Alaska Air(ALK)2024-08-02 21:16Financial Performance - Total operating revenue for Q2 2024 was 2,838 million in Q2 2023[16] - Passenger revenue reached 2,598 million year-over-year, reflecting a 2.0% growth[16] - Net income for the quarter was 240 million in the same quarter last year, representing a decrease of 8.3%[16] - Basic earnings per share (EPS) for Q2 2024 was 1.88 in Q2 2023, a decline of 7.4%[16] - Total operating revenue for the three months ended June 30, 2024, was 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 2,598 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 2,501 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 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 5,034 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 4,582 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 4,883 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 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 2,705 million at the end of 2023, a growth of 24.8%[12] - Total assets rose to 14,613 million at the end of 2023, an increase of 5.0%[14] - Total current liabilities increased to 4,459 million at the end of 2023, a rise of 11.5%[14] - The company reported a total of 281 million at the end of 2023[12] - Retained earnings as of June 30, 2024, were 4,535 million as of June 30, 2023[20] - Total long-term debt increased to 2,182 million at December 31, 2023, representing a 6% increase[50] - The company incurred 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 666 million due in 2027[52] Cash Flow and Investments - Cash provided by operating activities for the six months ended June 30, 2024, was 832 million in the same period of 2023[23] - The company reported a net cash increase of 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 557 million at the end of June 30, 2023[25] - The company repurchased common stock totaling 57 million in the same period of 2023[23] - The company repurchased 1.2 million shares for 262 million remaining under the share repurchase program[65] Revenue and Traffic - Ancillary passenger revenue increased to 123 million in 2023, and for six months it rose to 227 million[35] - Mileage Plan passenger revenue reached 268 million in 2023, and 500 million in 2023[36] - Total deferred revenue balance as of June 30, 2024, was 2.577 billion at the end of June 2023[41] - The company recorded 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 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 1.0 billion in cash, and will assume Hawaiian's debt and lease obligations[30] - Integration costs incurred by the company were 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]