Alaska posts $58m full-year profit on record revenues

Alaska Air Group generated record full-year operating revenue of $9.65b in 2022 and a profit of $58m for the year. While the profit was down on the $478m the group made in 2021, the latter figure included $914m in state payroll support – without which Alaska would have been in the red. The company delivered a 2022 profit despite logging nearly $500m in costs relating to its accelerated fleet transition – the airline has been removing Airbus narrowbodies and De Havilland Dash 8s from service – and $84m in one-off labour expenses. The full-year performance was supported by a $22m profit for the fourth quarter, on revenue of $2.5b, which was up 30% year on year and 11% higher than in pre-pandemic 2019. Alaska’s full-year 2022 revenue was 60% higher than in 2021. It was 10% more than in 2019 and achieved on 9% less capacity than in 2019, reflecting strong yields. Alaska Airlines CE Ben Minicucci says: ”2022 was a year of significant recovery and accomplishment for Alaska Airlines. Despite many challenges during the year, we ran one of the best operations, signed five new labour deals and executed the majority of our… fleet transition. Our 7.6% full-year adjusted pre-tax margin led the industry, proving that our business model is resilient,” he adds, speaking on a full-year results call on 26 January. For the year ahead, Minicucci says Alaska targets achieving an adjusted pre-tax margin of 9-12% and has set an earnings guide of between $5.50 and $7.50 per share. “Delivering on these targets will be challenging and will require us to leverage our competitive strengths,” he says.<br/>