Three Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
(in millions, except per-share amounts) | Dollars | Diluted EPS | Dollars | EPS | ||||
GAAP net income (loss) per share | $ | 194 | $ | 1.53 | $ | (431) | $ | (3.49) |
Payroll support program wage offset | - | - | (398) | (3.22) | ||||
Mark-to-market fuel hedge adjustments | - | - | (3) | (0.02) | ||||
Special items - impairment charges and other | (9) | (0.07) | 121 | 0.98 | ||||
Special items - restructuring charges | - | - | 322 | 2.60 | ||||
Special items - merger-related costs | - | - | 1 | 0.01 | ||||
Income tax effect of reconciling items above | 2 | 0.01 | (11) | (0.09) | ||||
Non-GAAP adjusted net income (loss) per share | $ | 187 | $ | 1.47 | $ | (399) | $ | (3.23) |
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
(in millions, except per-share amounts) | Dollars | Diluted EPS | Dollars | Diluted EPS | ||||
GAAP net income (loss) per share | $ | 460 | $ | 3.64 | $ | (877) | $ | (7.12) |
Payroll support program wage offset | (914) | (7.24) | (760) | (6.16) | ||||
Mark-to-market fuel hedge adjustments | (68) | (0.54) | - | - | ||||
Special items - impairment charges and other | 5 | 0.04 | 350 | 2.84 | ||||
Special items - restructuring charges | (12) | (0.09) | 322 | 2.61 | ||||
Special items - merger-related costs | - | - | 5 | 0.04 | ||||
Income tax effect of reconciling items above | 242 | 1.92 | 20 | 0.16 | ||||
Non-GAAP adjusted net loss per share | $ | (287) | $ | (2.27) | $ | (940) | $ | (7.63) |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||||||
Alaska Air Group, Inc. | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
(in millions, except per-share amounts) | 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||
Operating Revenues: | ||||||||||||
Passenger revenue | $ | 1,774 | $ | 572 | 210 | % | $ | 3,785 | $ | 2,362 | 60 | % |
Mileage Plan other revenue | 120 | 84 | 43 | % | 332 | 266 | 25 | % | ||||
Cargo and other | 59 | 45 | 31 | % | 160 | 130 | 23 | % | ||||
Total Operating Revenues | 1,953 | 701 | 179 | % | 4,277 | 2,758 | 55 | % | ||||
Operating Expenses: | ||||||||||||
Wages and benefits | 578 | 495 | 17 | % | 1,581 | 1,579 | - | % | ||||
Payroll support program wage offset | - | (398) | (100) | % | (914) | (760) | 20 | % | ||||
Variable incentive pay | 42 | 42 | - | % | 109 | 65 | 68 | % | ||||
Aircraft fuel, including hedging gains and losses | 376 | 125 | 201 | % | 853 | 568 | 50 | % | ||||
Aircraft maintenance | 89 | 84 | 6 | % | 272 | 244 | 11 | % | ||||
Aircraft rent | 64 | 74 | (14) | % | 188 | 229 | (18) | % | ||||
Landing fees and other rentals | 141 | 109 | 29 | % | 414 | 323 | 28 | % | ||||
Contracted services | 62 | 36 | 72 | % | 167 | 138 | 21 | % | ||||
Selling expenses | 49 | 24 | 104 | % | 123 | 83 | 48 | % | ||||
Depreciation and amortization | 99 | 105 | (6) | % | 294 | 320 | (8) | % | ||||
Food and beverage service | 39 | 14 | 179 | % | 97 | 70 | 39 | % | ||||
Third-party regional carrier expense | 39 | 29 | 34 | % | 106 | 92 | 15 | % | ||||
Other | 126 | 89 | 42 | % | 348 | 310 | 12 | % | ||||
Special items - impairment charges and other | (9) | 121 | (107) | % | 5 | 350 | (99) | % | ||||
