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Fly for All app helps ease anxiety of air travel

Alaska Airlines’ practice flights for first-time flyers, families and those with cognitive and developmental disabilities, including autism, are some of the most coveted experiences to get comfortable with air travel without ever having to leave the airport. But in as little as an hour those events can fill up.

We wanted to do more for our guests.

Earlier this month, Alaska launched a free app in the Apple Store and Google Play called Fly for All. Designed for first-time flyers, guests traveling with children, unaccompanied minors and those with cognitive and developmental disabilities, including autism, the app will help ease the anxiety of air travel by walking guests through the steps they’ll follow when getting ready to fly.

The app features a series of photos and descriptions (social stories), with an optional read-aloud setting, that describes every step of the travel process from packing your bag to landing at your destination. It also features interactive content, including a travel checklist, matching games and communication cards anyone can use to communicate non-verbally with employees and other travelers.

The app on mobile:

The app on a tablet:

The app also highlights information about accessible travel services, such as Alaska’s accessible travel policies and a program called TSA Cares, which can provide assistance through the security process.

“Everyone should be able to feel comfortable flying, but not everyone does,” said Ray Prentice, director of customer advocacy. “We’re an airline that strives to provide remarkable experiences for everyone. Which aligns with our values and is the right thing to do – and the app helps us all get there.”

Started with an idea. Now we’re here.

[inset]

Our internal disability board and frontline employees are always looking for feedback and guidance to create a better, hassle-free travel experience for everyone.

The Fly for All app began as an idea more than a year ago when Prentice, who also is a co-chair of Alaska’s internal disability board, met Infiniteach, a tech company, that focuses on building app solutions for individuals with cognitive and developmental disabilities, at a national disability conference.

The Fly for All app is just one of many ways we’re supporting flyers of all needs and abilities.

During October, which is Disability Employment Awareness Month, we’ve hosted Wings for Autism events in Spokane and Fresno in partnership with local Arc organizations, and similar events in Portland and Redmond in collaboration with the Oregon Society of Autism. Another one in Anchorage, co-hosted by The Arc of Anchorage, is scheduled on Nov. 2. Event registration and outreach are handled by the co-hosting disability organizations.

Alaska also collaborates with Guide Dogs for the Blind and Canine Companions for Independence to provide airport access for puppies in training, partners with the Paralyzed Veterans of America to improve employee education for the proper handling of guests’ mobility devices, and is working with United Spinal Association and other organizations to increase the hiring of individuals with disabilities.

California wildfires trigger flight cancellations at Santa Rosa

Posted: 10 a.m. on Nov. 4, 2019

Full operations have resumed into and out of Santa Rosa (STS).

Posted: 1 p.m. on Oct. 30, 2019

The wildfire situation in Sonoma County, California remains dangerous and unpredictable. The Charles M. Schultz-Sonoma County (STS) Airport in Santa Rosa remains closed to commercial air service. All of our flights in and out of Santa Rosa are now canceled through Saturday, Nov. 2. Everyone’s safety remains the top concern. As a reminder, we’ve posted a travel advisory for Santa Rosa on alaskaair.com, which will allow our guests to change or cancel their flight without incurring a fee.

Posted: 12:45 p.m. on Oct. 28, 2019

Dangerous wildfires are once again raging across parts of California. On Sunday, California Gov. Gavin Newsom declared a statewide emergency. We’re most concerned about everyone’s safety and getting out of harm’s way.

The fires are impacting air travel. The Charles M. Schultz-Sonoma County (STS) Airport in Santa Rosa has halted commercial air service due to the nearby Kincade fire.

We have temporarily suspended all of our 18 daily inbound and outbound flights through Thursday, Oct. 31, which includes nonstop service between Santa Rosa and five destinations: Seattle, Portland, Los Angeles, Orange County and San Diego.

In the Los Angeles area, the Getty fire – burning near the famous museum – has triggered mandatory evacuations. At this point, smoke from the fires has not impacted our operations at any of the Southern California airports.

In support of the California communities that are affected by the wildfires, we’ll match up to one million Mileage Plan miles donated by our guests to the Alaska Airlines Disaster Relief Pool.

Alaska Airlines is supporting the initial wildfire relief efforts in California with a $10,000 cash donation to the California Fire Foundation’s SAVE (Supplying Aid to Victims of Emergency) and an additional $5,000 cash donation to the Latino Community Foundation’s Wildfire Relief Fund.

We’ve posted a travel advisory for Santa Rosa on alaskaair.com, which will allow our guests to change or cancel their flight without incurring a fee.

For those with a flight into the Southern California airports, please monitor your flight status regularly on our website. You can also sign up for flight notifications, which allows us to notify you of any last-minute delays, cancellations or gate changes by email or text message.

Stay safe, California.

Flyback Friday: A DC-9 Fit for Royalty

On Oct. 11, 1975, Emperor and Empress Hirohito of Japan charted a Hawaiian Airlines aircraft for a trip between O‘ahu and the Island of Hawai‘i. The political couple, who made a historical appearance in Honolulu the day prior, flew to Kona to stay at the Mauna Kea Beach Hotel before jetting back to Tokyo. 

1975 Emperor

Emperor Hirohito disembarking our DC-9 at Kona Airport.

 

Our newest McDonnell Douglas DC-9 was used to complete the round-trip flight. The aircraft was retrofitted with specially designed bulkheads, privacy curtains, and staffed with four Japanese-American flight attendants to welcome the royal entourage.

1975 FAs Japanese flt

A clip from a former Hawaiian Airlines employee newsletter highlighting the historic moment for our staff. The caption states: Flight attendants Joyce Ozaki (left) and Lynn Higuchi unwrap one of the gifts of lacquerware received from Japan's Emperor and Empress, passengers abroad a special Super DC-9 flight to which Joyce and Lynn were assigned along with Joyce Watanabe and Kay Kiyosaki. Each of the four flight attendants received a similar gift. The pilots, Jesse Dudley Jr. and Wayne Ballet, received gold cuff links bearing the imperial chrysanthemum seal.

 

The royal family’s trip to Hawai‘i was the last stop of a U.S. tour, and their appearance in Honolulu – Hirohito’s first since World War II ended three decades prior – was a momentous occasion for O‘ahu’s Japanese-American community, according to the New York Times.

“[The Emperor’s] weekend itinerary [in Honolulu] carefully avoided any of the numerous physical reminders of the Pacific war and the attack on Pearl Harbor on Dec. 7. 1941, that was carried out in the Emperor's name. But in remarks […], the Emperor alluded to the war when he described a century of friendly relations between the two countries. ‘It is regrettable that those bonds were ever broken, and I rejoice that they were restored and are stronger than ever,’ he said,” according to the Times.

1975 oct 13 flight crew

Hawaiian Airline's former president John Magoon Jr. (pictured center), with the crew of Emporer Hirohito's flight.

 

Today, Japanese influence remains strong throughout Hawai‘i. Our Honolulu hub was recently named Daniel K. Inouye International Airport (HNL) to honor the late Sen. Inouye, a decorated World War II veteran who became an influential Japanese-American leader while representing Hawai‘i in Congress between 1963 and 2012.

Deep cultural ties are part of the reason why 1.6 million Japanese travelers visited Hawai‘i in 2018, including the nearly 392,000 visitors who chose Hawaiian Airlines to travel to our islands.

IMG_3249

Our flight attendants preparing to greet our Japanese guests with fresh lei during the inaugural flight between New Chitose Airport and Daniel K. Inouye International Airport in 2013.

 

Facilitating travel between Hawai‘i and the Land of the Rising Sun continues to be a significant focus for our airline. We entered the market in 2010 with nonstop service between Haneda and HNL and have since added four popular routes, connecting Sapporo, Osaka and Narita to Honolulu, and Haneda to Kona on the Island of Hawai‘i.

Sapporo

Sapporo's famous Ōdōri Park.

 

Beginning Nov. 26, we’ll expand our thriving network by launching service between HNL and Fukuoka on the island of Kyushu.

