News releases

Alaska Air Group delivers strong fourth quarter 2022 and full-year results
Delivered industry-leading full-year adjusted pretax margin of 7.6%;
Record annual revenue of
Employees hard work recognized with performance-based bonuses totaling 10.5% of annual pay
"2022 was a year of significant recovery and accomplishment for
- Reported net income for the fourth quarter and full year 2022 under Generally Accepted Accounting Principles (GAAP) of
$22 million , or$0.17 per diluted share, and$58 million , or$0.45 per diluted share. These results compare to net income for the fourth quarter and full year 2021 of$18 million , or$0.14 per diluted share, and$478 million , or$3.77 per diluted share. - Reported net income for the fourth quarter and full year 2022, excluding special items and mark-to-market fuel hedge accounting adjustments, of
$118 million , or$0.92 per diluted share, and$556 million , or$4.35 per diluted share. These results compare to net income for the fourth quarter and net loss for the full year 2021, excluding special items and mark-to-market fuel hedge accounting adjustments, of$31 million , or$0.24 per diluted share, and$256 million , or$2.03 per share. - Recorded
$257 million of incentive pay in 2022 earned by employees for meeting or exceeding profitability, safety and emissions targets. The payout is the richest in the 20-year history of the plan, representing nearly six weeks of pay for most employees. - Recorded
$2.5 billion in operating revenue for the fourth quarter, resulting in$9.6 billion in operating revenue for the full year 2022, the highest annual total in company history. - Received nearly
$1.5 billion in annual cash remuneration under the renewed co-brand credit card arrangement with Bank of America, the highest level in the program's history.
- Announced plans to resume share repurchases in early 2023 to offset annual dilution. Repurchases are expected to range from
$75 million to$100 million in 2023. - Ended the quarter with a debt-to-capitalization ratio of 49%, within our target range of 40% to 50%.
- Repaid
$52 million in debt in the fourth quarter, bringing total debt payments to$385 million for the full year 2022. - Held
$2.4 billion in unrestricted cash and marketable securities as ofDec. 31, 2022 .
- Retired ten Airbus A320 aircraft and nine Q400 aircraft during the fourth quarter. All remaining A320 aircraft have since been retired and all remaining Q400 aircraft will be retired by the end of
January 2023 . - Amended a previously existing aircraft purchase agreement with Boeing to convert 52 737 MAX aircraft options to firm purchases for delivery between 2024 and 2027.
Alaska also added an incremental 105 delivery positions to purchase 737 MAX aircraft between 2026 and 2030. - Received four 737-9 aircraft during the quarter, bringing the total 737-9 fleet to 37.
- Received three E175 aircraft during the quarter, bringing Horizon's total E175 fleet to 33.
- Partnered with Lyft to offer Mileage Plan members one mile for every
$1 spent on all Lyft rides in theU.S. andCanada . - Added a new Mileage Plan partner,
Mokulele Airlines , to offer guests more convenient connections within the Hawaiian Islands, starting in early 2023. - Launched the first
U.S. electronic bag tag program, enabling guests to tag their luggage through the airline's mobile app before they reach the airport. - Opened the renovated
C Concourse Lounge inSeattle , the first of several investments that will improve the lounge experience with more seating and food and beverage choices for guests inSeattle ,Portland ,San Francisco andLos Angeles .
- Donated a retired Q400 to the
Portland Community College Foundation , providing students of the Aviation Maintenance Technology and Aviation Science programs the opportunity to gain hands-on experience working on a commercial aircraft. - Completed the transition to paper cups for inflight beverages, which will replace more than 55 million plastic cups each year with a more sustainable alternative.
- Donated 55 million miles to 20 different charities through
Alaska's Care Miles program in 2022. - Created a new Diversity, Equity and Inclusion Disability Office dedicated to ensuring
Alaska becomes a leader in disability inclusion.
