SEATTLE, Jan. 21, 2016 /PRNewswire/ --
Financial Highlights:
- Reported record fourth quarter net income, excluding special
items, of $186 million, a 49%
increase over the fourth quarter of 2014. Adjusted diluted earnings
per share of $1.46 was a 55% increase
over the fourth quarter of 2014. This quarter's results compare to
a First Call analyst consensus estimate of $1.40 per share.
- Reported record full-year net income, excluding special items,
of $842 million, a 47% increase over
2014. Adjusted diluted earnings per share of $6.51 was a 56% increase compared to 2014.
- Reported net income for the fourth quarter and full year under
Generally Accepted Accounting Principles (GAAP) of $191 million, or $1.51 per diluted share, and $848 million, or $6.56 per diluted share, respectively. These
results compare to net income of $148
million, or $1.11 per diluted
share, and $605 million, or
$4.42 per diluted share,
respectively, in 2014.
- Announced a 38% increase in the quarterly dividend, from
$0.20 per share to $0.275 per share, in January 2016. This is the third time the company
has raised the dividend since initiating the quarterly dividend in
July 2013, with a cumulative increase
of 175% since that time.
- Paid $0.20 per-share quarterly
cash dividend in the fourth quarter, bringing total dividend
payments in 2015 to $102
million.
- Repurchased 7,208,328 shares of common stock at an average
price of $70 during 2015, for
$505 million, or approximately 6% of
market capitalization at the beginning of 2015. Since 2007, Air
Group has used $1.3 billion to
repurchase 56 million shares at an average price of $23.66, representing about 35% of the Company's
outstanding shares on Dec. 31,
2006.
- Generated nearly $1.6 billion of
operating cash flow and $760 million
of free cash flow in 2015. Since the beginning of 2010, Air Group
has generated $5.6 billion of
operating cash flow and $2.6 billion
of free cash flow.
- Grew passenger revenues by 6% compared to the fourth quarter of
2014 and by 5% compared to full-year 2014.
- Reached a new long-term agreement with Bank of America for the
Alaska Airlines Visa credit card. The new agreement adds customer
benefits, such as no foreign transaction fees, and is expected to
generate an incremental $60 million
of revenue in 2016.
- Generated record full-year adjusted pretax margin of 24% in
2015, compared to 17.2% in 2014.
- Achieved return on invested capital of 25.2% in 2015, compared
to 18.6% in 2014.
- Lowered adjusted debt-to-total capitalization ratio to 27% as
of Dec. 31, 2015. Air Group currently
has no net debt.
- Lowered consolidated unit costs excluding fuel and special
items for the sixth consecutive year, to the lowest level ever.
Mainline unit costs excluding fuel have declined 13 of the last 14
years.
- Held $1.3 billion in unrestricted
cash and marketable securities as of Dec.
31, 2015.
2015 Accomplishments and Highlights:
Recognition and Awards
- Ranked the best airline in the U.S. by The Wall Street
Journal's "Middle Seat" scorecard for three consecutive years.
- Ranked "Highest in Customer Satisfaction Among Traditional
Network Carriers" by J.D. Power and Associates for the eighth year
in a row.
- Ranked highest by frequent fliers in the J.D. Power Airline
Loyalty/Rewards Program Satisfaction Report for the second year in
a row.
- Rated the #1 Airline Rewards Program by U.S. News and World
Report.
- Named "Airline Market Leader" by Air Transport World, becoming
the only U.S. airline honored by the magazine in its 2016 Industry
Achievement Awards.
- Named No. 1 on-time carrier in North
America for the sixth year in a row by FlightStats in
January 2016.
- Named Top Performing Airline among mid-sized carriers worldwide
by Aviation Week magazine.
- Ranked as the most fuel-efficient airline for U.S. airlines by
the International Council on Clean Transportation for the fifth
year in a row.
- Awarded Fast Travel Platinum status from the International Air
Transport Association, which is awarded to airlines offering four
or more Fast Travel options to at least 80% of their
passengers.
- Ranked as a top 100 of America's Best Employers by Forbes
Magazine.
- Ranked first in the Leadership 500 Excellence Awards,
recognizing the success of Alaska's Gear Up leadership training.
Our People
- Awarded a record $120 million in
incentive pay to employees for 2015, or more than one month's pay
for most employees. Over the last five years, employees have earned
more than $500 million in incentive
pay, averaging 8.6% of annual pay.
- Reached tentative agreements with Horizon's pilots and flight
attendants on new contracts that will position Horizon for
growth.
- Signed a four-year agreement with Alaska's dispatchers in December 2015.
- Completed "Gear Up 2" for over 1,200 leaders at Alaska and Horizon - a continuation of our
award-winning leadership training workshop.
- Delivered our "Beyond Service" customer service training to
nearly 9,000 customer-facing employees.
- Received a perfect score of 100% for workplace equality on the
2016 Corporate Equality Index (CEI).
Our Customers and Product
- Launched Preferred Plus Seating, providing customers the
ability to select bulkhead and exit-row seating 24 hours in advance
of the flight. Preferred Plus Seating also includes priority
boarding and complimentary beer, wine or cocktail.
- Announced plans to introduce Premium Class seating in 2016,
which will provide customers greater leg room, early boarding, and
premium on-board amenities, among other things.
- Became the launch customer of Boeing's new, innovative,
high-capacity 737 Space Bins, which will increase bag capacity in
the cabin by 50%.
- Added a free first checked bag as a permanent feature of the
Alaska Airlines Visa Signature affinity credit card.
- Added 11 Boeing 737-900ERs and one Bombardier Q400 aircraft to
the operating fleet in 2015.
- Added five Embraer 175 (E175) regional jets, and announced
plans to grow the number of E175s to 23 by the end of 2017,
including E175s that will replace the eight CRJ700 regional jets
operating in our network.
- Added 20 new markets and 10 new cities to our growing network
in 2015.
- Increased fuel efficiency (as measured by seat-miles per
gallon) by 2.2% over 2014.
Our Communities
- Donated nearly $12 million to
support local communities, including job training for workers at
the Seattle-Tacoma airport, STEM-focused education at
Seattle's Museum of Flight, the
Alaska Native Science and Engineering Program, and Seattle's bicycle sharing program.
- Announced a 10-year sponsorship agreement with the University of Washington which includes, among
other things, exclusive naming rights for Alaska Airlines Field at
Husky Stadium and Alaska Airlines Arena.
Alaska Air Group, Inc. (NYSE: ALK) today reported fourth quarter
2015 GAAP net income of $191 million,
or $1.51 per diluted share, compared
to GAAP net income of $148 million,
or $1.11 per diluted share in 2014.
Excluding mark-to-market fuel hedge losses of $1 million ($1
million after tax, or $0.01
per diluted share), a non-cash pension settlement charge and a
litigation-related matter of $32
million in aggregate ($20
million after tax, or $0.16
per diluted share), and a tax benefit of $26
million related to amended multiple-year state tax returns,
the company recorded fourth quarter 2015 net income of $186 million, or $1.46 per diluted share. This result compares to
net income, excluding mark-to-market fuel hedge gains and special
items, of $125 million, or
$0.94 per diluted share, in
2014.
The company reported full-year 2015 GAAP net income of
$848 million, compared to
$605 million in the prior year.
Excluding the impact of the items noted in the table below, the
company reported record net income of $842
million, or $6.51 per diluted
share for 2015, compared to net income of $571 million, or $4.18 per diluted share in 2014.
"These record results reflect our strong performance in the
areas that drive long-term value for our business," said CEO
Brad Tilden. "We're operating safely
and on time, our customer satisfaction ratings remain strong, our
customer base is growing at a record pace, and our costs and fares
are coming down - all a result of the hard work and dedication of
our employees."
"With today's announcement, our dividend has increased by 175%
since we initiated it two and one-half years ago. This
increase underscores our confidence in our business and our
commitment to return capital to shareholders."
The following table reconciles the Company's adjusted net income
and earnings per diluted share (EPS) during the full year and
fourth quarters of 2015 and 2014 to amounts as reported in
accordance with GAAP:
|
Three Months Ended
December 31,
|
|
2015
|
|
2014
|
(in millions,
except per share amounts)
|
Dollars
|
|
Diluted
EPS
|
|
Dollars
|
|
Diluted
EPS
|
Reported GAAP net
income
|
$
|
191
|
|
|
$
|
1.51
|
|
|
$
|
148
|
|
|
$
|
1.11
|
|
Mark-to-market fuel
hedge adjustments, net of tax
|
1
|
|
|
0.01
|
|
|
(4)
|
|
|
(0.03)
|
|
Special items, net of
tax
|
20
|
|
|
0.16
|
|
|
(19)
|
|
|
(0.14)
|
|
Special tax
benefit
|
(26)
|
|
|
(0.22)
|
|
|
—
|
|
|
—
|
|
Non-GAAP adjusted
income and per share amounts
|
$
|
186
|
|
|
$
|
1.46
|
|
|
$
|
125
|
|
|
$
|
0.94
|
|
|
Twelve Months
Ended December 31,
|
|
2015
|
|
2014
|
(in millions,
except per share amounts)
|
Dollars
|
|
Diluted
EPS
|
|
Dollars
|
|
Diluted
EPS
|
Reported GAAP net
income
|
$
|
848
|
|
|
$
|
6.56
|
|
|
$
|
605
|
|
|
$
|
4.42
|
|
Mark-to-market fuel
hedge adjustments, net of tax
|
—
|
|
|
—
|
|
|
(15)
|
|
|
(0.11)
|
|
Special items, net of
tax
|
20
|
|
|
0.15
|
|
|
(19)
|
|
|
(0.13)
|
|
Special tax
benefit
|
(26)
|
|
|
(0.20)
|
|
|
—
|
|
|
—
|
|
Non-GAAP adjusted
income and per share amounts
|
$
|
842
|
|
|
$
|
6.51
|
|
|
$
|
571
|
|
|
$
|
4.18
|
|
Statistical data, as well as a reconciliation of the reported
non-GAAP financial measures, can be found in the accompanying
tables. A glossary of financial terms can be found on the last page
of this release.
A conference call regarding the fourth quarter and full year
results will be simulcast via the Internet at 8:30 a.m. Pacific time on Jan. 21, 2016. It can be accessed through the
company's Web site at alaskaair.com/investors. For those unable to
listen to the live broadcast, a replay will be available after the
conclusion of the call.
References in this news release to "Air Group," "company," "we,"
"us" and "our" refer to Alaska Air Group, Inc. and its
subsidiaries, unless otherwise specified. Alaska Airlines, Inc. and
Horizon Air Industries, Inc. are referred to as "Alaska" and "Horizon," respectively, and
together as our "airlines."
This news release may contain forward-looking statements subject
to the safe harbor protection provided by Section 27A of the
Securities Act of 1933, as amended, Section 21E of the Securities
Exchange Act of 1934, as amended, and the Private Securities
Litigation Reform Act of 1995. These statements relate to future
events and involve known and unknown risks and uncertainties that
may cause actual outcomes to be materially different from those
indicated by any forward-looking statements. For a comprehensive
discussion of potential risk factors, see Item 1A of the company's
Annual Report on Form 10-K for the year ended December 31,
2014. Some of these risks include competition, labor costs and
relations, general economic conditions, increases in operating
costs including fuel, inability to meet cost reduction goals,
seasonal fluctuations in our financial results, an aircraft
accident, and changes in laws and regulations. All of the
forward-looking statements are qualified in their entirety by
reference to the risk factors discussed therein. We operate in a
continually changing business environment, and new risk factors
emerge from time to time. Management cannot predict such new risk
factors, nor can it assess the impact, if any, of such new risk
factors on our business or events described in any forward-looking
statements. We expressly disclaim any obligation to publicly update
or revise any forward-looking statements after the date of this
report to conform them to actual results. Over time, our actual
results, performance or achievements will likely differ from the
anticipated results, performance or achievements that are expressed
or implied by our forward-looking statements, and such differences
might be significant and materially adverse.
Alaska Airlines, a subsidiary of Alaska Air Group (NYSE: ALK),
together with its partner regional airlines, serves more than 100
cities through an expansive network in the United States, Canada, Mexico and Costa
Rica. Alaska Airlines ranked "Highest in Customer
Satisfaction Among Traditional Carriers in North America" in the J.D. Power North America
Airline Satisfaction Study for eight consecutive years from 2008 to
2015. Alaska Airlines' Mileage Plan also ranked "Highest in
Customer Satisfaction with Airline Loyalty Rewards Programs" in the
J.D. Power 2014 and 2015 Airline Loyalty/Rewards Program
Satisfaction Report. For reservations, visit www.alaskaair.com. For
more news and information, visit the Alaska Airlines Newsroom at
www.alaskaair.com/newsroom.
CONSOLIDATED
STATEMENTS OF OPERATIONS (unaudited)
|
Alaska Air Group,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
(in millions,
except per share amounts)
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
Operating
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
|
|
|
|
|
|
|
|
|
|
|
|
Mainline
|
$
|
962
|
|
|
$
|
916
|
|
|
5
|
%
|
|
$
|
3,939
|
|
|
$
|
3,774
|
|
|
4
|
%
|
Regional
|
216
|
|
|
200
|
|
|
8
|
%
|
|
854
|
|
|
805
|
|
|
6
|
%
|
Total passenger
revenue
|
1,178
|
|
|
1,116
|
|
|
6
|
%
|
|
4,793
|
|
|
4,579
|
|
|
5
|
%
|
Freight and
mail
|
25
|
|
|
26
|
|
|
(4)
|
%
|
|
108
|
|
|
114
|
|
|
(5)
|
%
|
Other -
net
|
174
|
|
|
164
|
|
|
6
|
%
|
|
697
|
|
|
675
|
|
|
3
|
%
|
Total Operating
Revenues
|
1,377
|
|
|
1,306
|
|
|
5
|
%
|
|
5,598
|
|
|
5,368
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Wages and
benefits
|
331
|
|
|
304
|
|
|
9
|
%
|
|
1,254
|
|
|
1,136
|
|
|
10
|
%
|
Variable incentive
pay
|
30
|
|
|
32
|
|
|
(6)
|
%
|
|
120
|
|
|
116
|
|
|
3
|
%
|
Aircraft fuel,
including hedging gains and losses
|
213
|
|
|
306
|
|
|
(30)
|
%
|
|
954
|
|
|
1,418
|
|
|
(33)
|
%
|
Aircraft
maintenance
|
71
|
|
|
63
|
|
|
13
|
%
|
|
253
|
|
|
229
|
|
|
10
|
%
|
Aircraft
rent
|
27
|
|
|
26
|
|
|
4
|
%
|
|
105
|
|
|
110
|
|
|
(5)
|
%
|
Landing fees and
other rentals
|
79
|
|
|
72
|
|
|
10
|
%
|
|
296
|
|
|
279
|
|
|
6
|
%
|
Contracted
services
|
57
|
|
|
51
|
|
|
12
|
%
|
|
214
|
|
|
196
|
|
|
9
|
%
|
Selling
expenses
|
51
|
|
|
45
|
|
|
13
|
%
|
|
211
|
|
|
199
|
|
|
6
|
%
|
Depreciation and
amortization
|
84
|
|
|
76
|
|
|
11
|
%
|
|
320
|
|
|
294
|
|
|
9
|
%
|
Food and beverage
service
|
30
|
|
|
25
|
|
|
20
|
%
|
|
113
|
|
|
93
|
|
|
22
|
%
|
Third-party regional
carrier expense
|
20
|
|
|
15
|
|
|
33
|
%
|
|
72
|
|
|
58
|
|
|
24
|
%
|
Other
|
97
|
|
|
79
|
|
|
23
|
%
|
|
356
|
|
|
308
|
|
|
16
|
%
|
Special
items
|
32
|
|
|
(30)
|
|
|
NM
|
|
32
|
|
|
(30)
|
|
|
NM
|
Total Operating
Expenses
|
1,122
|
|
|
1,064
|
|
|
5
|
%
|
|
4,300
|
|
|
4,406
|
|
|
(2)
|
%
|
Operating
Income
|
255
|
|
|
242
|
|
|
5
|
%
|
|
1,298
|
|
|
962
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating
Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
5
|
|
|
6
|
|
|
|
|
21
|
|
|
21
|
|
|
|
Interest
expense
|
(10)
|
|
|
(12)
|
|
|
|
|
(42)
|
|
|
(48)
|
|
|
|
Interest
capitalized
|
9
|
|
|
6
|
|
|
|
|
34
|
|
|
20
|
|
|
|
Other -
net
|
—
|
|
|
—
|
|
|
|
|
1
|
|
|
20
|
|
|
|
|
4
|
|
|
—
|
|
|
|
|
14
|
|
|
13
|
|
|
|
Income Before
Income Tax
|
259
|
|
|
242
|
|
|
7
|
%
|
|
1,312
|
|
|
975
|
|
|
35
|
%
|
Income tax
expense
|
68
|
|
|
94
|
|
|
|
|
464
|
|
|
370
|
|
|
|
Net
Income
|
$
|
191
|
|
|
$
|
148
|
|
|
29
|
%
|
|
$
|
848
|
|
|
$
|
605
|
|
|
40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share:
|
$
|
1.52
|
|
|
$
|
1.12
|
|
|
36
|
%
|
|
$
|
6.61
|
|
|
$
|
4.47
|
|
|
48
|
%
|
Diluted Earnings
Per Share:
|
$
|
1.51
|
|
|
$
|
1.11
|
|
|
36
|
%
|
|
$
|
6.56
|
|
|
$
|
4.42
|
|
|
48
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares Used for
Computation:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
125.900
|
|
|
132.368
|
|
|
(5)
|
%
|
|
128.373
|
|
|
135.445
|
|
|
(5)
|
%
|
Diluted
|
126.818
|
|
|
133.705
|
|
|
(5)
|
%
|
|
129.372
|
|
|
136.801
|
|
|
(5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividend
declared per share
|
$
|
0.200
|
|
|
$
|
0.125
|
|
|
|
|
$
|
0.800
|
|
|
$
|
0.500
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited)
|
|
|
|
Alaska Air Group,
Inc.
|
|
|
|
|
|
|
|
(in
millions)
|
December 31,
2015
|
|
December 31,
2014
|
Cash and marketable
securities
|
$
|
1,328
|
|
|
$
|
1,217
|
|
|
|
|
|
Total current
assets
|
1,663
|
|
|
1,639
|
|
Property and
equipment-net
|
4,802
|
|
|
4,299
|
|
Other
assets
|
68
|
|
|
126
|
|
Total
assets
|
$
|
6,533
|
|
|
$
|
6,064
|
|
|
|
|
|
Air traffic
liability
|
669
|
|
|
631
|
|
Current portion of
long-term debt
|
115
|
|
|
117
|
|
Other current
liabilities
|
1,022
|
|
|
923
|
|
Current
liabilities
|
$
|
1,806
|
|
|
$
|
1,671
|
|
Long-term
debt
|
571
|
|
|
686
|
|
Other liabilities and
credits
|
1,745
|
|
|
1,580
|
|
Shareholders'
equity
|
2,411
|
|
|
2,127
|
|
Total liabilities
and shareholders' equity
|
$
|
6,533
|
|
|
$
|
6,064
|
|
|
|
|
|
Debt to
Capitalization, adjusted for operating
leases(a)
|
27%:73%
|
|
|
31%:69%
|
|
|
|
|
|
Number of common
shares outstanding
|
125.175
|
|
|
131.481
|
|
|
|
(a)
|
Calculated using the
present value of remaining aircraft lease payments for aircraft
that are in our operating fleet as of the balance sheet
date.
|
OPERATING
STATISTICS SUMMARY (unaudited)
|
Alaska Air Group,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
Consolidated
Operating Statistics:(a)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passengers
(PAX) (000)
|
7,927
|
|
7,282
|
|
8.9%
|
|
31,883
|
|
29,278
|
|
8.9%
|
RPMs (000,000)
"traffic"
|
8,526
|
|
7,640
|
|
11.6%
|
|
33,578
|
|
30,718
|
|
9.3%
|
ASMs (000,000)
"capacity"
|
10,340
|
|
9,156
|
|
12.9%
|
|
39,914
|
|
36,078
|
|
10.6%
|
Load
factor
|
82.5%
|
|
83.4%
|
|
(0.9) pts
|
|
84.1%
|
|
85.1%
|
|
(1.0) pts
|
Yield
|
13.82¢
|
|
14.61¢
|
|
(5.4)%
|
|
14.27¢
|
|
14.91¢
|
|
(4.3)%
|
PRASM
|
11.39¢
|
|
12.19¢
|
|
(6.6)%
|
|
12.01¢
|
|
12.69¢
|
|
(5.4)%
|
RASM
|
13.32¢
|
|
14.27¢
|
|
(6.7)%
|
|
14.03¢
|
|
14.88¢
|
|
(5.7)%
|
CASM excluding fuel
and special items(b)
|
8.48¢
|
|
8.60¢
|
|
(1.4)%
|
|
8.30¢
|
|
8.36¢
|
|
(0.7)%
|
Economic fuel cost
per gallon(c)
|
$1.62
|
|
$2.64
|
|
(38.6)%
|
|
$1.88
|
|
$3.08
|
|
(39.0)%
|
Fuel gallons
(000,000)
|
131
|
|
118
|
|
11.0%
|
|
508
|
|
469
|
|
8.3%
|
ASMs per
gallon
|
78.9
|
|
77.6
|
|
1.7%
|
|
78.6
|
|
76.9
|
|
2.2%
|
Average number of
full-time equivalent employees (FTEs)
|
14,360
|
|
13,059
|
|
10.0%
|
|
13,858
|
|
12,739
|
|
8.8%
|
Employee productivity
(PAX/FTEs/months)
|
184.0
|
|
185.9
|
|
(1.0)%
|
|
191.7
|
|
191.5
|
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline Operating
Statistics:
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passengers
(PAX) (000)
|
5,676
|
|
5,177
|
|
9.6%
|
|
22,869
|
|
20,972
|
|
9.0%
|
RPMs (000,000)
"traffic"
|
7,707
|
|
6,907
|
|
11.6%
|
|
30,340
|
|
27,778
|
|
9.2%
|
ASMs (000,000)
"capacity"
|
9,303
|
|
8,233
|
|
13.0%
|
|
35,912
|
|
32,430
|
|
10.7%
|
Load
factor
|
82.8%
|
|
83.9%
|
|
(1.1) pts
|
|
84.5%
|
|
85.7%
|
|
(1.2) pts
|
Yield
|
12.48¢
|
|
13.25¢
|
|
(5.8)%
|
|
12.98¢
|
|
13.58¢
|
|
(4.4)%
|
PRASM
|
10.34¢
|
|
11.12¢
|
|
(7.0)%
|
|
10.97¢
|
|
11.64¢
|
|
(5.8)%
|
RASM
|
12.28¢
|
|
13.18¢
|
|
(6.8)%
|
|
12.98¢
|
|
13.80¢
|
|
(5.9)%
|
CASM excluding fuel
and special items(b)
|
7.54¢
|
|
7.70¢
|
|
(2.1)%
|
|
7.39¢
|
|
7.45¢
|
|
(0.8)%
|
Economic fuel cost
per gallon(c)
|
$1.60
|
|
$2.64
|
|
(39.4)%
|
|
$1.87
|
|
$3.07
|
|
(39.1)%
|
Fuel gallons
(000,000)
|
113
|
|
102
|
|
10.8%
|
|
439
|
|
407
|
|
7.9%
|
ASMs per
gallon
|
82.3
|
|
80.7
|
|
2.0%
|
|
81.8
|
|
79.7
|
|
2.6%
|
Average number of
FTEs
|
11,069
|
|
10,171
|
|
8.8%
|
|
10,750
|
|
9,910
|
|
8.5%
|
Employee productivity
(PAX/FTEs/months)
|
170.9
|
|
169.7
|
|
0.7%
|
|
177.3
|
|
176.4
|
|
0.5%
|
Aircraft
utilization
|
10.7
|
|
10.3
|
|
3.9%
|
|
10.8
|
|
10.5
|
|
2.9%
|
Average aircraft
stage length
|
1,225
|
|
1,190
|
|
2.9%
|
|
1,195
|
|
1,182
|
|
1.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional Operating
Statistics:(d)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passengers
(PAX) (000)
|
2,253
|
|
2,106
|
|
7.0%
|
|
9,015
|
|
8,306
|
|
8.5%
|
RPMs (000,000)
"traffic"
|
819
|
|
734
|
|
11.6%
|
|
3,238
|
|
2,940
|
|
10.1%
|
ASMs (000,000)
"capacity"
|
1,037
|
|
923
|
|
12.4%
|
|
4,002
|
|
3,648
|
|
9.7%
|
Load
factor
|
79.0%
|
|
79.5%
|
|
(0.5) pts
|
|
80.9%
|
|
80.6%
|
|
0.3 pts
|
Yield
|
26.37¢
|
|
27.38¢
|
|
(3.7)%
|
|
26.37¢
|
|
27.40¢
|
|
(3.8)%
|
PRASM
|
20.83¢
|
|
21.76¢
|
|
(4.3)%
|
|
21.34¢
|
|
22.08¢
|
|
(3.4)%
|
|
|
(a)
|
Except for full-time
equivalent employees, data includes information related to
third-party regional capacity purchase flying
arrangements.
|
(b)
|
See a reconciliation
of this non-GAAP measure and Note A for a discussion of why these
measures may be important to investors in the accompanying
pages.
|
(c)
|
See a reconciliation
of economic fuel cost in the accompanying pages.
|
(d)
|
Data presented
includes information related to flights operated by Horizon Air and
third-party carriers.
|
OPERATING SEGMENTS
(unaudited)
|
|
|
|
|
|
|
Alaska Air Group,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2015
|
|
Alaska
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Mainline
|
|
Regional
|
|
Horizon
|
|
Consolidating
|
|
Air Group
Adjusted(a)
|
|
Special
Items(b)
|
|
Consolidated
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline
|
$
|
962
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
962
|
|
|
$
|
—
|
|
|
$
|
962
|
|
Regional
|
—
|
|
|
216
|
|
|
—
|
|
|
—
|
|
|
216
|
|
|
—
|
|
|
216
|
|
Total
passenger revenues
|
962
|
|
|
216
|
|
|
—
|
|
|
—
|
|
|
1,178
|
|
|
—
|
|
|
1,178
|
|
Revenue from CPA with
Alaska
|
—
|
|
|
—
|
|
|
105
|
|
|
(105)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Freight and
mail
|
24
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
Other-net
|
156
|
|
|
17
|
|
|
1
|
|
|
—
|
|
|
174
|
|
|
—
|
|
|
174
|
|
Total operating
revenues
|
1,142
|
|
|
234
|
|
|
106
|
|
|
(105)
|
|
|
1,377
|
|
|
—
|
|
|
1,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses,
excluding fuel and special items
|
702
|
|
|
181
|
|
|
101
|
|
|
(107)
|
|
|
877
|
|
|
32
|
|
|
909
|
|
Economic
fuel
|
182
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
212
|
|
|
1
|
|
|
213
|
|
Total operating
expenses
|
884
|
|
|
211
|
|
|
101
|
|
|
(107)
|
|
|
1,089
|
|
|
33
|
|
|
1,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
4
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
5
|
|
|
—
|
|
|
5
|
|
Interest
expense
|
(7)
|
|
|
—
|
|
|
(2)
|
|
|
(1)
|
|
|
(10)
|
|
|
—
|
|
|
(10)
|
|
Other
|
7
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
9
|
|
|
—
|
|
|
9
|
|
|
4
|
|
|
—
|
|
|
(1)
|
|
|
1
|
|
|
4
|
|
|
—
|
|
|
4
|
|
Income (loss)
before income tax
|
$
|
262
|
|
|
$
|
23
|
|
|
$
|
4
|
|
|
$
|
3
|
|
|
$
|
292
|
|
|
$
|
(33)
|
|
|
$
|
259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2014
|
|
Alaska
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Mainline
|
|
Regional
|
|
Horizon
|
|
Consolidating
|
|
Air Group
Adjusted(a)
|
|
Special
Items(b)
|
|
Consolidated
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline
|
$
|
916
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
916
|
|
|
$
|
—
|
|
|
$
|
916
|
|
Regional
|
—
|
|
|
200
|
|
|
—
|
|
|
—
|
|
|
200
|
|
|
—
|
|
|
200
|
|
Total
passenger revenues
|
916
|
|
|
200
|
|
|
—
|
|
|
—
|
|
|
1,116
|
|
|
—
|
|
|
1,116
|
|
Revenue from CPA with
Alaska
|
—
|
|
|
—
|
|
|
94
|
|
|
(94)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Freight and
mail
|
25
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
Other-net
|
144
|
|
|
19
|
|
|
1
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
164
|
|
Total operating
revenues
|
1,085
|
|
|
220
|
|
|
95
|
|
|
(94)
|
|
|
1,306
|
|
|
—
|
|
|
1,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses,
excluding fuel
|
634
|
|
|
159
|
|
|
92
|
|
|
(97)
|
|
|
788
|
|
|
(30)
|
|
|
758
|
|
Economic
fuel
|
271
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
312
|
|
|
(6)
|
|
|
306
|
|
Total operating
expenses
|
905
|
|
|
200
|
|
|
92
|
|
|
(97)
|
|
|
1,100
|
|
|
(36)
|
|
|
1,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
5
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
6
|
|
|
—
|
|
|
6
|
|
Interest
expense
|
(7)
|
|
|
1
|
|
|
(2)
|
|
|
(4)
|
|
|
(12)
|
|
|
—
|
|
|
(12)
|
|
Other
|
5
|
|
|
(1)
|
|
|
2
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Income (loss)
before income tax
|
$
|
183
|
|
|
$
|
20
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
206
|
|
|
$
|
36
|
|
|
$
|
242
|
|
OPERATING SEGMENTS
(unaudited)
|
|
|
|
|
|
|
Alaska Air Group,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31, 2015
|
|
Alaska
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Mainline
|
|
Regional
|
|
Horizon
|
|
Consolidating
|
|
Air Group
Adjusted(a)
|
|
Special
Items(b)
|
|
Consolidated
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline
|
$
|
3,939
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,939
|
|
|
$
|
—
|
|
|
$
|
3,939
|
|
Regional
|
—
|
|
|
854
|
|
|
—
|
|
|
—
|
|
|
854
|
|
|
—
|
|
|
854
|
|
Total
passenger revenues
|
3,939
|
|
|
854
|
|
|
—
|
|
|
—
|
|
|
4,793
|
|
|
—
|
|
|
4,793
|
|
Revenue from CPA with
Alaska
|
—
|
|
|
—
|
|
|
408
|
|
|
(408)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Freight and
mail
|
103
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
108
|
|
|
—
|
|
|
108
|
|
Other-net
|
621
|
|
|
72
|
|
|
4
|
|
|
—
|
|
|
697
|
|
|
|
|
697
|
|
Total operating
revenues
|
4,663
|
|
|
931
|
|
|
412
|
|
|
(408)
|
|
|
5,598
|
|
|
—
|
|
|
5,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses,
excluding fuel and special items
|
2,653
|
|
|
695
|
|
|
375
|
|
|
(409)
|
|
|
3,314
|
|
|
32
|
|
|
3,346
|
|
Economic
fuel
|
823
|
|
|
131
|
|
|
—
|
|
|
—
|
|
|
954
|
|
|
—
|
|
|
954
|
|
Total operating
expenses
|
3,476
|
|
|
826
|
|
|
375
|
|
|
(409)
|
|
|
4,268
|
|
|
32
|
|
|
4,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
19
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
21
|
|
|
—
|
|
|
21
|
|
Interest
expense
|
(28)
|
|
|
—
|
|
|
(10)
|
|
|
(4)
|
|
|
(42)
|
|
|
—
|
|
|
(42)
|
|
Other
|
28
|
|
|
—
|
|
|
1
|
|
|
6
|
|
|
35
|
|
|
—
|
|
|
35
|
|
|
19
|
|
|
—
|
|
|
(9)
|
|
|
4
|
|
|
14
|
|
|
—
|
|
|
14
|
|
Income (loss)
before income tax
|
$
|
1,206
|
|
|
$
|
105
|
|
|
$
|
28
|
|
|
$
|
5
|
|
|
$
|
1,344
|
|
|
$
|
(32)
|
|
|
$
|
1,312
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31, 2014
|
|
Alaska
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Mainline
|
|
Regional
|
|
Horizon
|
|
Consolidating
|
|
Air Group
Adjusted(a)
|
|
Special
Items(b)
|
|
Consolidated
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline
|
$
|
3,774
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,774
|
|
|
$
|
—
|
|
|
$
|
3,774
|
|
Regional
|
—
|
|
|
805
|
|
|
—
|
|
|
—
|
|
|
805
|
|
|
—
|
|
|
805
|
|
Total
passenger revenues
|
3,774
|
|
|
805
|
|
|
—
|
|
|
—
|
|
|
4,579
|
|
|
—
|
|
|
4,579
|
|
Revenue from CPA with
Alaska
|
—
|
|
|
—
|
|
|
371
|
|
|
(371)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Freight and
mail
|
109
|
|
|
5
|
|
|
—
|
|
|
|
|
114
|
|
|
—
|
|
|
114
|
|
Other-net
|
592
|
|
|
78
|
|
|
5
|
|
|
|
|
675
|
|
|
—
|
|
|
675
|
|
Total operating
revenues
|
4,475
|
|
|
888
|
|
|
376
|
|
|
(371)
|
|
|
5,368
|
|
|
—
|
|
|
5,368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses,
excluding fuel
|
2,417
|
|
|
623
|
|
|
349
|
|
|
(371)
|
|
|
3,018
|
|
|
(30)
|
|
|
2,988
|
|
Economic
fuel
|
1,251
|
|
|
190
|
|
|
—
|
|
|
—
|
|
|
1,441
|
|
|
(23)
|
|
|
1,418
|
|
Total operating
expenses
|
3,668
|
|
|
813
|
|
|
349
|
|
|
(371)
|
|
|
4,459
|
|
|
(53)
|
|
|
4,406
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
20
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
21
|
|
|
—
|
|
|
21
|
|
Interest
expense
|
(32)
|
|
|
—
|
|
|
(12)
|
|
|
(4)
|
|
|
(48)
|
|
|
—
|
|
|
(48)
|
|
Other
|
39
|
|
|
(1)
|
|
|
2
|
|
|
—
|
|
|
40
|
|
|
—
|
|
|
40
|
|
|
27
|
|
|
(1)
|
|
|
(10)
|
|
|
(3)
|
|
|
13
|
|
|
—
|
|
|
13
|
|
Income (loss)
before income tax
|
$
|
834
|
|
|
$
|
74
|
|
|
$
|
17
|
|
|
$
|
(3)
|
|
|
$
|
922
|
|
|
$
|
53
|
|
|
$
|
975
|
|
|
|
(a)
|
The adjusted column
represents the financial information that is reviewed by management
to assess performance of operations and determine capital
allocations and does not include certain charges. See Note A for
further information in the accompanying pages.
|
(b)
|
Includes accounting
adjustments related to mark-to-market fuel-hedge accounting
charges, and other special items described previously.
|
Alaska Air Group,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASM EXCLUDING
FUEL RECONCILIATION (unaudited)
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
(in
cents)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Consolidated:
|
|
|
|
|
|
|
|
CASM
|
10.85
|
¢
|
|
11.61
|
¢
|
|
10.77
|
¢
|
|
12.21
|
¢
|
Less the following
components:
|
|
|
|
|
|
|
|
Aircraft fuel,
including hedging gains and losses
|
2.06
|
|
|
3.34
|
|
|
2.39
|
|
|
3.93
|
|
Special
items
|
0.31
|
|
|
(0.33)
|
|
|
0.08
|
|
|
(0.08)
|
|
CASM excluding
fuel
|
8.48
|
¢
|
|
8.60
|
¢
|
|
8.30
|
¢
|
|
8.36
|
¢
|
|
|
|
|
|
|
|
|
Mainline:
|
|
|
|
|
|
|
|
CASM
|
9.86
|
¢
|
|
10.56
|
¢
|
|
9.77
|
¢
|
|
11.15
|
¢
|
Less the following
components:
|
|
|
|
|
|
|
|
Aircraft fuel,
including hedging gains and losses
|
1.97
|
|
|
3.22
|
|
|
2.29
|
|
|
3.79
|
|
Special
items
|
0.35
|
|
|
(0.36)
|
|
|
0.09
|
|
|
(0.09)
|
|
CASM excluding
fuel
|
7.54
|
¢
|
|
7.70
|
¢
|
|
7.39
|
¢
|
|
7.45
|
¢
|
|
|
|
|
|
|
|
|
FUEL
RECONCILIATIONS (unaudited)
|
|
|
|
|
|
|
|
Alaska Air Group,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
2015
|
|
2014
|
(in millions,
except for per gallon amounts)
|
Dollars
|
|
Cost/Gal
|
|
Dollars
|
|
Cost/Gal
|
Raw or "into-plane"
fuel cost
|
$
|
208
|
|
|
$
|
1.59
|
|
|
$
|
305
|
|
|
$
|
2.58
|
|
Losses on settled
hedges
|
4
|
|
|
0.03
|
|
|
7
|
|
|
0.06
|
|
Consolidated
economic fuel expense
|
$
|
212
|
|
|
$
|
1.62
|
|
|
$
|
312
|
|
|
$
|
2.64
|
|
Mark-to-market fuel
hedge adjustments
|
1
|
|
|
—
|
|
|
(6)
|
|
|
(0.05)
|
|
GAAP fuel
expense
|
$
|
213
|
|
|
$
|
1.62
|
|
|
$
|
306
|
|
|
$
|
2.59
|
|
Fuel
gallons
|
131
|
|
|
|
|
118
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31,
|
|
2015
|
|
2014
|
(in millions,
except for per gallon amounts)
|
Dollars
|
|
Cost/Gal
|
|
Dollars
|
|
Cost/Gal
|
Raw or "into-plane"
fuel cost
|
$
|
935
|
|
|
$
|
1.84
|
|
|
$
|
1,400
|
|
|
$
|
2.99
|
|
Losses on settled
hedges
|
19
|
|
|
0.04
|
|
|
41
|
|
|
0.09
|
|
Consolidated
economic fuel expense
|
$
|
954
|
|
|
$
|
1.88
|
|
|
$
|
1,441
|
|
|
$
|
3.08
|
|
Mark-to-market fuel
hedge adjustments
|
—
|
|
|
—
|
|
|
(23)
|
|
|
(0.05)
|
|
GAAP fuel
expense
|
$
|
954
|
|
|
$
|
1.88
|
|
|
$
|
1,418
|
|
|
$
|
3.03
|
|
Fuel
gallons
|
508
|
|
|
|
|
469
|
|
|
|
Note A: Pursuant to Regulation G, we are providing
reconciliation of reported non-GAAP financial measures to their
most directly comparable financial measures reported on a GAAP
basis. We believe that consideration of these non-GAAP financial
measures may be important to investors for the following
reasons:
- By eliminating fuel expense and certain special items from our
unit metrics, we believe that we have better visibility into the
results of operations and our non-fuel cost-reduction
initiatives. Our industry is highly competitive and is
characterized by high fixed costs, so even a small reduction in
non-fuel operating costs can result in a significant improvement in
operating results. In addition, we believe that all domestic
carriers are similarly impacted by changes in jet fuel costs over
the long run, so it is important for management (and thus
investors) to understand the impact of (and trends in)
company-specific cost drivers such as labor rates and productivity,
airport costs, maintenance costs, etc., which are more controllable
by management.
Cost per ASM (CASM) excluding fuel and certain special items is
one of the most important measures used by management and by the
Air Group Board of Directors in assessing quarterly and annual cost
performance.
- Adjusted income before income tax and CASM excluding fuel (and
other items as specified in our plan documents) are important
metrics for the employee incentive plan that covers all Air Group
employees.
- CASM excluding fuel and certain special items is a measure
commonly used by industry analysts, and we believe it is the basis
by which they compare our airlines to others in the
industry. The measure is also the subject of frequent
questions from investors.
- Disclosure of the individual impact of certain noted items
provides investors the ability to measure and monitor performance
both with and without these special items. We believe that
disclosing the impact of certain items, such as mark-to-market
hedging adjustments, is important because it provides information
on significant items that are not necessarily indicative of future
performance. Industry analysts and investors consistently measure
our performance without these items for better comparability
between periods and among other airlines.
- Although we disclose our passenger unit revenues, we do not
(nor are we able to) evaluate unit revenues excluding the impact
that changes in fuel costs have had on ticket prices. Fuel
expense represents a large percentage of our total operating
expenses. Fluctuations in fuel prices often drive changes in
unit revenues in the mid-to-long term. Although we believe it
is useful to evaluate non-fuel unit costs for the reasons noted
above, we would caution readers of these financial statements not
to place undue reliance on unit costs excluding fuel as a measure
or predictor of future profitability because of the significant
impact of fuel costs on our business.
Note B: Air Group has two operating airlines - Alaska
Airlines and Horizon Air. Each is a regulated airline with separate
management teams primarily in operational roles. To manage the two
operating airlines, management views the business in three
operating segments. Alaska
operates a fleet of passenger jets (Alaska Mainline) and contracts
with Horizon, SkyWest Airlines, Inc. (SkyWest), and Peninsula
Airways, Inc. (PenAir) for regional capacity under which
Alaska receives all passenger
revenue from those flights (Alaska Regional). Horizon operates a
fleet of turboprop aircraft and sells all of its capacity to
Alaska pursuant to a capacity
purchase arrangement (Horizon). The Company believes the amounts
paid by Alaska to Horizon
approximate market rates received by other regional carriers for
similar flying and are available to pay for various Horizon
operating expenses such as crew expenses, maintenance, and aircraft
ownership costs. All inter-company revenues and expenses between
Alaska and Horizon are eliminated
in consolidation.
Glossary of Terms
Aircraft Utilization - block hours per day; this
represents the average number of hours per day our aircraft are in
transit
Aircraft Stage Length - represents the average miles
flown per aircraft departure
ASMs - available seat miles, or "capacity"; represents
total seats available across the fleet multiplied by the number of
miles flown
CASM - operating costs per ASM, or "unit cost";
represents all operating expenses including fuel and special
items
CASMex - operating costs excluding fuel and special items
per ASM; this metric is used to help track progress toward
reduction of non-fuel operating costs since fuel is largely out of
our control
Debt-to-capitalization ratio - represents adjusted debt
(long-term debt plus the present value of future operating lease
payments) divided by total equity plus adjusted debt
Diluted Earnings per Share - represents earnings per
share using fully diluted shares outstanding
Diluted Shares - represents the total number of shares
that would be outstanding if all possible sources of conversion,
such as stock options, were exercised
Economic Fuel - best estimate of the cash cost of fuel,
net of the impact of our fuel-hedging program
Load Factor - RPMs as a percentage of ASMs; represents
the number of available seats that were filled with paying
passengers
Mainline - represents flying Boeing 737 jets and all
associated revenues and costs
PRASM - passenger revenue per ASM; commonly called
"passenger unit revenue"
Productivity - number of revenue passengers per full-time
equivalent employee
RASM - operating revenue per ASMs, or "unit revenue";
operating revenue includes all passenger revenue, freight &
mail, Mileage Plan, and other ancillary revenue; represents the
average total revenue for flying one seat one mile
Regional - represents capacity purchased by Alaska from Horizon, SkyWest, and
PenAir. In this segment, Alaska Regional records actual
on-board passenger revenue, less costs such as fuel, distribution
costs, and payments made to Horizon, SkyWest and PenAir under the
respective capacity purchased arrangement (CPAs).
Additionally, Alaska Regional includes an allocation of corporate
overhead such as IT, finance, other administrative costs incurred
by Alaska and on behalf of
Horizon.
RPMs - revenue passenger miles, or "traffic"; represents
the number of seats that were filled with paying passengers; one
passenger traveling one mile is one RPM
Yield - passenger revenue per RPM; represents the average
revenue for flying one passenger one mile
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/alaska-air-group-reports-record-adjusted-fourth-quarter-2015-and-full-year-results-and-raises-dividend-38-300207650.html
SOURCE Alaska Air Group