Special items - restructuring charges | - | 322 | . | (100) | % | (12) | 322 | (104) | % | |||
Special items - merger-related costs | - | 1 | (100) | % | - | 5 | (100) | % | ||||
Total Operating Expenses | 1,695 | 1,272 | 33 | % | 3,631 | 3,938 | (8) | % | ||||
Operating Income (Expense) | 258 | (571) | (145) | % | 646 | (1,180) | (155) | % | ||||
Nonoperating Income (Expense): | ||||||||||||
Interest income | 6 | 7 | (14) | % | 19 | 23 | (17) | % | ||||
Interest expense | (30) | (34) | (12) | % | (101) | (64) | 58 | % | ||||
Interest capitalized | 3 | 4 | (25) | % | 9 | 8 | 13 | % | ||||
Other - net | 8 | 5 | 60 | % | 27 | 16 | 69 | % | ||||
Total Nonoperating Expense | (13) | (18) | (28) | % | (46) | (17) | 171 | % | ||||
Income (Loss) Before Income Tax | 245 | (589) | 600 | (1,197) | ||||||||
Income tax expense (benefit) | 51 | (158) | 140 | (320) | ||||||||
Net Income (Loss) | $ | 194 | $ | (431) | $ | 460 | $ | (877) | ||||
Basic Income (Loss) Per Share: | $ | 1.55 | $ | (3.49) | $ | 3.69 | $ | (7.12) | ||||
Diluted Income (Loss) Per Share: | $ | 1.53 | $ | (3.49) | $ | 3.64 | $ | (7.12) | ||||
Shares Used for Computation: | ||||||||||||
Basic | 125.250 | 123.647 | 124.846 | 123.255 | ||||||||
Diluted | 127.188 | 123.647 | 126.325 | 123.255 | ||||||||
Cash dividend declared per share: | $ | - | $ | - | $ | - | $ | 0.375 |
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||
Alaska Air Group, Inc. | ||||
(in millions) | September 30, 2021 | December 31, 2020 | ||
ASSETS | ||||
Current Assets | ||||
Cash and cash equivalents | $ | 495 | $ | 1,370 |
Marketable securities | 2,700 | 1,976 | ||
Total cash and marketable securities | 3,195 | 3,346 | ||
Receivables - net | 536 | 480 | ||
Inventories and supplies - net | 62 | 57 | ||
Prepaid expenses, assets held-for-sale, and other current assets | 208 | 123 | ||
Total Current Assets | 4,001 | 4,006 | ||
Property and Equipment | ||||
Aircraft and other flight equipment | 8,076 | 7,761 | ||
Other property and equipment | 1,446 | 1,398 | ||
Deposits for future flight equipment | 378 | 583 | ||
9,900 | 9,742 | |||
Less accumulated depreciation and amortization | 3,780 | 3,531 | ||
Total Property and Equipment - Net | 6,120 | 6,211 | ||
Operating lease assets | 1,370 | 1,400 | ||
Goodwill | 1,943 | 1,943 | ||
Intangible assets - net | 102 | 107 | ||
Other noncurrent assets | 346 | 379 | ||
Other Assets | 3,761 | 3,829 | ||
Total Assets | $ | 13,882 | $ | 14,046 |
(in millions, except share amounts) | September 30, 2021 | December 31, 2020 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current Liabilities | ||||
Accounts payable | $ | 181 | $ | 108 |
Accrued wages, vacation and payroll taxes | 441 | 527 | ||
Air traffic liability | 1,225 | 1,073 | ||
Other accrued liabilities | 587 | 424 | ||
Deferred revenue | 904 | 733 | ||
Current portion of operating lease liabilities | 275 | 290 | ||
Current portion of long-term debt | 425 | 1,138 | ||
Total Current Liabilities | 4,038 | 4,293 | ||
Long-Term Debt, Net of Current Portion | 2,225 | 2,357 | ||
Noncurrent Liabilities | ||||
Long-term operating lease liabilities, net of current portion | 1,191 | 1,268 | ||
