Alaska Airlines ends 2024 with $395 million in profit following the integration of Hawaiian Airlines
Alaska Airlines ended 2024 with a net profit of $395 million, driven by the integration of Hawaiian Airlines and a 13% increase in annual revenue. With a fleet of 392 aircraft and 49.2 million passengers transported, the airline projects moderate growth for 2025 despite the initial challenges of the year.
Alaska Airlines, which had a year marked by milestones and operational challenges, reported a net profit of $395 million at the close of 2024. This result includes the performance of Hawaiian Airlines, acquired in September of the same year, which resulted in a 13% increase in annual revenue, reaching $11.7 billion, while costs grew by 11%, totaling $11.1 billion.
The integration of Hawaiian Airlines represented a cash expenditure of $659 million as part of a transaction valued at $1.9 billion, including the assumption of $900 million in debt. The incorporation of the new subsidiary increased the group’s fleet to 392 aircraft, distributed among 71 Hawaiian Airlines aircraft, 239 Alaska Airlines aircraft, and 44 Horizon Air aircraft.
In 2024, the group transported 49.2 million passengers, with an average load factor of 83.9%. However, Hawaiian Airlines ended the year with negative financial results, a situation that, according to the group’s projections, is expected to improve starting in the second quarter of 2025, although it will not offset the losses from the beginning of the year.
The last quarter of 2024 benefited from strong demand in the leisure and corporate segments, along with favorable weather conditions that facilitated operations during the holiday season. The flight completion rate and load factor exceeded expectations, reaching 83.8% for the fourth quarter.
Despite challenges related to aircraft delivery delays, the group expects to improve unit costs as capacity levels normalize in 2025.
Outlook for 2025
Alaska Air Group projects capacity growth, measured in available seat miles (ASM), of between 2% and 3% for the entire year 2025. However, it anticipates losses in the first quarter, with an adjusted result per share between $0.50 and $0.70, while the annual adjusted profit could exceed $5.75 per share.
In a competitive environment, Alaska Air Group joins other U.S. airlines in presenting results. Delta Air Lines and United Airlines reported adjusted net profits of $3.9 billion and $3.1 billion, respectively, highlighting the recovery of the sector in 2024.
A future shaped by costs and synergies
The group remains focused on implementing its strategic plan, which aims to leverage the combined strengths of Alaska Airlines and Hawaiian Airlines to improve the customer experience and generate operational synergies. Although facing a challenging start to the year, Alaska Air Group anticipates solidifying its position in 2025 as one of the main players in the U.S. airline sector.
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