Plan a perfect leaf peeping trip to New England 

Born and raised in New England, I’ve been surrounded by the most picturesque places during fall at its peak. Luckily for travelers, Alaska Airlines flies directly to/from Boston and New York from various west coast cities such as Los Angeles, Portland, San Francisco and Seattle. From there, the best leaf peeping spots are within reach.

‘Leaf peeping’ is another way to say you’re looking for the best changing of colors in autumn, I swear it’s a thing. Here’s when and where you should go from Boston or New York to leaf peep New England.

Connecticut
West Cornwall Covered Bridge

Connecticut, being the southernmost state, gives leaf peepers a chance to hang on to fall a little longer than most states in New England, well into November.

Towns like Cornwall, Kent and Sharon offer great countryside views of foliage.

If you’re looking to sit back and relax, the Essex Steam Train can take you from Essex to Chester along the Connecticut River while capturing the most spectacular fall views. When you’re ready to head back, you can choose another scenic route by riverboat.

Two ways to fly nearby: Alaska has direct flights to/from Boston Logan International Airport and John F. Kennedy International Airport, which are about a two-hour drive to Connecticut.

Photo courtesy of Essex Steam Train
Maine

Maine’s nickname, “Vacationland,” is an understatement. From the mountains to the lakes and coastline, there’s plenty of jaw-dropping fall sceneries to see, especially at Acadia National Park.

For other great glimpses of foliage, I suggest driving Park Loop Road. You’ll see some of the most beautiful spots along the coast and eventually get to Bar Harbor, a coastal town serving up views and legendary lobster.

Acadia National Park is about 4.5 hours north of Boston—the drive up the coast of Maine is worth it, trust me. Best peeping times typically begin mid-September and lasts until mid-October.

Massachusetts

Massachusetts has many great sights to see, from the city of Boston to the Berkshires, a rural region in the western part of the state. The Berkshires are full of mountains, lakes and cozy downtowns like Great Barrington, Pittsfield, or North Adams, creating the perfect fall atmosphere. Each town is close enough to enjoy during a weekend trip.

Looking for the best view? Take a drive up the state’s tallest mountain, Mount Greylock – you won’t be disappointed by the views along the auto road from mid-September to around mid-to-late October. My advice, on the journey west from Boston, stop for drinks and lunch in Northampton, another historic locale.

You’ll need a car to reach most of the locations listed. By using Alaska Airlines Cars, powered by CarTrawler, you can find the best price on car rentals while boosting your Mileage Plan for future trips. Learn how to book your entire trip using Alaska miles. 

New Hampshire

My favorite leaf peeping spot? The Kancamagus Highway hands down. The 34-mile road links North Conway and Lincoln, two classic mountain towns with great shops and restaurants. There are many designated pull-offs where you can safely stop to admire the colors.

Photo by Tucker LaBelle-Hayford

If you’re planning a trip to the Granite State before late October, the Mount Washington Auto Road is an absolute must. It’s an 8-mile drive that leads you to pure beauty at the summit of Mount Washington, the highest peak in New England. The drive is about an hour roundtrip and takes you from an altitude of 1,527 feet to 6,145 feet – roughly 4,618 feet from the starting point.

If the Auto Road is closed for the season, Crawford Notch State Park is another incredible spot to experience fall in New Hampshire that will make you feel like you’re in a movie.

North Conway is about 2.5 hours north of Boston. 

Lower Falls Trail, Kancamagus Highway
Rhode Island

It may be the smallest state in the country, but visiting Rhode Island’s coastline is a big deal. In the fall, especially, oceanfront towns like Newport become prime locations to see the season’s change.

Castle Hill Lighthouse – Newport, Rhode Island

My advice: Pack up the car and head down Ocean Drive to see the leaves, ocean and historic mansions from the late 19th century. Need some snacks for the road? Stop by Sweet Berry Farm in nearby Middletown; they have pumpkin patches and apple cider doughnuts galore, a New England staple in the fall.

Newport is only 1.5 hours south of Boston.

Vermont

Before Vermont turns into a winter wonderland for skiers, nearly the entire state changes color. While Burlington, a vibrant, small city located along the shoreline of Lake Champlain, is an obvious choice for leaf peeping, Stowe is a quaint mountain town nearby with no shortage of fall activities. If the leaves leave you wanting to satisfy your sweet tooth, the original Ben & Jerry’s ice cream factory is less than 15 minutes from Stowe.

Woodstock is another excellent spot to have an authentic New England fall experience. You’ll find shops selling every maple-flavored thing you can think of and farm-to-table restaurants.

Trees across the region start turning from a luscious green to a fiery mix of yellow, orange and red starting in mid-September through the first two to three weeks in October and vary by elevation, progressing from north to south.

Woodstock is about two hours northwest of Boston, while Burlington and Stowe are an additional hour north.

Don’t miss out on leaf peeping this year, book your flight today!

Video: How this community college is preparing students for careers in aviation (PBS)

In Bend, Oregon, Central Oregon Community College is preparing students for careers in aviation, where they spoke with Assistant Chief & Aviation Program Coordinator Bryan McKune, who is also the Manager of Pilot Development at Alaska Airlines. According to Boeing, 800,000 new pilots will be needed worldwide over the next 20 years. To resolve this critical need, students like Beverly Taylor are cultivating their own career success. PBS Special correspondent Cat Wise reports.

Video:

Original story aired on PBS NewsHour on October 22, 2019.

Meet our “picture perfect” Customer Service Legend, Darwin Johnson

For several years, Darwin Johnson was known around Alaska Airlines as “the man on the First Class signs.” During that time, the smiling face of this affable Customer Service Agent, who has trained thousands of other agents over a 35-year career at the airline, was literally the picture of an Alaska CSA.

“For some reason, they wanted to take my photo,” Johnson recalls. “So then I was on signs for First Class across the system.”

The self-effacing Johnson, who has since modeled articles of clothing for Alaska’s new-uniform tests, says that he used to get a lot of good-natured teasing for being a poster boy.

“It was fine,” he says with a laugh. “But I didn’t mind when they took those cards down.”
The truth is that Johnson is widely appreciated by his peers and supervisors as an exemplary employee. He is beloved for his expertise as a CSA, his emphasis on safety procedures, and his calm and positive approach to training.

Designated Trainer Customer Service Agent Darwin Johnson

Growing up in Tacoma, south of Seattle, Johnson began his career at Boeing as a machinist. He eventually decided to work at an airline because he loved travel, and he found his calling in customer service, working at Alaska as a reservations sales agent for three years before becoming a CSA. About 25 years ago, he also became a trainer and has thrived in this role, as a natural teacher and mentor.

“Darwin is welcoming and always willing to help,” says Donna Olson, Manager of Seattle Station Training. “Engaging with empathy and compassion, he’s kind, funny, and makes everyone, from new hires to leadership, feel valued.”

The appreciation co-workers feel for Johnson was evident last year, when he underwent a kidney transplant and there was an outpouring of support as he recovered. Amazingly, Johnson had even chosen to work while undergoing dialysis. It was one more instance of this agent being the picture of dedication. —Ben Raker

Questions & answers

What do you like most about your job?
It’s always the people—customers and co-workers. If I can help them in any situation, I do. That’s what keeps me going.

How do you define good service?
Helping guests and co-workers and being able to fix their problems.

What is your best job advice?
Build relationships with people so they can be comfortable coming to you. And treat customers the same as you would your friends and family.

What do you like to do outside of work?
I like golf when I can fit it in. I also love listening to music: bebop and heavy jazz.

Where have you enjoyed traveling?
I like the Caribbean. Or Maui. Or Europe. Or South America. Also, my wife and I have a son in Arizona and a daughter in Houston. We try to get there when we can.