Deferred income taxes | 501 | 407 | ||
Deferred revenue | 1,446 | 1,544 | ||
Obligation for pension and postretirement medical benefits | 558 | 665 | ||
Other liabilities | 392 | 524 | ||
4,088 | 4,408 | |||
Commitments and Contingencies | ||||
Shareholders' Equity | ||||
Preferred stock, $0.01 par value, Authorized: 5,000,000 shares, none issued or outstanding
| - | - | ||
Common stock, $0.01 par value, Authorized: 400,000,000 shares, Issued: 2021 - 134,655,235 shares; 2020 - 133,567,534 shares, Outstanding: 2021 - 125,305,291 shares; 2020 - 124,217,590 shares
| 1 | 1 | ||
Capital in excess of par value | 462 | 391 | ||
Treasury stock (common), at cost: 2021 - 9,349,944 shares; 2020 - 9,349,944 shares
| (674) | (674) | ||
Accumulated other comprehensive loss | (482) | (494) | ||
Retained earnings | 4,224 | 3,764 | ||
3,531 | 2,988 | |||
Total Liabilities and Shareholders' Equity | $ | 13,882 | $ | 14,046 |
SUMMARY CASH FLOW (unaudited) | ||||||
Alaska Air Group, Inc. | ||||||
(in millions) | Nine Months Ended September 30, 2021 |
Six Months Ended June 30, 2021(a)
|
Three Months Ended
September 30, 2021(b)
| |||
Cash Flows from Operating Activities: | ||||||
Net income | $ | 460 | $ | 266 | $ | 194 |
Non-cash reconciling items | 322 | 221 | 101 | |||
Changes in working capital | 119 | 520 | (401) | |||
Net cash provided by (used in) operating activities | 901 | 1,007 | (106) | |||
Cash Flows from Investing Activities: | ||||||
Property and equipment additions | (190) | (102) | (88) | |||
Other investing activities | (753) | (968) | 215 | |||
Net cash provided by (used in) investing activities | (943) | (1,070) | 127 | |||
Cash Flows from Financing Activities: | (825) | (281) | (544) | |||
Net decrease in cash and cash equivalents | $ | (867) | $ | (344) | $ | (523) |
Cash, cash equivalents, and restricted cash at beginning of period | 1,386 | 1,386 | 1,042 | |||
Cash, cash equivalents, and restricted cash at end of the period | $ | 519 | $ | 1,042 | $ | 519 |
OPERATING STATISTICS SUMMARY (unaudited) | ||||||
Alaska Air Group, Inc. | ||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||
2021 | 2020 | Change | 2021 | 2020 | Change | |
Consolidated Operating Statistics:(a)
| ||||||
Revenue passengers (000) | 9,832 | 3,595 | 173.5% | 23,211 | 14,012 | 65.7% |
RPMs (000,000) "traffic" | 11,592 | 3,817 | 203.7% | 27,319 | 16,127 | 69.4% |
ASMs (000,000) "capacity" | 14,429 | 7,871 | 83.3% | 38,238 | 27,483 | 39.1% |
Load factor | 80.3% | 48.5% | 31.8 pts | 71.4% | 58.7% | 12.7 pts |
Yield | 15.30¢ | 14.99¢ | 2.1% | 13.85¢ | 14.65¢ | (5.5)% |
RASM | 13.54¢ | 8.90¢ | 52.1% | 11.19¢ | 10.04¢ | 11.5% |
CASMex(b)
| 9.21¢ | 14.00¢ | (34.2)% | 9.67¢ | 12.57¢ | (23.1)% |
Economic fuel cost per gallon(b)
| $2.05 | $1.32 | 55.3% | $1.93 | $1.65 | 17.0% |
Fuel gallons (000,000) | 183 | 97 | 88.7% | 477 | 344 | 38.7% |
ASM's per gallon | 78.8 | 81.3 | (3.1)% | 80.2 | 79.9 | 0.4% |
Average number of full-time equivalent employees (FTE) | 20,315 | 16,027 | 26.8% | 18,819 | 18,112 | 3.9% |
Mainline Operating Statistics: | ||||||
Revenue passengers (000) | 7,065 | 2,156 | 227.7% | 16,367 | 9,736 | 68.1% |
