Strong rating illustrates Moody’s confidence in Alaska’s financial strength, disciplined cost management, operational excellence, and increasing global presence

]Moody’s Investors Service has rated Alaska Air Group with an investment grade credit rating in their initial assessment of the airline, citing the company’s “strong business profile and conservative financial policy.”

The agency assigned Alaska a rating of “Baa3,” which signals that the airline is a stable and good investment.

In a release announcing Alaska’s investment grade rating, Moody’s stated “Alaska’s operations have produced a very competitive, if not leading, operating margin for several years. Moody’s expects this performance to continue.”

Moody’s also highlighted the carrier’s membership in the oneworld alliance and enhanced partnership with American Airlines, the ability for Alaska guests to book flights on 18 other airline partners directly on alaskaair.com, and the airline’s portfolio of quality product offerings.

“The company has three classes of seating on its entire fleet, including its regional subsidiary Horizon Airlines’ Embraer E175 regional jet aircraft. Twenty-five percent of the seats on every aircraft are in premium cabins. The cabin layout facilitates capturing customers across income and budget levels, whether for leisure or business travel.”

Alaska’s legacy of maintaining a strong balance sheet has positioned the carrier to operate without significant debt, weather economic downturns and capitalize on investment opportunities. It has also allowed Alaska to produce industry-leading profit margins even in challenging years – benefiting shareholders through returns and employees through payout programs.