I think this one is even more "Uh, loss - what loss?"
http://www.bloomberg.com/apps/news?pid=20601103&sid=aI5prS2WNilc&refer=us
Alaska Air to Report `Significant' 3rd-Quarter Loss (Update2)
By Mary Schlangenstein
Oct. 7 (Bloomberg) --
Alaska Air Group Inc. said it expects to report a ``significant'' third-quarter net loss because of costs to reduce the value of its fuel hedges and pay benefits to laid-off workers.
Capacity at its Alaska Airlines will fall further than originally planned this quarter and in the first quarter of 2009 because a strike by Boeing Co. machinists will delay aircraft deliveries, the Seattle-based company said today in a U.S. regulatory filing.
Alaska Air, which also is the parent of Horizon Air, is among U.S. carriers retiring planes and cutting jobs to help end losses from fuel prices that reached a record high in July. Horizon today said it's in talks with Bombardier Inc. about deferring the 2009 deliveries of 11 Q400 aircraft.
The company didn't give a figure for its expected loss, and said it would have a third-quarter profit excluding one-time costs, also without providing a figure. Alaska Air was expected to earn 67 cents a share on that basis, the average of 9 analyst estimates compiled by Bloomberg.
The company said it expects to record a $220 million loss in the market value of its fuel hedges because of the drop in crude oil prices, and expenses of as much as $4 million for severance and medical benefits for laid-off workers. Alaska Air said it will have more costs this quarter as employees accept early-out packages.
Reducing Capacity
Alaska Airlines' capacity will fall as much as 8 percent for fourth quarter and up to 12 percent in next year's first quarter because of delayed Boeing deliveries, the company said. The carrier's capacity for all of next may drop 8 percent, the company said, reiterating a forecast from September.
Alaska Airlines last month said it would eliminate as many as 1,000 positions as capacity declined.
Horizon Air capacity will fall as much as 15 percent in the first quarter of 2009 from a year earlier, and about 9 percent for all of 2009, the company said. Horizon's capacity is slated to drop 22 percent in October, 21 percent in November and 16 percent in December.
Horizon today said it will furlough about 40 pilots in November, with additional layoffs late in the fourth quarter and early in 2009.
Alaska Air fell $2.14, or 12 percent, to $16:05 at 4:15 p.m. in New York Stock Exchange composite
trading. The shares have declined 36 percent this year.
To contact the reporter on this story:
Mary Schlangenstein in Dallas at
[email protected]