The following table reconciles the company's reported GAAP net income per share (EPS) for the three and twelve months ended
Three Months Ended |
|||||||
2022 |
2021 |
||||||
(in millions, except per-share amounts) |
Dollars |
Diluted EPS |
Dollars |
Diluted EPS |
|||
GAAP net income per share |
$ 22 |
$ 0.17 |
$ 18 |
$ 0.14 |
|||
Mark-to-market fuel hedge adjustments |
12 |
0.09 |
21 |
0.16 |
|||
Special items - fleet transition and other(a) |
120 |
0.93 |
(6) |
(0.05) |
|||
Special items - labor and related(b) |
(6) |
(0.04) |
2 |
0.02 |
|||
Income tax effect of reconciling items above |
(30) |
(0.23) |
(4) |
(0.03) |
|||
Non-GAAP adjusted net income (loss) per share |
$ 118 |
$ 0.92 |
$ 31 |
$ 0.24 |
Twelve Months Ended |
|||||||
2022 |
2021 |
||||||
(in millions, except per-share amounts) |
Dollars |
Diluted EPS |
Dollars |
Diluted EPS |
|||
GAAP net income per share |
$ 58 |
$ 0.45 |
$ 478 |
$ 3.77 |
|||
Payroll Support Program grant wage offset |
— |
— |
(914) |
(7.21) |
|||
Mark-to-market fuel hedge adjustments |
76 |
0.60 |
(47) |
(0.37) |
|||
Special items - fleet transition and other(a) |
496 |
3.88 |
(1) |
(0.01) |
|||
Special items - labor and related(b) |
84 |
0.66 |
(10) |
(0.08) |
|||
Income tax effect of reconciling items above |
(158) |
(1.24) |
238 |
1.87 |
|||
Non-GAAP adjusted net income (loss) per share |
$ 556 |
$ 4.35 |
$ (256) |
$ (2.03) |
(a) |
Special items - fleet transition and other in the three and twelve months ended |
(b) |
Special items - labor and related in the three and twelve months ended |
Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables. A glossary of financial terms can be found on the last page of this release.
A conference call regarding the fourth quarter and full year results will be streamed online at
References in this update to "
This news release may contain forward-looking statements subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. These statements relate to future events and involve known and unknown risks and uncertainties that may cause actual outcomes to be materially different from those indicated by our forward-looking statements, assumptions or beliefs. For a comprehensive discussion of potential risk factors, see Item 1A of the Company's Annual Report on Form 10-K for the year ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
|||||||||||
|
|||||||||||
Three Months Ended December |
Twelve Months Ended December |
||||||||||
(in millions, except per-share amounts) |
2022 |
2021 |
Change |
2022 |
2021 |
Change |
|||||
Operating Revenue |
|||||||||||
Passenger revenue |
$ 2,264 |
$ 1,715 |
32 % |
$ 8,808 |
$ 5,499 |
60 % |
|||||
Mileage Plan other revenue |
157 |
129 |
22 % |
590 |
461 |
28 % |
|||||
Cargo and other revenue |
58 |
55 |
5 % |
248 |
216 |
15 % |
|||||
Total Operating Revenue |
2,479 |
1,899 |
31 % |
9,646 |
6,176 |
56 % |
|||||
Operating Expenses |
|||||||||||
Wages and benefits |
709 |
637 |
11 % |
2,640 |
2,218 |
19 % |
|||||
Variable incentive pay |
117 |
42 |
179 % |
257 |
151 |
70 % |
|||||
Payroll Support Program grant wage offset |
— |
— |
— % |
— |
