Alaska Air Group has reported a fourth quarter 2023 net loss of $2.0 million or ($0.02) peer diluted share on a year-over-year increase in revenue of 3.0 percent to $2.6 billion. For the full year 2023, the Group reported a net profit of $235 million or $1.83 per diluted share.
On Thursday (January 25, 2024), Alaska Air Group reported their financial results for the fourth quarter and full year ending December 31, 2023. The Group reported a fourth quarter net loss of $2.0 million or ($0.02) per diluted share on a year-over-year increase in revenue of 3.0 percent to $2.6 billion. For the full year 2023, the Group reported a net profit of $235 million or $1.83 per diluted share on an 8.0 percent increase in revenue versus FY2022 to $10.4 billion. At December 31, 2023, Alaska Air Group had cash, cash equivalents and marketable securities totaling $1.8 billion.
In Thursday’s announcement, Alaska Air Group’s CEO, Ben Minicucci, said,
“I want to thank our people for delivering a reliable operation, industry-leading cost performance, and a strong 7.5% adjusted pretax margin. As we navigate early 2024, we remain steadfast in our commitment to safety, providing a premium experience for our guests, and delivering durable financial performance. I am also grateful for how the team has rallied together to demonstrate tremendous professionalism and care in the midst of a challenging start to 2024 for them and our guests. Alaska is a resilient company with a track record of operational excellence, and we are confident in the plans we have laid out to ensure that success moving forward.”
Alaska Airlines fourth quarter revenue per available seat mile (RASM) was down year-over-year by 9.0 percent to 14.95 cents, while cost per available seat mile, excluding fuel (CASM-ex) decreased 7.0 percent to 10.40 cents. For the full year, the carrier’s RASM declined 4.0 percent versus the previous year to 15.21 cents, while CASM-ex declined 3.0 percent to 10.14 cents.
During the fourth quarter 2023, Alaska Air Group agreed to acquire Hawaiian Airlines for $18.00 per share in cash. If the merger is approved by regulators, both brands will be preserved, with the combined company providing guests with an expanded network across the Pacific. Alaska Airlines also completed the sale of 10 Airbus A321neos to American Airlines, with the sale of eight taking place in Q4 2023 and two more in January 2024. The carrier is preparing to complete final inspection of their 737-9 MAX fleet, which will then be returned to service. These inspections follow an inflight blowout of a cabin door plug and cabin depressurization incident earlier this month.
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