Alaska Airlines soars in Q2 2024 with record revenue and industry | kbnmart

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Alaska Airlines Group Announces Second Quarter 2024 Financial Results

the main points:

• Pre-tax adjusted profit margin of 15.8%, which is an industry leading margin.
• 99.5% completion rate, best in the industry.
• Tentative agreement with Alaska flight attendants represented by AFA.

Financial evaluation:

Alaska Airlines Group released its financial results for the second quarter ended June 30, 2024, and provided outlook for the third quarter and full year.

CEO Ben Minicucci “Alaska’s performance this quarter demonstrates our position as an industry leader,” he said. “Our 23,000 employees ensured exceptional safety and service during the busiest summer season ever, and we delivered record quarterly revenue and a 15.8% adjusted pre-tax margin, and we are expected to lead the industry.”

Financial performance:

• Net Income (Generally Accepted Guidelines): $220 million ($1.71 per share) compared to $240 million ($1.86 per share) in the second quarter of 2023.
• Adjusted net income: $327 million ($2.55 per share), down from $387 million ($3.00 per share) in the second quarter of 2023.
• Operating cash flow: $580 million.
• Share repurchase: 663,177 shares worth $28 million, totaling $49 million in H1 2024.
• Cash reserves: $2.5 billion in unrestricted cash and marketable securities.
• Debt to equity ratio: 45%.

Operational achievements:

• A preliminary agreement has been reached with the flight attendants, and voting is scheduled to be completed by mid-August.
• Complying with a Justice Department information request regarding its acquisition of Hawaiian Airlines.
• Fleet Updates:
• Six new 737-9s and three 737-8s, for a total of 70 and four aircraft, respectively.
• New E175 aircraft, increasing Horizon’s fleet to 44 aircraft.
• Adding a second 737-800 freighter, to expand cargo service to Los Angeles.
• Facilities and services improvements:
• A new 600,000-square-foot facility has been purchased in Renton, Washington, for training and operations by 2025.
• Operations at San Francisco International Airport have been moved to Harvey Milk Terminal 1.
• Hot meals have been reintroduced in the main cabin.
• The Anchorage lounge expansion has begun, doubling seating capacity and amenities.

Network and business developments:

• 20 new direct routes have been announced, including new destinations in Vail, Colorado, and Mexico.
• New daily service from Portland to New Orleans starting in January 2025.
• Expanded partnership with British Airways to book direct flights between London and various US cities.

Sustainability Initiatives:

• Release of the 2023 Sustainability Report, which outlines progress towards achieving sustainability, safety and workforce goals.
• Sustainable aviation fuel credits are being offered to customers, with rewards for mileage plan members.

Recognition and Awards:

• Best Frequent Flyer Program on American Airlines By WalletHub for 2024.
• Best Employers for Diversity by Forbes The list, which ranks highest among airlines in the United States.
• Highest Customer Satisfaction Score 2024 by American Customer Satisfaction Index.
• Lowest number of customer complaints per 100,000 passengers among U.S. airlines, 75% better than the industry average.

Forward-looking statements:
This release contains forward-looking statements based on current expectations. Actual results may differ due to risks and uncertainties, including competition, labor relations, economic conditions, operating costs and regulatory changes. For a detailed discussion of risk factors, see Alaska Air Group’s Annual Report on Form 10-K for the year ended December 31, 2023.

About Alaska Airlines Group:

Alaska Airlines and its regional partners serve more than 120 destinations across the United States, the Bahamas, Belize, Canada, Costa Rica, Guatemala and Mexico. Known for its award-winning customer service and industry-leading Mileage Plan loyalty program, Alaska Airlines offers extensive travel options through the oneworld alliance and other global partners.

Financial tables:

Condensed consolidated financial statements of operations:

Condensed consolidated balance sheets:

Conclusion

Alaska Air Group’s second quarter of 2024 demonstrates the company’s strong financial health and operational excellence. Driven by industry-leading metrics, strategic fleet expansions, and significant sustainability initiatives, Alaska Airlines continues to set the standard for performance and customer satisfaction in the airline industry. The company’s ongoing investments in infrastructure, enhanced service offerings, and expanded route networks underscore its commitment to growth and excellence. As Alaska Air Group moves through 2024, it remains well positioned to deliver strong results and deliver exceptional value to its customers and shareholders.