(914) |
NM |
|||||
Aircraft fuel, including hedging gains and losses |
668 |
426 |
57 % |
2,668 |
1,279 |
109 % |
|||||
Aircraft maintenance |
93 |
92 |
1 % |
424 |
364 |
16 % |
|||||
Aircraft rent |
69 |
66 |
5 % |
291 |
254 |
15 % |
|||||
Landing fees and other rentals |
146 |
141 |
4 % |
581 |
555 |
5 % |
|||||
Contracted services |
86 |
68 |
26 % |
329 |
235 |
40 % |
|||||
Selling expenses |
77 |
50 |
54 % |
295 |
173 |
71 % |
|||||
Depreciation and amortization |
105 |
100 |
5 % |
415 |
394 |
5 % |
|||||
Food and beverage service |
54 |
42 |
29 % |
197 |
139 |
42 % |
|||||
Third-party regional carrier expense |
37 |
41 |
(10) % |
182 |
147 |
24 % |
|||||
Other |
181 |
159 |
14 % |
717 |
507 |
41 % |
|||||
Special items - fleet transition and other |
120 |
(6) |
NM |
496 |
(1) |
NM |
|||||
Special items - labor and related |
(6) |
2 |
NM |
84 |
(10) |
NM |
|||||
Total Operating Expenses |
2,456 |
1,860 |
32 % |
9,576 |
5,491 |
74 % |
|||||
Operating Income |
23 |
39 |
(41) % |
70 |
685 |
(90) % |
|||||
Non-operating Income (Expense) |
|||||||||||
Interest income |
18 |
6 |
200 % |
53 |
25 |
112 % |
|||||
Interest expense |
(24) |
(27) |
(11) % |
(108) |
(128) |
(16) % |
|||||
Interest capitalized |
6 |
2 |
200 % |
14 |
11 |
27 % |
|||||
Other - net |
12 |
9 |
33 % |
50 |
36 |
39 % |
|||||
Total Non-operating Income (Expense) |
12 |
(10) |
NM |
9 |
(56) |
116 % |
|||||
Income Before Income Tax |
35 |
29 |
79 |
629 |
|||||||
Income tax expense |
13 |
11 |
21 |
151 |
|||||||
Net Income |
$ 22 |
$ 18 |
$ 58 |
$ 478 |
|||||||
Basic Earnings Per Share |
$ 0.17 |
$ 0.14 |
$ 0.46 |
$ 3.82 |
|||||||
Diluted Earnings Per Share |
$ 0.17 |
$ 0.14 |
$ 0.45 |
$ 3.77 |
|||||||
Shares used for computation: |
|||||||||||
Basic |
127.303 |
125.708 |
126.657 |
125.063 |
|||||||
Diluted |
128.470 |
127.284 |
127.899 |
126.775 |
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
|||
|
|||
As of |
2022 |
2021 |
|
ASSETS |
|||
Current Assets |
|||
Cash and cash equivalents |
$ 338 |
$ 470 |
|
Marketable securities |
2,079 |
2,646 |
|
Total cash and marketable securities |
2,417 |
3,116 |
|
Receivables - net |
296 |
546 |
|
Inventories and supplies - net |
104 |
62 |
|
Prepaid expenses and other current assets |
223 |
196 |
|
Total Current Assets |
3,040 |
3,920 |
|
Property and Equipment |
|||
Aircraft and other flight equipment |
9,053 |
8,127 |
|
Other property and equipment |
1,661 |
1,489 |
|
Deposits for future flight equipment |
670 |
384 |
|
11,384 |
10,000 |
||
Less accumulated depreciation and amortization |
4,127 |
3,862 |
|
Total Property and Equipment - Net |
7,257 |
6,138 |
|
Other Assets |
|||
Operating lease assets |
1,566 |
1,453 |
|
|
2,038 |
2,044 |
|
Other noncurrent assets |
380 |
396 |
|
Total Other Assets |
3,984 |
3,893 |
|
Total Assets |
$ 14,281 |
$ 13,951 |
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
|||
|
|||
As of |
2022 |
2021 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
Current Liabilities |
|||
Accounts payable |
$ 221 |
$ 200 |
|
Accrued wages, vacation and payroll taxes |
619 |
457 |
|
Air traffic liability |