RPMs (000,000) "traffic" | 10,122 | 2,958 | 242.2% | 23,677 | 13,816 | 71.4% |
ASMs (000,000) "capacity" | 12,540 | 6,280 | 99.7% | 33,004 | 23,339 | 41.4% |
Load factor | 80.7% | 47.1% | 33.6 pts | 71.7% | 59.2% | 12.5 pts |
Yield | 14.08¢ | 13.56¢ | 3.8% | 12.68¢ | 13.46¢ | (5.8)% |
RASM | 12.66¢ | 8.14¢ | 55.5% | 10.44¢ | 9.46¢ | 10.4% |
CASMex(b)
| 8.45¢ | 13.88¢ | (39.1)% | 8.90¢ | 11.90¢ | (25.2)% |
Economic fuel cost per gallon(b)
| $2.03 | $1.31 | 55.0% | $1.91 | $1.66 | 15.1% |
Fuel gallons (000,000) | 147 | 69 | 113.0% | 380 | 270 | 40.7% |
ASM's per gallon | 85.3 | 91.0 | (6.3)% | 86.9 | 86.4 | 0.6% |
Average number of FTE's | 15,116 | 12,032 | 25.6% | 13,870 | 13,730 | 1.0% |
Aircraft utilization | 10.2 | 7.3 | 39.7% | 9.6 | 8.3 | 15.7% |
Average aircraft stage length | 1,313 | 1,244 | 5.5% | 1,313 | 1,263 | 4.0% |
Operating fleet(d)
| 210 | 217 | (7) a/c | 210 | 217 | (7) a/c |
Regional Operating Statistics:(c)
| ||||||
Revenue passengers (000) | 2,767 | 1,439 | 92.3% | 6,843 | 4,276 | 60.0% |
RPMs (000,000) "traffic" | 1,470 | 859 | 71.1% | 3,642 | 2,311 | 57.6% |
ASMs (000,000) "capacity" | 1,889 | 1,592 | 18.7% | 5,235 | 4,143 | 26.4% |
Load factor | 77.8% | 54.0% | 23.8 pts | 69.6% | 55.8% | 13.8 pts |
Yield | 23.72¢ | 19.89¢ | 19.3% | 21.47¢ | 21.72¢ | (1.2)% |
RASM | 19.26¢ | 11.91¢ | 61.7% | 15.80¢ | 13.24¢ | 19.3% |
Operating fleet | 94 | 94 | - a/c | 94 | 94 | - a/c |
FINANCIAL INFORMATION AND OPERATING STATISTICS - 2019 RESULTS (unaudited) | ||||||||||||
Alaska Air Group, Inc. | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2021 | 2019 | Change | 2021 | 2019 | Change | |||||||
Passenger revenue | $ | 1,774 | $ | 2,211 | (20) | % | $ | 3,785 | $ | 6,038 | (37) | % |
Mileage plan other revenue | 120 | 118 | 2 | % | 332 | 346 | (4) | % | ||||
Cargo and other | 59 | 60 | (2) | % | 160 | 169 | (5) | % | ||||
Total operating revenues | $ | 1,953 | $ | 2,389 | (18) | % | $ | 4,277 | $ | 6,553 | (35) | % |
Operating expense, excluding fuel and special items | $ | 1,328 | $ | 1,476 | (10) | % | $ | 3,699 | $ | 4,295 | (14) | % |
Economic fuel | 376 | 486 | (23) | % | 853 | 1,408 | (39) | % | ||||
Special items | (9) | 5 | (280) | % | (921) | 39 | NM | |||||
Total operating expenses | $ | 1,695 | $ | 1,967 | (14) | % | $ | 3,631 | $ | 5,742 | (37) | % |
Consolidated Operating Statistics(a):
| ||||||||||||
Revenue passengers (000) | 9,832 | 12,574 | (22) | % | 23,211 | 35,018 | (34) | % | ||||
RPMs (000,000) "traffic" | 11,592 | 15,026 | (23) | % | 27,319 | 42,113 | (35) | % | ||||
ASMs (000,000) "capacity" | 14,429 | 17,519 | (18) | % | 38,238 | 50,006 | (24) | % | ||||
Load Factor | 80.3% | 85.8% | (5.5) | pts | 71.4% | 84.2% | (12.8) | pts | ||||
Yield | 15.30¢ | 14.71¢ | 4 | % | 13.85¢ | 14.34¢ | (3) | % | ||||
RASM | 13.54¢ | 13.64¢ | (1) | % | 11.19¢ | 13.10¢ | (15) | % | ||||
CASMex | 9.21¢ | 8.43¢ | 9 | % | 9.67¢ | 8.59¢ | 13 | % | ||||
FTEs | 20,315 | 22,247 | (9) | % | 18,819 | 22,000 | (14) | % |
OPERATING SEGMENTS (unaudited) | ||||||||||||||
Alaska Air Group, Inc. | ||||||||||||||
Three Months Ended September 30, 2021 | ||||||||||||||
(in millions) | Mainline | Regional | Horizon |
