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EIPremier
Topic Author
Posts: 1468
Joined: Wed Sep 27, 2000 8:17 am

Alaska Air Reports 79 Mil 3rd Quarter Profit

Fri Oct 22, 2004 4:45 am

http://www.alaskasworld.com/newsroom/asnews/ASstories/AS_20041021_045738.asp

Alaska Air Group, Inc. (NYSE:ALK) today reported a third quarter net income of $79.2 million, or $2.94 per diluted share, compared to net income of $40.7 million, or $1.52 per diluted share, in the third quarter of 2003.

Go AS!
 
N1120A
Posts: 26639
Joined: Sun Dec 14, 2003 5:40 pm

RE: Alaska Air Reports 79 Mil 3rd Quarter Profit

Fri Oct 22, 2004 4:47 am

Well, I don't hear them bitching about fuel costs. Good job AS and way to show people how to run an airline
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
 
ba319-131
Posts: 8317
Joined: Sat Jan 13, 2001 1:27 pm

RE: Alaska Air Reports 79 Mil 3rd Quarter Profit

Fri Oct 22, 2004 4:50 am

Good work AS,just shows get your cost base right and you can make a proft,even in this tough enviroment.
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LineMechQX
Posts: 76
Joined: Wed May 12, 2004 6:02 pm

RE: Alaska Air Reports 79 Mil 3rd Quarter Profit

Fri Oct 22, 2004 10:08 am

80 mil dollars, and they still had to lay off 900 employess, how greedy can you get? I guess no one is safe in the airline world but the CEO's hope Ayer enjoys his bonus this Christmas.

Late
PC
 
Blackhawk144
Posts: 769
Joined: Fri Aug 20, 2004 6:20 am

RE: Alaska Air Reports 79 Mil 3rd Quarter Profit

Fri Oct 22, 2004 10:14 am

As much as I love AS, I have to agree to some level with LineMecQX. I don't get the point as to why AS layed off so many employees. It's not like they're in bad financial positions are they?

Anthony
Time is the best of all teachers. Unfortunately, it kills all of its students!
 
rparker537
Posts: 41
Joined: Thu Sep 16, 2004 12:45 pm

RE: Alaska Air Reports 79 Mil 3rd Quarter Profit

Fri Oct 22, 2004 11:53 am

Yes, you're right -- God forbid an airline turn a profit. These things are supposed to lose shareholder money and go bankrupt. What a shame that a carrier is making money. We should definitely penalize management for this.

[end sarcasm]

It's really quite simple - you reward management for saving money. If an airline, or any other company, has redundancies or extra costs, it should cut them. It's doing the layoffs that is preventing them from being in bad shape. Management should be rewarded for creating shareholder value, which is what management and boards are legally obligated to do.
 
BH346
Posts: 3164
Joined: Mon Jan 31, 2000 5:50 am

RE: Alaska Air Reports 79 Mil 3rd Quarter Profit

Fri Oct 22, 2004 12:11 pm

Great news for Alaska Airlines. It's interesting that an airline that many consider "premium" is one of the few pulling a profit in today's market where cheaper always seems to be better. They seem to be an efficient and well-run airline.
Northwest Airlines - Some People Just Know How to Fly
 
717-200
Posts: 564
Joined: Mon Oct 09, 2000 1:29 am

RE: Alaska Air Reports 79 Mil 3rd Quarter Profit

Fri Oct 22, 2004 1:14 pm

I will not trust the Seattle Times anymore when it comes to covering AS, considering the pessimistic front page article about them this past Sunday.
72S 733 734 735 73G 738 742 752 763 E190 M82 M83
 
737-990
Posts: 341
Joined: Tue Apr 04, 2000 3:41 pm

RE: Alaska Air Reports 79 Mil 3rd Quarter Profit

Sat Oct 23, 2004 12:06 am

Just to put a few things in perspective, the amount does include almost $25 million in misc. gains not related to the operation, once those are taken out operational profit is around $55 million. One should also take into consideration that the Q3 is the best in the year and Alaska is still forcasted to report a loss for the year, so while the numbers look great don't be fooled into thinking that the layoffs and cost cuts are no longer necessary. One quater does not make for a profitable operation but the trend is in the right direction.
Happiest is a man who has his vocation as a hobby
 
whlinder
Posts: 58
Joined: Fri Jun 02, 2000 12:47 am

RE: Alaska Air Reports 79 Mil 3rd Quarter Profit

Sat Oct 23, 2004 12:10 am

Greedy? AS exists to make money for its shareholders, not to be a welfare office for employees.