Kudos from Darwin’s co-workers

“Darwin brings his whole self to work and is always willing to stay and help out when needed by new hires or the station.” —Karen W., Manager, Policies and Procedures, Seattle

“He’s a wealth of information, and he was always willing to teach me or show me how to do something if I didn’t know. No matter what your question is, he will drop what he is doing to help you. You can always go to him for help. He has the patience of a saint.” —Jake G., Flight Attendant, Seattle

“Darwin is Mr. Alaska Airlines, Superman, teacher and mentor, all wrapped up in one great package. He is known all over the system. He has a contagious smile and laugh. All agents, new and old, love him.” —Alana C., CSA, Seattle

“I always felt that in Darwin there was the co-worker/friend you could count on to do the right thing in any situation. It has truly been a pleasure working with this amazing man!”
—Sheryl D., Supervisor, Employee Onboarding, Seattle

Alaska Airlines employees such as Darwin Johnson are the reason for our excellence. Join us in creating an airline people love. Visit careers.alaskaair.com.

Hawaiian Holdings Reports 2019 Third Quarter Financial Results

HA High Res Logo_mid

HONOLULU — Hawaiian Holdings, Inc. (NASDAQ: HA) (the “Company”), parent company of Hawaiian Airlines, Inc. (“Hawaiian”), today reported its financial results for the third quarter of 2019.

Third Quarter 2019 – Key Financial Metrics

 

 

GAAP

 

YoY Change

 

Adjusted

 

YoY Change

Net Income

 

$80.1M

 

($13.5M)

 

$81.5M

 

($15.2M)

Diluted EPS

 

$1.70

 

($0.14)

 

$1.72

 

($0.19)

Pre-tax Margin

 

14.4%

 

(1.0) pts.

 

14.6%

 

(1.3) pts.
 

“Our team did a fantastic job this quarter, demonstrating once again that Hawaiian Airlines is the carrier of choice for guests traveling to, from and within the Hawaiian Islands,” said Peter Ingram, Hawaiian Airlines president and CEO. “In the face of heightened competition, we delivered strong financial results and made significant progress towards accomplishing the strategic priorities that we established at the beginning of the year.  As we enter the home stretch of 2019, we look forward to continuing to execute our proven formula for generating value for our guests and our investors.  I extend my thanks, as always, to my 7,300 colleagues for their tireless efforts to deliver award-winning, authentic Hawaiian hospitality every day.”

Statistical information, as well as a reconciliation of the non-GAAP financial measures, can be found in the accompanying tables.

 

Shareholder Returns, Liquidity and Capital Resources

The Company returned $25.7 million to shareholders in the third quarter through share repurchases of $20.0 million and a dividend payment of $5.7 million.

On October 18, 2019, the Company's Board of Directors declared a quarterly cash dividend of 12 cents per share to be paid on November 29, 2019 to all shareholders of record as of November 15, 2019.

As of September 30, 2019, the Company had:

• Unrestricted cash, cash equivalents and short-term investments of $745 million

• Outstanding debt and finance lease obligations of $782 million

 

Third Quarter 2019 Highlights

Leadership and People

• Appointed Robin Kobayashi as interim Senior Vice President of Human Resources.

Operational

• Ranked #1 nationally for on-time performance year-to-date through August 2019, as reported in the U.S. Department of Transportation Air Travel Consumer Report, adding to its record of 15 consecutive years as the most punctual airline.

• Implemented Amadeus’ Departure Control Flight Management to optimize load planning and improve operational efficiency.

Products and Services

• In September and October, launched sales of Main Cabin Basic fares in all North American markets, enhancing Hawaiian's product portfolio with a fare option that appeals to the most price-conscious travelers.

Routes and Network

• Received final U.S. Department of Transportation approval to operate one additional daily nonstop flight between Tokyo Haneda Airport (HND) and Honolulu Daniel K. Inouye International Airport (HNL) starting in March of 2020.

• Announced service for three new routes with its A321neo fleet:

◦ Four-times-weekly service between Maui’s Kahului Airport (OGG) and Las Vegas’ McCarran International Airport (LAS) beginning December 15, 2019

◦ Thrice-weekly nonstop service between Honolulu (HNL) and Seattle-Tacoma International Airport (SEA) starting January 7, 2020, supplementing existing daily A330-200 service

◦ Seasonal winter service between Maui (OGG) and Los Angeles International Airport (LAX) from December 14, 2019 through January 5, 2020, supplementing existing daily A330-200 service

Fleet & Financing

•     Took delivery of two Airbus A321neo aircraft, increasing the size of its A321neo fleet to fifteen aircraft.

•     Entered into two Japanese Yen-denominated debt financings, collateralized by four Airbus A330 aircraft and two Airbus A321neo aircraft.

•     Extended the leases on three A330 aircraft, enabling cost savings while maintaining fleet flexibility for future growth.

Fourth Quarter and Full Year 2019 Outlook

The table below summarizes the Company’s expectations for the fourth quarter ending December 31, 2019, and the full year ending December 31, 2019, expressed as an expected percentage change compared to the results for the quarter and the full year ended December 31, 2018, as applicable.

 

 

Fourth Quarter

 

 

 

GAAP Fourth Quarter

Item

 

2019 Guidance

 

GAAP Equivalent

 

2019 Guidance

ASMs

 

Up 3.0 – 4.5%

 

 

 

 

Operating revenue per ASM

 

Down 0.5 – 3.5%

 

 

 

 

Cost per ASM excluding fuel and non-recurring items (a)

 

Up 0.5 – 3.5%

 

Cost per ASM (a)

 

Down 0.1 – 2.5%

Gallons of jet fuel consumed

 

Up 0.5 – 2.5%

 

 

 

 

Economic fuel cost per gallon (b)(c)

 

$2.02

 

Fuel cost per gallon (b)

 

$1.98

 

 

 

Full Year

 

 

 

GAAP Full Year

Item

 

2019 Guidance

 

GAAP Equivalent

 

2019 Guidance

ASMs

 

Up 1.9 – 2.4%

 

 

 

 

Cost per ASM excluding fuel and non-recurring items (a)

 

Up 1.8 – 2.6%

 

Cost per ASM (a)

 

Down 2.3 – 2.9%

Gallons of jet fuel consumed

 

Down 1.0 – 1.5%

 

 

 

 

Economic fuel cost per gallon (b)(c)

 

$2.05

 

Fuel cost per gallon (b)

 

$2.00
 

(a) See Table 4 for a reconciliation of GAAP operating expenses to operating expenses excluding aircraft fuel and non-recurring items.

(b) Fuel cost per gallon estimates are based on the October 10, 2019 fuel forward curve.

(c) See Table 3 for a reconciliation of GAAP fuel costs to economic fuel costs.

 

Investor Conference Call

Hawaiian Holdings’ quarterly earnings conference call is scheduled to begin today (October 22, 2019) at 4:30 p.m. Eastern Time (USA).  The conference call will be broadcast live over the Internet. Investors may access and listen to the live audio webcast on the investor relations section of the Company’s website at HawaiianAirlines.com. For those who are not available for the live webcast, a replay of the webcast will be archived for 90 days on the investor relations section of the Company's website.

 

About Hawaiian Airlines

Hawaiian® has led all U.S. carriers in on-time performance for each of the past 15 years (2004-2018) as reported by the U.S. Department of Transportation. Consumer surveys by Condé Nast Traveler, Travel + Leisure and TripAdvisor have placed Hawaiian among the top of all domestic airlines serving Hawai‘i.

Now in its 90th year of continuous service, Hawaiian is Hawai‘i’s biggest and longest-serving airline. Hawaiian offers non-stop service to Hawai‘i from more U.S. gateway cities (13) than any other airline, along with service from Japan, South Korea, Australia, New Zealand, American Samoa and Tahiti. Hawaiian also provides, on average, more than 170 jet flights daily between the Hawaiian Islands, with a total of more than 260 daily flights system-wide.

Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA). Additional information is available at HawaiianAirlines.com. Follow Hawaiian's Twitter updates (@HawaiianAir), become a fan on Facebook (Hawaiian Airlines), and follow us on Instagram (hawaiianairlines). For career postings and updates, follow Hawaiian's LinkedIn page.

For media inquiries, please visit Hawaiian Airlines' online newsroom.

