SEATTLE — Alaska Air Group (NYSE: ALK) today reported financial results for the second quarter ending June 30, 2024, and provided outlook for the third quarter ending September 30, 2024 and full year 2024.
It’s clear that premium airlines are rising above the rest of the industry, and Alaska’s product and performance put us in that top tier, with a strong long-term outlook to grow and compete. That’s how we brought in record quarterly revenue and achieved a 15.8% adjusted pretax margin that should lead the industry. Thank you to our 23,000 employees for being safe, operating well, and taking care of our guests through our biggest summer travel season ever.
CEO Ben Minicucci
Financial Results
- Reported net income for the second quarter of 2024 under Generally Accepted Accounting Principles (GAAP) of $220 million, or $1.71 per share, compared to net income of $240 million, or $1.86 per share, for the second quarter of 2023.
- Reported net income for the second quarter of 2024, excluding special items and mark-to-market fuel hedge accounting adjustments, of $327 million, or $2.55 per share, compared to net income of $387 million, or $3.00 per share, for the second quarter of 2023.
- Reported adjusted pretax margin of 15.8% for the second quarter.
- Repurchased 663,177 shares of common stock for approximately $28 million in the second quarter, bringing total repurchases to $49 million for the six months ended June 30, 2024.
- Generated $580 million in operating cash flow for the second quarter.
- Held $2.5 billion in unrestricted cash and marketable securities as of June 30, 2024.
- Ended the quarter with a debt-to-capitalization ratio of 45%, within the target range of 40% to 50%.
Operational Updates
- Reached a tentative agreement with mainline flight attendants that recognizes their outstanding contributions. Voting on the agreement is expected to conclude by mid-August.
- Certified substantial compliance with the U.S. Department of Justice’s second request for information regarding our proposed acquisition of Hawaiian Airlines, maintaining open communication with the DOJ during its review process.
- Finished the second quarter with a completion rate of 99.5%, among the highest in the industry.
- Received six 737-9 aircraft and three 737-8 aircraft during the quarter, bringing the totals within the Alaska fleet to 70 737-9s and four 737-8s.
- Received one E175 aircraft during the quarter, bringing the total in the Horizon fleet to 44.
- Added a second 737-800 freighter to Alaska Air Cargo’s fleet and expanded the freighter network with twice-weekly service to Los Angeles.
- Purchased a 600,000 square-foot facility in Renton, Washington to serve as the new home for Alaska’s training programs and operational teams following completion of renovations in 2025.
- Moved Air Group operations at San Francisco International Airport to Harvey Milk Terminal 1, which will improve guests’ travel experience with advanced technology in the lobby and convenient proximity to our partners.
- Enhanced onboard offerings with the return of hot meals to the inflight menu within the Main Cabin.
- Began expansion of our lounge at Ted Stevens Anchorage International Airport to offer more than double the seating and improved amenities.
Network and Commercial Updates
- Announced 20 nonstop routes to provide guests with more winter travel options, including new service to Vail, Colorado as well as La Paz and Monterrey, Mexico.
- Announced seasonal daily service from Portland to New Orleans beginning January 2025, our 55th nonstop destination from Portland.
- Expanded partnership with British Airways to offer guests the ability to book nonstop flights between London and multiple U.S. cities directly at alaskaair.com or via the Alaska Airlines app.
Sustainability Updates
- Released our 2023 Sustainability Report, sharing the company’s progress on its goals for sustainability, safety, and our people, as well as highlighting accomplishments and ongoing initiatives.
- Launched option for guests to reduce their environmental impact by purchasing sustainable aviation fuel credits in the flight booking path, while also providing Mileage Plan members the ability to earn up to 5,000 elite-qualifying miles annually for their contributions.
Awards and Recognition
- Alaska Airlines Mileage Plan named best U.S. airline frequent flier program by WalletHub for 2024.
- Named to Forbes’ Best Employers for Diversity list, receiving the highest ranking of all U.S. airlines.
- Received the highest satisfaction score for 2024 among all U.S. airlines from the American Customer Satisfaction Index.
- As recently released by the U.S. Department of Transportation, Alaska generated the fewest customer complaints per 100,000 guests of any U.S. airline in 2023, finishing 75% better than the industry average and 35% better than the second-ranked airline.
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