Alaska Airlines Reports First Quarter 2021 Net Loss of $131 Million on 51% Revenue Decline to $797 M
Alaska Air Group has reported a first quarter net loss of $131 million or ($1.05) per share on a revenue decline of 51 percent to $797 million versus the first quarter of 2020. As of March 31, 2021, the company had total available liquidity of $5.3 billion.
On Thursday (April 22, 2021), Alaska Air Group reported their first quarter 2021 financial results. The Group reported a first quarter GAAP net loss of $131 million or ($1.05) per share on a 51 percent decline in revenue to $797 million compared to the Q1 2020. Excluding U.S. Cares Act Payroll Support Program (PSP) wage offsets, special items and mark-to-market fuel hedge adjustments, the carrier’s first quarter loss was $436 million or ($3.51) per share. Alaska Airlines reduced their adjusted net debt to $1.6 billion compared to $1.7 billion at the end of the fourth quarter 2020. As of March 31, 2021, the carrier held $3.5 billion in unrestricted cash and marketable securities and total liquidity of $5.3 billion.
In Thursday’s announcement, Alaska Air Group’s CEO, Ben Minicucci, said,
“This has been a long road, and I want to thank the employees at Alaska and Horizon for providing great guest service and everything they've done to get through the last challenging year and help us achieve positive cash flow in March. We're a big company, but still small enough that each person's work makes a difference. We're now laser focused on a return to profitability and growth, with aggressive cost control, optimal productivity across all our work groups, and the operational and financial discipline that Alaska is known for.”
During the first quarter, Alaska Air Group welcomed CEO Ben Minicucci and COO Constance von Muehlen. Alaska Airlines also officially joined the oneworld global alliance on March 31, 2021, as the alliance’s 14th member airline. The company took delivery of four Boeing 737-9 MAX aircraft in Q1 and expanded their total firm deliveries of the aircraft type to 68 between 2021 and 2024, including 13 leased aircraft. Alaska also launched 12 new routes and announced plans to open a new Alaska Lounge in Terminal 2 at San Francisco International Airport (SFO). Additionally, the airline recalled 350 pilots on extended leave, to prepare for capacity growth.
Alaska Airlines received $546 million from the U.S. Treasury during the quarter through a combination of grants and loans and expects to receive an additional $80 million in PSP extension funds in late April. The company also received notification from the Treasury Department that Alaska and subsidiaries Horizon and McGee are also eligible to obtain an additional $584 million in third-round PSP funds.
Alaska Airlines and their regional partners serve over 120 destinations in the United States, Mexico, Canada and Costa Rica. 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. Along with their Global Partners, Alaska Airlines’ guests can earn and redeem miles on flights to more than 1,000 global destinations. On March 31, 2021, Alaska Airlines became the 14th member of the oneworld global alliance. Alaska Airlines and Horizon Air are subsidiaries of the Alaska Air Group, Inc. (NYSE: ALK). In trading Thursday morning, shares in the company were 1.18% lower at $68.02/share (10:31 AM EDT).
Source: Alaska Airlines