Alaska Air Group (Alaska) has rreported financial results for its third quarter ending September 30, 2021.
The third quarter marks a significant stride forward in Alaska's path to recovery. Alaska's goal from the beginning of the pandemic has been deliberate – scaling the business back up in a measured way, leveraging the company's strong balance sheet, and running a resilient operation, all with the aim of producing consistent financial performance.
Alaska Air Group reported net income for the third quarter of 2021 under Generally Accepted Accounting Principles (GAAP) of US$194 million, compared to a net loss of US$431 million in the third quarter of 2020. The Group reported net income for the third quarter of 2021, excluding special items and mark-to-market fuel hedge accounting adjustments, of US$187 million, compared to an adjusted net loss of US$399 million in the third quarter of 2020. This quarter's adjusted results compare to the first call analyst consensus estimate of US$1.30 per share.
The Group generated adjusted pre-tax margin for the third quarter of 2021 of 12% and reported a debt-to-capitalisation ratio of 51%, a reduction of 10 points from December 31, 2020. Alaska made a US$100 million voluntary contribution to the defined benefit plan for Alaska's pilots in the third-quarter, boosting estimated combined funded status of all defined benefit plans to 94% and held US$3.2 billion in unrestricted cash and marketable securities as of September 30, 2021.
The Group prepaid US$425 million in debt from the 364-day term loan facility, bringing total debt payments to US$1.2 billion for the year (£1.00 = US$1.38 at time of publication).
