Tag Archives: net income

American reports a net loss of $312 million in the first quarter

American Airlines Group Inc. (NASDAQ: AAL) today reported its first-quarter 2024 financial results, including:

Record first-quarter revenue of approximately $12.6 billion.
First-quarter net loss of $312 million, or ($0.48) per diluted share. Excluding net special items¹, first-quarter net loss of $226 million, or ($0.34) per diluted share.
Achieved best-ever first-quarter completion factor.
Generated operating cash flow of $2.2 billion and free cash flow² of $1.4 billion in the first quarter.
Reduced total debt³ by nearly $950 million in the first quarter. The company is now more than 80% of the way to its 2025 total debt reduction goal.

“The American Airlines team continues to build a reliable, efficient and resilient airline,” said American’s CEO Robert Isom. “While we aren’t satisfied with our first-quarter financial results, we have a strong foundation in place, and we remain on track to deliver on our full-year financial targets. Our team is running a fantastic operation, driving revenue through our commercial initiatives, efficiently managing costs, and producing free cash flow to further strengthen our balance sheet.”

Resources

Operational performance

American is running the best operation in its history because of a steadfast commitment to operational excellence and strong collaboration across the entire airline. The company produced its best-ever first-quarter completion factor and improved its mishandled baggage rate year over year. American achieved these results despite air traffic control challenges and significant weather events across its network during the quarter.

Financial performance

American produced results within previously guided ranges for each of its operating metrics despite a significant increase in the cost of fuel in the quarter. The company generated record first-quarter revenue of approximately $12.6 billion and a GAAP operating margin of 0.1%. Excluding the impact of net special items¹, American produced an operating margin of 0.6% in the first quarter.

Balance sheet

Strengthening the balance sheet remains a top priority for American. In the first quarter, the company reduced total debt³ by nearly $950 million and has now achieved more than $12 billion, or over 80%, of its goal of reducing total debt³ by $15 billion by the end of 2025.

Guidance and investor update

Based on present demand trends and the current fuel price forecast and excluding the impact of special items, the company expects its second-quarter 2024 adjusted earnings per diluted share⁴ to be between $1.15 and $1.45. The company continues to expect its full-year adjusted earnings per diluted share⁴ to be between $2.25 and $3.25.

Notes

See the accompanying notes in the financial tables section of this press release for further explanation, including a reconciliation of all GAAP to non-GAAP financial information and the calculation of free cash flow.

The company recognized $86 million of net special items in the first quarter after the effect of taxes, which included operating net special items of $70 million, principally related to one-time charges resulting from the ratification of a new collective bargaining agreement for its passenger service team members represented by the CWA-IBT, as well as nonoperating net special items of $46 million for charges associated with mark-to-market net unrealized losses on certain equity investments.
Please see the accompanying notes for the company’s definition of free cash flow, which is a non-GAAP measure.
All references to total debt include debt, finance and operating lease liabilities and pension obligations.
Adjusted earnings per diluted share guidance excludes the impact of net special items. The company is unable to reconcile certain forward-looking information to GAAP as the nature or amount of net special items cannot be determined at this time.

American AIrlines aircraft photo gallery (Boeing):

Hawaiian reports GAAP 4Q net income of $11.1 million and $68.9 million net profit for 2014

Hawaiian Holdings, Inc. (Honolulu), parent company of Hawaiian Airlines, Inc. (Honolulu), today reported its financial results for the fourth quarter and full year 2014.

GAAP net income in the fourth quarter of $11.1 million or $0.17 per diluted share. For the full year, GAAP net income of $68.9 million or $1.10 per diluted share.

Adjusted net income in the fourth quarter of $26.1 million or $0.40 per diluted share, an increase of $14.1 million or $0.18 cents per diluted share year-over-year. For the full year, adjusted net income grew to $97.1 million or $1.55 per diluted share compared to $46.6 million or $0.88 per diluted share in the prior year.