Consolidating & Other(a)
|
Air Group Adjusted(b)
|
Special Items(c)
| Consolidated | |||||||
Operating Revenues | ||||||||||||||
Passenger revenues | $ | 1,425 | $ | 349 | $ | - | $ | - | $ | 1,774 | $ | - | $ | 1,774 |
CPA revenues | - | - | 107 | (107) | - | - | - | |||||||
Mileage Plan other revenue | 105 | 15 | - | - | 120 | - | 120 | |||||||
Cargo and other | 58 | - | - | 1 | 59 | - | 59 | |||||||
Total Operating Revenues | 1,588 | 364 | 107 | (106) | 1,953 | - | 1,953 | |||||||
Operating Expenses | ||||||||||||||
Operating expenses, excluding fuel | 1,060 | 288 | 93 | (113) | 1,328 | (9) | 1,319 | |||||||
Economic fuel | 299 | 77 | - | - | 376 | - | 376 | |||||||
Total Operating Expenses | 1,359 | 365 | 93 | (113) | 1,704 | (9) | 1,695 | |||||||
Nonoperating Income (Expense) | ||||||||||||||
Interest income | 7 | - | - | (1) | 6 | - | 6 | |||||||
Interest expense | (25) | - | (6) | 1 | (30) | - | (30) | |||||||
Interest capitalized | 2 | - | - | 1 | 3 | - | 3 | |||||||
Other - net | 8 | - | - | - | 8 | - | 8 | |||||||
Total Nonoperating Expense | (8) | - | (6) | 1 | (13) | - | (13) | |||||||
Income (Loss) Before Income Tax | $ | 221 | $ | (1) | $ | 8 | $ | 8 | $ | 236 | $ | 9 | $ | 245 |
Three Months Ended September 30, 2020 | ||||||||||||||
(in millions) | Mainline | Regional | Horizon |
Consolidating & Other(a)
|
Air Group Adjusted(b)
|
Special Items(c)
| Consolidated | |||||||
Operating Revenues | ||||||||||||||
Passenger revenues | $ | 401 | $ | 171 | $ | - | $ | - | $ | 572 | $ | - | $ | 572 |
CPA revenues | - | - | 95 | (95) | - | - | - | |||||||
Mileage Plan other revenue | 65 | 19 | - | - | 84 | - | 84 | |||||||
Cargo and other | 45 | - | - | - | 45 | - | 45 | |||||||
Total Operating Revenues | 511 | 190 | 95 | (95) | 701 | - | 701 | |||||||
Operating Expenses | ||||||||||||||
Operating expenses, excluding fuel | 872 | 248 | 78 | (97) | 1,101 | 46 | 1,147 | |||||||
Economic fuel | 90 | 38 | - | - | 128 | (3) | 125 | |||||||
Total Operating Expenses | 962 | 286 | 78 | (97) | 1,229 | 43 | 1,272 | |||||||
Nonoperating Income (Expense) | ||||||||||||||
Interest income | 8 | - | - | (1) | 7 | - | 7 | |||||||
Interest expense | (28) | - | (6) | - | (34) | - | (34) | |||||||
Interest capitalized | 4 | - | - | - | 4 | - | 4 | |||||||
Other - net | 4 | - | - | 1 | 5 | - | 5 | |||||||
Total Nonoperating Income (Expense) | (12) | - | (6) | - | (18) | - | (18) | |||||||
Income (Loss) Before Income Tax | $ | (463) | $ | (96) | $ | 11 | $ | 2 | $ | (546) | $ | (43) | $ | (589) |
Nine Months Ended September 30, 2021 | ||||||||||||||
(in millions) | Mainline | Regional | Horizon |
Consolidating & Other(a)
|
Air Group Adjusted(b)
|
Special Items(c)
| Consolidated | |||||||
Operating Revenues | ||||||||||||||
Passenger revenues | $ | 3,003 | $ | 782 | $ | - | $ | - | $ | 3,785 | $ | - | $ | 3,785 |
CPA revenues | - | - | 322 | (322) | - | - | - | |||||||
Mileage Plan other revenue | 287 | 45 | - | - | 332 | - | 332 | |||||||
Cargo and other | 157 | - | - | 3 | 160 | - | 160 | |||||||
Total Operating Revenues | 3,447 | 827 | 322 | (319) | 4,277 | - | 4,277 | |||||||
Operating Expenses | ||||||||||||||