 

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to certain current and future events and financial performance.  Such forward-looking statements include, without limitation, the Company’s expectations regarding available seat miles, cost per available seat mile, cost per available seat mile excluding fuel and non-recurring items, gallons of jet fuel consumed, fuel cost per gallon, and economic fuel cost per gallon for the quarter and full year ending December 31, 2019; the Company's expectations regarding operating revenue per available seat mile for the quarter ending December 31, 2019; and statements as to other matters that do not relate strictly to historical facts or statements of assumptions underlying any of the foregoing.  Words such as “expects,” “anticipates,” “projects,” “intends,” “plans,” “believes,” “estimates,” variations of such words, and similar expressions are also intended to identify such forward-looking statements.  These forward-looking statements are and will be subject to many risks, uncertainties and assumptions relating to the Company’s operations and business environment, all of which may cause the Company’s actual results to be materially different from any future results, expressed or implied, in these forward-looking statements.  These risks and uncertainties include, without limitation, the Company’s ability to accurately forecast quarterly and annual results; economic volatility; macroeconomic developments; political developments; the price and availability of aircraft fuel; fluctuations in demand for transportation in the markets in which the Company operates, including due to the occurrence of natural disasters such as hurricanes, earthquakes and tsunamis; the Company’s dependence on tourist travel; labor negotiations; regulatory determinations and related developments; competitive pressures, including the impact of rising industry capacity between North America and Hawai‘i and interisland; the Company's ability to continue to generate sufficient cash flow to support the payment of a quarterly dividend; changes in the Company's future capital needs; foreign currency exchange rate fluctuations; and the Company’s ability to implement its growth strategy.

The risks, uncertainties and assumptions referred to above that could cause the Company’s results to differ materially from the results expressed or implied by such forward-looking statements also include the risks, uncertainties and assumptions discussed from time to time in the Company’s other public filings and public announcements, including the Company’s Annual Report on Form 10-K and the Company’s Quarterly Reports on Form 10-Q, as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission.  All forward-looking statements included in this document are based on information available to the Company on the date hereof.  The Company does not undertake to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date hereof even if experience or future changes make it clear that any projected results expressed or implied herein will not be realized.

 

Table 1.

Hawaiian Holdings, Inc.

Consolidated Statements of Operations (unaudited)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

 

 

(in thousands, except per share data)

Operating Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Passenger

 

$

694,263

 

 

$

697,232

 

 

(0.4

)%

 

$

1,948,990

 

 

$

1,963,994

 

 

(0.8

)%

Other

 

60,888

 

 

61,855

 

 

(1.6

)%

 

175,101

 

 

175,952

 

 

(0.5

)%

Total

 

755,151

 

 

759,087

 

 

(0.5

)%

 

2,124,091

 

 

2,139,946

 

 

(0.7

)%

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Wages and benefits

 

182,862

 

 

176,642

 

 

3.5

%

 

537,997

 

 

516,906

 

 

4.1

%

Aircraft fuel, including taxes and delivery

 

138,586

 

 

162,932

 

 

(14.9

)%

 

405,290

 

 

449,404

 

 

(9.8

)%

Maintenance, materials and repairs

 

61,363

 

 

57,118

 

 

7.4

%

 

182,539

 

 

176,229

 

 

3.6

%

Aircraft and passenger servicing

 

41,762

 

 

42,063

 

 

(0.7

)%

 

120,303

 

 

117,207

 

 

2.6

%

Depreciation and amortization

 

41,596

 

 

36,373

 

 

14.4

%

 

119,274

 

 

101,537

 

 

17.5

%

Commissions and other selling

 

33,291

 

 

32,704

 

 

1.8

%

 

96,598

 

 

96,482

 

 

0.1

%

Aircraft rent

 

30,534

 

 

31,768

 

 

(3.9

)%

 

91,773

 

 

93,533

 

 

(1.9

)%

Other rentals and landing fees

 

33,345

 

 

33,227

 

 

0.4

%

 

95,777

 

 

95,226

 

 

0.6

%

Purchased services

 

33,120

 

 

32,509

 

 

1.9

%

 

98,306

 

 

95,104

 

 

3.4

%

Contract terminations expense

 

—

 

 

—

 

 

—

%

 

—

 

 

35,322

 

 

(100.0

)%

Other

 

42,056

 

 

37,925

 

 

10.9

%

 

118,041

 

 

117,977

 

 

0.1

%

Total

 

638,515

 

 

643,261

 

 

(0.7

)%

 

1,865,898

 

 

1,894,927

 

 

(1.5

)%

Operating Income

 

116,636

 

 

115,826

 

 

0.7

%

 

258,193

 

 

245,019

 

 

5.4

%

Nonoperating Income (Expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense and amortization of debt discounts and issuance costs

 

(6,438

)

 

(8,446

)

 

 

 

(21,268

)

 

(24,628

)

 

 

Interest income

 

3,148

 

 

3,124

 

 

 

 

9,205

 

 

6,529

 

 

 

Capitalized interest

 

1,171

 

 

1,821

 

 

 

 

3,713

 

 

6,414

 

 

 

Gains (losses) on fuel derivatives

 

(4,553

)

 

3,495

 

 

 

 

(7,203

)

 

27,064

 

 

 

Other, net

 

(1,445

)

 

937

 

 

 

 

(5,553

)

 

(759

)

 

 

Total

 

(8,117

)

 

931

 

 

 

 

(21,106

)

 

14,620

 

 

 

Income Before Income Taxes

 

108,519

 

 

116,757

 

 

 

 

237,087

 

 

259,639

 

 

 

Income tax expense

 

28,443

 

 

23,215

 

 

 

 

62,820

 

 

58,075

 

 

 

Net Income

 

$

80,076

 

 

$

93,542

 

 

 

 

$

174,267

 

 

$

201,564

 

 

 

Net Income Per Common Stock Share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.70

 

 

$

1.85

 

 

 

 

$

3.65

 

 

$

3.97

 

 

 

Diluted

 

$

1.70

 

 

$

1.84

 

 

 

 

$

3.64

 

 

$

3.96

 

 

 

Weighted Average Number of Common Stock Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

47,119

 

 

50,594

 

 

 

 

47,784

 

 

50,807

 

 

 

Diluted

 

47,236

 

 

50,731

 

 

 

 

47,847

 

 

50,935

 

 

 

 

Table 2.

Hawaiian Holdings, Inc.

Selected Statistical Data (unaudited)

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

 

 

(in thousands, except as otherwise indicated)

Scheduled Operations (a) :

 

 

 

 

 

 

 

 

 

 

 

 

Revenue passengers flown

 

3,066

 

 

3,035

 

 

1.0

%

 

8,843

 

 

8,943

 

 

(1.1

)%

Revenue passenger miles (RPM)

 

4,673,734

 

 

4,554,393

 

 

2.6

%

 

13,288,823

 

 

12,918,174

 

 

2.9

%

Available seat miles (ASM)

 

5,321,812

 

 

5,347,156

 

 

(0.5

)%

 

15,325,559

 

 

15,098,431

 

 

1.5

%

Passenger revenue per RPM (Yield)

 

14.85

¢

 

15.31

¢

 

(3.0

)%

 

14.67

¢

 

15.20

¢

 

(3.5

)%

Passenger load factor (RPM/ASM)

 

87.8

%

 

85.2

%

 

2.6

pt.

 

86.7

%

 

85.6

%

 

1.1

pt.