Operating revenue increased to $575 million for the fourth quarter and $2.3 billion for the full year. This resulted in an operating revenue per available seat mile (RASM) increase of 6.1%, year-over-year for the fourth quarter, and for the full year an increase of 5.6% year-over-year.

“2014 finished on a high note with the company posting much better results than a year ago,” said Mark Dunkerley, Hawaiian Airlines president and chief executive officer. “We served more customers than ever before, grew revenues, improved profitability and strengthened our balance sheet. I have our employees to thank for Hawaiian’s performance on the ground, in the air and in our financial statements. Their hard work helps overcome the advantage that our competitors generate through their massive size alone. 2015 will be another year of improvement as long as demand, fuel and industry capacity in our marketplaces remain as forecast.”

Liquidity and Capital Resources

As of December 31, 2014 the Company had:

Unrestricted cash, cash equivalents and short-term investments of $524 million.

Outstanding debt and capital lease obligations of approximately $1,050 million consisting of the following:
$714 million outstanding under secured loan agreements to finance a portion of the purchase price for 11 Airbus A330-200 aircraft.

$137 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.

$102 million in capital lease obligations to finance the acquisition of an Airbus A330-200, two Boeing 717-200 aircraft and aircraft-related equipment.

$30 million outstanding under floating rate notes to finance the acquisition of two Boeing 767-300 ER aircraft.

$67 million of outstanding Convertible Senior Notes.

Fleet and financing

Retired $54 million of A330 bank debt.

Repurchased $15 million (principal amount) or 18% of convertible notes outstanding.

Executed a purchase agreement with Airbus for six A330-800neo aircraft with deliveries starting in 2019, replacing the previous order for six A350XWB-800 aircraft.

Entered into a new revolving credit facility that has availability of up to $175 million.

Added five new A330-200 aircraft and returned or retired two Boeing 767-300 aircraft.

Copyright Photo: Fred Freketic/AirlinersGallery.com. Airbus A330-243 N382HA (msn 1171) prepare to depart from New York (JFK).

Hawaiian Airlines aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-2/Airlines-UnitedStates-2/Hawaiian-Airlines

Spirit Airlines beats estimates with a 4Q net profit of $41.0 million and $177.5 million for 2013

Spirit Airlines, Inc. (Fort Lauderdale/Hollywood) today reported fourth quarter and full year 2013 financial results.

Adjusted net income for the fourth quarter 2013 increased 109.9 percent to $41.0 million ($0.56 per diluted share) compared to $19.5 million ($0.27 per diluted share) for the fourth quarter 2012¹. GAAP net income for the fourth quarter 2013 was $43.2 million ($0.59 per diluted share) compared to $19.6 million ($0.27 per diluted share) in the fourth quarter 2012.
Adjusted net income for the full year 2013 increased 71.0 percent to $177.5 million ($2.43 per diluted share) compared to $103.8 million ($1.43 per diluted share) for the full year 2012¹. GAAP net income for the full year 2013 was $176.9 million ($2.42 per diluted share) compared to $108.5 million ($1.49 per diluted share) for the full year 2012.
For the fourth quarter 2013, Spirit achieved an adjusted pre-tax margin of 15.4 percent, an improvement of 5.7 percentage points over the same period in 2012¹. On a GAAP basis, pre-tax margin for the fourth quarter 2013 was 16.2 percent, compared to 9.7 percent in the fourth quarter 2012. For the full year 2013, Spirit’s adjusted pre-tax margin was 17.1 percent, compared to 12.7 percent in 2012¹. Pre-tax margin on a GAAP basis for the full year 2013 was 17.1 percent, compared to 13.2 percent in 2012.
Spirit ended 2013 with $530.6 million in unrestricted cash.
Spirit’s return on invested capital (before taxes and excluding special items) for the twelve months ended December 31, 2013 was 31.8 percent. See “Calculation for Return on Invested Capital” table below for more details.

“For the full year 2013, we delivered record profitability and return as demand for our low-cost, ultra-low fare model remained very high. These strong financial results reflect our vigilance on maintaining our cost discipline and low fare strategy while executing on our growth plan and delivering high returns for our shareholders,” said Ben Baldanza, Spirit’s Chief Executive Officer. “I thank all our team members who helped us achieve these results.”