Operating expenses, excluding fuel | 2,937 | 839 | 272 | (349) | 3,699 | (921) | 2,778 | |||||||
Economic fuel | 726 | 195 | - | - | 921 | (68) | 853 | |||||||
Total Operating Expenses | 3,663 | 1,034 | 272 | (349) | 4,620 | (989) | 3,631 | |||||||
Nonoperating Income (Expense) | ||||||||||||||
Interest income | 20 | - | - | (1) | 19 | - | 19 | |||||||
Interest expense | (86) | - | (16) | 1 | (101) | - | (101) | |||||||
Interest capitalized | 8 | - | - | 1 | 9 | - | 9 | |||||||
Other - net | 27 | - | - | - | 27 | - | 27 | |||||||
Total Nonoperating Expense | (31) | - | (16) | 1 | (46) | - | (46) | |||||||
Income (Loss) Before Income Tax | $ | (247) | $ | (207) | $ | 34 | $ | 31 | $ | (389) | $ | 989 | $ | 600 |
Nine Months Ended September 30, 2020 | ||||||||||||||
(in millions) | Mainline | Regional | Horizon |
Consolidating & Other(a)
|
Air Group Adjusted(b)
|
Special Items(c)
| Consolidated | |||||||
Operating Revenues | ||||||||||||||
Passenger revenues | $ | 1,860 | $ | 502 | $ | - | $ | - | $ | 2,362 | $ | - | $ | 2,362 |
CPA revenues | - | - | 281 | (281) | - | - | - | |||||||
Mileage Plan other revenue | 219 | 47 | - | - | 266 | - | 266 | |||||||
Cargo and other | 128 | - | - | 2 | 130 | - | 130 | |||||||
Total Operating Revenues | 2,207 | 549 | 281 | (279) | 2,758 | - | 2,758 | |||||||
Operating Expenses | ||||||||||||||
Operating expenses, excluding fuel | 2,777 | 727 | 238 | (289) | 3,453 | (83) | 3,370 | |||||||
Economic fuel | 448 | 120 | - | - | 568 | - | 568 | |||||||
Total Operating Expenses | 3,225 | 847 | 238 | (289) | 4,021 | (83) | 3,938 | |||||||
Nonoperating Income (Expense) | ||||||||||||||
Interest income | 33 | - | - | (10) | 23 | - | 23 | |||||||
Interest expense | (58) | - | (16) | 10 | (64) | - | (64) | |||||||
Interest capitalized | 8 | - | - | - | 8 | - | 8 | |||||||
Other - net | 16 | - | - | - | 16 | - | 16 | |||||||
Total Nonoperating Income (Expense) | (1) | - | (16) | - | (17) | - | (17) | |||||||
Income (Loss) Before Income Tax | $ | (1,019) | $ | (298) | $ | 27 | $ | 10 | $ | (1,280) | $ | 83 | $ | (1,197) |
GAAP TO NON-GAAP RECONCILIATIONS (unaudited) | ||||||||
Alaska Air Group, Inc. | ||||||||
CASM Excluding Fuel and Special Items Reconciliation | ||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Consolidated: | ||||||||
CASM | 11.75 | ¢ | 16.16 | ¢ | 9.50 | ¢ | 14.33 | ¢ |
Less the following components:
| ||||||||
Payroll support program wage offset (benefit) | - | (5.06) | (2.39) | (2.77) | ||||
Aircraft fuel, including hedging gains and losses | 2.60 | 1.59 | 2.24 | 2.07 | ||||
Special items - impairment charges and other(a)
| (0.06) | 1.53 | 0.01 | 1.27 | ||||
Special items - restructuring charges(b)
| - | 4.09 | (0.03) | 1.17 | ||||
Special items - merger-related costs | - | 0.01 | - | 0.02 | ||||
CASM excluding fuel and special items | 9.21 | ¢ | 14.00 | ¢ | 9.67 | ¢ | 12.57 | ¢ |
Mainline: | ||||||||
CASM | 10.77 | ¢ | 16.80 | ¢ | 8.26 | ¢ | 13.56 | ¢ |
Less the following components:
| ||||||||
Payroll support program wage offset (benefit) | - | (5.56) | (2.61) | (2.89) | ||||
Aircraft fuel, including hedging gains and losses | 2.39 | 1.43 | 1.99 | 1.92 | ||||
