Alaska Posts all time record 1st quarter profits

[igneousy2]

Alaska Air Group Reports Record First Quarter Results

4/21/2011 5:06 a.m.

First quarter highlights:

• Record first-quarter net income, excluding special items, of $29.5 million, or $0.80 per diluted share—more than double the $13.1 million, or $0.36 per diluted share, reported in the first quarter of 2010. This compares to a First Call mean estimate of $0.71 per share.

• Net income under Generally Accepted Accounting Principles (GAAP) of $74.2 million, or $2.01 per diluted share, compared to net income of $5.3 million, or $0.15 per diluted share, in 2010.

• Air Group posts a 16 percent improvement in revenues compared to the first quarter of 2010.

• Air Group reduces non-fuel unit costs by 6.3 percent.

• Employee productivity improves 8 percent compared to the first quarter of 2010.

• Air Group remains well hedged against rising oil prices, saving $12.5 million in the first quarter.

• Air Group held $1.0 billion in unrestricted cash and marketable securities as of March 31, 2011.

• Air Group prepaid $52 million of long-term debt during the quarter. Adjusted debt-to-total capitalization ratio now stands at 65 percent—the lowest since 1999.

• Air Group trailing 12-month return on invested capital is 11.3 percent.

• Beginning Jan. 1, 2011, Horizon Air began operating 100 percent of its flights under a capacity purchase agreement with Alaska Airlines. Four Horizon Q400 aircraft now feature the Alaska livery.

• Alaska Airlines holds the No. 1 spot in U.S. Department of Transportation on-time performance among the 10 largest U.S. airlines for the 12 months ending in February.

• Air Group completed its current $50 million share repurchase program in early April. Since 2007, Air Group has repurchased approximately 7.6 million shares at an average price of $28 per share.

• Alaska's employees represented by the International Association of Machinists, including customer service and reservation agents and certain clerical staff, ratified a new contract on Jan. 31. Alaska reached tentative agreement on a new contract with its dispatchers, represented by the Transport Workers Union, on March 24.

SEATTLE — Alaska Air Group Inc. (NYSE: ALK) today reported first quarter 2011 net income of $74.2 million, or $2.01 per diluted share, compared to net income of $5.3 million, or $0.15 per diluted share, in the first quarter of 2010. Excluding mark-to-market fuel hedge gains of $82.0 million ($51.0 million after tax, or $1.38 per diluted share) and CRJ-700 fleet transition costs of $10.1 million ($6.3 million after tax, or $0.17 per diluted share), the company reported record first quarter 2011 net income of $29.5 million, or $0.80 per diluted share, compared to net income of $13.1 million, or $0.36 per diluted share, excluding special items, in the first quarter of 2010.

"We are pleased to report a record first quarter profit. This quarter's results are due to strong passenger demand leading to a 16 percent, or $136 million, improvement in revenue. This profit is especially gratifying given the significant increase in fuel costs," Chairman and CEO Bill Ayer said. "As we look ahead, fuel prices will be an even bigger challenge, but we are well positioned with our efficient fleet, diversified network and the fundamental changes we've made to our business over the past several years. Our people are operating a great airline and their hard work is paying off."

​

 

[Mookie]

I put the over under on the reduction of our PBP at 50% of the 2010 number...thoughts?

I did hear from our CP that he expects over 200 new hires starting at the begining of 2012 at 10-15 a month, and that's just for growth. Retirements should increase that by 50-100 each year.

Mookie

 

[Z_Pilot]

Interesting they're able to bring in new hires at 10-15/mo, yet unable to recall furloughs at more than 6/mo.

 

[eskimopilot]

I did hear from our CP that he expects over 200 new hires starting at the begining of 2012 at 10-15 a month, and that's just for growth. Retirements should increase that by 50-100 each year.

Mookie[/QUOTE]
Interesting. On the conference call they estimated that a one percent increase in growth (ASM's) at our size is the equivalent of ONE west coast Hawaii R/T. Not sure where all this "growth" will come from given our aircraft order book but I would gladly give up the title of "skeptic".

 

[igneousy2]

Interesting they're able to bring in new hires at 10-15/mo, yet unable to recall furloughs at more than 6/mo.

I was just in the school house...5-6 instructors in the process of being signed off to do Recurrent. Once that's done 5-6 more will start the process. Instructors aren't cut loose until they are observed in every event. It is a very time consuming process and since there is nobody going through the full program right now, they won't even start to be checked out for the full program until the recalls start to happen. Recalls starting in August will all need the full program.

Also of interest from crew planning...

3 bids over the next year September, November/December, April/May '12 effective dates...about 20 captains and 20 FO positions in each for a total of 60 captains and 60 FO's. (+/- 2-3 I can't remember the exact numbers).

Planning considers ANC and LAX overstaffed by about 7 crews each, however, they are not planning to reduce the bases, just not backfilling. Openings will be posted in SEA and PDX.

So far, June pairing solution has all Hawaii flying gone for ANC (except ANC-HNL) ANC will be strictly Arctic and Southeast flying.

Also heard...

Applications to begin being accepted "this summer"

Interviews beginning in September to start to form a pool.

First new hires January or February depending on recall acceptance from furloughs.

Later

ig

 

[Flyer1015]

What were the hiring mins and competitive mins the last time around Alaska hired?

 

[GuppyWN]

Congrats to the 70 furloughed AS pilots. I'm sure today's announcement will be almost like a mortgage payment.

Gup

 

[skid]

What were the hiring mins and competitive mins the last time around Alaska hired?

I dont have that info in front of me but I do remember that they were pretty much the standard of 1000 pic turbine and such. They had lower mins for QX'ers. (no PIC turbine req if you have 2000+SIC at QX.) Alaska also seemed to like people with close internal connections (aka family).

Most of the rumors have been saying possible interviews in the fall time period should the hiring actually hold true.

(no I dont work there but have family and alot of friends there (several still on furlough) (sure hope they finally get them back online...It is years overdue!!!!)

 

[igneousy2]

Minimums I belive were 750 Turbine PIC.

They do like internal recs, that being said, there are people that get hired without any internal recs.

 

[dogg]

Congrats to the 70 furloughed AS pilots. I'm sure today's announcement will be almost like a mortgage payment.

Gup

Gup,
You are a wizard....these guys should be swa plus one but they are so giddy to fly a zhiny jet and live in gag barbor that they are at skywest plus one.... The ultimate stagnation,pond scum airline...