Delivered industry-leading adjusted pre-tax margins of 18.3% on record quarterly revenue
Adjusted pre-tax margin exceeds 2019 second quarter results despite higher fuel costs
Achieved industry’s best on-time performance and completion rate in June 

Alaska Air Group (NYSE: ALK) today reported financial results for the second quarter ending June 30, 2023, and provided outlook for the third quarter ending Sept 30, 2023. 

People are hungry to travel and our frontline employees are delivering the safe, reliable and caring experience that people expect when they fly with us,” said CEO Ben Minicucci. “I’m so proud of our team for knocking it out of the park and delivering industry-leading operational and financial outcomes. We chose to prioritize reliability, which is imperative to restoring stability, improving predictability for our guests and employees, capturing record revenue, and serving as the foundation for our long-term profitable growth.

Financial Highlights: 

• Reported net income for the second quarter of 2023 under Generally Accepted Accounting Principles (GAAP) of $240 million, or $1.86 per share, compared to a net income of $139 million, or $1.09 per share, for the second quarter of 2022.

• Reported net income for the second quarter of 2023, excluding special items and mark-to-market fuel hedge accounting adjustments, of $387 million, or $3.00 per share, compared to $280 million, or $2.19 per share, for the second quarter of 2022. This quarter’s adjusted results exceed the First Call analyst consensus estimate of $2.70 per share.

• Generated adjusted pre-tax margins of 18.3%, a 250-basis point increase over the same period in 2019.

• Recorded $2.8 billion in operating revenue for the second quarter, the highest quarterly total in company history.

• Received $435 million in bank card partner commissions driven by increased consumer spending.

• Repurchased 871,987 shares of common stock for approximately $39 million in the second quarter, bringing total repurchases to $57 million for the six months ended June 30, 2023. The company continues to expect share repurchases of at least $100 million in 2023.

• Generated $610 million in operating cash flow for the second quarter.

• Held $2.4 billion in unrestricted cash and marketable securities as of June 30, 2023.

• Ended the quarter with a debt-to-capitalization ratio of 48%, within the target range of 40% to 50%.

Operational Updates: 

• Received eight 737-9 aircraft and six E175 aircraft during the quarter, bringing the totals in the Alaska and Horizon fleets to 51 and 39, respectively.

• Announced new routes to Nassau, Bahamas from Seattle and Los Angeles and Guatemala City, Guatemala from Los Angeles, marking six countries that Alaska will fly to and from its West Coast hubs.

• Launched partnership with STARLUX Airlines, whose flights between Los Angeles and Taipei allow Mileage Plan members to connect to 16 destinations across Asia.

• Reopened the renovated D Concourse Lounge in Seattle, offering 50% more seating and improved amenities.

• Completed Intelsat satellite Wi-Fi installation across the Mainline fleet.

Environmental, Social and Governance Updates: 

• Released the 2022 Care Report, sharing the company’s progress towards its environmental, social and governance goals, as well as highlighting accomplishments and ongoing initiatives.

• Contributed a retired Q400 aircraft to ZeroAvia to support its development of a hydrogen-electric powertrain system, showcasing Alaska’s commitment to creating a sustainable future for aviation.

Awards and Recognition: 

• Mileage Plan named Best Airline Reward program for 2023-2024 by U.S. News & World Report for the 9^th consecutive year.

• Presented with the award for “Executive Leadership – North America” at the Airline Strategy Awards in recognition of Alaska’s strong financial performance and operational excellence.

• Named to Forbes’ Best Employers for Diversity list, receiving the highest ranking of all airlines.

• Scored 100% for the second year in a row in Disability:IN’s Disability Equality Index, which benchmarks companies on their disability inclusion and equality.

• Rated by KAYAK users as the #1 overall airline in North America, earning the top scores for crew, comfort, food and boarding.

Tune in:

A conference call regarding the second quarter results will be streamed online at 8:30 a.m. PDT on July 25, 2023. It can be accessed at www.alaskaair.com/investors. For those unable to listen to the live broadcast, a replay will be available after the conclusion of the call.

Full earnings financial data:

Statistical data, reconciliations of the reported non-GAAP financial measures, further details regarding results and a glossary of financial terms can be found in our Earnings Release as filed with the SEC.