DALLAS — Alaska Air Group closed 2024 with record-breaking revenues of US$11.7 billion, demonstrating resilience despite facing significant operational challenges in the first quarter.
The company achieved a GAAP pretax margin of 4.6% and an adjusted pretax margin of 7.1%, positioning it among the industry's top performers.
The fourth quarter showed robust results, with adjusted earnings per share of US$0.97, exceeding analyst expectations by approximately US$0.50. This performance was driven by strong revenue growth and improved cost management across operations.
Key Financial Highlights:
- Full-year revenue reached US$11.7 billion (record)
- Fourth quarter GAAP earnings per share: US$0.55
- Full-year adjusted earnings per share: US$4.87
- Generated US$1.5 billion in operating cash flow
Strategic Developments
The company's year was marked by the successful acquisition of Hawaiian Airlines (HA) in September 2024. CEO Ben Minicucci emphasized this as a "transformational year," with plans to generate US$1 billion in incremental pretax profit over the next three years through the merger.
Employee Benefits and Expansion
In recognition of strong performance, Alaska Airlines (AS) and Horizon Air (QX) employees will receive performance-based pay equivalent to approximately six weeks' salary, totaling US$325 million.
The company also announced significant expansion plans, including new international routes from Seattle to Tokyo and Seoul, to add 12 international widebody destinations by 2030.
Looking Ahead
For 2025, Alaska Air Group projects continued growth. First-quarter capacity is expected to increase by 2.5% to 3.5% compared to pro forma 2024 results.
The company has authorized a new US$1 billion share repurchase plan to be executed over the next four years, signaling confidence in its long-term prospects.
The company's performance and strategic initiatives suggest a strong position for continued growth, mainly as it integrates HA's operations and expands its international presence.
A conference call regarding the fourth quarter and full year results will be streamed online at 8:30 a.m. PST on January 23, 2025. It can be accessed at www.alaskaair.com/investors. For those unable to listen to the live broadcast, a replay will be available after the conclusion of the call.
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Exploring Airline History Volume I
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David H. Stringer, the History Editor for AIRWAYS Magazine, has chronicled the story of the commercial aviation industry with his airline history articles that have appeared in AIRWAYS over two decades. Here, for the first time, is a compilation of those articles.
Subjects A through C are presented in this first of three volumes. Covering topics such as the airlines of Alaska at the time of statehood and Canada's regional airlines of the 1960s, the individual histories of such carriers as Allegheny, American, Braniff, and Continental are also included in Volume One. Get your copy today!
February 2025
