Alaska Air Group reports strong Q3 results; completes Hawaiian Airlines acquisition

Airports

Charu Jain Senior Vice President, Merchandising and Innovation | Alaska Airlines

By Sky Industry News

Oct 31, 2024

Alaska Air Group has announced its financial results for the third quarter of 2024, highlighting a pretax margin of 13% which leads the industry. The company reported a GAAP net income of $236 million, translating to earnings per share (EPS) of $1.84. Excluding special items and adjustments, net income stood at $289 million or $2.25 EPS.

The completion of the Hawaiian Airlines acquisition on September 18 has begun to show in Alaska Air Group's financials, with approximately 13 days of Hawaiian Airlines' results included in this quarter's statements. Ben Minicucci, President & CEO of Alaska Air Group, expressed optimism about the merger: "There has been no better time to be part of Alaska Air Group."

Alaska Air Group plans to share more details about its future vision during an Investor Day event scheduled for December 10th. The company will not hold an earnings conference call this quarter due to the proximity to this event.

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Operationally, Alaska Airlines maintained a high completion rate during peak summer travel despite challenges such as delayed aircraft deliveries due to ongoing strikes at Boeing. Andrew Harrison, Chief Commercial Officer at Alaska Airlines, noted that investments are being made to enhance competitiveness and guest loyalty.

The company ended the quarter with total liquidity of $3.4 billion and recently raised $2 billion through Term Loan B and Bond debt backed by its Mileage Plan program. This financing move is expected to save approximately $30 million in annual interest costs following debt repayments related to the Hawaiian acquisition.

Despite recent challenges, including lower capacity from delayed aircraft deliveries, productivity improved by 4.6% year-over-year. Looking ahead, full-year EPS is expected to exceed previous guidance ranges.