Alaska Air Group Reports Record Adjusted Third Quarter Results

SEATTLE, Oct. 20, 2011 /PRNewswire/ —

Third quarter highlights with comparison to third quarter 2010:

Record third quarter net income, excluding special items, of $131.1 million, or $3.58 per diluted share, compared to net income of $118.1 million, or $3.21 per diluted share. This quarter’s results compare to a First Call mean estimate of $3.33 per share.
Net income under Generally Accepted Accounting Principles (GAAP) of $77.5 million, or $2.12 per diluted share, compared to net income of $122.4 million, or $3.32 per diluted share.
Revenues improved by 12 percent with record load factors and higher yields in each month of the quarter, more than offsetting the 41 percent increase in economic fuel costs.
Non-fuel unit costs declined by 2.6 percent.
Improved employee productivity by 3.8 percent compared to the third quarter of 2010.
Held $1.3 billion in unrestricted cash and marketable securities as of September 30, 2011.
Adjusted debt-to-total capitalization ratio of 61 percent, lowest level on record.
Twelve-month return on invested capital of 12 percent.
Alaska Airlines held the No. 1 spot in U.S. Department of Transportation on-time performance among the 10 largest U.S. airlines for the twelve months ending in August 2011.
Reached tentative five-year agreement with the Aircraft Mechanics Fraternal Association (“AMFA”) representing the Alaska Airlines aircraft technicians.
Won Seattle Business Magazine’s 2011 Green Award in the Large Services company category.

Alaska Air Group, Inc. (NYSE: ALK) today reported third quarter 2011 net income of $77.5 million, or $2.12 per diluted share, compared to net income of $122.4 million, or $3.32 per diluted share. Excluding mark-to-market fuel hedge losses of $84.3 million ($52.4 million after tax, or $1.43 per diluted share) and fleet transition charges of $2.0 million ($1.2 million after tax or $0.03 per diluted share), the company reported record third quarter 2011 net income of $131.1 million, or $3.58 per diluted share, compared to net income of $118.1 million, or $3.21 per diluted share, excluding special items.

“We are pleased to report our highest adjusted quarterly profit ever. The outstanding financial performance was driven by a record quarterly load factor of 86.5%, higher yields and record on-time performance of over 91%,” said Bill Ayer, chairman and chief executive officer. “These results reflect the hard work and changes we’ve made as a company over the past several years. As we grow stronger – both financially and operationally – we become better prepared to face challenges that come our way. I am grateful to the 12,000 Air Group employees who helped achieve this quarter’s results.”