JetZero's pioneering blended wing body aircraft contributes to aviation's sustainability journey with significant improvements in fuel efficiency SEATTLE, Aug. 13, 2024 /PRNewswire/ -- Alaska Airlines announced today an investment in JetZero, a pioneering company developing a new blended-wing body (BWB) aircraft that will provide up to 50% less fuel burn and lower emissions. The investment reflects Alaska's commitment to advance new technology that will benefit the future of aviation, including those that e ...

Alaska Air Group’s (ALK) wholly owned subsidiary, Alaska Airlines, renewed its partnership with Air Space Intelligence or ASI, the creator of Flyways. This renewal strengthens the airline’s commitment to using innovative technology, including artificial intelligence (AI), to optimize operations and boost fuel efficiency. This initiative supports Alaska Airlines' sustainability goals and long-term path to achieving net-zero carbon emissions.For the past four years, Alaska Airlines has used ASI's Flyways AI p ...

Starting Aug. 14, guests will be able to preorder from the special menu, which features a series of Chef Jew's signature dishes, including his take on the classic Chinese breakfast porridge known as congee, black cod cooked to perfection with a side of silken tofu and tender slow-braised duck served with savory sesame egg noodles. We're using the same high-quality poultry from Liberty Farms in Sonoma County that is featured at Mister Jiu's as their trademark Peking Style Whole Roast Duck, as well as other M ...

For the last four years, Alaska has utilized ASI's Flyways AI platform and the Dispatch application in their Network Operations Center. Dispatchers use Flyways to help them optimize flight routes, reduce fuel consumption and carbon emissions, as well as improve on-time arrivals. On average Flyways AI has presented optimization opportunities for 55 percent of Alaska's flights and delivered three to five percent fuel savings and emissions reductions for flights longer than four hours. Specifically last year, ...

Alaska Air Group’s (ALK) top line is bolstered by strong air travel demand. The company’s efforts to expand and reward its shareholders are praiseworthy. However, elevated operating expenses and weak liquidity are hurting the company’s prospects.Factors Favoring ALKUpbeat air travel demand bodes well for ALK as it delivered a robust top-line performance in the second quarter of 2024. In this quarter, Alaska Air saw a 2% increase in Revenue Passenger Miles (RPMs) and a 6% increase in capacity, measured in av ...

