Revenue For Alaska Air Surpasses 2019 Levels By 10%

(CTN News) – Alaska Air Group has reported record revenue for the fourth quarter and full year of 2022 of $9.6 billion, an increase of 10% over 2019.

During the last quarter, the company made a number of significant changes to its fleet in order to prepare for a strong year in 2023. Here is a look at Alaska’s latest financial results.

Alaska Air announces record revenues for the year

In the last quarter of 2022, the airline generated $2.5 billion in revenue, enabling it to achieve its highest-ever annual revenue of $9.6 billion.

According to Generally Accepted Accounting Principles (GAAP), Alaska Air’s net income for 2022 would be $58 million.

However, excluding special items and mark-to-market fuel hedge accounting adjustments, this figure would rise to $556 million for 2022 and $118 million for Q4 2022.

During the ‘fleet transition’ process, Alaska Airlines reported $496 million in impairment charges and accelerated costs associated with the retirement of its A320 fleet and Q400 fleet, while recording $76 million in mark-to-market fuel hedge adjustments and $84 million in labor-related special items as expenses.

During the fourth quarter of last year, the carrier repaid $52 million in debt, taking its total debt repayments to $385 million and ending the quarter with a debt-to-capitalization ratio of 49%, which falls within its target range of 40% to 50%.

2022 will be a strong year

Despite a challenging end to the year which saw major disruptions at hubs Seattle–Tacoma International Airport (SEA) and Portland International Airport (PDX) due to adverse winter weather, Alaska Airlines should be proud of its performance over 2022 – based on Cirium’s report of North America’s most punctual airlines, Alaska Airlines came in second with an On-Time Performance (OTP) of 81.42% over 231,248 flights, only behind Delta Air Lines on 84.1%.

During this period, Alaska Air Cargo’s cargo division also performed well – as the only US carrier using dedicated freighter aircraft, the airline’s cargo revenue increased 15% from 2021 to $248 million in 2022.

In the last quarter, there were new aircraft

As of January 9th, Alaska has retired all of its remaining Airbus A320s following the final retirement of its Airbus A320s during the fourth quarter.

Planespotters.net reports that the carrier has just five Dash 8s left in its fleet, all due for retirement in January.

Alaska added four Boeing 737 MAX 9 aircraft to its fleet in the last quarter. This brings its total MAX 9 fleet to 37 aircraft. In addition, it added three Embraer E175 aircraft to Horizon Air.

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