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Sep 30, 2024

Alaska Air Q3 2024 Earnings Report

Alaska Air Group reported strong Q3 2024 results, led the industry in adjusted pretax margin, and completed the acquisition of Hawaiian Airlines.

Key Takeaways

Alaska Air Group reported a strong third quarter with GAAP earnings per share of $1.84 and an adjusted pretax margin of 13.0%, leading the industry. The acquisition of Hawaiian Airlines was completed on September 18, 2024, and the results include 13 days of Hawaiian Airlines' financials.

Reported GAAP net income of $236 million, or $1.84 earnings per share.

Reported adjusted net income of $289 million, or $2.25 earnings per share, exceeding original guidance.

Adjusted pretax margin of 13.0% led industry peers.

Completed $2 billion in financing backed by the Mileage Plan program to refinance debt acquired with Hawaiian Airlines.

Total Revenue
$3.07B
Previous year: $2.84B
+8.2%
EPS
$2.25
Previous year: $1.83
+23.0%
RASM
15.48
Previous year: 0.15
+10030.9%
Load factor
85.5%
Previous year: 84.6%
+1.1%
Yield
16.62
Previous year: 0.17
+9876.0%
Gross Profit
$878M
Previous year: $636M
+38.1%
Cash and Equivalents
$1.02B
Previous year: $647M
+56.9%
Free Cash Flow
$318M
Previous year: -$86M
-469.8%
Total Assets
$19.6B
Previous year: $15.2B
+29.0%

Alaska Air

Alaska Air

Alaska Air Revenue by Segment

Forward Guidance

For the fourth quarter, the company expects capacity to be up 1.5% to 2.5% versus 2023, CASMex to be up high single digits, RASM to be up mid single digits, economic fuel cost per gallon to be $2.55 to $2.65, and adjusted earnings per share to be $0.20 to $0.40. Full year 2024 EPS is expected to finish above the midpoint of the previous guidance of $3.50 to $4.50 per share.

Revenue & Expenses

Visualization of income flow from segment revenue to net income