Seattle-based Alaska Air Group Inc. has unveiled its financial results for both the fourth quarter and the full year ending December 31, 2023. The announcement included a landmark decision to acquire Hawaiian Airlines and the achievement of a record annual operating revenue of $10.4 billion.
CEO Ben Minicucci attributed the year’s success to the team’s dedication. “Our 2023 accomplishments were significant,” he mentioned, outlining the company’s focus on operational reliability, industry-leading cost performance, and a sturdy 7.5% adjusted pretax margin amidst challenges faced at the outset of 2024.
For the financial year, the company reported a net loss of $2 million, or $0.02 per share, in the fourth quarter, transitioning to a net income of $235 million, or $1.83 per diluted share, for the year. Adjusted for special items and mark-to-market fuel hedge adjustments, the company reported a more prosperous net income of $38 million for the quarter and $583 million for the year, marking an increase from the previous year’s figures.
The record $10.4 billion operating revenue for 2023 stands as a notable achievement for Alaska Air Group. Strategies such as reducing cost per available seat mile (CASM) excluding fuel and special items by up to 6.6% in the fourth quarter and generating more than $1.6 billion in bank card partner commissions contributed significantly to this success. Employee performance was also recognized, with $200 million in incentive pay awarded, reflecting more than three weeks of pay for most Air Group employees.
On operational updates, the acquisition of Hawaiian Airlines is anticipated to unite the strengths of both carriers under a plan that retains their respective brands and extends their Pacific network reach.
The introduction of a 737-800 freighter to the fleet, announcement of new routes, and bolstered partnerships, including with Porter Airlines and Condor Airlines, underline Alaska Air Group’s commitment to expanding its service offerings and enhancing customer experience. The company also sold ten Airbus A321neos to American Airlines as part of its fleet management strategy.
Commitment to environmental and social governance is evident through partnerships aimed at enabling sustainable aviation fuel credits purchases and the success of the Care Miles program, illustrating Alaska Air Group’s dedication to broader corporate responsibility.
The year concluded with Alaska Air Group receiving recognition as the Worldwide Airline of the Year and achieving a perfect score on the Human Rights Foundation’s Corporate Equity Index, reflective of its workplace equality practices.
As Alaska Air Group navigates into 2024, its comprehensive approach, underscored by operational excellence, strategic acquisitions, and societal commitments, positions it for continued momentum in the competitive airline industry.