Revenue Performance

For the fourth quarter 2013, Spirit’s total operating revenue was $420.0 million, an increase of 27.9 percent compared to the fourth quarter 2012. The year-over-year increase was driven by continued strong demand and our growth in capacity. The increase was also partly attributable to the negative revenue impact in the fourth quarter 2012 related to Hurricane Sandy.

Total revenue per available seat mile (“RASM”) for the fourth quarter 2013 was 11.43 cents, an increase of 3.0 percent compared to the fourth quarter 2012 as a result of both higher average passenger yields and load factors.

Passenger flight segment (“PFS”) volume for the fourth quarter 2013 grew 19.4 percent year over year. Average revenue per PFS for the fourth quarter 2013 increased 7.1 percent year over year to $132.86 primarily driven by an increase in ticket revenue per PFS.

For the full year 2013, total operating revenue increased 25.5 percent to $1,654.4 million compared to the full year 2012 and total RASM increased 2.8 percent to 11.94 cents.

Cost Performance

Total operating expenses for the fourth quarter 2013 increased 18.8 percent year over year to $351.9 million on a capacity increase of 24.3 percent.

Spirit reported fourth quarter 2013 cost per available seat mile excluding special items and fuel (“Adjusted CASM ex-fuel”) of 5.78 cents, a decrease of 2.5 percent compared to the same period last year. Better operational performance during the fourth quarter 2013 compared to fourth quarter 2012 helped to drive lower wage expense and lower passenger re-accommodation expense. These decreases were partially offset by higher depreciation and amortization expense related to the amortization of an increased number of heavy maintenance events.

In its Investor Update dated January 15, 2014, the Company estimated that it would record $8 million of expense related to the repair and damage of the engine and aircraft associated with the engine failure experienced in October 2013. The Company now believes it will receive insurance proceeds covering all related expenses in excess of a $750,000 deductible, which was expensed in the fourth quarter.

Total operating expense for the full year 2013 was $1,372.1 million, up 19.9 percent year over year driven primarily by fuel and other expenses associated with increased flight volume. Adjusted CASM ex-fuel for the full year 2013 decreased 1.5 percent year over year to 5.91 cents.

Selected Balance Sheet and Cash Flow Items

As of December 31, 2013, Spirit had $530.6 million in unrestricted cash and cash equivalents, no restricted cash, no debt on its balance sheet, and total shareholders’ equity of $769.1 million.

For the full year 2013, Spirit incurred capital expenditures of $19.8 million. The Company paid $70.3 million in pre-delivery deposits for future deliveries of aircraft, net of refunds, and recorded an increase of $24.1 million in maintenance deposits, net of reimbursements.

Fleet

In the fourth quarter 2013, Spirit took delivery of three new A320 aircraft, ending the year with 54 aircraft in its fleet.

Full Year 2013 and Other Current Highlights

Added/announced new service between (service start date):

