We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Alaska Air Group Inc | NYSE:ALK | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.50 | -1.14% | 43.35 | 43.87 | 43.24 | 43.55 | 94,815 | 15:02:08 |
SEATTLE, Jan. 22, 2015 /PRNewswire/ --
Financial Highlights:
Year-to-date highlights of Alaska Air Group's five-year strategic plan:
Safety & Compliance
People Focus
Hassle-free Customer Experience
Energetic & Compelling Brand
Low Fares, Low Costs, and Network Growth
New Non-Stop Routes Launched in Q4 |
New Non-Stop Routes (Launch Date) |
Portland to Puerto Vallarta |
Las Vegas to Mammoth Lakes (1/15/2015) |
Seattle to Cancun |
San Diego to Kona (3/5/2015) |
Portland to Los Cabos |
Seattle to Washington D.C. (Dulles) (3/11/2015) |
Seattle to Milwaukee (7/1/2015) | |
Seattle to Oklahoma City (7/1/2015) | |
Portland to St. Louis (7/1/2015) |
Alaska Air Group, Inc. (NYSE: ALK) today reported fourth quarter 2014 GAAP net income of $148 million, or $1.11 per diluted share, compared to GAAP net income of $78 million, or $0.56 per diluted share in 2013. Excluding mark-to-market fuel hedge gains of $6 million ($4 million after tax, or $0.03 per diluted share), a benefit related to the curtailment of certain postretirement benefit plans and a one-time gain associated with the settlement of a legal matter for $30 million in aggregate ($19 million after tax, or $0.14 per diluted share), the company reported record fourth quarter 2014 net income of $125 million, or $0.94 per diluted share, compared to net income, excluding mark-to-market fuel hedge gains, of $77 million, or $0.55 per diluted share, in 2013.
The company reported full-year 2014 GAAP net income of $605 million, compared to $508 million in the prior year. Excluding the impact of the items noted in the table below, the company reported record net income of $571 million, or $4.18 per diluted share for 2014, compared to net income of $383 million, or $2.70 per diluted share in 2013.
"Record earnings and the number one airline ranking in The Wall Street Journal for the second year in a row are proof that our 13,000 employees continue to do a great job serving our customers and running a reliable operation," said CEO Brad Tilden. "The substantial increase in the dividend underscores our commitment to shareholders and our confidence in the future."
The following table reconciles the Company's adjusted net income and earnings per diluted share (EPS) during the full year and fourth quarters of 2014 and 2013 to amounts as reported in accordance with GAAP:
Three Months Ended December 31, | |||||||||||||||
2014 |
2013 | ||||||||||||||
(in millions, except per share amounts) |
Dollars |
Diluted EPS |
Dollars |
Diluted EPS | |||||||||||
Reported GAAP net income |
$ |
148 |
$ |
1.11 |
$ |
78 |
$ |
0.56 |
|||||||
Mark-to-market fuel hedge adjustments, net of tax |
(4) |
(0.03) |
(1) |
(0.01) |
|||||||||||
Special items, net of tax |
(19) |
(0.14) |
— |
— |
|||||||||||
Non-GAAP adjusted income and per share amounts |
$ |
125 |
$ |
0.94 |
$ |
77 |
$ |
0.55 |
Twelve Months Ended December 31, | |||||||||||||||
2014 |
2013 | ||||||||||||||
(in millions, except per share amounts) |
Dollars |
Diluted EPS |
Dollars |
Diluted EPS | |||||||||||
Reported GAAP net income |
$ |
605 |
$ |
4.42 |
$ |
508 |
$ |
3.58 |
|||||||
Mark-to-market fuel hedge adjustments, net of tax |
(15) |
(0.11) |
(5) |
(0.03) |
|||||||||||
Special items, net of tax |
(19) |
(0.13) |
— |
— |
|||||||||||
Special mileage plan revenue, net of tax |
$ |
— |
$ |
— |
$ |
(120) |
$ |
(0.85) |
|||||||
Non-GAAP adjusted income and per share amounts |
$ |
571 |
$ |
4.18 |
$ |
383 |
$ |
2.70 |
Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables. A glossary of financial terms can be found on the last page of this release.
A conference call regarding the fourth quarter and full year results will be simulcast via the Internet at 8:30 a.m. Pacific time on Jan. 22, 2015. It can be accessed through the company's Web site 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.
