Alaska Air Group Releases First Quarter Financial Results for 2024

Thursday, April 18, 2024

Today, Alaska Air Group released its financial results for the first quarter ending March 31, 2024, along with an outlook for the second quarter ending June 30, 2024.

“I want to recognize Alaska’s employees for their uncompromising prioritization of safety, for taking great care of our guests, and for delivering strong performance in the first quarter,” said CEO Ben Minicucci. “Despite significant challenges to start the year our results have far exceeded initial expectations. Thanks to thoughtful capacity planning, network optimization, and diligent cost control, we are well positioned to carry our strong performance into the second quarter and beyond.”

The consequences of Flight 1282:

The initial quarter of Air Group’s operations and outcomes saw a notable influence from Flight 1282 in January and the prolonged grounding of the Boeing 737-9 MAX into February. Boeing has provided $162 million in initial cash compensation to cover the financial losses suffered during this period.

Here’s a table outlining the financial effects of the Flight 1282 incident and 737-9 MAX grounding as compared to the three months ending on March 31, 2023:

Financial Results for the First Quarter of 2024:
Under Generally Accepted Accounting Principles (GAAP), a net loss of $132 million was reported, equating to $1.05 per share. This compares to a net loss of $142 million, or $1.11 per share, for the same period in 2023. Excluding special items and mark-to-market fuel hedge accounting adjustments, the net loss for the first quarter of 2024 was $116 million, or $0.92 per share, in contrast to $79 million, or $0.62 per share, in the first quarter of 2023. Additionally, 561,086 shares of common stock were repurchased for approximately $21 million during the quarter. Operating cash flow amounted to $292 million for the first quarter, and the company held $2.3 billion in unrestricted cash and marketable securities as of March 31, 2024. The debt-to-capitalization ratio stood at 47%, within the targeted range of 40% to 50%.

Operational Updates:
Hawaiian Airlines shareholders approved the agreement to purchase the company for $18 per share, pending regulatory approval. A five-year collective bargaining agreement with approximately 1,000 Alaska Airlines employees represented by AMFA was ratified. All 737-9 MAX aircraft underwent inspections and were returned to service in February. A quality oversight program at the Boeing production facility was enhanced to ensure the work and quality of aircraft during manufacturing. Two E175 aircraft were received during the quarter, bringing the Horizon fleet total to 43.

Commercial Updates:
A partnership with Bilt Rewards was launched, making Alaska’s Mileage Plan a transfer partner and offering Alaska Airlines Visa Signature® cardholders the opportunity to earn 3x miles when paying rent via Bilt later in 2024. Growth plans were announced for Portland, including a 25% increase in capacity and a new daily nonstop flight to Atlanta starting later this year. New daily nonstop service between Santa Rosa and Las Vegas was announced as Air Group’s seventh destination from Sonoma County. Alaska Access, a monthly subscription program offering Wi-Fi vouchers, early access to sales, and a personalized fare page, was introduced for price-conscious travelers.

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