1,180 |
1,163 |
|
Other accrued liabilities |
846 |
625 |
|
Deferred revenue |
1,123 |
912 |
|
Current portion of operating lease liabilities |
247 |
268 |
|
Current portion of long-term debt |
276 |
366 |
|
Total Current Liabilities |
4,512 |
3,991 |
|
Long-Term Debt, Net of Current Portion |
1,883 |
2,173 |
|
Noncurrent Liabilities |
|||
Long-term operating lease liabilities, net of current portion |
1,469 |
1,279 |
|
Deferred income taxes |
574 |
578 |
|
Deferred revenue |
1,374 |
1,446 |
|
Obligation for pension and post-retirement medical benefits |
348 |
305 |
|
Other liabilities |
305 |
378 |
|
Total Noncurrent Liabilities |
4,070 |
3,986 |
|
Commitments and Contingencies |
|||
Shareholders' Equity |
|||
Preferred stock, issued or outstanding |
— |
— |
|
Common stock, 2022 - 136,883,042 shares; 2021 - 135,255,808 shares, Outstanding: 2022 - 127,533,098 shares; 2021 - 125,905,864 shares |
1 |
1 |
|
Capital in excess of par value |
577 |
494 |
|
shares |
(674) |
(674) |
|
Accumulated other comprehensive loss |
(388) |
(262) |
|
Retained earnings |
4,300 |
4,242 |
|
3,816 |
3,801 |
||
Total Liabilities and Shareholders' Equity |
$ 14,281 |
$ 13,951 |
SUMMARY CASH FLOW (unaudited) |
|||||
|
|||||
(in millions) |
Year Ended |
Nine Months Ended |
Three Months Ended |
||
Cash Flows from Operating Activities: |
|||||
Net income |
$ 58 |
$ 36 |
$ 22 |
||
Non-cash reconciling items |
953 |
719 |
234 |
||
Changes in working capital |
407 |
654 |
(247) |
||
Net cash provided by operating activities |
1,418 |
1,409 |
9 |
||
Cash Flows from Investing Activities: |
|||||
Property and equipment additions |
(1,671) |
(947) |
(724) |
||
Other investing activities |
453 |
59 |
394 |
||
Net cash used in investing activities |
(1,218) |
(888) |
(330) |
||
Net cash used in financing activities |
(325) |
(296) |
(29) |
||
Net increase (decrease) in cash and cash equivalents |
(125) |
225 |
(350) |
||
Cash, cash equivalents, and restricted cash at |
494 |
494 |
719 |
||
Cash, cash equivalents, and restricted cash at end |
$ 369 |
$ 719 |
$ 369 |
(a) |
As reported in Form 10-Q for the third quarter of 2022. |
(b) |
Cash flows for the three months ended |
OPERATING STATISTICS SUMMARY (unaudited) |
|||||||||||
|
|||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||
2022 |
2021 |
Change |
2022 |
2021 |
Change |
||||||
Consolidated Operating Statistics:(a) |
|||||||||||
Revenue passengers (000) |
10,331 |
9,196 |
12.3 % |
41,468 |
32,407 |
28.0 % |
|||||
RPMs (000,000) "traffic" |
12,855 |
11,279 |
14.0 % |
51,330 |
38,598 |
33.0 % |
|||||
ASMs (000,000) "capacity" |
15,030 |
14,207 |
5.8 % |
60,773 |
52,445 |
15.9 % |
|||||
Load factor |
85.5 % |
79.4 % |
6.1 pts |
84.5 % |
73.6 % |
10.9 pts |
|||||
Yield |
17.61¢ |
15.20¢ |
15.9 % |
17.16¢ |
14.25¢ |
20.4 % |
|||||
RASM |
16.49¢ |
13.36¢ |
23.4 % |
15.87¢ |
11.78¢ |
34.8 % |
|||||
CASMex(b) |
11.14¢ |
10.12¢ |
10.1 % |
10.41¢ |
9.80¢ |
6.3 % |
|||||
Economic fuel cost per gallon(b) |
|
|
57.1 % |
|
|
69.3 % |
|||||
Fuel gallons (000,000) |
185 |
179 |
3.4 % |
758 |
656 |
15.5 % |
|||||
ASMs per gallon |
81.2 |