References in this news release to "Air Group," "company," "we," "us" and "our" refer to Alaska Air Group, Inc. and its subsidiaries, unless otherwise specified. Alaska Airlines, Inc. and Horizon Air Industries, Inc. are referred to as "Alaska" and "Horizon," respectively, and together as our "airlines."
This news release may contain forward-looking statements subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements relate to future events and involve known and unknown risks and uncertainties that may cause actual outcomes to be materially different from those indicated by any forward-looking statements. For a comprehensive discussion of potential risk factors, see Item 1A of the company's Annual Report on Form 10-K for the year ended December 31, 2013. Some of these risks include competition, labor costs and relations, general economic conditions, increases in operating costs including fuel, inability to meet cost reduction goals, seasonal fluctuations in our financial results, an aircraft accident, and changes in laws and regulations. All of the forward-looking statements are qualified in their entirety by reference to the risk factors discussed therein. We operate in a continually changing business environment, and new risk factors emerge from time to time. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on our business or events described in any forward-looking statements. We expressly disclaim any obligation to publicly update or revise any forward-looking statements after the date of this report to conform them to actual results. Over time, our actual results, performance or achievements will likely differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, and such differences might be significant and materially adverse.
Alaska Airlines, a subsidiary of Alaska Air Group (NYSE: ALK), together with its partner regional airlines, serves more than 100 cities through an expansive network in Alaska, the Lower 48, Hawaii, Canada and Mexico. Alaska Airlines ranked "Highest in Customer Satisfaction Among Traditional Carriers" in the J.D. Power North American Airline Satisfaction Study for seven consecutive years from 2008 to 2014. Alaska Airlines' Mileage Plan also ranked highest in the J.D. Power 2014 Airline Loyalty/Rewards Program Satisfaction Report. For reservations, visit www.alaskaair.com . For more news and information, visit the Alaska Airlines Newsroom at www.alaskaair.com/newsroom.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||||||||||||||||||
Alaska Air Group, Inc. |
|||||||||||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, | ||||||||||||||||||||
(in millions, except per share amounts) |
2014 |
2013 |
Change |
2014 |
2013 |
Change | |||||||||||||||
Operating Revenues: |
|||||||||||||||||||||
Passenger |
|||||||||||||||||||||
Mainline |
$ |
916 |
$ |
839 |
9 |
% |
$ |
3,774 |
$ |
3,490 |
8 |
% | |||||||||
Regional |
200 |
195 |
3 |
% |
805 |
777 |
4 |
% | |||||||||||||
Total passenger revenue |
1,116 |
1,034 |
8 |
% |
4,579 |
4,267 |
7 |
% | |||||||||||||
Freight and mail |
26 |
25 |
4 |
% |
114 |
113 |
1 |
% | |||||||||||||
Other - net |
164 |
151 |
9 |
% |
675 |
584 |
16 |
% | |||||||||||||
Special mileage plan revenue |
— |
— |
NM |
— |
192 |
NM | |||||||||||||||
Total Operating Revenues |
1,306 |
1,210 |
8 |
% |
5,368 |
5,156 |
4 |
% | |||||||||||||
Operating Expenses: |
|||||||||||||||||||||
Wages and benefits |
304 |
280 |
9 |
% |
1,136 |
1,086 |
5 |
% | |||||||||||||