– Dallas/Fort Worth and New Orleans (1/24/13)	– Houston and Denver (6/13/13)
– Houston and Orlando (2/14/13)	– Houston and Detroit (6/13/13)
– Detroit and Denver (2/14/13)	– Phoenix Sky Harbor and Dallas/Fort Worth (10/24/13)
– Dallas/Fort Worth and Minneapolis-St. Paul (4/4/13)	– Phoenix Sky Harbor and Chicago/O’Hare (11/7/13)²
– Dallas/Fort Worth and Philadelphia (4/5/13)	– Phoenix Sky Harbor and Denver (11/7/13)
– Houston and Los Angeles (4/25/13)	– Minneapolis-St. Paul and Los Angeles (11/7/13)
– Dallas/Fort Worth and Oakland/	– Minneapolis-St. Paul and Orlando (11/7/13)²
San Francisco (4/25/13)	– Minneapolis-St. Paul and Phoenix (11/7/13)²
– Dallas/Fort Worth and Los Angeles (4/25/13)	– Minneapolis-St. Paul and Tampa (11/7/13)²
– Dallas/Fort Worth and Cancun, Mexico (4/25/13)	– Minneapolis-St. Paul and Houston (5/1/14)²
– Baltimore/Washington and Las Vegas (4/25/13)	– Minneapolis-St. Paul and Baltimore/
– Baltimore/Washington and Myrtle Beach (4/25/13)²	Washington (5/1/14)²
– Philadelphia and Myrtle Beach (4/25/13)²	– Chicago O’Hare and Oakland/San Francisco (5/1/14)
– Philadelphia and Las Vegas (4/25/13)	– Minneapolis-St. Paul and Detroit (5/22/14)²
– Minneapolis-St. Paul and Denver (4/25/13)²	– Chicago O’Hare and Baltimore/Washington (5/22/14)²
– Dallas/Fort Worth and Los Cabos, Mexico (6/13/13)	– Chicago O’Hare and Portland, OR (5/22/14)²
– Dallas/Fort Worth and Latrobe/Pittsburgh (6/14/13)

Launched service to 25 new markets in 2013.
Ratified a new five-year contract with its dispatchers which are represented by the Transport Workers Union.
Elected H. McIntyre (Mac) Gardner as Chairman of the Board of Directors.
Ordered an additional 20 new A321 aircraft, converted 10 existing A320 orders to A321 orders, and converted 5 A321ceo orders to A321neo orders. These aircraft are scheduled to deliver between 2015 and 2018. The Company also advanced 4 A320 aircraft originally scheduled to deliver in 2015 to deliver in 2014, bringing its total planned aircraft deliveries in 2014 to 11.
Maintained its commitment to offer low fares to its valued customers (average ticket revenue per passenger flight segment for the full year 2013 was $79.43).

Additionally, Spirit Airlines on May 22 will introduce nonstop Minneapolis/St. Paul – Detroit service, offering one daily flight with Airbus A319 aircraft.

Copyright Photo: Jay Selman/AirlinersGallery.com. Still wearing the old 2004 black livery, Airbus A319-132 N523NK (man 2898) “Spirit of Tampa” prepares to land in Las Vegas. With the new color scheme, Spirit dropped the practice of naming its aircraft after cities. Instead it now offers a promotional package to generate income.

Spirit Airlines:

Alaska Air Group reports 4Q net income of $78 million and $508 net income for 2013, a new record

Alaska Air Group Inc. (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported fourth quarter 2013 GAAP net income of $78 million, or $1.11 per diluted share, compared to GAAP net income of $44 million, or $0.61 per diluted share in 2012. Excluding mark-to-market fuel hedge gains of $2 million ($1 million after tax, or $0.01 per diluted share), the company reported record fourth quarter 2013 net income of $77 million, or $1.10 per diluted share, compared to net income excluding mark-to-market fuel hedge losses of $50 million, or $0.70 per diluted share, in 2012.

The company reported full-year 2013 GAAP net income of $508 million, compared to $316 million in the prior year. Excluding the impact of the items noted in the table below, the company reported record net income of $383 million, or $5.40 per diluted share for 2013, compared to net income of $339 million, or $4.73 per diluted share in 2012. This marks the fourth 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 2013 and 2012 to amounts as reported in accordance with GAAP:

	Three Months Ended Dec. 31,
	2013				2012
(in millions, except per share amounts)	Dollars		Diluted EPS		Dollars		Diluted EPS
Reported GAAP net income	$	78	$	1.11	$	44	$	0.61
Mark-to-market fuel hedge adjustments, net of tax	(1)		(0.01)		6		0.09
Non-GAAP adjusted income and per share amounts	$	77	$	1.10	$	50	$	0.70

	12 Months Ended Dec. 31,
	2013				2012
(in millions, except per share amounts)	Dollars		Diluted EPS		Dollars		Diluted EPS
Reported GAAP net income	$	508	$	7.16	$	316	$	4.40
Mark-to-market fuel hedge adjustments, net of tax	(5)		(0.06)		23		0.33
Special mileage plan revenue, net of tax	$	(120)	$	(1.70)	$	—	$	—
Non-GAAP adjusted income and per share amounts	$	383	$	5.40	$	339	$	4.73

