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Jun 30, 2023

Alaska Air Q2 2023 Earnings Report

Delivered industry-leading adjusted pre-tax margins of 18.3% on record quarterly revenue.

Key Takeaways

Alaska Air Group reported a strong second quarter with industry-leading adjusted pre-tax margins of 18.3% on record quarterly revenue. The company prioritized reliability, leading to improved predictability for guests and employees, record revenue, and a foundation for long-term profitable growth.

Reported net income for the second quarter of 2023 under Generally Accepted Accounting Principles (GAAP) of $240 million, or $1.86 per share.

Reported net income for the second quarter of 2023, excluding special items and mark-to-market fuel hedge accounting adjustments, of $387 million, or $3.00 per share.

Generated adjusted pre-tax margins of 18.3%, a 250-basis point increase over the same period in 2019.

Recorded $2.8 billion in operating revenue for the second quarter, the highest quarterly total in company history.

Total Revenue
$2.84B
Previous year: $2.66B
+6.8%
EPS
$3
Previous year: $2.19
+37.0%
RASM
0.17
Previous year: 17.03
-99.0%
Load factor
87%
Previous year: 88.1%
-1.2%
Yield
0.17
Gross Profit
$786M
Previous year: $588M
+33.7%
Cash and Equivalents
$536M
Previous year: $778M
-31.1%
Free Cash Flow
$100M
Previous year: $604M
-83.4%
Total Assets
$14.8B
Previous year: $14.8B
+0.2%

Alaska Air

Alaska Air

Alaska Air Revenue by Segment

Forward Guidance

Alaska Air Group provided the following outlook for the third quarter ending September 30, 2023:

Positive Outlook

  • Capacity (ASMs) % change versus 2022: Up 10% to 13%
  • Total revenue % change versus 2022: Up 0% to 3%
  • Cost per ASM excluding fuel and special items (CASMex) % change versus 2022: Down 0% to 2%

Revenue & Expenses

Visualization of income flow from segment revenue to net income