Alaska Air Group, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Alaska Air Group, Inc. filed its Q1 2024 10-Q report detailing financial performance and key balance sheet items.</b>

AI Summary

ALASKA AIR GROUP, INC. (ALK) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. Alaska Air Group, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. Key financial data for the period is presented. The report includes details on common stock, additional paid-in capital, treasury stock, accumulated other comprehensive income, and retained earnings. Information on revenue segments such as Passenger Revenue, Mileage Plan Revenue, and Cargo and Other Revenue is provided.

Why It Matters

For investors and stakeholders tracking ALASKA AIR GROUP, INC., this filing contains several important signals. This filing provides investors with the latest financial performance data for Alaska Air Group, Inc. for the first quarter of 2024, enabling informed investment decisions. The detailed breakdown of revenue and equity components offers transparency into the company's financial health and operational segments.

Risk Assessment

Risk Level: low — ALASKA AIR GROUP, INC. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain unusual or high-risk information.

Analyst Insight

Review the detailed revenue breakdown and balance sheet changes to assess the company's financial trajectory in Q1 2024.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Reporting Period End Date (Period of Report)
• 2024-05-03 — Filing Date (Filed As Of Date)

Key Players & Entities

• ALASKA AIR GROUP, INC. (company) — FILER
• ALK (company) — Ticker Symbol

FAQ

Industry Context

Alaska Air Group operates as a major airline in the United States, primarily serving Alaska, the contiguous U.S., Hawaii, and Mexico.

Regulatory Implications

The company is subject to regulations by the U.S. Department of Transportation and the Federal Aviation Administration.

What Investors Should Do

1. Analyze the revenue trends for Passenger, Mileage Plan, and Cargo segments.
2. Review changes in equity accounts (Common Stock, Retained Earnings, etc.) from the previous quarter and year.
3. Note any disclosures regarding subsequent events or other material information.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-03: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is the Q1 2024 10-Q filing, following the Q4 2023 10-K and previous quarterly filings.

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value ALK New York Stock Exchange
• $0 — as 126,891,838 common shares, par value $0.01, outstanding at April 30, 2024. Th

Filing Documents

• alk-20240331.htm (10-Q) — 1364KB
• alk10-q12024ex311.htm (EX-31.1) — 10KB
• alk10-q12024ex312.htm (EX-31.2) — 10KB
• alk10-q12024ex321.htm (EX-32.1) — 5KB
• alk10-q12024ex322.htm (EX-32.2) — 5KB
• 0000766421-24-000031.txt (&nbsp;) — 6753KB
• alk-20240331.xsd (EX-101.SCH) — 51KB
• alk-20240331_cal.xml (EX-101.CAL) — 90KB
• alk-20240331_def.xml (EX-101.DEF) — 303KB
• alk-20240331_lab.xml (EX-101.LAB) — 595KB
• alk-20240331_pre.xml (EX-101.PRE) — 441KB
• alk-20240331_htm.xml (XML) — 845KB

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

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 21 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK 35 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 36 PART II. OTHER INFORMATION 37 ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 37 ITEM 1A.

RISK FACTORS

RISK FACTORS 37 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 37 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 37 ITEM 4. MINE SAFETY DISCLOSURES 38 ITEM 5. OTHER INFORMATION 38 ITEM 6. EXHIBITS 38

SIGNATURES

SIGNATURES 38 As used in this Form 10-Q, 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." 2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Cautionary Note Regarding Forward-Looking Statements In addition to historical information, this Form 10-Q 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 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" of the Company's annual report on Form 10-K for the year ended December 31, 2023. Some of these risks include competition, labor costs, relations and availability, general economic conditions including those associated with pandemic recovery, increases in operating costs inclu

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ALASKA AIR GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in millions) March 31, 2024 December 31, 2023 ASSETS Current Assets Cash and cash equivalents $ 885 $ 281 Marketable securities 1,393 1,510 Total cash and marketable securities 2,278 1,791 Receivables - net 384 383 Inventories and supplies - net 104 116 Prepaid expenses 177 176 Other current assets 186 239 Total Current Assets 3,129 2,705 Property and Equipment Aircraft and other flight equipment 10,363 10,425 Other property and equipment 1,839 1,814 Deposits for future flight equipment 431 491 12,633 12,730 Less accumulated depreciation and amortization 4,439 4,342 Total Property and Equipment - Net 8,194 8,388 Other Assets Operating lease assets 1,174 1,195 Goodwill and intangible assets 2,033 2,033 Other noncurrent assets 283 292 Total Other Assets 3,490 3,520 Total Assets $ 14,813 $ 14,613 4 CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in millions, except share amounts) March 31, 2024 December 31, 2023 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 181 $ 207 Accrued wages, vacation and payroll taxes 481 584 Air traffic liability 1,604 1,136 Other accrued liabilities 791 800 Deferred revenue 1,313 1,221 Current portion of operating lease liabilities 158 158 Current portion of long-term debt and finance leases 301 353 Total Current Liabilities 4,829 4,459 Long-Term Debt, Net of Current Portion 2,264 2,182 Noncurrent Liabilities Long-term operating lease liabilities, net of current portion 1,098 1,125 Deferred income taxes 649 695 Deferred revenue 1,320 1,382 Obligation for pension and post-retirement medical benefits 365 362 Other liabilities 311 295 Total Noncurrent Liabilities 3,743 3,859 Commitments and Contingencies (Note 7) Shareholders' Equity Preferred stock, $ 0.01 par value, Authorized: 5,000,000 shares, none issued or outstanding — —

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) NOTE 1. GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Basis of Presentation The condensed consolidated financial statements include the accounts of Air Group, or the Company, and its primary subsidiaries, Alaska and Horizon. The condensed consolidated financial statements also include McGee Air Services (McGee), a ground services subsidiary of Alaska, and other immaterial business units. All intercompany balances and transactions have been eliminated. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information. Consistent with these requirements, this Form 10-Q does not include all the information required by GAAP for complete financial statements. It should be read in conjunction with the consolidated financial statements and accompanying notes in the Form 10-K for the year ended December 31, 2023. In the opinion of management, all adjustments have been made that are necessary to fairly present the Company's financial position as of March 31, 2024 and the results of operations for the three months ended March 31, 2024 and 2023. Such adjustments were of a normal recurring nature. Certain rows, columns, figures, or percentages may not recalculate due to rounding. In preparing these statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities, as well as the reported amounts of revenue and expenses, including impairment charges. Due to seasonal variations in the demand for air travel, the volatility of aircraft fuel prices, changes in global economic conditions, changes in the competitive environment, and other factors, operating results for the three months ended March 31, 2024 are not necessarily indicative of operating results for the entire year. Flight 1282

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