In the third quarter of 2023, Alaska Airlines (Alaska) has reported net income of US$139 million under Generally Accepted Accounting Principles (GAAP). This marks a significant increase compared to the US$40 million net income recorded in the third quarter of 2022.
When special items and mark-to-market fuel hedge accounting adjustments are excluded, the reported net income for the third quarter of 2023 amounts to US$237 million. This represents a decrease from the US$325 million reported for the third quarter of 2022.
The carrier achieved a robust operating revenue of US$2.8 billion and managed to reduce its cost per available seat mile (CASM ) excluding fuel and special items by 5% when compared to the third quarter of 2022.
During this period, Alaska Airlines repurchased 248,988 shares of common stock at a cost of approximately US$13 million, bringing the total repurchases for the nine months ending on September 30, 2023, to US$70 million.
Furthermore, the airline generated a substantial operating cash flow of US$271 million in the third quarter of 2023. As of September 30, 2023, it held a strong financial position with US$2.5 billion in unrestricted cash and marketable securities.
Notably, Alaska Airlines closed the quarter with a debt-to-capitalisation ratio of 48%, aligning with its target range of 40% to 50%. (£1.00 = US$1.22 at time of publication).
