Alaska Airlines posts Q3 profit despite higher fuel prices, new labour deals

Alaska Air Group turned a narrow profit in the third quarter, reporting income of $40m for the three months ending 30 September. The parent company of Alaska Airlines and Horizon Air reports revenue of $2.8b – more than in any quarter in company history –“despite the impact of exceptionally high fuel prices and multiple new labour contracts”, chief executive Ben Minicucci said during a 20 October conference call. Passenger load factors exceeded 2019 levels every month of the quarter, the company says. Unit revenue (measured in revenue per seat per mile) jumped 27% over the same quarter in 2019, “which we believe was the best in the industry and underscores that our commercial initiatives are delivering”, Minicucci says. “We ran an industry-leading operation with completion rates over 99% every month,” he says. “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.” Amid the industrywide pilot shortage, Alaska recently “became the first major airline to reach a deal with its mainline pilot group”, Minicucci adds. On 17 October, 3,300 Alaska Airlines pilots represented by the Air Line Pilots Association, International (ALPA) voted in favour of a new three-year contract that includes wage increases of up 23%, depending on length of service. Additionally, more than 700 Horizon pilots represented by the International Brotherhood of Teamsters secured higher pay with a new contract effective 16 October. <br/>