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AAG bucks industry trend, but
3rd Q results way, way down
Full-year loss assured and 'difficult' months ahead
Posted October 23, 2002
Alaska Air Group today reported third quarter net income of $10.6 million compared with net income of $25.3 million during the corresponding quarter in 2001.
The company’s third quarter results for 2002 and 2001 were adversely impacted by the September 11th terrorist attacks and include US government compensation received in connection with the Air Transportation Safety and System Stabilization Act totaling $.5 million ($.3 million after tax) and $29.1 million ($18.0 million after tax), respectively.
Excluding the receipt of this compensation, net income during the third quarter 2002 was $10.3 million, compared to $7.3 million during the same period in 2001.
Due to the September 11 terrorist acts, year over year comparisons of both financial and operational information is significantly impacted.
"We’re obviously pleased to be reporting profitable results, especially given the difficult times our industry has faced over the past year," said John Kelly, chairman and CEO of Alaska Air Group. "Both Alaska and Horizon Air did an excellent job of developing and executing their post 9/11 strategies, and both carriers recorded profits for the quarter. Still, the industry is clearly suffering financially, and we’re not immune to it, especially as we contemplate the difficult winter months ahead."
Alaska Airlines' passenger traffic increased 10.4 percent (2.7 percent adjusted for September 11th) on a capacity increase of 11.1 percent (3.4 percent adjusted for September 11th). Load factor fell 0.5 points to 70.5 percent.
The airline's operating revenue per available seat mile (ASM) decreased 4.9 percent, while its operating cost per ASM excluding fuel decreased 3.7 percent. Alaska's pretax income was $10.4 million compared to pretax income of $31.6 million a year earlier. Alaska’s 2002 and 2001 pretax income includes $.3 million and $18.7 million of U.S. government compensation, respectively.
Horizon Air's passenger traffic increased 19.0 percent (7.7 percent adjusted for September 11th) on an 18.4 percent (9.8 percent adjusted for September 11th) capacity increase. Load factor increased 0.3 points to 64.6 percent.
The airline's operating revenue per ASM decreased 9.2 percent, while its operating cost per ASM decreased 16.9 percent. Excluding fuel, cost per ASM decreased 15.5 percent. Horizon's pretax income was $5.8 million, compared to a pretax income of $7.0 million a year earlier. Horizon’s 2002 and 2001 pretax income includes $.2 million and $10.4 million of U.S. government compensation, respectively.
Alaska Air Group continues to have a strong cash position and ended the September 2002 quarter with approximately $663 million in cash and marketable securities.
The company’s debt-to-capital ratio, assuming aircraft operating leases are capitalized at seven times annualized rent, was 72 percent.
3rd Q results way, way down
Full-year loss assured and 'difficult' months ahead
Posted October 23, 2002
Alaska Air Group today reported third quarter net income of $10.6 million compared with net income of $25.3 million during the corresponding quarter in 2001.
The company’s third quarter results for 2002 and 2001 were adversely impacted by the September 11th terrorist attacks and include US government compensation received in connection with the Air Transportation Safety and System Stabilization Act totaling $.5 million ($.3 million after tax) and $29.1 million ($18.0 million after tax), respectively.
Excluding the receipt of this compensation, net income during the third quarter 2002 was $10.3 million, compared to $7.3 million during the same period in 2001.
Due to the September 11 terrorist acts, year over year comparisons of both financial and operational information is significantly impacted.
"We’re obviously pleased to be reporting profitable results, especially given the difficult times our industry has faced over the past year," said John Kelly, chairman and CEO of Alaska Air Group. "Both Alaska and Horizon Air did an excellent job of developing and executing their post 9/11 strategies, and both carriers recorded profits for the quarter. Still, the industry is clearly suffering financially, and we’re not immune to it, especially as we contemplate the difficult winter months ahead."
Alaska Airlines' passenger traffic increased 10.4 percent (2.7 percent adjusted for September 11th) on a capacity increase of 11.1 percent (3.4 percent adjusted for September 11th). Load factor fell 0.5 points to 70.5 percent.
The airline's operating revenue per available seat mile (ASM) decreased 4.9 percent, while its operating cost per ASM excluding fuel decreased 3.7 percent. Alaska's pretax income was $10.4 million compared to pretax income of $31.6 million a year earlier. Alaska’s 2002 and 2001 pretax income includes $.3 million and $18.7 million of U.S. government compensation, respectively.
Horizon Air's passenger traffic increased 19.0 percent (7.7 percent adjusted for September 11th) on an 18.4 percent (9.8 percent adjusted for September 11th) capacity increase. Load factor increased 0.3 points to 64.6 percent.
The airline's operating revenue per ASM decreased 9.2 percent, while its operating cost per ASM decreased 16.9 percent. Excluding fuel, cost per ASM decreased 15.5 percent. Horizon's pretax income was $5.8 million, compared to a pretax income of $7.0 million a year earlier. Horizon’s 2002 and 2001 pretax income includes $.2 million and $10.4 million of U.S. government compensation, respectively.
Alaska Air Group continues to have a strong cash position and ended the September 2002 quarter with approximately $663 million in cash and marketable securities.
The company’s debt-to-capital ratio, assuming aircraft operating leases are capitalized at seven times annualized rent, was 72 percent.
