271PH (msn 14) BFI (Christian Volpati Collection). Image: 934396.

Alaska unveils 13 daily departures to 8 destinations from Everett Paine Field

Alaska SkyWest (SkyWest Airlines) Embraer ERJ 170-200LR (ERJ 175) N170SY (msn 17000483) LAX (Ron Monroe). Image: 940625.

Alaska Airlines, the Seattle-area’s hometown airline, announced today new daily nonstop service from Paine Field-Snohomish County Airport in Everett, Washington. When commercial service begins at the airport in the fall, Alaska will offer 13 nonstop departures to eight cities every day with premium service and low fares, further working to become the go-to airline for anyone living on the West Coast.

 

Alaska’s all-jet service will connect Paine Field to Las Vegas; Los Angeles; Orange County, California; Phoenix; Portland; San Diego; San Francisco; and San Jose, California. Flight frequencies for each destination along with departure and arrival times will be announced later in 2018, subject to government approval.

With Alaska’s new service from Paine Field, those looking to catch a flight north of Seattle and all around the North Sound (home to more than 1 million people) will have a new travel option closer to home. That’ll mean less driving to go farther south, saving time and fuel.

All Paine Field services will be operated by Horizon Air (below).

Alaska Horizon (Horizon Air) Embraer ERJ 170-200LR (ERJ 175) N622QX (msn 17000651) SEA (Joe G. Walker). Image: 940650.

Above Copyright Photo: Alaska Horizon (Horizon Air) Embraer ERJ 170-200LR (ERJ 175) N622QX (msn 17000651) SEA (Joe G. Walker). Image: 940650.

Alaska Horizon aircraft slide show:

Flights from Paine Field will offer three classes of service: first class, premium class and main cabin. Guests will enjoy Wi-Fi connectivity, more than 200 free movies and TV shows that can be streamed on personal devices and free texting while onboard.

Propeller Airports and Snohomish County are currently building the new, state-of-the-art terminal at Paine Field. It’s set to open in fall 2018.

Top Copyright Photo (all others by Alaska Airlines): Alaska SkyWest (SkyWest Airlines) Embraer ERJ 170-200LR (ERJ 175) N170SY (msn 17000483) LAX (Ron Monroe). Image: 940625.

Alaska SkyWest aircraft slide show:

Horizon Air to resume Embraer 175 deliveries in March 2018 as the pilot shortage lessens

Delivered on April 27, 2017

Alaska Horizon (Horizon Air) is planning to resume Embraer 175 deliveries again in March 2018 according to Seattle Times. Deliveries were halted this past summer by outgoing CEO Dave Campbell due to a pilot shortage that has eased up. SkyWest Airlines filled the void for Alaska Airlines with their Embraer 175s.

The new Embraer 175s will gradually replace the Bombardier Q400 turboprops.

Copyright Photo: Alaska Horizon (Horizon Air) Embraer ERJ 170-200LR (ERJ 175) N622QX (msn 17000651) SEA (Michael B. Ing). Image: 938965.

Horizon Air to discontinue operations in Alaska in March

Alaska Horizon (Horizon Air) Bombardier DHC-8-402 (Q400) N443QX (msn 4353) (UAA Seawolves - University of Alaska Anchorage) ANC (Ken Petersen). Image: 928190.

Horizon Air (Alaska Horizon) has announced it will end its operations in Alaska on March 10, 2017. The company operates three Q400s in support of Alaska Airlines in Alaska. Crews will be offered positions in the Lower 48.

Copyright Photo: Alaska Horizon (Horizon Air) Bombardier DHC-8-402 (Q400) N443QX (msn 4353) (UAA Seawolves – University of Alaska Anchorage) ANC (Ken Petersen). Image: 928190.