Alaska Air Group reported a net income for Q2 of 2023 of $240 million under Generally Accepted Accounting Principles (GAAP) as compared to net income of $139 million reported same time last year while the net income excluding special items and mark-to-market fuel hedge accounting adjustments was $387 million.
Alaska Air Group reported financial results for the second quarter ending June 30, 2023, and provided outlook for the third quarter ending September 30, 2023.
"People are hungry to travel and our frontline employees are delivering the safe, reliable and caring experience that people expect when they fly with us," commented Ben Minicucci, chief executive, Alaska Group. "I'm so proud of our team for knocking it out of the park and delivering industry-leading operational and financial outcomes. We chose to prioritize reliability, which is imperative to restoring stability, improving predictability for our guests and employees, capturing record revenue, and serving as the foundation for our long-term profitable growth."
The Group reported generated adjusted pre-tax margins of 18.3%, a 250-basis point increase over the same period in 2019 and an operating revenue of $2.8 billion, its highest quarterly revenue so far in the company’s history.
The Group received $435 million in bank card partner commissions driven by increased consumer spending and repurchased 871,987 shares of common stock for approximately $39 million bringing total repurchases to $57 million for the six months ended June 30, 2023. The company continues to expect share repurchases of at least $100 million in 2023.
The Group reported an operating cash flow of $610 million with $2.4 billion held in unrestricted cash and marketable securities as of June 30, 2023.
Alaska Air Group ended the quarter with a debt-to-capitalization ratio of 48%, within the target range of 40% to 50%.
On the operational front, the Group received eight 737-9 aircraft and six E175 aircraft during the quarter, bringing the totals in the Alaska and Horizon fleets to 51 and 39, respectively. Alaska Air announced new routes to Nassau, Bahamas from Seattle and Los Angeles and Guatemala City, Guatemala from Los Angeles, marking six countries that Alaska will fly to and from its West Coast hubs.
The Group launched partnership with STARLUX Airlines, whose flights between Los Angeles and Taipei allow Mileage Plan members to connect to 16 destinations across Asia.