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Sep 30, 2022

Alaska Air Q3 2022 Earnings Report

Alaska Air Group reported strong Q3 2022 results, with record operating revenue and industry-leading operational performance.

Key Takeaways

Alaska Air Group reported a net income of $40 million, or $0.31 per share, and an adjusted net income of $325 million, or $2.53 per share. The company recorded $2.8 billion in operating revenues, the highest in its history, and maintained a strong balance sheet with $3.2 billion in unrestricted cash and marketable securities.

Achieved adjusted pretax margins of 15.6%.

Recorded record third quarter operating revenue of $2.8 billion.

Finalized new contracts with ALPA, IBT and IAM represented employees.

Delivered an excellent operation, with 99% completion rates for both mainline and regional for the quarter.

Total Revenue
$2.83B
Previous year: $1.95B
+44.8%
EPS
$2.53
Previous year: $1.47
+72.1%
RASM
17.3
Previous year: 13.54
+27.8%
Load factor
86.5%
Previous year: 80.3%
+7.7%
Yield
18.48
Previous year: 15.3
+20.8%
Gross Profit
$596M
Previous year: $424M
+40.6%
Cash and Equivalents
$688M
Previous year: $495M
+39.0%
Free Cash Flow
-$141M
Previous year: -$194M
-27.3%
Total Assets
$14.5B
Previous year: $13.9B
+4.7%

Alaska Air

Alaska Air

Alaska Air Revenue by Segment

Forward Guidance

Fourth Quarter 2022 Forecast Information: Capacity (ASMs) % change versus 2019 Down 7% to 10%. Passenger load factor 83% to 86%. Total revenue % change versus 2019 Up 12% to 15%. Cost per ASM excluding fuel and special items (CASMex) % change versus 2019 Up 20% to 23%. Economic fuel cost per gallon $3.50 to $3.70. Non-operating expense (benefit) ($3M) to ($5M)

Revenue & Expenses

Visualization of income flow from segment revenue to net income