Alaska Air Group has reported a net loss for the first quarter of 2024 (under generally accepted accounting principles, GAAP) of US$132 million, compared to a net loss of US$142 million for the first quarter of 2023. The reported net loss for the first quarter of 2024, excluding special items and mark-to-market fuel hedge accounting adjustments, was US$116 million compared to a net loss of US$79 million for the first quarter of the previous year.
Additionally, Alaska Air Group repurchased 561,086 shares of common stock for approximately US$21 million in the first quarter and generated US$292 million in operating cash flow. The company held US$2.3 billion in unrestricted cash and marketable securities as of March 31, 2024, and ended the quarter with a debt-to-capitalisation ratio of 47%, within the target range of 40% to 50%.
The Group’s first quarter operation and results were significantly impacted by Flight 1282 in January and the Boeing 737-9 MAX grounding which extended into February. The company has received US$162 million in initial cash compensation from Boeing to address the financial damages incurred during the first quarter.
Operational updates include the approval of the agreement to purchase Hawaiian Airlines for US$18 per share by Hawaiian shareholders, pending regulatory approval. A five-year collective bargaining agreement with approximately 1,000 Alaska Airlines employees represented by AMFA was ratified.
Inspections of all 737-9 MAX aircraft were completed and the fleet returned to service in February. Furthermore, a quality oversight programme was enhanced at the Boeing production facility to validate the work and quality of Alaska Air Group’s aircraft as they progress through the manufacturing process.
Two Embraer E175 aircraft were received during the quarter, bringing the total in the Horizon fleet to 43.