Variable incentive pay |
32 |
37 |
(14) |
% |
116 |
105 |
10 |
% | |||||||||||||
Aircraft fuel, including hedging gains and losses |
306 |
352 |
(13) |
% |
1,418 |
1,467 |
(3) |
% | |||||||||||||
Aircraft maintenance |
63 |
60 |
5 |
% |
229 |
247 |
(7) |
% | |||||||||||||
Aircraft rent |
26 |
30 |
(13) |
% |
110 |
119 |
(8) |
% | |||||||||||||
Landing fees and other rentals |
72 |
55 |
31 |
% |
279 |
262 |
6 |
% | |||||||||||||
Contracted services |
66 |
60 |
10 |
% |
254 |
221 |
15 |
% | |||||||||||||
Selling expenses |
45 |
42 |
7 |
% |
199 |
179 |
11 |
% | |||||||||||||
Depreciation and amortization |
76 |
67 |
13 |
% |
294 |
270 |
9 |
% | |||||||||||||
Food and beverage service |
25 |
21 |
19 |
% |
93 |
84 |
11 |
% | |||||||||||||
Other |
79 |
76 |
4 |
% |
308 |
278 |
11 |
% | |||||||||||||
Special items |
(30) |
— |
NM |
(30) |
— |
NM | |||||||||||||||
Total Operating Expenses |
1,064 |
1,080 |
(1) |
% |
4,406 |
4,318 |
2 |
% | |||||||||||||
Operating Income |
242 |
130 |
86 |
% |
962 |
838 |
15 |
% | |||||||||||||
Nonoperating Income (Expense): |
|||||||||||||||||||||
Interest income |
6 |
4 |
21 |
18 |
|||||||||||||||||
Interest expense |
(12) |
(14) |
(48) |
(56) |
|||||||||||||||||
Interest capitalized |
6 |
6 |
20 |
21 |
|||||||||||||||||
Other - net |
— |
(1) |
20 |
(5) |
|||||||||||||||||
— |
(5) |
13 |
(22) |
||||||||||||||||||
Income Before Income Tax |
242 |
125 |
94 |
% |
975 |
816 |
19 |
% | |||||||||||||
Income tax expense |
94 |
47 |
370 |
308 |
|||||||||||||||||
Net Income |
$ |
148 |
$ |
78 |
90 |
% |
$ |
605 |
$ |
508 |
19 |
% | |||||||||
Basic Earnings Per Share: |
$ |
1.12 |
$ |
0.56 |
$ |
4.47 |
$ |
3.63 |
|||||||||||||
Diluted Earnings Per Share: |
$ |
1.11 |
$ |
0.56 |
$ |
4.42 |
$ |
3.58 |
|||||||||||||
Shares Used for Computation: |
|||||||||||||||||||||
Basic |
132.368 |
138.670 |
135.445 |
139.910 |
|||||||||||||||||
Diluted |
133.705 |
140.484 |
136.801 |
141.878 |
|||||||||||||||||
Cash dividend declared per share |
$ |
0.125 |
0.100 |
$ |
0.500 |
0.200 |
NM - Not Meaningful |
CONDENSED CONSOLIDATED BALANCE SHEETS(unaudited) |
|||||||
Alaska Air Group, Inc. |
|||||||
(in millions) |
December 31, 2014 |
December 31, 2013 | |||||
Cash and marketable securities |
$ |
1,217 |
$ |
1,330 |
|||
Total current assets |
1,756 |
1,762 |
|||||
Property and equipment-net |
4,299 |
3,893 |
|||||
Other assets |
126 |
183 |
|||||
Total assets |
$ |
6,181 |
$ |
5,838 |
|||
Air traffic liability |
631 |
564 |
|||||
Current portion of long-term debt |
117 |
117 |
|||||
Other current liabilities |
923 |
899 |
|||||
Current liabilities |
$ |
1,671 |
$ |
1,580 |
|||
Long-term debt |
686 |
754 |
|||||
Other liabilities and credits |
1,697 |
1,475 |
|||||
Shareholders' equity |
2,127 |
2,029 |
|||||
Total liabilities and shareholders' equity |
$ |
6,181 |
$ |
5,838 |
|||
Debt to Capitalization, adjusted for operating leases(a) |
31%:69% |
35%:65% |
|||||
Number of common shares outstanding |
131.481 |
137.492 |
(a) Calculated using the present value of remaining aircraft lease payments. |
OPERATING STATISTICS SUMMARY (unaudited) | |||||||||||
Alaska Air Group, Inc. |
|||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, | ||||||||||
2014 |
2013 |
Change |
2014 |
2013 |
Change | ||||||
Consolidated Operating Statistics:(a) |
|||||||||||
Revenue passengers (PAX) (000) |
7,282 |
6,694 |
8.8% |
29,278 |
27,414 |
6.8% | |||||
RPMs (000,000) "traffic" |
7,640 |
6,980 |
9.5% |
30,718 |
28,833 |
6.5% | |||||
