Alaska Air Group Reports 2005 Full Year Results
1/26/2006 5:00 a.m. (PT)
SEATTLE — Alaska Air Group, Inc. (NYSE:ALK) today reported full year income of $84.5 million, or $2.65 per diluted share, before the cumulative effect of a maintenance accounting policy change, compared to a loss of $15.3 million, or $0.57 per share in 2004. Both 2005 and 2004 include certain significant items related to mark-to-market fuel hedge accounting, restructuring activities, refunds of navigation fees and impairment charges that impact the comparability of the periods. Excluding the impact of these items, 2005 net income would have been $55.0 million, or $1.78 per diluted share, compared to $5.2 million, or $0.19 per share in 2004.
The company reported a fourth quarter net loss of $33.0 million, or $1.15 per share, compared to a net loss of $44.9 million, or $1.66 per share, in the fourth quarter of 2004. Similar to the items noted for the full year, both the 2005 and 2004 quarterly results include mark-to-market fuel hedge accounting adjustments, restructuring activities and an impairment charge in 2004. Excluding the impact of these items, fourth quarter net income would have been $0.6 million, or $0.02 per diluted share in 2005, compared to a loss of $14.3 million, or $0.53 per share in the fourth quarter of 2004.
"Sacrifices by our employees, strong revenue performance and the benefit of our fuel hedging program enabled us to be one of only a couple of major airlines that posted a significant adjusted profit for 2005," said Bill Ayer, chairman and chief executive officer. "Our people should be extremely proud of that. I want to thank our customers for sticking with us and our employees for their hard work. Our job now is to stay the course to secure Alaska Air Group's position as a leader in this tumultuous industry."
1/26/2006 5:00 a.m. (PT)
SEATTLE — Alaska Air Group, Inc. (NYSE:ALK) today reported full year income of $84.5 million, or $2.65 per diluted share, before the cumulative effect of a maintenance accounting policy change, compared to a loss of $15.3 million, or $0.57 per share in 2004. Both 2005 and 2004 include certain significant items related to mark-to-market fuel hedge accounting, restructuring activities, refunds of navigation fees and impairment charges that impact the comparability of the periods. Excluding the impact of these items, 2005 net income would have been $55.0 million, or $1.78 per diluted share, compared to $5.2 million, or $0.19 per share in 2004.
The company reported a fourth quarter net loss of $33.0 million, or $1.15 per share, compared to a net loss of $44.9 million, or $1.66 per share, in the fourth quarter of 2004. Similar to the items noted for the full year, both the 2005 and 2004 quarterly results include mark-to-market fuel hedge accounting adjustments, restructuring activities and an impairment charge in 2004. Excluding the impact of these items, fourth quarter net income would have been $0.6 million, or $0.02 per diluted share in 2005, compared to a loss of $14.3 million, or $0.53 per share in the fourth quarter of 2004.
"Sacrifices by our employees, strong revenue performance and the benefit of our fuel hedging program enabled us to be one of only a couple of major airlines that posted a significant adjusted profit for 2005," said Bill Ayer, chairman and chief executive officer. "Our people should be extremely proud of that. I want to thank our customers for sticking with us and our employees for their hard work. Our job now is to stay the course to secure Alaska Air Group's position as a leader in this tumultuous industry."
