The Alaska Air Group has managed to overcome some of the major complications of the pandemic according to its third quarter 2021 financial results. The Seattle-based company, which owns Alaska Airlines and Horizon Air, has reported positive numbers compared with the same period in 2020.
Alaska Air Group’s net income for Q3 2021 is $194 million, or $1.53 per share. In comparison, the business reported a net loss of $431 million, or $3.49 per share in the same period last year.
The group’s reported Q3 2021 net income, excluding “special items and mark-to-market fuel hedge accounting adjustments,” is $187 million, or $1.47 per share. This number is against an adjusted net loss of $399 million or $3.23 per share in Q3 2020. Alaska Air adds that the quarter’s adjusted results “compare to the First Call analyst consensus estimate of $1.30 per share.”
The company notes that the figures of the results signify great progress for the market. It adds that since the beginning of the global health crisis, the firm has targeted careful redevelopment. The current numbers support this overall mission.
“We are thrilled to return to profitability this quarter, leading the industry with a 12% pretax profit margin,” said Alaska Air Group CEO Ben Minicucci, in the earning report.
“Thanks to each one of our employees for running our operation and showing remarkable care for our guests, and credit to the leadership team for laying out a measured plan and executing it with discipline. We’re all feeling the momentum and look forward to building on our strong foundation for growth in 2022 and beyond.”
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Altogether, passenger numbers have been on the right path in the United States for much of 2021. Airports across the country have been seeing between approximately one and two million travelers pass through in the last quarter, which is over double the number of fliers in the summer months last year.
Alaska Airlines has been taking advantage of the momentum. For instance, the airline just announced new routes from Boise, Idaho, which are set to start next summer. This move follows the recent revelation of a new route to Utah from Anchorage.
With the United States relaxing travel restrictions from across the pond next month, Alaska Airlines will be looking to boost its revenue even further. This month, it shared that it is expanding its network via a codeshare agreement with Iberia Airlines.
Passenger activity hasn’t hit 2019 levels yet. However, the Alaska Air Group will be glad that the figures are heading in the right direction.
What are your thoughts about the Alaska Air Group’s third quarter results? What do you make of the overall situation in the industry in the current climate? Let us know what you think of the market’s prospects in the commoner section.