- Joe Breitfeller
Alaska Airlines Reports Q2 Adjusted Net Loss of $38 Million on $1.5 Billion in Revenue
Alaska Airlines has reported a second quarter 2021 net loss, excluding special items, of $38 million or ($0.30) per share on revenue of $1.5 billion. Including PSP wage offsets and other items, the carrier reported a GAAP net income of $397 million or $3.15 per share.
On Thursday (July 22, 2021), Alaska Airlines reported their second quarter financial results for the period ending June 30, 2021. The carrier reported an adjusted second quarter net loss, excluding U.S. Cares Act PSP wage offsets, special items and mark-to-market fuel hedge adjustments, of $38 million or ($0.30) per share. The carrier’s Q2 GAAP net income was $397 million or $3.15 per share compared to a net loss of $214 million or ($1.74) per share during the second quarter of 2020. Revenue for the second quarter increased year-over-year by 263 percent to $1.5 billion. Alaska Airlines generated $840 million in operating cash flow during the quarter, including $489 million in PSP funding, on advanced bookings and improving demand. At June 30, 2021, the airline held $4.0 billion in unrestricted cash and marketable securities.
In Thursday’s announcement, Alaska Airlines’ CEO, Ben Minicucci, said,
“As we put the worst of last year's downturn behind us, Alaska is back on the path to profitability. We are executing our plan, rebuilding our network, leveraging our capacity to meet growing demand, and delivering exceptional service and value to our guests. I'm incredibly proud and grateful for how hard our employees are working and how they show up for each other and our guests every day with focus on safety, operational excellence and care.”
During the second quarter Alaska Airlines received $664 million in grants and loans from the U.S. Treasury under the Payroll Support Program (PSP) extension. The carrier also repaid approximately $570 million in debt, including the full $135 million loan borrowed from the U.S. Treasury under the CARES Act and outstanding balances of $363 outstanding on two credit facilities.
Alaska Airlines and their regional partners serve over 120 destinations in the United States, Mexico, Canada, Costa Rica and Belize (from November 2021). 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 over 20 airlines. 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.
In trading Thursday morning (July 22, 2021), shares in Alaska Air Group, Inc. (NYSE: ALK) were down 2.19% at $56.33 per share (9:55 AM EDT).
Source: Alaska Airlines