American/Alaska Airlines 2022 Q4-Full Year Financial Results
Airlines Business / Finance

American/Alaska Airlines 2022 Q4-Full Year Financial Results

DALLAS — oneworld Alliance partners American Airlines (AA) and Alaska Airlines (AS) have each published strong fourth-quarter and full-year financial reports for 2022.

In the fourth quarter and full year of 2020, AA reported net income of US$803m and US$127m respectively, or US$1.14 and US$0.19 per diluted share respectively. Excluding special items, net income for the quarter and full year were US$827m and US$328m, or $1.17 and $0.50 per diluted share respectively.

American Airlines achieved record fourth-quarter revenue of US$13.2bn, a 16.6% increase over the same period in 2019, despite flying at 6.1% less capacity. At the end of the year, total available liquidity was US$12bn, having pre-paid a US$1.2bn term loan during the fourth quarter. The company is continuing to execute its plan to pay down US$15bn of total debt by the end of 2025.

In the fourth quarter, AA and its regional partners flew over 475,000 flights with an average load factor of 83.9%. Among the nine largest US carriers, AA ranked first in the completion factor for the quarter.

Alaska Airlines, on its part, reported its net income in the fourth quarter and full year of 2022 at US$22m, or US$0.17 per diluted share, and US$58m, or US$0.45 per diluted share, respectively, under Generally Accepted Accounting Principles (GAAP). The Seattle, Washington-based airline recorded annual revenue of US$9.6bn, up 10% from 2019.

Excluding special items and mark-to-market fuel hedge accounting adjustments, the net income for the fourth quarter was US$118m, or US$0.92 per diluted share, and US$556m, or US$4.35 per diluted share. This compares to a net income of US$18m, or US$0.14 per diluted share, and a net loss of US$256m, or US$2.03 per share, in 2021.

Alaska Airlines also recorded US$257m in incentive pay earned by employees for meeting or exceeding profitability, safety, and emissions targets.

Furthermore, US$2.5bn in operating revenue was reported in Q4, resulting in the highest annual total in company history, and the company received nearly US$1.5bn in annual cash remuneration under its renewed co-brand credit card arrangement with Bank of America.

American Airlines N753AN Boeing 777-200(ER). Photo: Brandon Farris/Airways

Comments from American/Alaska Airlines CEOs

“The American Airlines team has produced outstanding results over the past year.”

American Airlines CEO, Robert Isom

American Airlines CEO, Robert Isom, said, “We committed to running a reliable operation and returning to profitability, and our team is delivering on both.”

The AA CEO added, “We’re proud to have led the industry in operational performance over the holidays while producing record full-year and fourth-quarter revenues, resulting in a third consecutive quarterly profit and a profit for the full year. As we turn our attention to 2023, we will continue to prioritize reliability, profitability, and debt reduction.”

“2022 was a year of significant recovery and accomplishment for Alaska Airlines.”

Alaska Airlines CEO, Ben Minicucci

Alaska Airlines CEO, Ben Minicucci said, “Despite many challenges during the year, we ran one of the best operations, signed five new labor deals, and executed the majority of our single fleet transition. The results we posted today signal how well our teams are navigating this recovery.”

Mr. Minicucci added, “I want to thank our employees for their commitment to our success, and for the work they do every day to take great care of our guests. I am confident that we are well positioned to grow, compete and outperform in 2023.”

See the AA full report here and the AS full report here.

Featured image: Tony Bordelais/Airways

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