Alaska Air Group Q2 Revenue Edges Up

TL;DR

Alaska Air Group Q2 revenue up slightly to $2.1B, Mileage Plan revenue at $207M.

AI Summary

Alaska Air Group, Inc. reported its financial results for the period ending June 30, 2024. The company's passenger revenue for the second quarter of 2024 was $2.10 billion, a slight increase from $2.09 billion in the same quarter of 2023. Mileage Plan revenue also saw a modest rise to $207 million in Q2 2024 from $205 million in Q2 2023.

Why It Matters

This filing provides insight into Alaska Air Group's performance in the competitive airline industry, indicating stable revenue generation in the second quarter.

Risk Assessment

Risk Level: medium — The airline industry is subject to significant external factors like fuel prices, economic conditions, and competition, which can impact financial performance.

Key Numbers

• $2.10B — Passenger Revenue (Q2 2024)
• $2.09B — Passenger Revenue (Q2 2023)
• $207M — Mileage Plan Revenue (Q2 2024)
• $205M — Mileage Plan Revenue (Q2 2023)

Key Players & Entities

• ALASKA AIR GROUP, INC. (company) — Filer
• 20240630 (date) — Period of Report
• $2.10 billion (dollar_amount) — Passenger Revenue Q2 2024
• $2.09 billion (dollar_amount) — Passenger Revenue Q2 2023
• $207 million (dollar_amount) — Mileage Plan Revenue Q2 2024
• $205 million (dollar_amount) — Mileage Plan Revenue Q2 2023

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value ALK New York Stock Exchange
• $0 — as 126,159,173 common shares, par value $0.01, outstanding at July 31, 2024. Thi

Filing Documents

• alk-20240630.htm (10-Q) — 1863KB
• ex101-sano24topa3866.htm (EX-10.1) — 24KB
• alk10-q22024ex311.htm (EX-31.1) — 10KB
• alk10-q22024ex312.htm (EX-31.2) — 10KB
• alk10-q22024ex321.htm (EX-32.1) — 5KB
• alk10-q22024ex322.htm (EX-32.2) — 5KB
• 0000766421-24-000045.txt ( ) — 8107KB
• alk-20240630.xsd (EX-101.SCH) — 53KB
• alk-20240630_cal.xml (EX-101.CAL) — 87KB
• alk-20240630_def.xml (EX-101.DEF) — 315KB
• alk-20240630_lab.xml (EX-101.LAB) — 604KB
• alk-20240630_pre.xml (EX-101.PRE) — 456KB
• alk-20240630_htm.xml (XML) — 1264KB

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

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 24 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK 43 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 44 PART II. OTHER INFORMATION 45 ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 45 ITEM 1A.

RISK FACTORS

RISK FACTORS 45 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 45 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 45 ITEM 4. MINE SAFETY DISCLOSURES 45 ITEM 5. OTHER INFORMATION 45 ITEM 6. EXHIBITS 46

SIGNATURES

SIGNATURES 48 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) June 30, 2024 December 31, 2023 ASSETS Current Assets Cash and cash equivalents $ 1,115 $ 281 Marketable securities 1,394 1,510 Total cash and marketable securities 2,509 1,791 Receivables - net 370 383 Inventories and supplies - net 106 116 Prepaid expenses 179 176 Other current assets 212 239 Total Current Assets 3,376 2,705 Property and Equipment Aircraft and other flight equipment 10,734 10,425 Other property and equipment 1,941 1,814 Deposits for future flight equipment 383 491 13,058 12,730 Less accumulated depreciation and amortization 4,537 4,342 Total Property and Equipment - Net 8,521 8,388 Other Assets Operating lease assets 1,142 1,195 Goodwill and intangible assets 2,033 2,033 Other noncurrent assets 270 292 Total Other Assets 3,445 3,520 Total Assets $ 15,342 $ 14,613 4 CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in millions, except share amounts) June 30, 2024 December 31, 2023 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 203 $ 207 Accrued wages, vacation and payroll taxes 513 584 Air traffic liability 1,576 1,136 Other accrued liabilities 852 800 Deferred revenue 1,312 1,221 Current portion of operating lease liabilities 153 158 Current portion of long-term debt and finance leases 359 353 Total Current Liabilities 4,968 4,459 Long-Term Debt, Net of Current Portion 2,313 2,182 Noncurrent Liabilities Long-term operating lease liabilities, net of current portion 1,050 1,125 Deferred income taxes 746 695 Deferred revenue 1,329 1,382 Obligation for pension and post-retirement medical benefits 358 362 Other liabilities 352 295 Total Noncurrent Liabilities 3,835 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 unaudited Condensed Consolidated Financial Statements include the accounts of Air Group, or the Company, and its primary subsidiaries, Alaska and Horizon. The unaudited 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 Quarterly Report on 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 Annual Report on 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 June 30, 2024 and the results of operations for the three and six months ended June 30, 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 and six months ended June 30, 2024 are not necessar

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