Passenger revenue per ASM (PRASM)

 

13.05

¢

 

13.04

¢

 

0.1

%

 

12.72

¢

 

13.01

¢

 

(2.2

)%

Total Operations (a) :

 

 

 

 

 

 

 

 

 

 

 

 

Revenue passengers flown

 

3,072

 

 

3,039

 

 

1.1

%

 

8,853

 

 

8,949

 

 

(1.1

)%

Revenue passenger miles (RPM)

 

4,679,632

 

 

4,557,706

 

 

2.7

%

 

13,300,090

 

 

12,921,666

 

 

2.9

%

Available seat miles (ASM)

 

5,331,914

 

 

5,352,976

 

 

(0.4

)%

 

15,341,510

 

 

15,104,500

 

 

1.6

%

Operating revenue per ASM (RASM)

 

14.16

¢

 

14.18

¢

 

(0.1

)%

 

13.85

¢

 

14.17

¢

 

(2.3

)%

Operating cost per ASM (CASM)

 

11.98

¢

 

12.02

¢

 

(0.3

)%

 

12.16

¢

 

12.55

¢

 

(3.1

)%

CASM excluding aircraft fuel and non-recurring items (b)

 

9.38

¢

 

8.94

¢

 

4.9

%

 

9.53

¢

 

9.32

¢

 

2.3

%

Aircraft fuel expense per ASM (c)

 

2.60

¢

 

3.05

¢

 

(14.8

)%

 

2.64

¢

 

2.98

¢

 

(11.4

)%

Revenue block hours operated

 

56,088

 

 

55,147

 

 

1.7

%

 

162,556

 

 

155,369

 

 

4.6

%

Gallons of jet fuel consumed

 

69,749

 

 

72,133

 

 

(3.3

)%

 

201,547

 

 

206,032

 

 

(2.2

)%

Average cost per gallon of jet fuel (actual) (c)

 

$

1.99

 

 

$

2.26

 

 

(11.9

)%

 

$

2.01

 

 

$

2.18

 

 

(7.8

)%

Economic fuel cost per gallon (c)(d)

 

$

2.04

 

 

$

2.15

 

 

(5.1

)%

 

$

2.06

 

 

$

2.06

 

 

—

%

 

(a)     Includes the operations of the Company's contract carrier under a capacity purchase agreement.

(b)     See Table 4 for a reconciliation of GAAP operating expenses to operating expenses excluding aircraft fuel and non-recurring items.

(c)     Includes applicable taxes and fees.

(d)     See Table 3 for a reconciliation of GAAP fuel costs to economic fuel costs.

 

Table 3.

Hawaiian Holdings, Inc.

Economic Fuel Expense (unaudited)

The Company believes that economic fuel expense is a good measure of the effect of fuel prices on its business as it most closely approximates the net cash outflow associated with the purchase of fuel for its operations in a period. The Company defines economic fuel expense as GAAP fuel expense plus losses/(gains) realized through actual cash (receipts)/payments received from or paid to hedge counterparties for fuel hedge derivative contracts settled during the period.

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

 

 

(in thousands, except per-gallon amounts)

Aircraft fuel expense, including taxes and delivery

 

$

138,586

 

 

$

162,932

 

 

(14.9

)%

 

$

405,290

 

 

$

449,404

 

 

(9.8

)%

Realized losses (gains) on settlement of fuel derivative contracts

 

3,399

 

 

(8,085

)

 

NM

 

9,294

 

 

(24,572

)

 

NM

Economic fuel expense

 

$

141,985

 

 

$

154,847

 

 

(8.3

)%

 

$

414,584

 

 

$

424,832

 

 

(2.4

)%

Fuel gallons consumed

 

69,749

 

 

72,133

 

 

(3.3

)%

 

201,547

 

 

206,032

 

 

(2.2

)%

Economic fuel costs per gallon

 

$

2.04

 

 

$

2.15

 

 

(5.1

)%

 

$

2.06

 

 

$

2.06

 

 

—

%

 

 

 

Estimated three months ending

December 31, 2019

 

 Estimated full year ending

December 31, 2019

 

 

(in thousands, except per-gallon amounts)

Aircraft fuel expense, including taxes and delivery

 

$

134,541

 

to

$

137,278

 

 

$

539,836

 

to

$

542,642

 

Realized losses (gains) on settlement of fuel derivative contracts

 

3,000

 

to

3,000

 

 

13,000

 

to

13,000

 

Economic fuel expense

 

$

137,541

 

to

$

140,278

 

 

$

552,836

 

to

$

555,642

 

Fuel gallons consumed

 

68,089

 

to

69,444

 

 

269,676

 

to

271,045

 

Economic fuel costs per gallon

 

$

2.02

 

to

$

2.02

 

 

$

2.05

 

to

$

2.05

 
 

 

Table 4.

Hawaiian Holdings, Inc.

Non-GAAP Financial Reconciliation (unaudited)

The Company evaluates its financial performance utilizing various GAAP and non-GAAP financial measures, including net income, diluted net income per share, CASM, PRASM, RASM, Passenger Revenue per RPM and EBITDAR.  Pursuant to Regulation G, the Company has included the following reconciliation of reported non-GAAP financial measures to comparable financial measures reported on a GAAP basis.  The adjustments are described below:

• Changes in fair value of derivative contracts, net of tax, are based on market prices for open contracts as of the end of the reporting period.  This line item includes the unrealized amounts of fuel derivatives (not designated as hedges) that will settle in future periods and the reversal of prior period unrealized amounts.

• Unrealized loss (gain) on foreign debt is based on fluctuations in foreign exchange rates related to foreign-denominated debt agreements.

• During the nine months ended September 30, 2019, the Company recorded a gain on disposal of Boeing 767-300 aircraft equipment of $1.9 million in conjunction with the retirement of its Boeing 767-300 fleet. During the three and nine months ended September 30, 2018, we also recorded a loss on the sale of two Boeing 767-300 aircraft covered under a forward sale agreement of $1.8 million.

The Company believes that excluding the impact of these derivative adjustments, fluctuations in foreign exchange rates, and the sale of aircraft and aircraft equipment helps investors better analyze the Company's operational performance and compare its results to other airlines in the periods presented.

 

2018 contract terminations expense

• During the nine months ended September 30, 2018, the Company terminated two contracts which resulted in a $35.3 million contract terminations expense.  In February 2018, the Company exercised its right to terminate its purchase agreement with Airbus for six Airbus A330-800neo aircraft and the purchase rights for an additional six Airbus A330-800neo aircraft.  The Company recorded a contract terminations expense to reflect a portion of the termination penalty.  In January 2018, the Company entered into a transaction with its lessor to early terminate three Boeing 767-300 aircraft leases and concurrently entered into a forward sale agreement for the same three Boeing 767-300 aircraft, including two Pratt & Whitney 4060 engines for each aircraft.  These aircraft were previously accounted for as operating leases.  In order to exit the leases and purchase the aircraft, the Company agreed to pay a total of $67.1 million (net of all deposits) of which a portion, $35.3 million, was expensed immediately and recognized as a lease termination fee.  The expensed amount represents the total purchase price over fair value of the aircraft purchased as of the date of the transaction.

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

Total

 

Diluted Per Share

 

Total

 

Diluted Per Share

 

Total

 

Diluted Per Share

 

Total

 

Diluted Per Share

 

 

(in thousands, except per share data)

GAAP Net Income, as reported

 

$

80,076

 

 

$

1.70

 

 

$

93,542

 

 

$

1.84

 

 

$

174,267

 

 

$

3.64

 

 

$

201,564

 

 

$

3.96

 

Add (deduct): changes in fair value of derivative contracts

 

1,154

 

 

0.02

 

 

4,590

 

 

0.09

 

 

(2,091

)

 

(0.04

)

 

(2,492

)

 

(0.05

)

Add: unrealized loss (gain) on foreign debt

 

717

 

 

0.01

 

 

(2,267

)

 

(0.04

)

 

2,254

 

 

0.05

 

 

(2,331

)

 

(0.05

)

Add: loss (gain) on sale of aircraft and equipment

 

—

 

 

—

 

 

1,844

 

 

0.04

 

 

(1,948

)

 

(0.04

)

 

1,844

 

 

0.04

 

Add: contract terminations expense

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

35,322

 

 

0.69

 

Deduct: tax effect of adjustments

 

(490

)

 

(0.01

)

 

(1,042

)

 

(0.02

)

 

473

 

 

0.01

 

 

(8,086

)

 

(0.16

)

Adjusted Net Income

 

$

81,457

 

 

$

1.72

 

 

$

96,667

 

 

$

1.91

 

 

$

172,955

 

 

$

3.62

 

 

$

225,821

 

 

$

4.43

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

(in thousands)

Income Before Income Taxes, as reported

 

$

108,519

 

 

$

116,757

 

 

$

237,087

 

 

$

259,639

 

Add (deduct): changes in fair value of derivative contracts

 

1,154

 

 

4,590

 

 

(2,091

)

 

(2,492

)

Add: unrealized loss (gain) on foreign debt

 

717

 

 

(2,267

)

 

2,254

 

 

(2,331

)

Add: loss (gain) on sale of aircraft and equipment

 

—

 

 

1,844

 

 

(1,948

)

 

1,844

 

Add: contract terminations expense

 

—

 

 

—

 

 

—

 

 

35,322

 

Adjusted Income Before Income Taxes

 

$

110,390

 

 

$

120,924

 

 

$

235,302

 

 

$

291,982

 
                                                                                               

Operating Costs per Available Seat Mile (CASM)

The Company has separately listed in the table below its fuel costs per ASM and non-GAAP unit costs, excluding fuel and non-recurring items.  These amounts are included in CASM, but for internal purposes the Company consistently uses cost metrics that exclude fuel and non-recurring items (if applicable) to measure and monitor its costs.

