Tag: accounting

Alaska Air Group Reports Fourth Quarter 2020 and Full-Year Results

January 26, 2021 / WIL BALDWIN

Financial Results:

Reported net loss for the fourth quarter and full year 2020 under Generally Accepted Accounting Principles (GAAP) of $430 million, or $3.47 per diluted share, and $1.3 billion, or $10.59 per diluted share. These results compare to fourth quarter 2019 net income of $181 million, or $1.46 per diluted share, and full year 2019 net income of $769 million, or $6.19 per diluted share.
Reported adjusted net loss for the fourth quarter and full year 2020, excluding payroll support program wage offsets, special items, and mark-to-market fuel hedging adjustments, of $316 million, or $2.55 per diluted share, and $1.3 billion, or $10.17 per diluted share. These results compare to fourth quarter 2019 adjusted net income of $181 million, or $1.46 per diluted share, and full year 2019 adjusted net income of $798 million, or $6.42 per diluted share.
Reported adjusted net debt of $1.7 billion, flat from December 2019 despite a 59% decline in operating revenues for the year.
Reported a debt-to-capitalization ratio, including certain short-term borrowings, of 61%.
Held $3.3 billion in unrestricted cash and marketable securities as of Dec. 31, 2020.

Liquidity and Fleet Updates:

Accessed approximately $5 billion in new liquidity in 2020, including $1.2 billion raised in the capital markets and approximately $600 million in bank financing.
Reached an agreement with the U.S. Treasury in January 2021 to receive an extension of payroll support totaling $533 million, $266 million of which was received on Jan. 15, 2021.
Extended the period available to draw funds under the CARES Act loan program from March 26, 2021 to May 28, 2021.
Announced plans to expand the mainline fleet and restructure the existing aircraft purchase agreement with Boeing. In total, Air Group will take delivery of 68 737-9 MAX aircraft between 2021 and 2024, inclusive of 32 previous purchase commitments and 13 aircraft to be leased from Air Lease Corporation.
Took delivery of Alaska’s first 737-9 MAX aircraft on January 24, 2021, which is expected to enter revenue service on March 1, 2021.
Permanently removed an additional 20 Airbus A320 aircraft from the fleet in the fourth quarter, resulting in 40 Airbus aircraft removed in 2020. A total of 31 Airbus aircraft remain in the operating fleet as of the end of the year.
Held $3.4 billion in cash and marketable securities as of Jan. 22, 2021, and total liquidity of $5.2 billion.

Operational and Guest Safety Updates

Announced seven new routes in the fourth quarter, including three “fun and sun” destinations connecting Anchorage to Las Vegas, Denver and San Francisco, and expanded service from Southern California to Austin and New York.
Eliminated change fees and extended the flexible travel policy for tickets purchased through March 31, 2021.
Implemented Next-Level Care initiative, which includes more than 100 measures designed to create a safe experience for guests and employees. These efforts were highlighted in the Alaska Safety Dance video.
Named the safest U.S. airline by AirlineRatings.com in their annual Top 20 Safest Airline report.
Launched the West Coast International Alliance with American Airlines on Jan. 1, 2021, which will unlock new benefits for Alaska Mileage Plan members in the spring.
Partnered with healthcare providers to offer rapid and standardized COVID-19 testing for those guests traveling to destinations that require a negative result.
Received diamond level certification from the Airline Passenger Experience Association for the health and safety standards Alaska and Horizon Air implemented to keep guests safe throughout their journey.
Launched pre-clearance program for guests traveling to the Hawaiian Islands from the West Coast with an approved negative COVID-19 test.
Announced a partnership with Microsoft to use sustainable aviation fuel to offset the environmental impact of certain business air travel.
Announced oneworld benefits for elite Mileage Plan members, providing tier status in the global alliance to Alaska’s elite members, as the company works toward joining oneworld on March 31, 2021.

Alaska Air Group Inc. (NYSE: ALK) today reported a fourth quarter 2020 GAAP net loss of $430 million, or $3.47 per diluted share, compared to net income of $181 million, or $1.46 per diluted share in 2019. Excluding the impact of payroll support program wage offsets, special items and mark-to-market fuel hedge adjustments, the company reported a fourth quarter adjusted net loss of $316 million, or $2.55 per diluted share, compared to adjusted net income of $181 million, or $1.46 per diluted share in the fourth quarter of 2019.

The company reported a full-year 2020 GAAP net loss of $1.3 billion, compared to net income of $769 million in the prior year. Excluding the impact of payroll support program wage offsets, special items and mark-to-market fuel hedge adjustments, the company reported an adjusted net loss of $1.3 billion, or $10.17 per diluted share for 2020, compared to adjusted net income of $798 million, or $6.42 per diluted share in 2019.

