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AS Posts 2nd Qtr Results - $17.4M Profit!  
User currently offlineEA CO AS From United States of America, joined Nov 2001, 13517 posts, RR: 62
Posted (9 years 1 week 3 days 18 hours ago) and read 3233 times:
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It's good, but didn't exceed analysts' average EPS estimates though...but then again, they also took several charges against the earnings that skewed them far lower than where they would have been.


FOR IMMEDIATE RELEASE July 21, 2005


ALASKA AIR GROUP REPORTS SECOND QUARTER RESULTS

SEATTLE — Alaska Air Group, Inc. (NYSE:ALK) today reported second quarter net income of $17.4 million, or $0.56 per diluted share, compared to a net loss of $1.7 million, or $0.06 per diluted share, in the second quarter of 2004.

Second quarter results include a restructuring charge of $14.7 million ($9.2 million, net of tax, or $0.28 per diluted share) for employee severance and related costs resulting primarily from the subcontracting of the Seattle ramp service function in May 2005. Second quarter results also include $3 million ($1.9 million, net of tax, or $0.06 per diluted share) in mark-to-market hedging gains on fuel hedges that settle in future periods, compared to $22.3 million ($14.8 million, net of tax, or $0.55 per share) in 2004. Without these items, and excluding aircraft impairment charges of $37.2 million ($24.7 million, net of tax, or $0.92 per share) in the second quarter of 2004, net income would have been $24.7 million, or $0.74 per diluted share, for the second quarter of 2005, compared to net income of $8.2 million, or $0.31 per diluted share, in the second quarter of 2004.

“Although we are seeing gains in passenger loads and ticket prices, we are facing operational problems, which, if we don’t correct them, will impact the long-term reputation of Alaska Airlines,” said Bill Ayer, Alaska Air Group’s chairman and chief executive officer. “Our primary focus is on improving our on-time performance in order to deliver on customer promises and reduce the stress on our employees.”

Alaska Airlines’ passenger traffic in the second quarter increased 5.2 percent on a capacity decrease of 1.6 percent. Alaska’s load factor increased 5.1 percentage points to 77.9 percent compared to the same period in 2004. Alaska’s operating revenue per available seat mile (ASM) increased 8.4 percent, while its operating cost per ASM excluding fuel, restructuring and impairment charges increased 1.4 percent. Alaska’s pretax income for the quarter was $22.1 million, compared to a pretax loss of $2.8 million in the same period of 2004. Excluding the notable items referenced above, Alaska’s pretax income was $34.2 million for the quarter compared to $14.4 million in the second quarter of 2004.

Horizon Air’s passenger traffic in the second quarter increased 15.9 percent on a 7.2 percent capacity increase. Horizon’s load factor increased by 5.5 percentage points to 73 percent compared to the same period in 2004. Horizon’s operating revenue per ASM increased 5.2 percent, while its operating cost per ASM excluding fuel and impairment charges decreased 4.9 percent. Horizon’s pretax income for the quarter was $11.1 million, compared to $4.7 million in the second quarter of 2004. Excluding the notable items referenced above, Horizon’s pretax income was $10.7 million for the quarter compared to $2.4 million in the same period in 2004.

Alaska Air Group had cash and short-term investments at June 30, 2005, of approximately $726 million, compared to $874 million at Dec. 31, 2004.



[Edited 2005-07-21 18:06:43]


"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
13 replies: All unread, jump to last
 
User currently offlineANCFlyer From , joined Dec 1969, posts, RR:
Reply 1, posted (9 years 1 week 3 days 18 hours ago) and read 3207 times:

Hooray for AS . . .

That's three legacy carriers with a profit this quarter . . .


User currently offlineWestIndian425 From United States of America, joined May 2004, 1024 posts, RR: 1
Reply 2, posted (9 years 1 week 3 days 18 hours ago) and read 3202 times:

Way to go, Alaska!!

Neil



God did not create aircraft pilots to be on the ground
User currently offlineIslandboy From Bahamas, joined Dec 2003, 165 posts, RR: 0
Reply 3, posted (9 years 1 week 3 days 18 hours ago) and read 3177 times:

Is AS even considered a legacy carrier?


Looks like the fresh wind has gone stale
User currently offlineEA CO AS From United States of America, joined Nov 2001, 13517 posts, RR: 62
Reply 4, posted (9 years 1 week 3 days 17 hours ago) and read 3141 times:
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Quoting Islandboy (Reply 3):
Is AS even considered a legacy carrier?