79.4 |
2.3 % |
80.2 |
79.9 |
0.3 % |
|||||
Departures (000) |
95 |
94 |
1.1 % |
404 |
377 |
7.2 % |
|||||
Average full-time equivalent employees |
23,195 |
21,043 |
10.2 % |
22,564 |
19,375 |
16.5 % |
|||||
Mainline Operating Statistics: |
|||||||||||
Revenue passengers (000) |
8,237 |
6,900 |
19.4 % |
31,795 |
23,268 |
36.6 % |
|||||
RPMs (000,000) "traffic" |
11,994 |
10,078 |
19.0 % |
46,812 |
33,755 |
38.7 % |
|||||
ASMs (000,000) "capacity" |
14,004 |
12,737 |
9.9 % |
55,224 |
45,741 |
20.7 % |
|||||
Load factor |
85.6 % |
79.1 % |
6.5 pts |
84.8 % |
73.8 % |
11.0 pts |
|||||
Yield |
16.39¢ |
13.97¢ |
17.3 % |
15.92¢ |
13.07¢ |
21.8 % |
|||||
RASM |
15.49¢ |
12.39¢ |
25.0 % |
14.91¢ |
10.99¢ |
35.7 % |
|||||
CASMex(b) |
10.05¢ |
9.14¢ |
10.0 % |
9.45¢ |
8.96¢ |
5.5 % |
|||||
Economic fuel cost per gallon(b) |
|
|
56.4 % |
|
|
69.2 % |
|||||
Fuel gallons (000,000) |
163 |
150 |
8.7 % |
646 |
530 |
21.9 % |
|||||
ASMs per gallon |
85.9 |
84.8 |
1.3 % |
85.5 |
86.2 |
(0.8) % |
|||||
Departures (000) |
62 |
56 |
10.7 % |
244 |
207 |
17.9 % |
|||||
Average full-time equivalent employees |
17,792 |
15,855 |
12.2 % |
17,224 |
14,366 |
19.9 % |
|||||
Aircraft utilization |
9.9 |
10.0 |
(1.0) % |
9.9 |
9.7 |
2.1 % |
|||||
Average aircraft stage length |
1,341 |
1,356 |
(1.1) % |
1,347 |
1,324 |
1.7 % |
|||||
Operating fleet(d) |
225 |
217 |
8 a/c |
225 |
217 |
8 a/c |
|||||
Regional Operating Statistics:(c) |
|||||||||||
Revenue passengers (000) |
2,094 |
2,296 |
(8.8) % |
9,673 |
9,139 |
5.8 % |
|||||
RPMs (000,000) "traffic" |
861 |
1,201 |
(28.3) % |
4,518 |
4,842 |
(6.7) % |
|||||
ASMs (000,000) "capacity" |
1,027 |
1,469 |
(30.1) % |
5,549 |
6,704 |
(17.2) % |
|||||
Load factor |
83.9 % |
81.7 % |
2.2 pts |
81.4 % |
72.2 % |
9.2 pts |
|||||
Yield |
34.66¢ |
25.57¢ |
35.5 % |
29.97¢ |
22.49¢ |
33.3 % |
|||||
RASM |
30.08¢ |
21.82¢ |
37.9 % |
25.34¢ |
17.12¢ |
48.0 % |
|||||
Departures (000) |
33 |
38 |
(13.2) % |
160 |
170 |
(5.9) % |
|||||
Operating fleet(d) |
86 |
94 |
(8) a/c |
86 |
94 |
(8) a/c |
(a) |
Except for FTEs, data includes information related to third-party regional capacity purchase flying arrangements. |
(b) |
See a reconciliation of this non-GAAP measure and Note A for a discussion of potential importance of this measure to investors in the accompanying pages. |
(c) |
Data presented includes information related to flights operated by Horizon and third-party carriers. |
(d) |
Excludes all aircraft removed from operating service. |
Given the unusual nature of 2021 and 2020, we believe that some analysis of specific financial and operational results compared to 2019 provides meaningful insight. The table below includes comparative results from 2022 to 2019.
FINANCIAL INFORMATION AND OPERATING STATISTICS - 2022 Compared with 2019 (unaudited) |
|||||||||||
|
|||||||||||
Three Months Ended |
Year Ended |
||||||||||
2022 |
2019 |
Change |
2022 |
2019 |
Change |
||||||
Passenger revenue |
$ 2,264 |
$ 2,057 |
10 % |
$ 8,808 |
$ 8,095 |
9 % |
|||||
Mileage Plan other revenue |
157 |
119 |
32 % |
590 |
465 |
27 % |
|||||
Cargo and other revenue |