Click the link below to view the full results!

https://newsroom.alaskaair.com/2021-01-26-Alaska-Air-Group-reports-fourth-quarter-2020-and-full-year-results

Alaska Airlines Promotes Brooke Vatheuer to Vice President of Strategic Performance at Seattle Hub

March 11, 2020 / WIL BALDWIN

Alaska Airlines, Inc.’s board of directors today elected Brooke Vatheuer to the new position of vice president strategic performance – Seattle, where she will lead the airline’s growing, hometown hub at Sea-Tac International Airport.

Vatheuer, who previously served as senior vice president of operations and planning for Horizon Air, will be a champion for Alaska’s guests and employees as it continues to grow its operations at Sea-Tac. Vatheuer will be accountable for the guest experience, operational metrics, gate space areas, ground staffing, air space management and employee engagement at Sea-Tac. The new leadership role reflects the airline’s continued focus on Seattle as a center of national and global connections for guests traveling for both business and leisure.

Vatheuer has more than a decade of experience at Alaska Airlines and Horizon Air. She started with Alaska in 2007 as an internal auditor and quickly took on new positions and leadership roles in the following years, including managing director of audit programs. In 2017, she joined Horizon Air as vice president of finance and planning where she oversaw operational performance, led strategic planning and continued to improve processes, collaboration and engagement among Horizon’s frontline employees.

“Brooke is a talented executive with a lengthy history of experience at Alaska Air Group managing people and operations,” said Gary Beck, Alaska’s executive vice president and chief operating officer. “She has an astute understanding of the airline business. Her work in audit, finance, analytics, strategic planning and as the head of operations at Horizon Air enables her to deeply appreciate the intricacies of an effective operation. Our guests can look forward to an improved experience at Sea-Tac airport.”

Vatheuer earned a bachelor’s degree in business administration from the University of Washington, as well as a master’s degree in professional accounting. She is a certified public accountant.

Alaska Airlines and its regional partners fly 47 million guests a year to more than 115 destinations with an average of 1,300 daily flights across the United States and to Mexico, Canada and Costa Rica. With Alaska and Alaska Global Partners, guests can earn and redeem miles on flights to more than 800 destinations worldwide. Alaska Airlines ranked “Highest in Customer Satisfaction Among Traditional Carriers in North America” in the J.D. Power North America Airline Satisfaction Study for 12 consecutive years from 2008 to 2019. Alaska Airlines and Horizon Air are subsidiaries of Alaska Air Group (NYSE: ALK).

Boeing Net Orders Slump to Lowest in Decades

January 14, 2020 / WIL BALDWIN

(Reuters) – Boeing Co <BA> reported its worst annual net orders in decades on Tuesday, along with its lowest numbers for plane deliveries in 11 years, as the grounding of its 737 MAX jet saw it fall far behind main competitor Airbus <EADSY>.

Boeing’s gross orders plunged 77% to 246 in 2019, while net orders after cancellations or conversions were just 54 airplanes compared with 893 the previous year.

After an accounting adjustment representing jets ordered in previous years but are now unlikely to be delivered, Boeing said its net total for orders this year sank to a negative 87 airplanes.

As a result, Boeing’s book-to-bill ratio, which measures orders against deliveries, came in at a negative 0.23 in 2019.

Boeing said unidentified customers canceled orders for three 787-9’s in December and another customer canceled an order for a 787-8.

Ten months after the MAX was grounded in March following two fatal crashes, Boeing still has a backlog of more than 5,400 orders for its long- and short-distance commercial jets.

By comparison, Airbus said earlier this month it racked up a net 768 orders last year after cancellations and delivered a record 863 planes.

Boeing said on Tuesday deliveries fell by 53% to 380 planes over the whole of last year, as the MAX’s grounding made it impossible for it to deliver the planes to customers, forcing it to halt production last month and lose the top spot to its European rival for the first time in eight years.

Planemakers receive most of their revenue when aircraft are delivered – minus accumulated progress payments – making final delivery crucial for their finances.

Analysts estimate that Boeing has been losing around $1 billion a month because of the grounding and it reported an almost $3 billion negative free cash flow in the third quarter. Fourth-quarter figures are due on Jan. 29.

Boeing parted ways with Chief Executive Officer Dennis Muilenburg last month as it became increasingly clear that he was making little headway in resolving the crisis.

The company is still working to fix the MAX and there is little clarity on when Boeing is likely to get the green light from regulators to bring the airplane back into service, making analysts and investors jittery about the company’s prospects in 2020.

(Reporting by Tim Hepher in Paris, and Ankit Ajmera and Rachit Vats in Bengaluru; Editing by Patrick Graham, Shounak Dasgupta and Amy Caren Daniel)

Alaska Air Group Reports Fourth Quarter 2020 and Full-Year Results

Alaska Airlines Promotes Brooke Vatheuer to Vice President of Strategic Performance at Seattle Hub

Boeing Net Orders Slump to Lowest in Decades

Archives