Special items - impairment charges and other(a)
| (0.07) | 1.93 | 0.02 | 1.24 | ||||
Special items - restructuring charges(b)
| - | 5.10 | (0.04) | 1.37 | ||||
Special items - merger-related costs | - | 0.02 | - | 0.02 | ||||
CASM excluding fuel and special items | 8.45 | ¢ | 13.88 | ¢ | 8.90 | ¢ | 11.90 | ¢ |
Fuel Reconciliation | ||||||||
Three Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
(in millions, except for per-gallon amounts) | Dollars | Cost/Gallon | Dollars | Cost/Gallon | ||||
Raw or "into-plane" fuel cost | $ | 397 | $ | 2.16 | $ | 123 | $ | 1.27 |
Losses (gains) on settled hedges | (21) | (0.11) | 5 | 0.05 | ||||
Consolidated economic fuel expense | 376 | 2.05 | 128 | 1.32 | ||||
Mark-to-market fuel hedge adjustment | - | - | (3) | (0.03) | ||||
GAAP fuel expense | $ | 376 | $ | 2.05 | $ | 125 | $ | 1.29 |
Fuel gallons | 183 | 97 | ||||||
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
(in millions, except for per gallon amounts) | Dollars | Cost/Gallon | Dollars | Cost/Gallon | ||||
Raw or "into-plane" fuel cost | $ | 949 | $ | 1.99 | $ | 553 | $ | 1.61 |
Losses (gains) on settled hedges | (28) | (0.06) | 15 | 0.04 | ||||
Consolidated economic fuel expense | $ | 921 | $ | 1.93 | $ | 568 | $ | 1.65 |
Mark-to-market fuel hedge adjustment | (68) | (0.14) | - | - | ||||
GAAP fuel expense | $ | 853 | $ | 1.79 | $ | 568 | $ | 1.65 |
Fuel gallons | 477 | 344 |
Debt-to-capitalization, adjusted for operating leases | ||||
(in millions) | September 30, 2021 | December 31, 2020 | ||
Long-term debt, net of current portion | $ | 2,225 | $ | 2,357 |
Capitalized operating leases | 1,466 | 1,558 | ||
COVID-19 related borrowings(a)
| - | 734 | ||
Adjusted debt, net of current portion of long-term debt | 3,691 | 4,649 | ||
Shareholders' equity | 3,531 | 2,988 | ||
Total Invested Capital | $ | 7,222 | $ | 7,637 |
Debt-to-capitalization ratio, including operating leases | 51 | % | 61 | % |
Adjusted net debt to earnings before interest, taxes, depreciation, amortization and special items | ||||
(in millions) | September 30, 2021 | December 31, 2020 | ||
Current portion of long-term debt | $ | 425 | $ | 1,138 |
Current portion of operating lease liabilities | 275 | 290 | ||
Long-term debt, net of current portion | 2,225 | 2,357 | ||
Long-term operating lease liabilities, net of current portion | 1,191 | 1,268 | ||
Total adjusted debt | 4,116 | 5,053 | ||
Less: Cash and marketable securities | (3,195) | (3,346) | ||
Adjusted net debt | $ | 921 | $ | 1,707 |
(in millions) | Twelve Months Ended September 30, 2021 | Twelve Months Ended December 31, 2020 | ||
GAAP Operating Income (Loss)(a)
| $ | 51 | $ | (1,775) |
Adjusted for: | ||||
Payroll Support Program grant wage offset and special items | (767) | 71 | ||
Mark-to-market fuel hedge adjustments | (76) | (8) | ||
Depreciation and amortization | 394 | 420 | ||
Aircraft rent | 258 | 299 | ||
EBITDAR | $ | (140) | $ | (993) |
Adjusted net debt to EBITDAR | (6.6x) | (1.7x) |
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Alaska Air Group Inc. published this content on 21 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 October 2021 10:13:13 UTC.