58 |
52 |
12 % |
248 |
221 |
12 % |
|||||
Total Operating Revenue |
$ 2,479 |
$ 2,228 |
11 % |
$ 9,646 |
$ 8,781 |
10 % |
|||||
Operating expense, excluding fuel and |
$ 1,674 |
$ 1,500 |
12 % |
$ 6,328 |
$ 5,796 |
9 % |
|||||
Aircraft fuel, including hedging gains and |
668 |
476 |
40 % |
2,668 |
1,884 |
42 % |
|||||
Special items |
114 |
— |
NM |
580 |
38 |
NM |
|||||
Total Operating Expenses |
$ 2,456 |
$ 1,976 |
24 % |
$ 9,576 |
$ 7,718 |
24 % |
|||||
Total Non-operating Income (Expense) |
$ 12 |
$ (9) |
NM |
$ 9 |
$ (47) |
119 % |
|||||
Income Before Income Tax |
$ 35 |
$ 243 |
(86) % |
$ 79 |
$ 1,016 |
(92) % |
|||||
Consolidated Operating Statistics: |
|||||||||||
Revenue passengers (000) |
10,331 |
11,715 |
(12) % |
41,468 |
46,733 |
(11) % |
|||||
RPMs (000,000) "traffic" |
12,855 |
13,928 |
(8) % |
51,330 |
56,040 |
(8) % |
|||||
ASMs (000,000) "capacity" |
15,030 |
16,648 |
(10) % |
60,773 |
66,654 |
(9) % |
|||||
Load Factor |
85.5 % |
83.7 % |
1.8 pts |
84.5 % |
84.1 % |
0.4 pts |
|||||
Yield |
17.61¢ |
14.77¢ |
19 % |
17.16¢ |
14.45¢ |
19 % |
|||||
RASM |
16.49¢ |
13.38¢ |
23 % |
15.87¢ |
13.17¢ |
21 % |
|||||
CASMex |
11.14¢ |
9.01¢ |
24 % |
10.41¢ |
8.70¢ |
20 % |
|||||
FTEs |
23,195 |
22,506 |
3 % |
22,564 |
22,126 |
2 % |
OPERATING SEGMENTS (unaudited) |
|||||||||||||
|
|||||||||||||
Three Months Ended |
|||||||||||||
(in millions) |
Mainline |
Regional |
Horizon |
Consolidating |
|
Special |
Consolidated |
||||||
Operating Revenue |
|||||||||||||
Passenger revenue |
$ 1,966 |
$ 298 |
$ — |
$ — |
$ 2,264 |
$ — |
$ 2,264 |
||||||
CPA revenue |
— |
— |
71 |
(71) |
— |
— |
— |
||||||
Mileage Plan other revenue |
146 |
11 |
— |
— |
157 |
— |
157 |
||||||
Cargo and other revenue |
58 |
— |
— |
— |
58 |
— |
58 |
||||||
Total Operating Revenue |
2,170 |
309 |
71 |
(71) |
2,479 |
— |
2,479 |
||||||
Operating Expenses |
|||||||||||||
Operating expenses, excluding fuel |
1,408 |
243 |
92 |
(69) |
1,674 |
114 |
1,788 |
||||||
Fuel expense |
572 |
84 |
— |
— |
656 |
12 |
668 |
||||||
Total Operating Expenses |
1,980 |
327 |
92 |
(69) |
2,330 |
126 |
2,456 |
||||||
Non-operating Income (Expense) |
18 |
— |
(7) |
1 |
12 |
— |
12 |
||||||
Income (Loss) Before Income Tax |
$ 208 |
$ (18) |
$ (28) |
$ (1) |
$ 161 |
$ (126) |
$ 35 |
||||||
Pretax Margin |
6.5 % |
1.4 % |
|||||||||||
Three Months Ended |
|||||||||||||
(in millions) |
Mainline |
Regional |
Horizon |
Consolidating |
|
Special |
Consolidated |
||||||
Operating Revenue |
|||||||||||||
Passenger revenue |
$ 1,408 |
$ 307 |
$ — |
$ — |
$ 1,715 |
$ — |
$ 1,715 |
||||||
CPA revenue |
— |
— |
84 |
(84) |
— |
— |
— |
||||||
Mileage Plan other revenue |
115 |
14 |
— |
— |
129 |
— |
129 |
||||||
Cargo and other revenue |
55 |
— |
— |
— |
55 |
— |
55 |
||||||
Total Operating Revenue |
1,578 |
321 |
84 |
(84) |
1,899 |
— |
1,899 |
||||||
Operating Expenses |
|||||||||||||
Operating expenses, excluding fuel |
1,164 |
258 |
101 |
(85) |
1,438 |
(4) |
1,434 |
||||||
Fuel expense |
339 |
66 |
— |
— |
405 |
21 |
426 |
||||||
Total Operating Expenses |
1,503 |
324 |
101 |
(85) |
1,843 |
17 |
