DALLAS – Alaska Air Group (AS) has reported its third-quarter 2022 earnings. Highlights of the report show the company delivering adjusted pretax margins of 15.6%, achieving a record third-quarter operating revenue of US$2.8bn, and finalizing new contracts with ALPA, IBT, and IAM-represented employees.
The reported net income (GAAP) for the third quarter of 2022 was US$40m, or US$0.31 per share. This compares to a net income of US$194m, or US$1.53 per share, in the third quarter of 2021.
When special items and mark-to-fuel hedge accounting adjustments are excluded, reported income rises to US$325m, or US$2.53 per share, compared to US$187 million, or US$1.47 per share, in the third quarter of 2021.
Alaska pulled in US$2.8 billion in operating revenues for the third quarter, the highest revenue-generating third quarter in company history.
Comments from Alaska Airlines CEO
“I am incredibly proud of our entire team for the strong results they delivered in the third quarter, through the busiest travel season in two years,” said Alaska CEO Ben Minicucci.
The CEO added, “We ran an industry-leading operation with completion rates over 99% every month. We set a new revenue record and our double-digit pretax margin will likely lead the industry. Alaska and Horizon also ratified three major labor deals. This is a strong foundation that we look forward to building on in 2023.”
Alaska is the first major carrier to ratify a new labor agreement with its mainline pilots. The company says this action recognizes its more than 3,300 ALPA-represented employees for their contributions to the company’s success.
The airline also ratified a pilot retention agreement with 700 Horizon Air pilots represented by IBT. Nearly 5,700 other airline employees represented by the IAM (International Association of Machinists and Aerospace Workers) ratified a two-year contract extension in August.
In terms of aircraft delivery, AS received five Boeing 737-9 aircraft in the third quarter, bringing the total number of 737-9s in its mainline fleet to 33.
The carrier also retired six Airbus A320 aircraft and nine Q400 aircraft during the quarter.
This continues the airline’s work in transitioning to single fleets. By the end of January 2023, AS expects to retire 23 A320s and 22 Q400 aircraft.
The airline also began its retrofit project for its 737-800 fleet, which will see interiors refreshed with three main cabin seats added.
Featured image: Alaska Airlines (Horizon Air) N628QX Embraer E175. Photo: Daniel Gorun/Airways