- Joe Breitfeller
Alaska Air Group Reports Fourth Quarter Net Income of $22 Million or $0.17 per Diluted Share
Alaska Air Group has reported a fourth quarter net income of $22 million or $0.17 per diluted share on a 31 percent year-over-year increase in revenue to $2.48 billion. For the full year, the carrier reported a net income of $58 million or $0.45 per diluted share.
On Thursday (January 26, 2023) Alaska Air Group reported their fourth quarter and full year financial results for the period ending December 31, 2022. The carrier reported a fourth quarter net income of $22 million or $0.17 per diluted share on a year-over-year increase in revenue of 31 percent to $2.48 billion. For the full year, Alaska reported a net income of $58 million or $0.45 per diluted share on a 56 percent increase in revenue compared to 2021 to $9.65 billion. Alaska’s fourth quarter revenue per available seat mile (RASM) increased year-over-year by 23.4 percent to 16.49 cents, while cost per available seat mile (CASM) increased to 16.34 cents compared to 13.09 cents during Q4 2021. Costs excluding fuel (CASM-ex) increased 10.1 percent to 11.14 cents versus the same period in 2021. At December 31, 2022, Alaska Air Group had $2.4 billion in unrestricted cash and marketable securities.
In Thursday’s earnings announcement, Alaska Airlines’ CEO, Ben Minicucci, said,
“2022 was a year of significant recovery and accomplishment for Alaska Airlines. Despite many challenges during the year, we ran one of the best operations, signed five new labor deals, and executed the majority of our single fleet transition. The results we posted today signal how well our teams are navigating this recovery. I want to thank our employees for their commitment to our success, and for the work they do every day to take great care of our guests. I am confident that we are well positioned to grow, compete and out-perform in 2023.”
During 2022, Alaska Air Group received nearly $1.5 billion in annual cash remuneration under their renewed co-branded credit card arrangement with Bank of America, the highest level in the program’s history. The company also repaid $52 million in debt during the fourth quarter, for total debt payments of $385 million for 2022.
Alaska also retired 10 Airbus A320s and nine Q400s during Q4, with all remaining A320s having since been retired, and the remaining Q400s to be retired by the end of January 2023. Additionally, the carrier converted 52 Boeing 737 MAX aircraft options to firm orders for delivery between 2024 and 2027. The airline also added an incremental 105 delivery positions for 737 MAX Family airplanes for delivery from 2026 through 2030. During the fourth quarter, Alaska took delivery of four 737-9s, bringing their fleet total of the type to 37, while Horizon received three Embraer E175s, bringing their fleet of E175s to 33.
Alaska Airlines and their regional partners serve over 120 destinations in the United States, Mexico, Canada, Costa Rica and Belize. The sustainability-focused carrier emphasizes Next-Level Care for guests, while offering low fares and award-winning service. Alaska has hubs in Seattle, San Francisco, Los Angeles, Portland and Anchorage. The carrier is a member of the oneworld global alliance, and along with their additional partners, Alaska Airlines’ guests can earn and redeem miles on flights to more than 1,000 global destinations on over 20 airlines. Alaska Airlines and Horizon Air are subsidiaries of the Alaska Air Group, Inc. (NYSE: ALK).
Source: Alaska Airlines