Alaska Air Group posted their 4th Quarter and full-year results:
FOR IMMEDIATE RELEASE January 28, 2004
ALASKA AIR GROUP REPORTS FOURTH QUARTER RESULTS
SEATTLE — Alaska Air Group, Inc. (NYSE:ALK) today reported a fourth quarter net loss of $20.8 million, or $0.78 per diluted share, compared to a net loss of $43.1 million, or $1.62 per diluted share, in the fourth quarter of 2002. For the full year, the company reported net income of $8.8 million, or $0.33 per share, compared to a net loss of $118.6 million, or $4.47 per share in 2002. The company’s 2003 results include government assistance amounting to $71.4 million ($44.3 million after tax) received under the Emergency Wartime Supplemental Appropriations Act. The 2002 net loss included $51.4 million, or $1.94 per share, related to the write-off of goodwill in connection with the adoption of Statement of Financial Accounting Standards No. 142. Excluding government compensation and the write-off of goodwill, the company’s loss in 2003 was $35.5 million ($1.33 per share) versus a loss of $67.5 million ($2.54 per share) for 2002.
“Despite the fact that our first annual profit since 1999 would have been impossible without government compensation, we’re proud of the positive steps we’ve taken over the past 18 months to achieve our company-wide cost management goals,†said Bill Ayer, chairman and chief executive officer. “There’s still a lot of work ahead of us, but we’re moving in the right direction.â€
“In fact, record load factors confirm the preference customers have for our service, thanks in large part to our caring and dedicated employees,†Ayer said. “We believe this focus on providing real value to our customers combined with the continued transformation of our business will improve our profitability and competitiveness.â€
Operationally, Alaska Airlines' passenger traffic in the fourth quarter increased 14.0 percent on a capacity increase of 9.2 percent. Alaska’s load factor increased 3.0 percentage points to 69.5 percent compared to the same period in 2002. Alaska’s operating revenue per available seat mile (ASM) increased 5.8 percent, while its operating cost per ASM excluding fuel decreased 1.9 percent. Alaska's pretax loss for the quarter was $35.0 million, compared to $58.6 million in 2002.
Horizon Air's passenger traffic in the fourth quarter increased 7.8 percent on a 2.1 percent capacity decrease. Horizon’s load factor increased by 6.2 percentage points to 67.3 percent compared to the same period in 2002. Horizon’s operating revenue per ASM increased 18.7 percent, while its operating cost per ASM excluding fuel increased 7.4 percent. Horizon's pretax income for the quarter was $5.7 million, compared to a pretax loss of $5.8 million in 2002.
Alaska Air Group had cash and short-term investments at December 31, 2003 of approximately $812 million compared to $636 million at December 31, 2002. The increased balance primarily reflects the receipt of $71.4 million of government compensation and $123.2 million net proceeds received in connection with the sale of floating rate convertible bonds in March 2003. The company’s debt-to-capital ratio, assuming aircraft operating leases are capitalized at seven times annualized rent, remained constant at 77 percent during the years ended December 31, 2003 and 2002.
A summary of financial and statistical data for Alaska Airlines and Horizon Air as well as a reconciliation of the reported non-GAAP financial measures can be found on pages 6-8.
A conference call regarding the fourth quarter/full year 2003 results will be simulcast via the internet at 8:30 a.m. Pacific Standard Time. It may be accessed through our website at [ http://www.alaskaair.com/ ]www.alaskaair.com. For those unable to listen to the live broadcast, a replay will be available after the conclusion of the call at [ http://www.alaskaair.com/ ]www.alaskaair.com.
FOR IMMEDIATE RELEASE January 28, 2004
ALASKA AIR GROUP REPORTS FOURTH QUARTER RESULTS
SEATTLE — Alaska Air Group, Inc. (NYSE:ALK) today reported a fourth quarter net loss of $20.8 million, or $0.78 per diluted share, compared to a net loss of $43.1 million, or $1.62 per diluted share, in the fourth quarter of 2002. For the full year, the company reported net income of $8.8 million, or $0.33 per share, compared to a net loss of $118.6 million, or $4.47 per share in 2002. The company’s 2003 results include government assistance amounting to $71.4 million ($44.3 million after tax) received under the Emergency Wartime Supplemental Appropriations Act. The 2002 net loss included $51.4 million, or $1.94 per share, related to the write-off of goodwill in connection with the adoption of Statement of Financial Accounting Standards No. 142. Excluding government compensation and the write-off of goodwill, the company’s loss in 2003 was $35.5 million ($1.33 per share) versus a loss of $67.5 million ($2.54 per share) for 2002.
“Despite the fact that our first annual profit since 1999 would have been impossible without government compensation, we’re proud of the positive steps we’ve taken over the past 18 months to achieve our company-wide cost management goals,†said Bill Ayer, chairman and chief executive officer. “There’s still a lot of work ahead of us, but we’re moving in the right direction.â€
“In fact, record load factors confirm the preference customers have for our service, thanks in large part to our caring and dedicated employees,†Ayer said. “We believe this focus on providing real value to our customers combined with the continued transformation of our business will improve our profitability and competitiveness.â€
Operationally, Alaska Airlines' passenger traffic in the fourth quarter increased 14.0 percent on a capacity increase of 9.2 percent. Alaska’s load factor increased 3.0 percentage points to 69.5 percent compared to the same period in 2002. Alaska’s operating revenue per available seat mile (ASM) increased 5.8 percent, while its operating cost per ASM excluding fuel decreased 1.9 percent. Alaska's pretax loss for the quarter was $35.0 million, compared to $58.6 million in 2002.
Horizon Air's passenger traffic in the fourth quarter increased 7.8 percent on a 2.1 percent capacity decrease. Horizon’s load factor increased by 6.2 percentage points to 67.3 percent compared to the same period in 2002. Horizon’s operating revenue per ASM increased 18.7 percent, while its operating cost per ASM excluding fuel increased 7.4 percent. Horizon's pretax income for the quarter was $5.7 million, compared to a pretax loss of $5.8 million in 2002.
Alaska Air Group had cash and short-term investments at December 31, 2003 of approximately $812 million compared to $636 million at December 31, 2002. The increased balance primarily reflects the receipt of $71.4 million of government compensation and $123.2 million net proceeds received in connection with the sale of floating rate convertible bonds in March 2003. The company’s debt-to-capital ratio, assuming aircraft operating leases are capitalized at seven times annualized rent, remained constant at 77 percent during the years ended December 31, 2003 and 2002.
A summary of financial and statistical data for Alaska Airlines and Horizon Air as well as a reconciliation of the reported non-GAAP financial measures can be found on pages 6-8.
A conference call regarding the fourth quarter/full year 2003 results will be simulcast via the internet at 8:30 a.m. Pacific Standard Time. It may be accessed through our website at [ http://www.alaskaair.com/ ]www.alaskaair.com. For those unable to listen to the live broadcast, a replay will be available after the conclusion of the call at [ http://www.alaskaair.com/ ]www.alaskaair.com.