ASMs (000,000) "capacity" |
9,156 |
8,275 |
10.6% |
36,078 |
33,672 |
7.1% | |||||
Load factor |
83.4% |
84.4% |
(1.0) pts |
85.1% |
85.6% |
(0.5) pts | |||||
Yield |
14.61¢ |
14.80¢ |
(1.3)% |
14.91¢ |
14.80¢ |
0.7% | |||||
PRASM |
12.19¢ |
12.49¢ |
(2.4)% |
12.69¢ |
12.67¢ |
0.2% | |||||
RASM |
14.27¢ |
14.62¢ |
(2.4)% |
14.88¢ |
14.74¢ |
0.9% | |||||
CASM excluding fuel and special items(b) |
8.60¢ |
8.81¢ |
(2.4)% |
8.36¢ |
8.47¢ |
(1.3)% | |||||
Economic fuel cost per gallon(c) |
$2.64 |
$3.21 |
(17.8)% |
$3.08 |
$3.30 |
(6.7)% | |||||
Fuel gallons (000,000) |
118 |
110 |
7.3% |
469 |
447 |
4.9% | |||||
ASM's per gallon |
77.6 |
75.2 |
3.2% |
76.9 |
75.3 |
2.1% | |||||
Average number of full-time equivalent employees (FTEs) |
13,059 |
12,284 |
6.3% |
12,739 |
12,163 |
4.7% | |||||
Employee productivity (PAX/FTEs/months) |
185.9 |
181.6 |
2.4% |
191.5 |
187.8 |
2.0% | |||||
Mainline Operating Statistics: |
|||||||||||
Revenue passengers (PAX) (000) |
5,177 |
4,764 |
8.7% |
20,972 |
19,737 |
6.3% | |||||
RPMs (000,000) "traffic" |
6,907 |
6,308 |
9.5% |
27,778 |
26,172 |
6.1% | |||||
ASMs (000,000) "capacity" |
8,233 |
7,438 |
10.7% |
32,430 |
30,411 |
6.6% | |||||
Load factor |
83.9% |
84.8% |
(0.9) pts |
85.7% |
86.1% |
(0.4) pts | |||||
Yield |
13.25¢ |
13.29¢ |
(0.3)% |
13.58¢ |
13.33¢ |
1.9% | |||||
PRASM |
11.12¢ |
11.27¢ |
(1.3)% |
11.64¢ |
11.48¢ |
1.4% | |||||
RASM |
13.18¢ |
13.40¢ |
(1.6)% |
13.80¢ |
13.52¢ |
2.1% | |||||
CASM excluding fuel and special items(b) |
7.70¢ |
7.91¢ |
(2.7)% |
7.45¢ |
7.54¢ |
(1.2)% | |||||
Economic fuel cost per gallon(c) |
$2.64 |
$3.21 |
(17.8)% |
$3.07 |
$3.30 |
(7.0)% | |||||
Fuel gallons (000,000) |
102 |
96 |
6.3% |
407 |
393 |
3.6% | |||||
ASM's per gallon |
80.7 |
77.5 |
4.1% |
79.7 |
77.4 |
3.0% | |||||
Average number of FTEs |
10,171 |
9,519 |
6.8% |
9,910 |
9,493 |
4.4% | |||||
Employee productivity (PAX/FTEs/months) |
169.7 |
166.8 |
1.7% |
176.4 |
173.3 |
1.8% | |||||
Aircraft utilization |
10.3 |
10.1 |
2.0% |
10.5 |
10.6 |
(0.9)% | |||||
Average aircraft stage length |
1,190 |
1,177 |
1.1% |
1,182 |
1,177 |
0.4% | |||||
Regional Operating Statistics:(d) |
|||||||||||
Revenue passengers (PAX) (000) |
2,106 |
1,930 |
9.1% |
8,306 |
7,677 |
8.2% | |||||
RPMs (000,000) "traffic" |
734 |
673 |
9.1% |
2,940 |
2,661 |
10.5% | |||||
ASMs (000,000) "capacity" |
923 |
837 |
10.3% |
3,648 |
3,261 |
11.9% | |||||
Load factor |
79.5% |
80.4% |
(0.9) pts |
80.6% |
81.6% |
(1.0) pts | |||||
Yield |
27.38¢ |
28.99¢ |
(5.6)% |
27.40¢ |
29.20¢ |
(6.2)% | |||||
PRASM |
21.76¢ |
23.32¢ |
(6.7)% |
22.08¢ |
23.83¢ |
(7.3)% |
(a) |
Except for full-time equivalent employees, data includes information related to third-party regional capacity purchase flying arrangements. |
(b) |
See a reconciliation of this non-GAAP measure and Note A for a discussion of why these measures may be important to investors in the accompanying pages. |
(c) |
See a reconciliation of economic fuel cost in the accompanying pages. |
(d) |
Data presented includes information related to flights operated by Horizon Air and third-party carriers. |
OPERATING SEGMENTS (unaudited) |
|||||||||||||||||||||||||||
Alaska Air Group, Inc. |
|||||||||||||||||||||||||||
Three Months Ended December 31, 2014 | |||||||||||||||||||||||||||
Alaska |
|||||||||||||||||||||||||||
(in millions) |
Mainline |
Regional |
Horizon |
Consolidating |
Air Group Adjusted(a) |
Special Items(b) |
Consolidated | ||||||||||||||||||||
Operating revenues |