Good for AS to turn a nice profit, at least for 1 quarter.
 
dash8tech
Posts: 708
Joined: Mon Jul 05, 1999 8:40 pm

RE: Alaska Air Reports 79 Mil 3rd Quarter Profit

Sat Oct 23, 2004 12:30 am

737-990 well said, you beat me to it.

LineMechQX you should know better than that hearing all the explanations around here about why the numbers are seemingly so impressive - it's all money we have to legally account for due to hedging, credits, etc etc. In other words, if we sold all the fuel we've got hedged then we have the cash.
 
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GEG
Posts: 308
Joined: Wed Oct 20, 2004 11:45 am

RE: Alaska Air Reports 79 Mil 3rd Quarter Profit

Sat Oct 23, 2004 12:57 am

I can see why they had such a good quarter, have you heard any of their commercials on the radio? They are horrible!!
I have no idea what I'm doing...
 
BlatantEcho
Posts: 2132
Joined: Wed Sep 27, 2000 10:11 am

RE: Alaska Air Reports 79 Mil 3rd Quarter Profit

Sat Oct 23, 2004 1:25 am

yeah, the Times, painted a really dark picture for AS. We'll see how it turns out......
 
Lono
Posts: 1136
Joined: Sun Apr 04, 2004 5:47 pm

RE: Alaska Air Reports 79 Mil 3rd Quarter Profit

Sat Oct 23, 2004 10:34 am

The SEA times article was gloomy.... but they got the gloom from AS management.....

I think AS management is concerned about the future and the picture they see of the future is not very bright..... competition is headed their way and they are worried about survival... if anyone thinks AS is imune from competition... then they don't know much about this business... and how the tides or fortune can change in a heart beat....
Wally Bird Ruled the Skys!
 
User avatar
flashmeister
Posts: 2686
Joined: Fri Apr 28, 2000 4:32 am

RE: Alaska Air Reports 79 Mil 3rd Quarter Profit

Sat Oct 23, 2004 5:02 pm

Wow, LineMech and Blackhawk, I'm surprised that you don't get it. There was a (technical) profit last quarter, but AS is nearing the coffin corner:

- 2nd highest industry CASM (I think... I know it's up in the top 3 at least)
- No relief in sight for fuel costs
- Entering more aggressive markets on the East Coast
- Potential challenge to their current West Coast dominance by a new carrier.

This is not the time to be breaking even. They made the right move in slashing labor costs, even if it was painful. It's planning for the future... just because there was a profit this quarter doesn't mean we can expect on next quarter, and the folks in management have to take that into account.

Yes, the Times article was gloomy, but the facts are still the facts. AS is doing very well for where they're at, but they also see that when things get bad in this industry, they get bad quick (see NW). They're just planning ahead.
 
as739x
Posts: 5242
Joined: Tue Apr 15, 2003 7:23 am

RE: Alaska Air Reports 79 Mil 3rd Quarter Profit

Sun Oct 24, 2004 2:53 am

Well nice to see that Flashmeister/Lono/Dash8Tech have their heads on straight and see the clear picture unlike lineQX and Blackhawk. You guys need to look past the 8th grade level of numbers. But I can see by your profiles that it was not to long ago so I'll give you the benifet of the doubt. It looks like you guys have not been in this industry very long, if at all. Just cause and airline shows a profit, does not mean that they are doing well. By the way linemechQX, its was not 900 layed off. A good 3rd of thoses people took the VSI (early out) package. Its good news, but by no means is what will turn the company around. Believe me, Bill Ayers and the other officials are not enjoying this either. I met Ayers a few weeks ago and he had me sold, we are doing what we need to survive.

I agree with all of you guy about the Seattle Times. I even said in a thread about that article to never listen to it. The SEA times has ALWAYS bashed AS. There seems to be a little bad blood between AS and the Times, but no one has ever been able to explain it.
ASSFO
"Some pilots avoid storm cells and some play connect the dots!"

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