Financial Performance - Total operating revenue for Q2 2024 was $2,897 million, a 2.1% increase from $2,838 million in Q2 2023[16] - Passenger revenue reached $2,651 million, up from $2,598 million year-over-year, reflecting a 2.0% growth[16] - Net income for the quarter was $220 million, compared to $240 million in the same quarter last year, representing a decrease of 8.3%[16] - Basic earnings per share (EPS) for Q2 2024 was $1.74, down from $1.88 in Q2 2023, a decline of 7.4%[16] - Total operating revenue for the three months ended June 30, 2024, was $2,897 million, a decrease from $2,838 million in the same period of 2023, representing a decline of 2.1%[78] - Passenger revenue for the three months ended June 30, 2024, was $2,651 million, compared to $2,598 million in the same period of 2023, reflecting an increase of 2.0%[78] - Total operating expenses for the three months ended June 30, 2024, were $2,575 million, up from $2,501 million in the same period of 2023, indicating an increase of 2.9%[78] - Income before income tax for the three months ended June 30, 2024, was $316 million, compared to $325 million in the same period of 2023, showing a decrease of 2.8%[78] - The pretax margin for the three months ended June 30, 2024, was 10.9%, down from 15.8% in the same period of 2023[78] - Total operating revenue for the six months ended June 30, 2024, was $5,129 million, a decrease from $5,034 million in the same period of 2023, reflecting a year-over-year decline of 0.2%[1] - Passenger revenue for the six months ended June 30, 2024, was $4,655 million, compared to $4,582 million in the same period of 2023, indicating an increase of 1.6%[1] - Total operating expenses for the six months ended June 30, 2024, were $4,973 million, up from $4,883 million in the same period of 2023, representing a year-over-year increase of 1.8%[1] - The income before income tax for the six months ended June 30, 2024, was $138 million, a significant decrease from $126 million in the same period of 2023, reflecting a year-over-year increase of 9.5%[1] - The pretax margin for the six months ended June 30, 2024, was 2.7%, a decrease from 8.0% in the same period of 2023[1] Assets and Liabilities - Total current assets increased to $3,376 million from $2,705 million at the end of 2023, a growth of 24.8%[12] - Total assets rose to $15,342 million, up from $14,613 million at the end of 2023, an increase of 5.0%[14] - Total current liabilities increased to $4,968 million, compared to $4,459 million at the end of 2023, a rise of 11.5%[14] - The company reported a total of $1,115 million in cash and cash equivalents, significantly up from $281 million at the end of 2023[12] - Retained earnings as of June 30, 2024, were $4,623 million, an increase from $4,535 million as of June 30, 2023[20] - Total long-term debt increased to $2,313 million as of June 30, 2024, up from $2,182 million at December 31, 2023, representing a 6% increase[50] - The company incurred $348 million in new debt during the six months ended June 30, 2024, including $280 million secured by aircraft and flight simulators[51] - The weighted-average fixed-interest rate for long-term debt was 3.3% as of June 30, 2024, slightly down from 3.4% at the end of 2023[50] - The company has total principal payments of $2,686 million due over the next five years, with the largest payment of $666 million due in 2027[52] Cash Flow and Investments - Cash provided by operating activities for the six months ended June 30, 2024, was $872 million, an increase of 4.81% from $832 million in the same period of 2023[23] - The company reported a net cash increase of $824 million for the six months ended June 30, 2024, compared to $188 million in the prior year, representing a significant increase[23] - The balance of cash, cash equivalents, and restricted cash at the end of the period was $1,132 million, up from $557 million at the end of June 30, 2023[25] - The company repurchased common stock totaling $49 million during the six months ended June 30, 2024, compared to $57 million in the same period of 2023[23] - The company repurchased 1.2 million shares for $49 million during the six months ended June 30, 2024, with a total of $262 million remaining under the share repurchase program[65] Revenue and Traffic - Ancillary passenger revenue increased to $135 million for the three months ended June 30, 2024, from $123 million in 2023, and for six months it rose to $243 million from $227 million[35] - Mileage Plan passenger revenue reached $290 million for the three months ended June 30, 2024, up from $268 million in 2023, and $538 million for six months compared to $500 million in 2023[36] - Total deferred revenue balance as of June 30, 2024, was $2.641 billion, an increase from $2.577 billion at the end of June 2023[41] - The company recorded $150 million and $717 million in passenger revenue from prior year-end air traffic liability for the three and six months ended June 30, 2024, respectively[39] - The company reported a total of 2,651 million in passenger revenue for the Mainline segment, while the Regional segment generated $477 million in passenger revenue for the same period[78] - The Horizon segment reported $112 million in CPA revenue for the three months ended June 30, 2024[78] Acquisition and Integration - The company has agreed to acquire Hawaiian Holdings, Inc. for $18.00 per share, totaling approximately $1.0 billion in cash, and will assume Hawaiian's debt and lease obligations[30] - Integration costs incurred by the company were $30 million for the three months and $38 million for the six months ended June 30, 2024, primarily for professional services[32] - The company expects to continue incurring integration costs as activities supporting the proposed acquisition proceed[33] Market and Risk - There have been no material changes in market risk from the previous disclosures in the Annual Report for the year ended December 31, 2023[2]

Core Viewpoint - Alaska Air Group (ALK) has experienced a significant decline in stock performance, with a return of -9.8% over the past month, compared to the S&P 500's -0.4% and the airline industry’s -47.8% [1] Earnings Estimates Revisions - Alaska Air is expected to report earnings of $1.55 per share for the current quarter, reflecting a year-over-year decrease of -15.3% and a 30-day change of -30.1% in the Zacks Consensus Estimate [3] - The consensus earnings estimate for the current fiscal year is $4.09, indicating a -9.7% change from the previous year, with a 30-day change of -13.3% [3] - For the next fiscal year, the consensus estimate is $5.90, showing a +44.3% change year-over-year, but with a recent 30-day change of -7.4% [3] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $2.94 billion, representing a year-over-year increase of +3.5% [5] - For the current fiscal year, revenue estimates are $10.74 billion, indicating a +3% change, while the next fiscal year estimate is $11.47 billion, reflecting a +6.8% change [5] Last Reported Results and Surprise History - Alaska Air reported revenues of $2.9 billion in the last quarter, a year-over-year increase of +2.1%, with an EPS of $2.55 compared to $3 a year ago [6] - The reported revenues were below the Zacks Consensus Estimate of $2.95 billion, resulting in a surprise of -1.93%, while the EPS surprise was +8.05% [7] - Over the last four quarters, Alaska Air exceeded consensus EPS estimates three times and surpassed revenue estimates twice [7] Valuation - Alaska Air's valuation metrics, including price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), are essential for assessing whether the stock is fairly valued [8] - The Zacks Value Style Score indicates that Alaska Air is graded A, suggesting it is trading at a discount compared to its peers [9] Conclusion - The current Zacks Rank of 4 for Alaska Air suggests potential underperformance relative to the broader market in the near term [10]