|||||||||||||||||||||||||||
Passenger |
|||||||||||||||||||||||||||
Mainline |
$ |
916 |
$ |
— |
$ |
— |
$ |
— |
$ |
916 |
$ |
— |
$ |
916 |
|||||||||||||
Regional |
— |
200 |
— |
— |
200 |
— |
200 |
||||||||||||||||||||
Total passenger revenues |
916 |
200 |
— |
— |
1,116 |
— |
1,116 |
||||||||||||||||||||
Revenue from CPA with Alaska |
— |
— |
94 |
(94) |
— |
— |
— |
||||||||||||||||||||
Freight and mail |
25 |
1 |
— |
— |
26 |
— |
26 |
||||||||||||||||||||
Other-net |
144 |
19 |
1 |
— |
164 |
— |
164 |
||||||||||||||||||||
Total operating revenues |
1,085 |
220 |
95 |
(94) |
1,306 |
— |
1,306 |
||||||||||||||||||||
Operating expenses |
|||||||||||||||||||||||||||
Operating expenses, excluding fuel |
634 |
159 |
92 |
(97) |
788 |
(30) |
758 |
||||||||||||||||||||
Economic fuel |
271 |
41 |
— |
— |
312 |
(6) |
306 |
||||||||||||||||||||
Total operating expenses |
905 |
200 |
92 |
(97) |
1,100 |
(36) |
1,064 |
||||||||||||||||||||
Nonoperating income (expense) |
|||||||||||||||||||||||||||
Interest income |
5 |
— |
— |
1 |
6 |
— |
6 |
||||||||||||||||||||
Interest expense |
(7) |
1 |
(2) |
(4) |
(12) |
— |
(12) |
||||||||||||||||||||
Other |
5 |
(1) |
2 |
— |
6 |
— |
6 |
||||||||||||||||||||
3 |
— |
— |
(3) |
— |
— |
— |
|||||||||||||||||||||
Income (loss) before income tax |
$ |
183 |
$ |
20 |
$ |
3 |
$ |
— |
$ |
206 |
$ |
36 |
$ |
242 |
|||||||||||||
Three Months Ended December 31, 2013 | |||||||||||||||||||||||||||
Alaska |
|||||||||||||||||||||||||||
(in millions) |
Mainline |
Regional |
Horizon |
Consolidating |
Air Group Adjusted(a) |
Special Items(b) |
Consolidated | ||||||||||||||||||||
Operating revenues |
|||||||||||||||||||||||||||
Passenger |
|||||||||||||||||||||||||||
Mainline |
$ |
839 |
$ |
— |
$ |
— |
$ |
— |
$ |
839 |
$ |
— |
$ |
839 |
|||||||||||||
Regional |
— |
195 |
— |
— |
195 |
— |
195 |
||||||||||||||||||||
Total passenger revenues |
839 |
195 |
— |
— |
1,034 |
— |
1,034 |
||||||||||||||||||||
Revenue from CPA with Alaska |
— |
— |
94 |
(94) |
— |
— |
— |
||||||||||||||||||||
Freight and mail |
24 |
1 |
— |
— |
25 |
— |
25 |
||||||||||||||||||||
Other-net |
133 |
17 |
1 |
— |
151 |
— |
151 |
||||||||||||||||||||
Total operating revenues |
996 |
213 |
95 |
(94) |
1,210 |
— |
1,210 |
||||||||||||||||||||
Operating expenses |
|||||||||||||||||||||||||||
Operating expenses, excluding fuel |
589 |
145 |
88 |
(94) |
728 |
— |
728 |
||||||||||||||||||||
Economic fuel |
307 |
47 |
— |
— |
354 |
(2) |
352 |
||||||||||||||||||||
Total operating expenses |
896 |
192 |
88 |
(94) |
1,082 |
(2) |
1,080 |
||||||||||||||||||||
Nonoperating income (expense) |
|||||||||||||||||||||||||||
Interest income |
4 |
— |
— |
— |
4 |
— |
4 |
||||||||||||||||||||
Interest expense |
(8) |
— |
(4) |
(2) |
(14) |
— |
(14) |
||||||||||||||||||||
Other |
6 |
(3) |
1 |
1 |
5 |
— |
5 |
||||||||||||||||||||
2 |
(3) |
(3) |
(1) |
(5) |
— |
(5) |
|||||||||||||||||||||
Income (loss) before income tax |
$ |
102 |
$ |
18 |
$ |
4 |
$ |
(1) |
$ |
123 |
$ |
2 |
$ |
125 |
OPERATING SEGMENTS (unaudited) |
|||||||||||||||||||||||||||
Alaska Air Group, Inc. |
|||||||||||||||||||||||||||
Twelve Months Ended December 31, 2014 | |||||||||||||||||||||||||||
Alaska |
|||||||||||||||||||||||||||
(in millions) |
Mainline |
Regional |
Horizon |
Consolidating |
Air Group Adjusted(a) |
Special Items(b) |
Consolidated | ||||||||||||||||||||
Operating revenues |
|||||||||||||||||||||||||||
Passenger |
|||||||||||||||||||||||||||
Mainline |
$ |
3,774 |
$ |
