“There has been no better time to be part of Alaska Air Group. By bringing together Alaska and Hawaiian’s remarkable service, expansive networks, distinct cultures, and shared values, we are creating a resilient airline that can meet the challenge of competing in a rapidly shifting industry. We have the resources and flexibility to navigate challenges, embrace new opportunities, and write the next chapter for our company. Our industry leading margins and strong operational performance are proof points that we are making the right investments to differentiate ourselves from our domestic-focused peers. Today’s results reinforce we are on the right path for the future.” said Ben Minicucci, President & CEO of Alaska Air Group
Air Group’s consolidated results reported in the third quarter of 2024 include 13 days of Hawaiian Airlines results, while prior comparable periods exclude any Hawaiian results. Except where noted below, the following discussion of Air Group’s third quarter performance reflect legacy-Alaska performance, excluding Hawaiian for the 13 days it was part of the combined company.
Financial Results and Updates
- Reported net income for the third quarter of 2024 under Generally Accepted Accounting Principles (“GAAP”) of $236 million, or $1.84 per share, compared to net income of $139 million, or $1.08 per share, for the third quarter of 2023.
- Reported net income for the third quarter of 2024, excluding special items and mark-to-market fuel hedge accounting adjustments, of $289 million, or $2.25 per share, compared to net income of $237 million, or $1.83 per share, for the third quarter of 2023Subsequent to quarter end, Air Group completed $2 billion in financing, backed by the Company’s Mileage Plan program. Approximately $1.4 billion was used in October to refinance certain debt acquired with Hawaiian Airlines, which is expected to result in interest cost savings of approximately $30
- million over the next twelve months.
- Repurchased 367,705 shares of common stock for approximately $14 million in the third quarter, bringing total repurchases to $63 million for the nine months ended September 30, 2024.
- Generated $318 million in operating cash flow for the third
- Held $2.5 billion in unrestricted cash and marketable securities as of September 30, 2024.
- Consolidated and upsized the Company’s existing revolving credit facilities to $850 million in support of our overall liquidity target.
“The opportunities for this newly combined global airline are clear, and we are poised to be the airline that connects the West Coast to the world with an experience rooted in care and performance. We are investing in our commercial engine to compete more effectively with the larger carriers, increase loyalty among our guests and realize synergies from both our commercial and cargo businesses. These investments include re-imagined lounge and onboard offerings designed to meet the needs of our most loyal guests, optimized route networks that get people to more places in less time, a seamless booking to boarding experience, and more.” says Andrew Harrison, Chief Commercial Officer, Alaska Airlines.
Operational Updates
- Alaska received two 737-9 aircraft and one 737-8 aircraft during the quarter, bringing the totals within the airline’s fleet to 72 737-9s and five 737-8s. Hawaiian received its fourth A330-300 freighter from Amazon.
- Completed Starlink installation on Hawaiian’s 24 A330 aircraft, offering high-speed Wi-Fi free of charge to guests onboard.
- Partnered with Portland International Airport for the opening of its renovated terminal, leveraging new technology to help guests travel through the lobby quickly.
- Launched Stays by Alaska Vacations with Expedia Group, a new platform offering exclusive deals on over 900,000 hotels and vacation rental properties, providing Mileage Plan members the ability to earn and redeem miles on reservations.
- Announced partnership with James Beard award-winning chef Brandon Jew to offer an exclusive First Class dining experience for guests on flights between San Francisco and New York JFK.
Fourth Quarter 2024 Guidance
For the fourth quarter, the aitrline expect the following results, inclusive of Hawaiian. Expectations for the fourth quarter are compared to pro forma historical results, as if the acquisition had occurred on January 1, 2023. Pro forma historical results were included with this Form 8-K. Full year 2024 EPS is expected finish above the midpoint of our previous guidance of $3.50 to $4.50 per share, inclusive of Hawaiian’s results.
Tags: Ben Minicucci, Alaska Air Group, Hawaiian Airlines
