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Sep 30, 2023

Alaska Air Q3 2023 Earnings Report

Alaska Air Group reported strong Q3 2023 results, led the industry in completion rate, and delivered an adjusted pretax margin among the best in the industry despite West Coast fuel price headwinds.

Key Takeaways

Alaska Air Group reported a net income of $139 million, or $1.08 per share, for the third quarter of 2023. Excluding special items and mark-to-market fuel hedge accounting adjustments, net income was $237 million, or $1.83 per share. The company recorded $2.8 billion in operating revenue and reduced CASM excluding fuel and special items by 5% compared to the third quarter of 2022.

Reported net income for the third quarter of 2023 under Generally Accepted Accounting Principles (GAAP) of $139 million, or $1.08 per share.

Recorded $2.8 billion in operating revenue.

Reduced CASM excluding fuel and special items by 5% compared to the third quarter of 2022.

Finished the third quarter with an industry-leading completion rate of 99.7%.

Total Revenue
$2.84B
Previous year: $2.83B
+0.4%
EPS
$1.83
Previous year: $2.53
-27.7%
RASM
0.15
Previous year: 17.3
-99.1%
Load factor
84.6%
Previous year: 86.5%
-2.2%
Yield
0.17
Previous year: 18.48
-99.1%
Gross Profit
$636M
Previous year: $596M
+6.7%
Cash and Equivalents
$647M
Previous year: $688M
-6.0%
Free Cash Flow
-$86M
Previous year: -$141M
-39.0%
Total Assets
$15.2B
Previous year: $14.5B
+4.4%

Alaska Air

Alaska Air

Alaska Air Revenue by Segment

Forward Guidance

Alaska Air Group provided outlook for the fourth quarter ending December 31, 2023.

Positive Outlook

  • Capacity (ASMs) % change versus 2022: Up 11% to 14%
  • Total revenue % change versus 2022: Up 1% to 4%
  • Cost per ASM excluding fuel and special items (CASMex) % change versus 2022: Down 3% to 5%

Challenges Ahead

  • Economic fuel cost per gallon: $3.30 to $3.40
  • Adjusted pretax margin %: 0% to 2%

Revenue & Expenses

Visualization of income flow from segment revenue to net income