Alaska Air Group reports first quarter 2024 results
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Achieved record first quarter operating revenue of $2.2 billion
Ratified new agreement with AMFA-represented employees
SEATTLE — Alaska Air Group (NYSE: ALK) today reported financial results for the first quarter ending March 31, 2024, and provided outlook for the second quarter ending June 30, 2024.
Impact of Flight 1282:
Air Group’s first quarter operation and results were significantly impacted by Flight 1282 in January and the Boeing 737-9 MAX grounding which extended into February. The Company has received $162 million in initial cash compensation from Boeing to address the financial damages incurred during the first quarter.
Financial Results:
- Reported net loss for the first quarter of 2024 under Generally Accepted Accounting Principles (GAAP) of $132 million, or $1.05 per share, compared to a net loss of $142 million, or $1.11 per share, for the first quarter of 2023.
- Reported net loss for the first quarter of 2024, excluding special items and mark-to-market fuel hedge accounting adjustments, of $116 million, or $0.92 per share, compared to a net loss of $79 million, or $0.62 per share, for the first quarter of 2023.
- Repurchased 561,086 shares of common stock for approximately $21 million in the first quarter.
- Generated $292 million in operating cash flow for the first quarter.
- Held $2.3 billion in unrestricted cash and marketable securities as of March 31, 2024.
- Ended the quarter with a debt-to-capitalization ratio of 47%, within the target range of 40% to 50%.
Operational Updates:
- Agreement to purchase Hawaiian Airlines for $18 per share was approved by Hawaiian shareholders. The proposed combination remains subject to regulatory approval.
- Ratified a five-year collective bargaining agreement with approximately 1,000 Alaska Airlines employees represented by AMFA.
- Completed inspections of all 737-9 MAX aircraft and returned the fleet to service in February.
- Enhanced quality oversight program at the Boeing production facility to validate the work and quality of our aircraft as they progress through the manufacturing process.
- Received two E175 aircraft during the quarter, bringing the total in the Horizon fleet to 43.
Commercial Updates:
- Launched partnership with Bilt Rewards, which adds Alaska’s Mileage Plan as a transfer partner and later in 2024 will allow Alaska Airlines Visa Signature® cardholders to earn 3x miles when paying rent via Bilt.
- Announced growth plans out of Portland to provide guests with more travel options, including 25% increased capacity and a new daily nonstop flight to Atlanta, beginning later this year.
- Announced new daily nonstop service between Santa Rosa and Las Vegas, which will be Air Group’s seventh destination from Sonoma County.
- Introduced Alaska Access, a monthly subscription program for price-conscious travelers that offers Wi-Fi vouchers, early access to sales, and a personalized fare page.