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Alaska Air Group, Inc. (ALK) is an airline company which provides passenger and cargo air transportation services. The Zacks Consensus Estimate for its current year earnings has been revised 3.4% downward over the last 60 days.HF Sinclair Corporation (DINO) is an independent energy company. The Zacks Consensus Estimate for its current year earnings has been revised 28.1% downward over the last 60 days.Ironwood Pharmaceuticals, Inc. (I ...

Airline stocks have had a rough go of it in the earnings confessional this monthAirline stocks are always in focus as summer travel season picks up, even more so with earnings season in high gear. With this volatility in mind, how are some of the heavy hitters faring after their turn in the quarterly confessional?Delta Air Lines, Inc. (NYSE:DAL) stock is down 2.2% to trade at $44.80 at last glance, and has now shaved 16.8% off its May 13 three-year high of $53.86. The shares dropped 4% on July 11 after the ...

Financial Data and Key Metrics Changes - The company reported a GAAP net income of $220 million for Q2 2024, with an adjusted net income of $327 million excluding special items and mark-to-market fuel hedge adjustments [5][6] - Revenue reached a record $2.9 billion, marking a 2% increase year-over-year, with an adjusted pre-tax margin of 15.8%, expected to lead the industry [8][16] - Unit costs decreased by nearly 2% year-over-year, reflecting strong cost management and productivity [9][29] Business Line Data and Key Metrics Changes - Premium segment revenues contributed nearly $1 billion to total revenue, with First Class and Premium Class revenues up 8% and 6% year-over-year, respectively [8][17] - Load factors increased sequentially to 87% in June, although the overall load factor for the quarter was 84%, impacted by capacity additions [16][17] Market Data and Key Metrics Changes - Competitive capacity in the Alaska long-haul market was up over 20%, but overall capacity growth is expected to moderate in Q3 and Q4 [42][50] - The company anticipates a 2% to 3% year-over-year capacity increase in Q3, down from 6% in Q2 [22][23] Company Strategy and Development Direction - The company is focused on enhancing its premium offerings, with plans to increase the premium seat mix from 25% to 28% [14][25] - The planned acquisition of Hawaiian Airlines is expected to broaden the company's presence in both domestic and international markets, pending regulatory approval [10][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining industry-leading margins despite challenges from rising labor costs and a softer domestic demand environment [34][82] - The company is adjusting its full-year EPS guidance down by $0.25 to reflect the impact of the flight attendant deal and current market conditions [10][33] Other Important Information - The company achieved a completion rate of 99.5% or better each month in Q2, demonstrating operational excellence [9][11] - Total liquidity at the end of the quarter was $3.1 billion, with a debt-to-cap ratio of 45% [28] Q&A Session Summary Question: Update on the acquisition discussions with the DOJ - Management confirmed they are in the final stages of discussions with the DOJ and are awaiting feedback [38] Question: Yield comparison for Premium Class - Management indicated that the paid Premium Class yields are approximately 40% higher than the Main Cabin [40] Question: Competitive capacity growth in Q2 and outlook for Q3 - Competitive capacity was elevated in Q2, but is expected to moderate in Q3 and Q4 [42] Question: Cost increase breakdown for Q3 - Labor costs, particularly from the flight attendant contract, are expected to account for about one-third of the cost increase [45] Question: Capacity expectations for 2025 - Management indicated that capacity growth in 2025 is likely to remain below medium to long-term targets due to delivery delays [54] Question: Contribution from oneworld partnerships - Revenue from partnerships is approximately 7% of total revenue, with expectations for growth [84]