{"id":9551,"date":"2021-01-26T21:46:08","date_gmt":"2021-01-27T03:46:08","guid":{"rendered":"http:\/\/planesintheair.com\/?p=9551"},"modified":"2021-01-26T21:58:01","modified_gmt":"2021-01-27T03:58:01","slug":"alaska-air-group-reports-fourth-quarter-2020-and-full-year-results","status":"publish","type":"post","link":"https:\/\/planesintheair.com\/?p=9551","title":{"rendered":"Alaska Air Group Reports Fourth Quarter 2020 and Full-Year Results"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>F<\/strong><strong>inancial Results:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Reported net loss for the fourth quarter and full year 2020 under Generally Accepted Accounting Principles (GAAP) of&nbsp;$430 million, or&nbsp;$3.47&nbsp;per diluted share, and&nbsp;$1.3 billion, or&nbsp;$10.59&nbsp;per diluted share. These results compare to fourth quarter 2019 net income of&nbsp;$181 million, or&nbsp;$1.46&nbsp;per diluted share, and full year 2019 net income of&nbsp;$769 million, or&nbsp;$6.19&nbsp;per diluted share.&nbsp;<\/li><li>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&nbsp;$316 million, or&nbsp;$2.55&nbsp;per diluted share, and&nbsp;$1.3 billion, or&nbsp;$10.17&nbsp;per diluted share. These results compare to fourth quarter 2019 adjusted net income of&nbsp;$181 million, or&nbsp;$1.46&nbsp;per diluted share, and full year 2019 adjusted net income of&nbsp;$798 million, or&nbsp;$6.42&nbsp;per diluted share.&nbsp;<\/li><li>Reported adjusted net debt of&nbsp;$1.7 billion, flat from&nbsp;December 2019&nbsp;despite a 59% decline in operating revenues for the year.&nbsp;<\/li><li>Reported a debt-to-capitalization ratio, including certain short-term borrowings, of 61%.&nbsp;<\/li><li>Held&nbsp;$3.3 billion&nbsp;in unrestricted cash and marketable securities as of&nbsp;Dec. 31, 2020.&nbsp;<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Liquidity and Fleet Updates:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Accessed approximately&nbsp;$5 billion&nbsp;in new liquidity in 2020, including&nbsp;$1.2 billion&nbsp;raised in the capital markets and approximately&nbsp;$600 million&nbsp;in bank financing.&nbsp;<\/li><li>Reached an agreement with the U.S. Treasury in&nbsp;January 2021&nbsp;to receive an extension of payroll support totaling&nbsp;$533 million,&nbsp;$266 million&nbsp;of which was received on&nbsp;Jan. 15, 2021.&nbsp;<\/li><li>Extended the period available to draw funds under the CARES Act loan program from&nbsp;March 26, 2021&nbsp;to&nbsp;May 28, 2021.&nbsp;<\/li><li>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.&nbsp;<\/li><li>Took delivery of&nbsp;Alaska&#8217;s&nbsp;first 737-9 MAX aircraft on&nbsp;January 24, 2021, which is expected to enter revenue service on&nbsp;March 1, 2021.&nbsp;<\/li><li>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.&nbsp;<\/li><li>Held&nbsp;$3.4 billion&nbsp;in cash and marketable securities as of&nbsp;Jan. 22, 2021, and total liquidity of&nbsp;$5.2 billion.&nbsp;<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Operational and Guest Safety Updates<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Announced seven new routes in the fourth quarter, including three &#8220;fun and sun&#8221; destinations connecting Anchorage to&nbsp;Las Vegas,&nbsp;Denver&nbsp;and&nbsp;San Francisco, and expanded service from&nbsp;Southern California&nbsp;to&nbsp;Austin&nbsp;and&nbsp;New York.&nbsp;<\/li><li>Eliminated change fees and extended the flexible travel policy for tickets purchased through&nbsp;March 31, 2021.&nbsp;<\/li><li>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&nbsp;<a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3047456-1&amp;h=421887235&amp;u=https%3A%2F%2Fyoutu.be%2Fb9w_paUjzKs&amp;a=Alaska+Safety+Dance+video\" rel=\"noreferrer noopener\">Alaska Safety Dance video<\/a>.&nbsp;<\/li><li>Named the safest U.S. airline by AirlineRatings.com in their annual Top 20 Safest Airline report.&nbsp;<\/li><li>Launched the West Coast International Alliance with American Airlines on&nbsp;Jan. 1, 2021, which will unlock new benefits for Alaska Mileage Plan members in the spring.&nbsp;<\/li><li>Partnered with healthcare providers to offer rapid and standardized COVID-19 testing for those guests traveling to destinations that require a negative result.&nbsp;<\/li><li>Received diamond level certification from the Airline Passenger Experience Association for the health and safety standards&nbsp;Alaska&nbsp;and Horizon Air implemented to keep guests safe throughout their journey.&nbsp;<\/li><li>Launched pre-clearance program for guests traveling to the Hawaiian Islands from the West Coast with an approved negative COVID-19 test.&nbsp;<\/li><li>Announced a partnership with Microsoft to use sustainable aviation fuel to offset the environmental impact of certain business air travel.&nbsp;<\/li><li>Announced&nbsp;<strong>one<\/strong>world benefits for elite Mileage Plan members, providing tier status in the global alliance to&nbsp;Alaska&#8217;s&nbsp;elite members, as the company works toward joining&nbsp;<strong>one<\/strong>world on&nbsp;March 31, 2021.