— |
$ |
— |
$ |
— |
$ |
3,774 |
$ |
— |
$ |
3,774 |
|||||||||||||
Regional |
— |
805 |
— |
— |
805 |
— |
805 |
||||||||||||||||||||
Total passenger revenues |
3,774 |
805 |
— |
— |
4,579 |
— |
4,579 |
||||||||||||||||||||
Revenue from CPA with Alaska |
— |
— |
371 |
(371) |
— |
— |
— |
||||||||||||||||||||
Freight and mail |
109 |
5 |
— |
114 |
— |
114 |
|||||||||||||||||||||
Other-net |
592 |
78 |
5 |
675 |
675 |
||||||||||||||||||||||
Total operating revenues |
4,475 |
888 |
376 |
(371) |
5,368 |
— |
5,368 |
||||||||||||||||||||
Operating expenses |
|||||||||||||||||||||||||||
Operating expenses, excluding fuel |
2,417 |
623 |
349 |
(371) |
3,018 |
(30) |
2,988 |
||||||||||||||||||||
Economic fuel |
1,251 |
190 |
— |
— |
1,441 |
(23) |
1,418 |
||||||||||||||||||||
Total operating expenses |
3,668 |
813 |
349 |
(371) |
4,459 |
(53) |
4,406 |
||||||||||||||||||||
Nonoperating income (expense) |
|||||||||||||||||||||||||||
Interest income |
20 |
— |
— |
1 |
21 |
— |
21 |
||||||||||||||||||||
Interest expense |
(32) |
— |
(12) |
(4) |
(48) |
— |
(48) |
||||||||||||||||||||
Other |
39 |
(1) |
2 |
— |
40 |
— |
40 |
||||||||||||||||||||
27 |
(1) |
(10) |
(3) |
13 |
— |
13 |
|||||||||||||||||||||
Income (loss) before income tax |
$ |
834 |
$ |
74 |
$ |
17 |
$ |
(3) |
$ |
922 |
$ |
53 |
$ |
975 |
|||||||||||||
Twelve Months Ended December 31, 2013 | |||||||||||||||||||||||||||
Alaska |
|||||||||||||||||||||||||||
(in millions) |
Mainline |
Regional |
Horizon |
Consolidating |
Air Group Adjusted(a) |
Special Items(b) |
Consolidated | ||||||||||||||||||||
Operating revenues |
|||||||||||||||||||||||||||
Passenger |
|||||||||||||||||||||||||||
Mainline |
$ |
3,490 |
$ |
— |
$ |
— |
$ |
— |
$ |
3,490 |
$ |
— |
$ |
3,490 |
|||||||||||||
Regional |
— |
777 |
— |
— |
777 |
— |
777 |
||||||||||||||||||||
Total passenger revenues |
3,490 |
777 |
— |
— |
4,267 |
— |
4,267 |
||||||||||||||||||||
Revenue from CPA with Alaska |
— |
— |
368 |
(368) |
— |
— |
— |
||||||||||||||||||||
Freight and mail |
109 |
4 |
— |
113 |
— |
113 |
|||||||||||||||||||||
Other-net |
513 |
66 |
5 |
584 |
192 |
776 |
|||||||||||||||||||||
Total operating revenues |
4,112 |
847 |
373 |
(368) |
4,964 |
192 |
5,156 |
||||||||||||||||||||
Operating expenses |
|||||||||||||||||||||||||||
Operating expenses, excluding fuel |
2,293 |
585 |
341 |
(368) |
2,851 |
— |
2,851 |
||||||||||||||||||||
Economic fuel |
1,294 |
181 |
— |
— |
1,475 |
(8) |
1,467 |
||||||||||||||||||||
Total operating expenses |
3,587 |
766 |
341 |
(368) |
4,326 |
(8) |
4,318 |
||||||||||||||||||||
Nonoperating income (expense) |
|||||||||||||||||||||||||||
Interest income |
18 |
— |
— |
— |
18 |
— |
18 |
||||||||||||||||||||
Interest expense |
(38) |
— |
(14) |
(4) |
(56) |
— |
(56) |
||||||||||||||||||||
Other |
25 |
(12) |
2 |
1 |
16 |
— |
16 |
||||||||||||||||||||
5 |
(12) |
(12) |
(3) |
(22) |
— |
(22) |
|||||||||||||||||||||
Income (loss) before income tax |
$ |
530 |
$ |
69 |
$ |
20 |
$ |
(3) |
$ |
616 |
$ |
200 |
$ |
816 |
(a) |
The adjusted column represents the financial information that is reviewed by management to assess performance of operations and determine capital allocations and does not include certain charges. See Note A for further information in the accompanying pages. |
(b) |
Includes accounting adjustments related to special mileage plan revenue, mark-to-market fuel-hedge accounting charges, non-cash curtailment gain, and a one-time gain related to a legal matter. |