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

(in thousands, except CASM data)

GAAP Operating Expenses

 

$

638,515

 

 

$

643,261

 

 

$

1,865,898

 

 

$

1,894,927

 

Less: aircraft fuel, including taxes and delivery

 

(138,586

)

 

(162,932

)

 

(405,290

)

 

(449,404

)

Less: (loss) gain on sale of aircraft and equipment

 

—

 

 

(1,844

)

 

1,948

 

 

(1,844

)

Less: contract terminations expense

 

—

 

 

—

 

 

—

 

 

(35,322

)

Adjusted Operating Expenses

 

$

499,929

 

 

$

478,485

 

 

$

1,462,556

 

 

$

1,408,357

 

Available Seat Miles

 

5,331,914

 

 

5,352,976

 

 

15,341,510

 

 

15,104,500

 

CASM – GAAP

 

11.98

¢

 

12.02

¢

 

12.16

¢

 

12.55

¢

Less: aircraft fuel

 

(2.60

)

 

(3.05

)

 

(2.64

)

 

(2.98

)

Less: (loss) gain on sale of aircraft and equipment

 

—

 

 

(0.03

)

 

0.01

 

 

(0.01

)

Less: contract terminations expense

 

—

 

 

—

 

 

—

 

 

(0.24

)

Adjusted CASM

 

9.38

¢

 

8.94

¢

 

9.53

¢

 

9.32

¢

 

 

 

Estimated three months ending

December 31, 2019

 

Estimated full year ending

December 31, 2019

 

 

(in thousands, except CASM data)

GAAP Operating Expenses

 

$

630,768

 

to

$

655,760

 

 

$

2,495,146

 

to

$

2,523,013

 

Less: aircraft fuel, including taxes and delivery

 

(134,541

)

to

(137,278

)

 

(539,836

)

to

(542,642

)

Less: (loss) gain on sale of aircraft and equipment

 

—

 

to

—

 

 

1,948

 

to

1,948

 

Adjusted Operating Expenses

 

$

496,227

 

to

$

518,482

 

 

$

1,957,258

 

to

$

1,982,319

 

Available Seat Miles

 

5,219,434

 

to

5,295,446

 

 

20,541,144

 

to

20,641,934

 

CASM – GAAP

 

12.08

¢

to

12.38

¢

 

12.15

¢

to

12.22

¢

Less: aircraft fuel

 

(2.58

)

to

(2.59

)

 

(2.63

)

to

(2.63

)

Less: (loss) gain on sale of aircraft and equipment

 

—

 

to

—

 

 

0.01

 

to

0.01

 

Adjusted CASM

 

9.50

¢

to

9.79

¢

 

9.53

¢

to

9.60

¢
 

Pre-tax margin

The Company excludes unrealized gains from fuel derivative contracts, losses on extinguishment of debt, and non-recurring items from pre-tax margin for the same reasons as described above.

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2019

 

2018

 

2019

 

2018

Pre-Tax Margin, as reported

 

14.4

%

 

15.4

%

 

11.2

%

 

12.1

%

Add: changes in fair value of derivative contracts

 

0.2

 

 

0.6

 

 

(0.1

)

 

(0.1

)

Add: unrealized loss (gain) on foreign debt

 

0.1

 

 

(0.3

)

 

0.1

 

 

(0.1

)

Add: loss (gain) on sale of aircraft and equipment

 

—

 

 

0.2

 

 

(0.1

)

 

0.1

 

Add: contract terminations expense

 

—

 

 

—

 

 

—

 

 

1.7

 

Adjusted Pre-Tax Margin

 

14.6

%

 

15.9

%

 

11.1

%

 

13.6

%
 

Leverage ratio

The Company uses adjusted total debt, including aircraft rent, in addition to long-term adjusted debt and finance leases, to represent long-term financial obligations.  The Company excludes unrealized (gains) losses from fuel derivative contracts, losses on extinguishment of debt, and non-recurring items from earnings before interest, taxes, depreciation, amortization and rent (EBITDAR) for the reasons described above.  Management believes this metric is helpful to investors in assessing the Company’s overall debt.

 

 

 

Twelve months ended

 

 

September 30, 2019

 

 

(in thousands, except Leverage Ratio)

Debt and finance lease obligations

 

$

781,541

 

Plus: Aircraft leases capitalized at 7x last twelve months' aircraft rent

 

869,407

 

Adjusted debt and finance lease obligations

 

$

1,650,948

 

 

 

 

EBITDAR:

 

 

Income Before Income Taxes

 

$

278,606

 

Add back:

 

 

Interest and amortization of debt discounts and issuance costs

 

29,641

 

Depreciation and amortization

 

157,603

 

Aircraft rent

 

124,201

 

EBITDAR

 

$

590,051

 

 

 

 

Adjustments:

 

 

Add: changes in fair value of derivative contracts

 

$

20,373

 

Add: unrealized loss (gain) on foreign debt

 

4,965

 

Add: loss (gain) on sale of aircraft and equipment

 

(3,483

)

Adjusted EBITDAR

 

$

611,906

 

 

 

 

Leverage Ratio

 

2.7

x
 

Watch how Alaska employees surprised kids at Mary’s Place, part of our Week of LIFT

A roar of excitement filled the inside of Mary’s Place, a nonprofit in King County that provides safe, inclusive shelter services for women and families, on Friday afternoon while children and teens were surprised with a brand-new playroom and study space filled with games, bean bag chairs and a fresh coat of paint.

The event was part of Alaska Airlines’ initiative to make flying matter during our companywide week of giving back to the communities we serve, called the Week of LIFT. More than 700 Alaska employees volunteered at over 20 events in nine cities across the United States.

Francis Kelly with her 1-year-old son at Mary’s Place | Photo by Alan Alabastro

Some of the volunteer events included serving at local food banks, teaching classes and participating in outdoor cleanups through organizations like KUPU in Honolulu, New York Cares in New York City, Covenant House in Anchorage, Reading Partners in the Bay Area and Mary’s Place in Seattle.

“I’m shocked, I’m excited for my son and for all these little kids to have something to play with, this is a very big difference,” said Francis Kelly, a Mary’s Place guest. “We don’t know what it’s like to be home. So, for these kids to have a place to play is happiness for us.”

Linda Mitchell, the chief communications officer of the family shelter, said their mission is to have no child sleep outside — and give them the chance to play like a regular kid. For 20 years, Mitchell said all eight shelters located across the greater Seattle region have kept women, children and families together, inside and safe when they have no place else to go.

“We have truly cherished our relationship with our hometown airline over the years,” said Marty Hartman, executive director of Mary’s Place. “Funding, sponsorships, and volunteer projects like the ‘Week of LIFT’ are transformative for Mary’s Place, and our families.”

Watch the big reveal:

Video by Randy Eng

“We are so grateful to be included in this special week of giving and to the amazing volunteers who brightened our spaces, added toys and furniture for our Kids Club and Teen Rooms to remind families that they are not forgotten and our community cares about them,” said Hartman. “You all are bringing so much love and hope – what an incredible gift!”

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We know getting involved makes a difference.

Giving back is part of who we are. From the beginning, serving people and our communities has defined us. Driven by our incredible employees, Alaska and Horizon have a legacy of thinking long-term, taking care of each other, giving back to the communities we serve, and flying greener.

“It’s about people — the people who make up our workplaces and this place we call home.” -excerpt from Puget Sound Business Journal Opinion: Corporate responsibility isn’t all corporate — it’s about people and community by Diana Birkett Rakow, VP Alaska Airlines External Relations

Named after the core principle of motion, LIFT allows us to fly, taking people where they need to go. “Where someone needs to go” isn’t always a destination city–it could be a community center, a school or shelter–you name it. We’re always looking to new ways to inspire our guests and to help those around them.

Want to get involved?

Here are few ways you can join us in making an impact:

Learn more about Alaska Airlines’ LIFT program and read the 2018 Sustainability Report. Follow our efforts @AlaskaAir, tag us with the hashtag #makingflyingmatter or #iflyalaska.

Opinion: Corporate responsibility isn’t all corporate — it’s about people and community (Puget Sound Business Journal)

Adapted from a column originally published in the Puget Sound Business Journal on October 21, 2019.

By Diana Birkett Rakow, Alaska Airlines Vice President of External Relations

Open up the newspaper today, and you’ll find countless articles and opinion pieces on the role of a company – especially in times of growth. Is it jobs and innovation? Products that help people’s lives? Or is there a broader responsibility — to help solve challenging policy issues and enable the solutions? Or is the answer really “all of the above”?

The Business Roundtable waded into the conversation a couple of months ago, with a statement redefining the purpose of a corporation to promote “an economy that serves all.”

Media forums including the PSBJ’s Grow Seattle Conference have also been talking a lot about growth recently. There’s a lot of it here in the Seattle region, and some debate whether that’s a good thing. And while that growth creates some challenges, it also enables the resources to support and address them — Amazon providing a home for Mary’s Place families inside a new downtown building, Microsoft committing $500 million to affordable housing, Dick’s Burgers creating jobs and career pathways for local youth, REI advancing equity in the ability to get outdoors.

Many of us learned the concept of responsibility early, and for many it is a core value: responsibility to our families, loved ones, neighbors, colleagues, employer, and community. I’d argue it is and should be the same for companies — a core value, derived from the people who make us who we are. A way of life, not a program and not lived through a report.

Having worked in both public and private sectors, I appreciate the cultural traits that Alaska Airlines derived from its inception serving small communities across Alaska. It’s a sense that everything is connected and that we all are here to serve.

This week, hundreds of Alaska employees are out in the community, from New York to Seattle to Hawaii, to serve through our “Week of LIFT.” The program is named after the core principle of motion that allows us to fly, taking people where they need to go. And we know that “where someone needs to go” isn’t always a destination city. Sometimes it’s community, opportunity, or seeing a path to the future.

In Seattle, Alaska Airlines volunteers deep clean, organize, do yard work and prep meals for homeless families at Mary’s Place. They serve food at Farestart’s Guest Chef Night, pack food at Northwest Harvest, help keep Tacoma’s water clean on Orca Recovery Day, and create and organize LEGO League kits for FIRST Washington youth education programs.

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At the end of the day, “corporate responsibility” is not just “corporate.” It’s about people and our responsibility to each other, those inside our companies and those around us. We can and should use economic lift to improve lives, enable opportunity, and share the benefits.

Businesses’ ability to give back in these ways, though, is directly connected to economic growth when we think long term. This work benefits from an environment that enables a vibrant and diverse business community sustaining into the future, enabling growth that works for all.

As a region, it’s incumbent on us to find this balance. It’s not about an annual report, though those are worth a read. It’s about people — the people who make up our workplaces and this place we call home.

Meet Flight Attendant Marcie Peterson: “An oasis of calm” and Customer Service Legend

The burly 30-something guest seated at the back of the plane seemed to be trembling during aircraft boarding in Seattle. Flight attendant Marcie Peterson slid into the empty seat next to him and asked how he was doing. “I’m so afraid of flying,” said the guest, a server for a prominent Seattle restaurant. She reassured him and kept checking on him during the flight. As the grateful guest deplaned, he invited her to visit the restaurant “any time.”

Flight attendants are “an oasis of calm” for guests, says Peterson, who has been with Alaska Airlines for nearly 30 years. “They see you are calm, and they know you also have a family and kids, and you wouldn’t be here if you were concerned, and they realize it’s all right.”

She likes to converse and make a connection with everyone she can on each flight. “I value every guest, and I want to make the flight fun and positive and memorable,” she says. “We get each moment in life only once, and since we’re going to have this time on the plane together, why not make it happy and fun?”

She is also known for always smiling, a reputation she cherishes. “Six years ago, I was in a bicycle accident and felt I had lost my face from the nose down. They didn’t know if they’d be able to reconstruct everything. I’m so grateful I have a smile and that I’m able to share it with other people,” she says.

She also shares her compassion, such as regularly making sandwiches for the homeless, helping people recovering from addiction, and leaving snacks and pop in a cabinet outside her home for postal carriers and delivery people.

She had wanted to be a flight attendant since she was a young girl, she says, and as soon as she was eligible to apply, at age 21, she sent a handwritten application letter to Alaska, her hometown Seattle-based airline. “I’m still pinching myself that I get to do this. I wanted to work for the best airline. When you get to say you fly for Alaska Airlines, it feels good.” —M. Dill

Questions & answers

What do you like about your job? There is so much variety, and the people I work with are really good people—there’s camaraderie. I also have the opportunity to make a difference for guests every day. I’ve used our safety training to do CPR and bring someone back to life. That was an amazing and fulfilling moment.

What’s important to you in life? My husband and our two kids, and helping others. I love Martin Luther King Jr.’s quote, “Life’s most persistent and urgent question is, ‘What are you doing for others?’” For my 50th birthday, I invited people to do 50 easy acts of kindness, from a list of 80, over six months. I did them all first so I could provide photos and how-to.

What advice do you have for employees about how to succeed at Alaska Airlines? “Enjoy moments! Our industry gives us the unique opportunity to make daily heartfelt connections. Alaska Airlines encourages each of us to embrace the responsibility of providing positive memories to our customers and peers. Make your joy contagious and your efforts palpable. It is so satisfying to witness when happiness becomes infectious.”

What do you like to do for recreation? Long-distance backpacking. I’ve hiked in remote areas of India, and in Thailand and Laos, and the 165 miles of the Tahoe Rim Trail in the mountains around Lake Tahoe.

Kudos from Marcie’s co-workers

“Marcie Peterson is remarkable. She leaves a positive impression on everyone. She inspires and encourages others—guests and colleagues. Working with her and other dedicated flight attendants has been a highlight of my career. She shines inside and out, and is truly a legend.” —Tom R., Inflight Supervisor, Seattle

“Whenever I’ve flown with her over the past 29 years—and I can speak for many others who have flown with her—she’s always had a smile on her face, whether she was having a good day or a bad day. She smiles at guests; she smiles at co-workers, at pilots, at everyone. And she just makes the mood of the aircraft and the mood of the flight upbeat. She makes everyone feel at ease.” —Yasmin V., Flight Attendant, Seattle

“On each one of her flights, she makes every person feel special, from children to our top MVP Gold 75K guests. I’m so thankful I know her.” —Vicki L., Customer Service Agent (retired), Seattle

Alaska Airlines employees such as Marcie Peterson are the reason for our excellence. Join us in creating an airline people love. Visit careers.alaskaair.com.

How Alaska’s internships show students they can be whoever they want to be

During her junior year of high school, Kamia Bradley had the fleeting thought of becoming an airline pilot. She didn’t know where to start but thought it seemed like a cool job.

Growing up in Denver, sometimes with no heat or having to sleep on the floor, it was tough to see a better horizon. Until one day, through a leadership program at her high school, Bradley had her first flying experience in the seat of a helicopter. The pilot flew over her neighborhood, a place she describes as uninviting and neglected but something changed when she was up there.

“Seeing my home from above, and how it connected to the rest of the city and beautiful scenery, gave me a new perspective of the world,” Bradley said. “Being up there made me feel like I could do anything.”

