Alaska Air Group, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Alaska Air Group, Inc. has filed its 2023 10-K report detailing financial performance and key balance sheet items for the fiscal years 2020-2023.</b>

AI Summary

ALASKA AIR GROUP, INC. (ALK) filed a Annual Report (10-K) with the SEC on February 14, 2024. Alaska Air Group, Inc. filed its 2023 Form 10-K on February 14, 2024, reporting on the fiscal year ending December 31, 2023. The filing covers financial data for the years 2023, 2022, and 2021, including revenue breakdowns by segment. Key financial statement components such as common stock, additional paid-in capital, treasury stock, accumulated other comprehensive income, and retained earnings are detailed for fiscal years ending 2020 through 2023. The report includes specific data points for air traffic liability and mileage plan revenue for 2023 and 2022. Passenger revenue, cargo and freight revenue, and mileage plan services other revenue are itemized for the periods 2021-2023.

Why It Matters

For investors and stakeholders tracking ALASKA AIR GROUP, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Alaska Air Group's financial health and operational results for the fiscal year 2023, allowing investors to assess performance trends and compare against prior years. The detailed breakdown of revenue streams, including passenger, cargo, and mileage plan revenue, offers insights into the company's primary income sources and their respective contributions.

Risk Assessment

Risk Level: medium — ALASKA AIR GROUP, INC. shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report. However, the airline industry is subject to significant external factors like fuel prices and economic conditions, which can introduce medium-level risks not fully detailed in this summary.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the full 10-K to understand the company's financial position and future outlook.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-14 — Filing Date (Filed as of date)
• 115 — Public Document Count (Number of documents in the filing)
• 0000766421 — Central Index Key (Filer's unique identifier)

Key Players & Entities

• ALASKA AIR GROUP, INC. (company) — Filer name
• ALK (company) — Ticker symbol
• 2023-12-31 (date) — Conformed period of report
• 2024-02-14 (date) — Filed as of date
• SEATTLE (location) — Business address city
• WA (location) — Business address state
• 19300 INTERNATIONAL BOULEVARD (address) — Business address street
• 98188 (postal_code) — Business address zip

FAQ

Key Dates

• 2024-02-14: 10-K Filing — Annual report filing date for fiscal year 2023

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 Par Value ALK New York Stock Exchange
• $53.18 — billion (based on the closing price of $53.18 per share on the New York Stock Exchang
• $10.4 b — record-breaking revenue for the year of $10.4 billion, and to produce operating cash fl
• $1.1 billion — and to produce operating cash flows of $1.1 billion. These financial results place Air Grou
• $99 — rs to purchase an additional ticket for $99 plus taxes, with no restrictions or bla
• $68 — st three years has ranged from a low of $68 per barrel in 2021 to a high of $94 in
• $94 — of $68 per barrel in 2021 to a high of $94 in 2022. For us, a $1 per barrel change
• $1 — 021 to a high of $94 in 2022. For us, a $1 per barrel change in the price of oil e
• $20 million — e price of oil equates to approximately $20 million of raw fuel expense annually based on 2
• $8 million — 2023 raw fuel expense by approximately $8 million. Refining margins, which represent th
• $12 — in prices have fluctuated from a low of $12 per barrel in 2021 to a high of $48 per
• $48 — of $12 per barrel in 2021 to a high of $48 per barrel in 2022. Our average raw f

Filing Documents

• alk-20231231.htm (10-K) — 2716KB
• ex1025-sano22topa3866.htm (EX-10.25) — 65KB
• ex1026-sano23topa3866.htm (EX-10.26) — 19KB
• ex1051-amdno24topacom0041x.htm (EX-10.51) — 15KB
• ex1058-alaskaairnqdcxdcosr.htm (EX-10.58) — 472KB
• alk10-k12312023ex21.htm (EX-21) — 8KB
• alk10-k12312023ex231.htm (EX-23.1) — 2KB
• alk10-k12312023ex311.htm (EX-31.1) — 10KB
• alk10-k12312023ex312.htm (EX-31.2) — 10KB
• alk10-k12312023ex321.htm (EX-32.1) — 5KB
• alk10-k12312023ex322.htm (EX-32.2) — 5KB
• ex971-aagclawbackpolicy.htm (EX-97.1) — 19KB
• alk-20231231_g1.jpg (GRAPHIC) — 108KB
• 0000766421-24-000012.txt (&nbsp;) — 14470KB
• alk-20231231.xsd (EX-101.SCH) — 88KB
• alk-20231231_cal.xml (EX-101.CAL) — 112KB
• alk-20231231_def.xml (EX-101.DEF) — 724KB
• alk-20231231_lab.xml (EX-101.LAB) — 1212KB
• alk-20231231_pre.xml (EX-101.PRE) — 898KB
• alk-20231231_htm.xml (XML) — 1990KB

BUSINESS

BUSINESS 4 ITEM 1A.

RISK FACTORS

RISK FACTORS 20 ITEM 1B. UNRESOLVED STAFF COMMENTS 31

C

ITEM 1 C . C YBERSECU RITY 31 ITEM 2.

PROPERTIES

PROPERTIES 32 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 33 ITEM 4. MINE SAFETY DISCLOSURES 33 PART II 33 ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES 34 ITEM 6. [RESERVED] 34 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 34 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE S ABOUT MARKET RISK 49 ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 50 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 88 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 88 ITEM 9B. OTHER INFORMATION 91 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 91 PART III 91 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 91 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 91 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT, AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT, AND RELATED STOCKHOLDER MATTERS 91 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 91 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 91 PART IV 91 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 91

6

ITEM 1 6 . FORM 10-K SUMMARY 97

SIGNATURES

SIGNATURES 98 As used in this Form 10-K, the terms "Air Group," the "Company," "our," "we" and "us" refer to Alaska Air Group, Inc. and its subsidiaries, unless the context indicates otherwise. Alaska Airlines, Inc. and Horizon Air Industries, Inc. are referred to as "Alaska" and "Horizon" and together as our "airlines." CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS In addition to historical information, this Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that predict or describe future events or trends and that do not relate solely to historical matters. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or the Company's present expectations. You should not place undue reliance on our forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond our control. Our forward-looking statements are based 2 on the information currently available to us and speak only as of the date on which this report was filed with the SEC. We expressly disclaim any obligation to issue any updates or revisions to our forward-looking statements, even if subsequent events cause our expectations to change regarding the matters discussed in those statements. For a discussion of our risk factors, see Item 1A. "Risk Factors." Some of these risks include competition, labor costs, relations and availability, general economic conditions including those associated with pandemic recovery, increases in operating costs including fuel, inability to meet cost reduction, ESG and other strategic goals, seasonal fluctuations in demand and financial results, suppl

BUSINESS

ITEM 1. BUSINESS Alaska Air Group (the "Company" or "Air Group") is a Delaware corporation incorporated in 1985 that operates two airlines, Alaska and Horizon. Alaska was organized in 1932 and incorporated in 1937 in the state of Alaska. Horizon is a Washington corporation that was incorporated and began service in 1981, and was acquired by Air Group in 1986. Air Group acquired Virgin America in 2016, then legally merged the entity with Alaska in 2018, at which time the airlines' operating certificates were also combined. The Company also includes McGee Air Services, an aviation services provider that was established as a wholly-owned subsidiary of Alaska in 2016, and other subsidiaries. Alaska and Horizon operate as separate airlines, with individual business plans, competitive factors and economic risks. We organize the business and review financial operating performance by aggregating our business in three operating segments, which are as follows: Mainline - includes scheduled air transportation on Alaska's Boeing 737 (B737) aircraft for passengers and cargo throughout the U.S., and in parts of Mexico, Costa Rica, Belize, the Bahamas, and Guatemala. Regional - includes Horizon's and other third-party carriers' scheduled air transportation on Embraer E175 (E175) aircraft for passengers across a shorter distance network within the U.S., Canada, and Mexico under capacity purchase agreements (CPA). This segment includes the actual revenue and expenses associated with regional flying, as well as an allocation of corporate overhead incurred by Air Group on behalf of the regional operations. Horizon - includes the capacity sold to Alaska under a CPA. Expenses include those typically borne by regional airlines such as crew costs, ownership costs and maintenance costs. Alaska is the fifth largest airline in the United States, offering unparalleled guest service, connectivity, and schedules from our hub markets along the West Coast. With our regional partners, we

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