Alaska Air Group, Inc. |
|||||||||||||||
RASM RECONCILIATION (unaudited) | |||||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, | ||||||||||||||
(in millions) |
2014 |
2013 |
2014 |
2013 |
|||||||||||
Total operating revenues |
$ |
1,306 |
$ |
1,210 |
$ |
5,368 |
$ |
5,156 |
|||||||
Less: special mileage plan revenue |
— |
— |
— |
192 |
|||||||||||
Adjusted Revenue |
$ |
1,306 |
$ |
1,210 |
$ |
5,368 |
$ |
4,964 |
|||||||
Consolidated ASMs |
9,156 |
8,275 |
36,078 |
33,672 |
|||||||||||
RASM |
14.27 |
¢ |
14.62 |
¢ |
14.88 |
¢ |
14.74 |
¢ | |||||||
CASM EXCLUDING FUEL RECONCILIATION (unaudited) | |||||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, | ||||||||||||||
(in cents) |
2014 |
2013 |
2014 |
2013 |
|||||||||||
Consolidated: |
|||||||||||||||
CASM |
11.61 |
¢ |
13.05 |
¢ |
12.21 |
¢ |
12.82 |
¢ | |||||||
Less the following components: |
|||||||||||||||
Aircraft fuel, including hedging gains and losses |
3.34 |
4.24 |
3.93 |
4.35 |
|||||||||||
Special items |
(0.33) |
— |
(0.08) |
— |
|||||||||||
CASM excluding fuel |
8.60 |
¢ |
8.81 |
¢ |
8.36 |
¢ |
8.47 |
¢ | |||||||
Mainline: |
|||||||||||||||
CASM |
10.56 |
¢ |
12.02 |
¢ |
11.15 |
¢ |
11.77 |
¢ | |||||||
Less the following components: |
|||||||||||||||
Aircraft fuel, including hedging gains and losses |
3.22 |
4.11 |
3.79 |
4.23 |
|||||||||||
Special items |
(0.36) |
— |
(0.09) |
— |
|||||||||||
CASM excluding fuel |
7.70 |
¢ |
7.91 |
¢ |
7.45 |
¢ |
7.54 |
¢ | |||||||
FUEL RECONCILIATIONS (unaudited) | |||||||||||||||
Alaska Air Group, Inc. | |||||||||||||||
Three Months Ended December 31, | |||||||||||||||
2014 |
2013 | ||||||||||||||
(in millions, except for per gallon amounts) |
Dollars |
Cost/Gal |
Dollars |
Cost/Gal | |||||||||||
Raw or "into-plane" fuel cost |
$ |
305 |
$ |
2.58 |
$ |
347 |
$ |
3.15 |
|||||||
Losses on settled hedges |
7 |
0.06 |
6 |
0.06 |
|||||||||||
Consolidated economic fuel expense |
$ |
312 |
$ |
2.64 |
$ |
354 |
$ |
3.21 |
|||||||
Mark-to-market fuel hedge adjustments |
(6) |
(0.05) |
(2) |
0.10 |
|||||||||||
GAAP fuel expense |
$ |
306 |
$ |
2.59 |
$ |
352 |
$ |
3.20 |
|||||||
Fuel gallons |
118 |
110 |
|||||||||||||
Twelve Months Ended December 31, | |||||||||||||||
2014 |
2013 | ||||||||||||||
(in millions, except for per gallon amounts) |
Dollars |
Cost/Gal |
Dollars |
Cost/Gal | |||||||||||
Raw or "into-plane" fuel cost |
$ |
1,400 |
$ |
2.99 |
$ |
1,423 |
$ |
3.19 |
|||||||
Losses on settled hedges |
41 |
0.09 |
52 |
0.11 |
|||||||||||
Consolidated economic fuel expense |
$ |
1,442 |
$ |
3.08 |
$ |
1,475 |
$ |
3.30 |
|||||||
Mark-to-market fuel hedge adjustments |
(23) |
(0.05) |
(8) |
(0.02) |
|||||||||||
GAAP fuel expense |
$ |
1,418 |
$ |
3.03 |
$ |
1,467 |
$ |
3.28 |
|||||||
Fuel gallons |
469 |
447 |
Note A: Pursuant to Regulation G, we are providing disclosure of the reconciliation of reported non-GAAP financial measures to their most directly comparable financial measures reported on a GAAP basis. We believe that consideration of these non-GAAP financial measures may be important to investors for the following reasons:
Note B: Air Group has two operating airlines - Alaska Airlines and Horizon Air. Each is a regulated airline with separately managed operations. To manage the two operating airlines, management views the business in three operating segments. Alaska operates a fleet of passenger jets (Alaska Mainline) and contracts with Horizon, SkyWest Airlines, Inc. (SkyWest), and Peninsula Airways, Inc. (PenAir) for regional capacity under which Alaska receives all passenger revenue from those flights (Alaska Regional). Horizon operates a fleet of turboprop aircraft and sells all of its capacity to Alaska pursuant to a capacity purchase arrangement (Horizon). The Company believes the amounts paid by Alaska to Horizon approximate current market rates received by other regional carriers for similar flying and are available to pay for various Horizon operating expenses such as crew expenses, maintenance, and aircraft ownership costs. All inter-company revenues and expenses between Alaska and Horizon are eliminated in consolidation.
Glossary of Terms
Aircraft Utilization - block hours per day; this represents the average number of hours our aircraft are flying
Aircraft Stage Length - represents the average miles flown per aircraft departure
ASMs - available seat miles, or "capacity"; represents total seats available across the fleet multiplied by the number of miles flown
CASM - operating costs per ASM, or "unit cost"; represents all operating expenses including fuel and special items
CASMex - operating costs excluding fuel and special items per ASM; this metric is used to help track progress toward reduction of non-fuel operating costs since fuel is largely out of our control
Debt-to-capitalization ratio - represents adjusted debt (long-term debt plus the present value of future operating lease payments) divided by total equity plus adjusted debt
Diluted Earnings per Share - represents earnings per share using fully diluted shares outstanding
Diluted Shares - represents the total number of shares that would be outstanding if all possible sources of conversion, such as stock options, were exercised
Economic Fuel - best estimate of the cash cost of fuel, net of the impact of our fuel-hedging program
Load Factor - RPMs as a percentage of ASMs; represents the number of available seats that were filled with paying passengers
Mainline - represents flying Boeing 737 jets and all associated revenues and costs
PRASM - passenger revenue per ASM; commonly called "passenger unit revenue"
Productivity - number of revenue passengers per full-time equivalent employee
RASM - operating revenue per ASMs, or "unit revenue"; operating revenue includes all passenger revenue, freight & mail, Mileage Plan, and other ancillary revenue; represents the average total revenue for flying one seat one mile
Regional - represents capacity purchased by Alaska from Horizon, SkyWest, and PenAir. In this segment, Alaska Regional records actual on-board passenger revenue, less costs such as fuel, distribution costs, and payments made to Horizon, SkyWest and PenAir under the respective capacity purchased arrangement (CPAs). Additionally, Alaska Regional includes an allocation of corporate overhead such as IT, finance, other administrative costs incurred by Alaska and on behalf of Horizon.
RPMs - revenue passenger miles, or "traffic"; represents the number of seats that were filled with paying passengers; one passenger traveling one mile is one RPM
Yield - passenger revenue per RPM; represents the average revenue for flying one passenger one mile
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alaska-air-group-reports-record-adjusted-fourth-quarter-2014-and-full-year-results-and-raises-dividend-60-300024129.html
SOURCE Alaska Air Group
Copyright 2015 PR Newswire
1 Year Alaska Air Chart |
1 Month Alaska Air Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions