SEATTLE- Alaska Airlines (AS) Group released its financial results for the first quarter ending March 31, 2024, along with an outlook for the second quarter ending June 30, 2024.
During the first quarter of 2024, Alaska Air Group faced significant challenges due to the impact of Flight 1282 in January and the ongoing grounding of the Boeing 737-9 MAX, which extended into February.
Alaska Airlines Boeing Compensation
The company received an initial cash compensation of $162 million from Boeing to address the financial losses incurred during this period.
Financial Results:
- Under Generally Accepted Accounting Principles (GAAP), reported a net loss of $132 million, or $1.05 per share, for the first quarter of 2024, compared to a net loss of $142 million, or $1.11 per share, for the same period in 2023.
- Excluding special items and mark-to-market fuel hedge accounting adjustments, reported a net loss of $116 million, or $0.92 per share, for the first quarter of 2024, compared to a net loss of $79 million, or $0.62 per share, for the first quarter of 2023.
- Repurchased 561,086 shares of common stock for approximately $21 million during the first quarter.
- Generated $292 million in operating cash flow for the first quarter.
- Maintained $2.3 billion in unrestricted cash and marketable securities as of March 31, 2024.
- Ended the quarter with a debt-to-capitalization ratio of 47%, falling within the target range of 40% to 50%.
Operational Updates:
- Shareholders of Hawaiian Airlines approved the agreement to purchase the airline for $18 per share. However, the proposed merger is still pending regulatory approval.
- Alaska Airlines ratified a five-year collective bargaining agreement with around 1,000 of its employees represented by AMFA.
- All 737-9 MAX aircraft inspections were completed, and the entire fleet was returned to service in February.
- A quality oversight program at the Boeing production facility has been enhanced to ensure the work and quality of the aircraft meet standards as they progress through the manufacturing process.
- Two E175 aircraft were received during the quarter, increasing the total in the Horizon fleet to 43.
Commercial Updates:
- Initiated a partnership with Bilt Rewards, integrating Alaska’s Mileage Plan as a transfer partner. Additionally, in 2024, Alaska Airlines Visa Signature® cardholders can earn 3x miles by paying rent through Bilt.
- Unveiled expansion plans from Portland to enhance passenger travel options, including a 25% increase in capacity and the introduction of a new daily nonstop flight to Atlanta, set to commence later this year.
- It announced introducing a new daily nonstop service between Santa Rosa and Las Vegas, marking Air Group’s seventh destination from Sonoma County.
- Introduced Alaska Access, a monthly subscription program tailored for budget-conscious travelers. This program offers Wi-Fi vouchers, early access to sales, and a personalized fare page.
Stay tuned with us. Further, follow us on social media for the latest updates.
Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News.