DALLAS — Alaska Air Group (AS) has released its financial results for the first quarter ending March 31, 2024, and provided an outlook for the second quarter ending June 30, 2024.

The group achieved record first-quarter operating revenue of US$2.2 billion and delivered strong performance despite significant challenges at the beginning of the year. CEO Ben Minicucci expressed his appreciation for Alaska's employees' commitment to safety, guest care, and performance in the first quarter.

Impact of Flight 1282, Boeing 737-9 MAX Grounding

The first-quarter operations and results of AS were significantly affected by Flight 1282 in January and the grounding of the Boeing 737-9, which extended into February. The company received US$162 million in initial cash compensation from Boeing to address the financial damages incurred during the first quarter.

The grounding impact for the first quarter of 2024 was approximately US$162 million, resulting in an adjusted loss per share of approximately US$0.95. However, excluding the grounding impact, the adjusted loss per share was approximately US$0.03. The YoY change in capacity was approximately 3.5%.

Financial Results

Alaska Air Group reported a net loss for the first quarter of 2024 under Generally Accepted Accounting Principles (GAAP) of US$132 million, or US$1.05 per share, compared to a net loss of US$142 million, or US$1.11 per share, for the first quarter of 2023.

Excluding special items and mark-to-market fuel hedge accounting adjustments, the net loss for the first quarter of 2024 was US$116 million, or US$0.92 per share, compared to a net loss of US$79 million, or US$0.62 per share, for the first quarter of 2023.

The airline group repurchased 561,086 shares of common stock for approximately US$21 million in the first quarter and generated US$292 million in operating cash flow. As of March 31, 2024, AS held US$2.3 billion in unrestricted cash and marketable securities and ended the quarter with a debt-to-capitalization ratio of 47%, within the target range of 40% to 50%.

Operational Updates

Alaska Air Group made several operational updates during the first quarter of 2024, including:

• Approval of the agreement to purchase Hawaiian Airlines for US$18 per share by Hawaiian shareholders. The proposed combination is still subject to regulatory approval.
• Ratification of a five-year collective bargaining agreement with approximately 1,000 AS employees represented by AMFA.
• Completion of inspections of all Boeing 737-9 aircraft and the return of the fleet to service in February.
• Enhancement of the quality oversight program at the Boeing production facility to validate the work and quality of the aircraft as they progress through the manufacturing process.
• Receipt of two E175 aircraft during the quarter, bringing the total in the Horizon fleet to 43.

Commercial Updates

Alaska Air Group also made several commercial updates during the first quarter of 2024, including:

• Launching a partnership with Bilt Rewards, which adds Alaska's Mileage Plan as a transfer partner and allows Alaska Airlines Visa Signature® cardholders to earn 3x miles when paying rent via Bilt.
• Announcing growth plans out of Portland to provide guests with more travel options, including a 25% increase in capacity and a new daily nonstop flight to Atlanta, beginning later this year.
• Announcing new daily nonstop service between Santa Rosa and Las Vegas, which will be Air Group's seventh destination from Sonoma County.
• Introducing Alaska Access, a monthly subscription program for price-conscious travelers that offers Wi-Fi vouchers, early access to sales, and a personalized fare page.