1,860 |
||||||
Non-operating Income (Expense) |
(7) |
— |
(5) |
2 |
(10) |
— |
(10) |
||||||
Income (Loss) Before Income Tax |
$ 68 |
$ (3) |
$ (22) |
$ 3 |
$ 46 |
$ (17) |
$ 29 |
||||||
Pretax Margin |
2.4 % |
1.5 % |
OPERATING SEGMENTS (unaudited) |
|||||||||||||
|
|||||||||||||
Twelve Months Ended |
|||||||||||||
(in millions) |
Mainline |
Regional |
Horizon |
Consolidating |
|
Special |
Consolidated |
||||||
Operating Revenue |
|||||||||||||
Passenger revenue |
$ 7,454 |
$ 1,354 |
$ — |
$ — |
$ 8,808 |
$ — |
$ 8,808 |
||||||
CPA revenue |
— |
— |
359 |
(359) |
— |
— |
— |
||||||
Mileage Plan other revenue |
538 |
52 |
— |
— |
590 |
— |
590 |
||||||
Cargo and other revenue |
244 |
— |
— |
4 |
248 |
— |
248 |
||||||
Total Operating Revenue |
8,236 |
1,406 |
359 |
(355) |
9,646 |
— |
9,646 |
||||||
Operating Expenses |
|||||||||||||
Operating expenses, excluding fuel |
5,216 |
1,085 |
383 |
(356) |
6,328 |
580 |
6,908 |
||||||
Fuel expense |
2,195 |
397 |
— |
— |
2,592 |
76 |
2,668 |
||||||
Total Operating Expenses |
7,411 |
1,482 |
383 |
(356) |
8,920 |
656 |
9,576 |
||||||
Non-operating Income (Expense) |
30 |
— |
(22) |
1 |
9 |
— |
9 |
||||||
Income (Loss) Before Income Tax |
$ 855 |
$ (76) |
$ (46) |
$ 2 |
$ 735 |
$ (656) |
$ 79 |
||||||
Pretax Margin |
7.6 % |
0.8 % |
|||||||||||
Twelve Months Ended |
|||||||||||||
(in millions) |
Mainline |
Regional |
Horizon |
Consolidating |
|
Special |
Consolidated |
||||||
Operating Revenue |
|||||||||||||
Passenger revenue |
$ 4,411 |
$ 1,088 |
$ — |
$ — |
$ 5,499 |
$ — |
$ 5,499 |
||||||
CPA revenue |
— |
— |
406 |
(406) |
— |
— |
— |
||||||
Mileage Plan other revenue |
402 |
59 |
— |
— |
461 |
— |
461 |
||||||
Cargo and other revenue |
212 |
— |
— |
4 |
216 |
— |
216 |
||||||
Total Operating Revenue |
5,025 |
1,147 |
406 |
(402) |
6,176 |
— |
6,176 |
||||||
Operating Expenses |
|||||||||||||
Operating expenses, excluding fuel |
4,101 |
1,096 |
373 |
(433) |
5,137 |
(925) |
4,212 |
||||||
Fuel expense |
1,065 |
261 |
— |
— |
1,326 |
(47) |
1,279 |
||||||
Total Operating Expenses |
5,166 |
1,357 |
373 |
(433) |
6,463 |
(972) |
5,491 |
||||||
Non-operating Income (Expense) |
(38) |
— |
(21) |
3 |
(56) |
— |
(56) |
||||||
Income (Loss) Before Income Tax |
$ (179) |
$ (210) |
$ 12 |
$ 34 |
$ (343) |
$ 972 |
$ 629 |
||||||
Pretax Margin |
(5.6) % |
10.2 % |
(a) |
Includes consolidating entries, |
(b) |
The Air Group Adjusted column represents the financial information that is reviewed by management to assess performance of operations and determine capital allocation and excludes certain charges. See Note A in the accompanying pages for further information. |
(c) |
Includes Payroll Support Program grant wage offsets, special items and mark-to-market fuel hedge accounting adjustments. |
GAAP TO NON-GAAP RECONCILIATIONS (unaudited) |
|||||||
|
|||||||
CASM Excluding Fuel and Special Items Reconciliation |
|||||||
Three Months Ended |
Twelve Months Ended |
||||||
(in cents) |
2022 |
2021 |
2022 |
2021 |
|||
Consolidated: |
|||||||
CASM |
16.34 ¢ |
13.09 ¢ |
15.76 ¢ |
10.47 ¢ |
|||
Less the following components: |