As airlines proceed to release their third-quarter results, Alaska Airlines, too, has joined the list and has released some impressive numbers. The carrier recently acquired Hawaiian Airlines and its Q3 results also include a little bit over two weeks of Hawaiian’s numbers, too.
Leading the industry with adjusted pretax margin
has released its financial results for the third quarter and has reported a net income of $236 million, translating into $1.84 earnings per share. Notably, its adjusted pretax margin of 13.0% leads the industry and highlights the strength of its business model.
Alaska recent numbers also show a year-on-year improvement, because the airline reported a net income of $139 million, or $1.08 per share, for the third quarter of 2023. During this quarter, Alaska Airlines also repurchased 367,705 shares of common stock for about $14 million, accounting for total repurchases to $63 million for the nine months ending on September 30.
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Costs in Q3 were in accordance with previous estimates, with some pressure arising from capability constraints attributable to delays in aircraft delivery. The corporate said that it’s currently experiencing the bottom attrition rates since 2019, and despite some cost pressures, its productivity for the quarter improved 4.6% 12 months over 12 months.
Alaska Airlines ended the last quarter with a complete liquidity of $3.4 billion. This included around $850 million in undrawn lines of credit. After the quarter ended, Alaska also raised $2.0 billion in Term Loan B and Bond debt collateralized by Alaska’s Mileage Plan program.
Hawaiian’s performance was also included briefly
Alaska Airlines acquired last quarter, although the total integration work remains to be underway. The formal process was accomplished on September 18, and, consequently, Alaska’s current financial numbers also include 13 days of Hawaiian Airlines results. Andrew Harrison, Chief Industrial Officer, Alaska Airlines, commented,
“… We’re investing in our industrial engine to compete more effectively with the larger carriers, increase loyalty amongst our guests and realize synergies from each our industrial and cargo businesses. These investments include re-imagined lounge and onboard offerings designed to satisfy the needs of our most loyal guests, optimized route networks that get people to more places in less time, a seamless booking to boarding experience, and more.”
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Hawaiian has seen some ups and downs in the previous couple of quarters. It reported significant losses within the fourth quarter of 2023 after which turned EBITDAR positive on this 12 months’s second quarter. It could have break-even pre-tax ends in the following quarter.
Big plans
By way of its performance, Alaska Airlines provided reliable service through peak travel times in the summertime, with a schedule completion rate of 99.2%. Going forward, Alaska plans to complete the 12 months among the many top 3 pretax margin producers within the industry for the total 12 months.
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It also expects to complete with earnings per share (EPS) above the midpoint of its previous guidance of $3.50 to $4.50 per share for the total 12 months, which would come with Hawaiian’s results as well. The airline will hold its Investor Day on December 10, where it should further highlight its vision.