&nbsp;<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Alaska Air Group Inc. (NYSE: <a href=\"https:\/\/www.zacks.com\/stock\/quote\/ALK?q=ALK\" target=\"_blank\" rel=\"noreferrer noopener\">ALK<\/a>) today reported a fourth quarter 2020 GAAP net loss of\u00a0$430 million, or\u00a0$3.47\u00a0per diluted share, compared to net income of\u00a0$181 million, or\u00a0$1.46\u00a0per 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\u00a0$316 million, or\u00a0$2.55\u00a0per diluted share, compared to adjusted net income of\u00a0$181 million, or\u00a0$1.46\u00a0per diluted share in the fourth quarter of 2019.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company reported a full-year 2020 GAAP net loss of\u00a0$1.3 billion, compared to net income of\u00a0$769 million\u00a0in the prior year.\u00a0Excluding 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\u00a0$1.3 billion, or\u00a0$10.17\u00a0per diluted share for 2020, compared to adjusted net income of\u00a0$798 million, or\u00a0$6.42\u00a0per diluted share in 2019.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Click the link below to view the full results!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a rel=\"noreferrer noopener\" href=\"https:\/\/newsroom.alaskaair.com\/2021-01-26-Alaska-Air-Group-reports-fourth-quarter-2020-and-full-year-results\" target=\"_blank\">https:\/\/newsroom.alaskaair.com\/2021-01-26-Alaska-Air-Group-reports-fourth-quarter-2020-and-full-year-results<\/a><\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-style-default\"><img loading=\"lazy\" decoding=\"async\" width=\"625\" height=\"143\" src=\"https:\/\/planesintheair.com\/wp-content\/uploads\/2021\/01\/Alaska-Horizon_Horizontal-Lockup_pms_c_Sm-jpg-1.jpg\" alt=\"\" class=\"wp-image-9553\" srcset=\"https:\/\/planesintheair.com\/wp-content\/uploads\/2021\/01\/Alaska-Horizon_Horizontal-Lockup_pms_c_Sm-jpg-1.jpg 625w, https:\/\/planesintheair.com\/wp-content\/uploads\/2021\/01\/Alaska-Horizon_Horizontal-Lockup_pms_c_Sm-jpg-1-300x69.jpg 300w, https:\/\/planesintheair.com\/wp-content\/uploads\/2021\/01\/Alaska-Horizon_Horizontal-Lockup_pms_c_Sm-jpg-1-600x137.jpg 600w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Financial Results:<\/p>\n<p>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.<br \/>\nReported 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.<br \/>\nReported adjusted net debt of $1.7 billion, flat from December 2019 despite a 59% decline in operating revenues for the year.<br \/>\nReported a debt-to-capitalization ratio, including certain short-term borrowings, of 61%.<br \/>\nHeld $3.3 billion in unrestricted cash and marketable securities as of Dec. 31, 2020.<\/p>\n<p>Liquidity and Fleet Updates:<\/p>\n","protected":false},"author":1,"featured_media":9554,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10174,797,89,5637,8222,10701,10700,10339,5992,5670,2203,5500,8651,10169,10176,1397,10173,10195,10171,868,10182,1103],"tags":[1649,11406,13471,9919,1011,1697,539,586,464,420,118,847,2523,2415,116,3282,189,160,887,41,1235,2390,11052,3998,1082,784,10634,1782,1379,2284,4315,6567,2514,3030,1483,4180,1757,2985,13040,13481,745,13482,199,214,5961,1567,4747,46,2687,2352,422,412,1401,11174,9492,2169,2096,1326,4857,2067,2547,3104,7135,190,1691,1658,7104,631,3905,3605,4353],"class_list":["post-9551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-airline","category-airline-news","category-aviation-news","category-business-news","category-consumer-news","category-coronavirus","category-covid-19","category-e-commerce","category-economic-news","category-economy-news","category-finance-news","category-frequent-flyer-news","category-joint-venture-news","category-news","category-stock-news-2","category-stock-news","category-stockairline","category-transport","category-transportation","category-transportation-news","category-travel","category-travel-news","tag-1649","tag-737-9","tag-accepted","tag-accounting","tag-act","tag-agreement","tag-air","tag-air-lease","tag-aircraft","tag-airline","tag-airlines","tag-alaska","tag-alk","tag-alliance","tag-american","tag-anchorage","tag-austin","tag-aviation","tag-bank","tag-boeing","tag-california","tag-capital","tag-cares","tag-coast","tag-colorado","tag-corporation","tag-covid-19","tag-delivery","tag-denver","tag-destinations","tag-diluted","tag-elite","tag-financial","tag-financing","tag-fleet","tag-fourth","tag-fuel","tag-full","tag-gaap","tag-generally","tag-group","tag-hedging","tag-international","tag-las-vegas","tag-liquidity","tag-market","tag-markets","tag-max","tag-members","tag-nevada","tag-new-york","tag-news","tag-nyse","tag-payroll","tag-principles","tag-program","tag-purchase","tag-quarter","tag-reports","tag-results","tag-share","tag-support","tag-testing","tag-texas","tag-transport","tag-transportation","tag-treasury","tag-u-s","tag-updates","tag-west","tag-year"],"_links":{"self":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/9551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9551"}],"version-history":[{"count":2,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/9551\/revisions"}],"predecessor-version":[{"id":9556,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/9551\/revisions\/9556"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/media\/9554"}],"wp:attachment":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}