Alaska Air Group reported a revenue of $240 million within the second quarter of 2023 due to constant leisure journey and an “unprecedented improve in worldwide demand” through the three months ending in June.
For comparability, the corporate reported a revenue of $139 million through the second quarter of final yr.
“Our sturdy second-quarter outcomes mirror the energy of the leisure demand surroundings up to now, in addition to our crew’s unwavering dedication to operational excellence and reliability,” Alaska CEO Ben Minicucci mentioned July 25, the day Alaska launched its outcomes.
The Seattle-based airline, which owns Alaska Airways and regional service Horizon Air, generated $2.84 billion in working income within the first quarter, up 7% from $2.66 billion in the identical quarter of 2022.
Alaska says its second-quarter income represents the “highest quarterly whole in firm historical past.”
Though Alaska is primarily a home leisure airline working a fleet of narrow-body jets, it has benefited from a resurgence in worldwide journey because the Covid-19 pandemic has eased.
“Worldwide long-haul seats on the West Coast had been up 31% year-over-year in June,” says Alaska enterprise director Andrew Harrison throughout an earnings name. “We’re filling the equal of 18,787 day by day in our community of worldwide companions.”
With new routes deliberate from Los Angeles to Nassau and Guatemala Metropolis, the airline will fly to 6 international locations from its West Coast hubs.
Nevertheless, the West Coast “stays the business’s least recovered geography,” says Harrison. “There are nonetheless areas inside our community, together with Portland and California, that aren’t totally restored.”
Alaska’s second-quarter working bills had been flat year-over-year, because the airline’s gasoline prices fell 26%, nevertheless it spent 18% extra on wages and advantages.
Its accessible seat mileage capability was 10% increased year-over-year, whereas it carried 5% extra passengers than throughout the identical interval final yr.
Throughout the second quarter, Alaska took supply of eight Boeing 737 Max 9s and now operates 53 of these sorts. The corporate additionally added six Embraer 175s to the Horizon fleet, which now has 39 regional jets in service.
Alaska nonetheless operates 10 Airbus A321s that it intends to retire by September 30, leaving the airline with a fleet of 737. Within the third quarter, the corporate expects “vital coaching prices” because it transitions about 400 Airbus pilots to Boeing.
The airline says Boeing has met its 737 Max supply commitments in a well timed method in 2023, noting that “one or two models” to be delivered in December may very well be delayed till January 2024.
Alaska turns into the newest main US service to report a second-quarter revenue, after American Airways posted a revenue of $1.34 billion, United Airways posted a revenue of $1.08 billion and Delta Air Traces reported a revenue of $1.83 billion.
