Alaska Airlines yesterday unveiled its financial and operating results for the first quarter of 2023. The company reported a loss between January and March, but highlighted improved productivity and pilot training processes.
“This quarter we returned to pre-pandemic levels of flying and our roadmap to profitable growth is on track”, said Alaska Airlines CEO Ben Minicucci. “As we progress through the year, we have taken deliberate steps to build momentum and we are well prepared for peak summer flying”, he added. Moreover, the executive praised the work of the company’s employees and said he was “proud of their work to deliver operational excellence”.
“We are well-positioned to deliver on our full-year financial targets, including a 9% to 12% adjusted pretax margin”, he concluded.
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Key results of Alaska Airlines in 2022 in the first quarter of 2023
- Net loss of 142 million dollars, or 1.11 dollars per share. In the same period of 2022, the company had reported a loss of 143 million, or 1.14 dollars per share.
- The reported net loss, excluding special items and mark-to-market fuel hedge accounting adjustments, came to 79 million dollars, or 0.62 dollars per share. Between January and March of the previous year it was 167 million, or 1.33 dollars per share.
- Alaska Airlines purchased a total of 413.554 shares of common stock for approximately 18 million dollars.
- At 31 March, the company held 2.4 billion dollars in unrestricted cash and marketable securities.
- The debt-to-capitalisation ratio was 48% at the end of the quarter, within management’s target range of 40% to 50%.
- The airline took delivery of six new Boeing 737 MAX 9 during the quarter and now has 43 operating aircraft of the type.
Operational and customer service improvements
- Announcement of new daily nonstop services from San Diego (SAN) to Washington-Dulles (IAD), Tampa (TPA) and Eugene (UEG), to be launched by the end of the year.
- Activation of new benefits for Alaska Visa Signature cardholders, including priority boarding, airport lounge discounts and new ways to earn mileage.
- Pilot training performance doubled compared to the first quarter of 2022. The company invested in two new full-flight simulators and now has 75% more qualified flight instructors. In addition, it expects to take delivery of three more such simulators by the end of 2023.
- Agreement with Shell Aviation to advance sustainable aviation fuel (SAF) technology and infrastructure in the West Coast of the United States. Shell Aviation will also supply Alaska Airlines with up to 10 million gallons of sustainable fuel at Los Angeles (LAX).
See also: Alaska Airlines launches three new routes from San Diego
