Alaska Air Group has reported third quarter operating revenue of $2.8 billion, with net income of $40 million, or $0.31 per share, compared to a net income of $194 million, or $1.53 per share, in the third quarter of 2021.
“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. “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 labour deals. This is a strong foundation that we look forward to building on in 2023.”
Alaska generated revenue per available seat mile (RASM) in the third quarter of 2022 26.8% above the third quarter 2019 result, driven by strong pricing, a robust demand environment and the execution of the company’s commercial roadmap. Reported adjusted pretax margin for the third quarter was 15.6%.
Alaska held $3.2 billion in unrestricted cash and marketable securities as of Sept. 30, 2022, and maintained a debt-to-capitalization ratio of 49%, within the target range of 40% to 50%.
The company generated $174 million in operating cash flow for the third quarter.
Alaska is the first major carrier to ratify a new labour agreement with mainline pilots, and which has also ratified a pilot retention agreement with 700 Horizon Air pilots represented by the IBT and a two-year contract extension with nearly 5,700 Alaska Airlines employees represented by the IAM.
During the third quarter, Alaska received five Boeing 737-9 aircraft in the third quarter, bringing the total number of 737-9s in the mainline fleet to 33. The airline also retired six Airbus A320 aircraft and nine Q400 aircraft during the quarter, progressing on the transition to single fleets. By the end of January 2023, the remaining 23 A320 aircraft and 22 Q400 aircraft are expected to be retired.
Alaska also began a retrofit project for the 737-800 fleet to refresh interiors and add three main cabin seats.