AS likes to consider themselves a "hybrid" carrier - not quite an LCC, but not exactly a full-blown legacy either. Sort of a happy medium.



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineAirlinerfreak From , joined Dec 1969, posts, RR:
Reply 5, posted (9 years 1 week 3 days 17 hours ago) and read 3136 times:

Glad to see that AS has reported a profit as all the times I fly them I always enjoy it.

User currently offlineBushpilot From South Africa, joined Jul 2007, 0 posts, RR: 1
Reply 6, posted (9 years 1 week 2 days 1 hour ago) and read 3001 times:

Good to hear after a rough few months with being ontime. Way to Go!

User currently offlineQxq400 From United States of America, joined Dec 2004, 255 posts, RR: 2
Reply 7, posted (9 years 1 week 1 day 21 hours ago) and read 2971 times:

I to am glad to see we posted a profit. I am sure the 3rd quarter will not be so good to us.  Angry

I can only hope that AS can get there act together enough to get back to the point in time when on time performance and customer satisfaction were norm.



Welcome baby Madison Renee
User currently offlineEA CO AS From United States of America, joined Nov 2001, 13517 posts, RR: 62
Reply 8, posted (9 years 1 week 1 day 20 hours ago) and read 2952 times:
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Quoting Qxq400 (Reply 7):
I am sure the 3rd quarter will not be so good to us.

Believe it or not, analysts are estimating an even more profitable 3Q05, with an average EPS estimate of $2.18:

http://finance.yahoo.com/q/ae?s=ALK



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineQxq400 From United States of America, joined Dec 2004, 255 posts, RR: 2
Reply 9, posted (9 years 1 week 1 day 8 hours ago) and read 2863 times:

"Believe it or not, analysts are estimating an even more profitable 3Q05, with an average EPS estimate of $2.18:"

Now you tell me how this is possible? boggled  Our on time performance and baggage mis ques are awful.  ouch  Let's not even talk about all the MX cancellations we are experiencing.  white 



Welcome baby Madison Renee
User currently offlineBushpilot From South Africa, joined Jul 2007, 0 posts, RR: 1
Reply 10, posted (9 years 1 week 1 day 8 hours ago) and read 2862 times:

Quoting EA CO AS (Reply 8):
Believe it or not, analysts are estimating an even more profitable 3Q05

Despite all the problems in 2Q05 with being ontime its the 3rd quarter that is the AS bread and butter. Tons of tourists flying around not only coming to AK but all over the west coast. I fly often and havent been on a mostly empty AS flight since the first week of June which was ANC-JNU. I think they will do alright, just need to get the SEA ramp ops running smoothly.


User currently offlineHikesWithEyes From United States of America, joined Jan 2004, 816 posts, RR: 7
Reply 11, posted (9 years 1 week 1 day 8 hours ago) and read 2835 times:

Quoting Qxq400 (Reply 9):
Now you tell me how this is possible? Our on time performance and baggage mis ques are awful. Let's not even talk about all the MX cancellations we are experiencing.

Even though the operation is not running smoothly, the load factors
have been really high for a couple of months.



First, benzene in my Perrier, and now this!
User currently offlineEA CO AS From United States of America, joined Nov 2001, 13517 posts, RR: 62
Reply 12, posted (9 years 1 week 1 day 6 hours ago) and read 2814 times:
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Quoting Qxq400 (Reply 9):
"Believe it or not, analysts are estimating an even more profitable 3Q05, with an average EPS estimate of $2.18:"

Now you tell me how this is possible? Our on time performance and baggage mis ques are awful. Let's not even talk about all the MX cancellations we are experiencing.

I don't know - especially with the costs associated with offline reprotects thanks to MIA and MCO cancellations through October. Top that off with this asinine "July Waiver Policy" and it seems as if the company's looking for a huge dropoff come 3Q reporting time.



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineQxq400 From United States of America, joined Dec 2004, 255 posts, RR: 2
Reply 13, posted (9 years 1 week 20 hours ago) and read 2745 times:

Quoting HikesWithEyes (Reply 11):
Even though the operation is not running smoothly, the load factors
have been really high for a couple of months.

High load factors are no guarantee of profitable flights. From what I have been told if you have low yields per pax. Your flight could still lose money, even if every seat on that flight is occupied.

Add to that the cost associated with delays/cancellations. (vouchers for food and or hotels,reimbursement of tixs, losing pax to other airlines in order to rebook paxs.) I still do not see how AAG will pull off a profitable 3 quarter. I hope that 3 months from now I am proven wrong.



Welcome baby Madison Renee
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