Alaska Air Group reports strong Q2 results; announces new transatlantic route

The company's financial statements now include Hawaiian Airlines from September 18, 2024. For comparison purposes, historical data has been provided on a pro forma basis.

Alaska Air Group achieved a GAAP pretax margin of 6.4% and a net income per share of $1.42 during the quarter. The adjusted pretax margin stood at 8%, with adjusted earnings per share reaching $1.78. The acquisition of Hawaiian Airlines contributed positively to these figures.

Total revenue for the second quarter exceeded $3.7 billion, though revenue per available seat mile (RASM) declined by 0.6% year-over-year. Despite this decline, premium revenue increased by 5%, cargo revenue grew by 34%, and loyalty program cash remuneration also rose by 5%.

Operating costs excluding fuel increased by 6.5% compared to last year. Economic fuel prices averaged $2.39 per gallon during the quarter.

Alaska Air Group also experienced growth in bookings for both Alaska and Hawaiian Airlines and adjusted its capacity expectations for 2025 to approximately 2% year-over-year growth.

In terms of stock performance, Alaska Air Group repurchased 8.7 million shares for about $428 million in Q2 alone.

Other highlights include expanded service routes between Seattle and international destinations such as Tokyo and Anchorage, an increase in fleet size with new aircraft deliveries, and various partnerships with airlines like Qantas and Philippine Airlines.

Additionally, improvements were made in customer experience offerings such as enhanced dining options in First Class and expanded meal options in Main Cabin seating.

A conference call regarding these results will be streamed online at www.alaskaair.com/investors on July 24 at 8:30 a.m. PDT.