Kamia Bradley with Alaska Airlines First Officer Kim Ford. (Photo courtesy of Kamia Bradley)

Bradley learned about a local flight program and the Amelia Earhart Foundation, which, with her hard work, helped her obtain her private pilot’s license. Bradley is now a senior at Embry-Riddle Aeronautical University in Prescott, Arizona, where she studies aeronautical science and recently spent her summer in Seattle as a flight operations intern at Alaska Airlines.

Before interning at Alaska, Bradley discovered Alaska’s pledge to increase our African American female pilots by 2025 and support the path to inspire more young women to become pilots.

Alaska Airlines Base Chief Pilot Ronald Limes and Flight Operations intern Kamia Bradley. (Photo courtesy of Kamia Bradley)

“I thought it was pretty awesome that a company was looking for people just like me,” Bradley said.

Interns at Alaska join teams throughout different departments such as Maintenance and Engineering, Marketing and so on. Interns work on visible projects that impact our guests and business. Beyond hands-on experience, interns also get the opportunity to network with employees and company leaders. Learn more about our internship opportunities. The application window for 2020 internships opens Friday, Oct. 11.

This summer, 34 college interns were hired at Alaska and Horizon Air to work in Portland and Seattle.

“We’re committed to developing future leaders in aviation and beyond. Our internship program is a great way we get to connect with young people from all backgrounds and look forward to offering them a firsthand experience in the aerospace world. We look forward to adding fresh thinking, big ideas and eagerness to learn to our Alaska family,” said Andy Schneider, Alaska Airlines senior vice president of people.

During Bradley’s internship, she spent time with Captain Tara Wright, who made history alongside three other female pilots who were part of Alaska’s first all-female, African American pilot crew.

Over the summer, Bradley flew on a flight piloted by Wright from Los Angeles to Seattle and met up afterward for dinner.

Alaska Flight Operations intern Kamia Bradley with her mentor, Captain Tara Wright, at Alaska Airlines. (Photo courtesy of Kamia Bradley)

“That was the first time seeing a black woman fly other than myself,” said Bradley. “It was one of the best experiences ever.”

In addition to creating meaningful connections this summer, Bradley visited 17 destinations where we fly, spanning from Bristol Bay, Alaska to Washington D.C.

Interns are able to fly unlimited using standby travel on Alaska Airlines during their internship. That means many weekends are filled with jet setting across the country.

Lauren Hardwood, an Alaska Airlines summer 2019 technology training intern and University of Washington student, says her favorite trip was traveling with her sister to San Francisco.

Lauren Hardwood, Alaska Airlines summer 2019 technology training intern at the end of her internship on presentation day with her mentor Quinton Rosencrans, loyalty analyst at Alaska Airlines. (Photo by Tina Hong-Sandmel)

“We just went for a day, and it was super fun just to fly in,” she said. “We walked around, and went to Pier 39, Fisherman’s Wharf, biked up to the Golden Gate Bridge, had a picnic at Painted Ladies and then took a flight home that night.”

While in her internship, Hardwood planned and coordinated technology classes and events like a Microsoft 365 training for all Alaska employees and a women in technology event.

Harwood says it was a great learning experience.

“There’s so much that goes into a flight from start to finish, and you don’t really realize that until you’re here,” she said. “Every day you learn something new.”

Apply for a summer 2020 internship:
  • Paid college internships are open to undergraduate students with an expected graduation date between December 2020 and June 2021
  • Internships are 12 weeks in Seattle or Portland, Oregon; interns work full time (40 hours/week) and start their internship between late May and mid-June
  • The application window for summer 2020 internships is open Oct. 11 through Oct. 21 at alaskaair.jobs
  • Check out alaskaair.jobs for current opportunities at Alaska Airlines and Horizon Air.

Pioneering Alaska flight crew to aspiring pilots: Let your passion soar

Excerpted from the September/October 2019 issue of Aloft, the magazine of The Museum of Flight. Do you know a middle school girl interested in exploring aviation and aerospace? Sign up for Amelia’s Aero Club at the Museum of Flight.

How do you become a pilot? The best way to find out is to ask one – or better yet, talk with two.

First Officer Mallory Cave and Captain Tara Wright are the first all-women, Black female crew working at Alaska Airlines. They recently took time to share their experiences, explaining that the path to becoming a pilot is not always linear, and the aviation industry still has work to do to reach gender and racial equity. Cave and Wright say pilots benefit from building a support network to lean on when things are difficult – relationships that can last a lifetime – and they see aviation as a rewarding career with exciting changes on the horizon.

Growing up, Cave knew she wanted a job that would be fun and different. “I did always dream of having a job that I enjoyed doing every single day,” she says. “I loved flying as a passenger and one day in high school I thought, ‘I wonder what it’s like up front, to actually fly the airplane?’ ”

But she found the process of becoming a pilot challenging at the outset. “One of the toughest times was initially, when I was going through pilot training,” Cave says. “The flight instructors weren’t enthused to fly any extra days with me, although they would fly extra days with the guys. I kept trying to get someone to fly [with me] so that I could get ahead. I got nowhere.” Cave became the first African American woman to earn a degree in aviation flight from Ohio University.

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As she entered the workforce, she continued to see similar inequalities. “In all of my pilot new hire classes, I was the only female as well as the only African American,” Cave says. “The guys in my class would all gather and study together. They would never extend the invitation to me, I had to invite myself to those study groups. I knew I couldn’t do it on my own, there was no time to be shy or reserved.”

Wright, who has been flying since 1993, considered many career possibilities before deciding to become a pilot. She remembers visiting the airport with her family: “My dad would ask me what kind of airplane it was, and we’d make up stories about where in the world it was headed,” Wright says. “The best part was getting to see the reunions people had with friends and loved ones.”

Wright acknowledges that being a part of the first all-female African American flight crew for Alaska is a big milestone, and it would have been impossible without role models and support. “We’ve achieved this only because of the women that have come before us: Bessie Coleman, Patrice Clark-Washington and other aviatrixes who have paved the way,” she says. “Our grandmothers and mothers instilled a sense of confidence that we can do whatever we want with our lives.”

Wright did not set out to become a pioneer, but became one nonetheless: “As one of only an estimated 150 African American female pilots in the United States, I have racked up a few firsts,” Wright says. “I view each one as a major accomplishment in a world where it often seems most everything has been done.”

And now, the need for pilots is greater than ever. A 2016 report from the Boeing Company predicts that 42 percent of the pilots flying with major airlines in the U.S. will retire in the next 10 years. The Museum of Flight wants to ensure that the talent pool for these and other aviation jobs is a diversified one. The nonprofit is on a mission to provide world-class STEM education to youth in our community. Using the lens of aviation and aerospace, the museum offers programs from pre-kindergarten through high school. These include Connections, a free youth educational membership for students ages 5 to 18; Amelia’s Aero Club, designed to inspire middle school girls in the exploration of STEA2M (Science, Technology, Engineering, Aviation, Art and Mathematics); and the Michael P. Anderson Program, designed to inspire middle school youth from throughout Washington state to participate in the museum’s education programs while being mentored by professionals of color in the aerospace and aviation industries. For all of its education programs, the museum places a special emphasis on recruiting those who are currently underrepresented in STEM fields: girls, students of color, and those from low-income and rural communities.

And thanks to companies like Alaska Airlines, which supports The Museum of Flight’s Aerospace Education Center, students of all ages can explore aerospace inventions, STEM activities and new technology. The future of aerospace is being written today, and The Museum of Flight offers the tools needed to succeed.

Other organizations offering resources to increase diversity in aviation include the Organization of Black Aerospace Professionals, Sisters of the Skies and Women in Aviation. This year Alaska signed a pledge with Sisters of the Skies to increase the number of female African American pilots by 2025.

So, what does it take to become a pilot? “Insert yourself! Donʼt try and do it all on your own. Surround yourself with people and mentors in the aviation industry you feel comfortable confiding in,” Cave says. “If you are passionate about aviation, that passion will drive you to become successful.”

With the high demand for pilots and aviation professionals in the coming years, it’s the perfect time to learn what it takes to earn your wings. “Today, kids excited about being airline pilots have the wind at their backs,” Wright says. “The worldwide market is expanding rapidly. What took me 30 years to accomplish, it might take someone just starting out just half the time.”

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