Financial Highlights:

Record fourth quarter net income, excluding special items, of $77 million, or $1.10 per diluted share, compared to $50 million, or $0.70 per diluted share in 2012. This quarter’s results compare to a First Call analyst consensus estimate of $1.07 per share.
Record full-year net income, excluding special items, of $383 million, or $5.40 per diluted share, compared to$339 million, or $4.73 per diluted share in 2012.
Net income for the fourth quarter under Generally Accepted Accounting Principles (GAAP) of $78 million, or$1.11 per diluted share, compared to net income of $44 million, or $0.61 per diluted share in 2012. Full-year GAAP net income of $508 million, or $7.16 per diluted share, compared to net income of $316 million, or $4.40per diluted share in 2012.
Air Group employees earned $105 million in incentive pay in 2013, or nearly five weeks of pay for most employees. Over the last four years, employees have earned more than $357 million in incentive pay, averaging 8.8% of annual pay for most employees.
Achieved return on invested capital of 13.6% in 2013, compared to 13% in 2012.
Lowered adjusted debt-to-total capitalization ratio to 35% as of Dec. 31, 2013.
Fully funded the company’s defined benefit pension plans in 2013.
Held $1.3 billion in unrestricted cash and marketable securities as of Dec. 31, 2013.
Repurchased 2,492,093 shares of common stock for approximately $159 million in 2013. Since 2007, Air Group has used $478 million to repurchase 21 million shares.
Modified affinity card agreement with Bank of America and extended through 2017, estimated to generate $55 million in additional cash flows annually.
Received a credit rating upgrade from Standard and Poor’s to “BB+” with a stable outlook.

Other Highlights and Achievements:

Ranked “Highest in Customer Satisfaction Among Traditional Network Carriers” by J.D. Power for the sixth year in a row.
Ranked as the best U.S. major airline by The Wall Street Journal’s “Middle Seat” scorecard.
Named Airline Industry Leader in the 2013 Temkin Customer Service Rankings.
Held the top spot in U.S. Department of Transportation on-time performance among major U.S. airlines for the 12 months ended November 2013.
Alaska Airlines received the FAA’s “Diamond Certificate of Excellence” award for the 12th consecutive year; and Horizon Air received the certificate for the 12th time in the last 14 years.
Improved employee productivity in 2013 by 4.0% compared to 2012.
Signed five-year collective bargaining agreements with Alaska pilots and Horizon flight attendants.
Named most fuel-efficient airline in the U.S. in a report released by the International Council on Clean Transportation.
Donated $7.6 million to more than 1,300 charitable organizations, including support for the grand opening of Aviation High School in Seattle and other educational efforts. Our employees also volunteered more than 10,500 hours of community service.
Signed an exclusive multi-year partnership with Seattle Seahawks quarterback, Russell Wilson, and named him our “Chief Football Officer.”

New routes:

New routes launched and announced in the fourth quarter are as follows:

New Nonstop Routes Launched in Q4	New Nonstop Routes (Launch Date)
Seattle – Colorado Springs	Portland – Salt Lake City (6/9/14)
Portland – Tucson	San Diego – Salt Lake City (6/10/14)
Portland – Boise	Los Angeles – Salt Lake City (6/11/14)
San Diego – Boise	San Jose – Salt Lake City (6/12/14)
Seattle – Omaha	Boise – Salt Lake City (6/16/14)
Portland – Reno	Las Vegas – Salt Lake City (6/16/14)
Seattle – Steamboat Springs	San Francisco – Salt Lake City (6/18/14)
Anchorage – Phoenix
Anchorage – Las Vegas
San Diego – Mammoth Lakes

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-990 N318AS (msn 30018) in the “We’re Going to Disneyland Resort” special livery arrives in Los Angeles.

Alaska Airlines:

Alaska Horizon:

Horizon Air: