News releases

Alaska Air Group reports first quarter 2017 results
Financial Highlights:
- Reported net income for the first quarter under Generally Accepted Accounting Principles ("GAAP") of
$99 million or$0.79 per diluted share, compared to net income of$184 million , or$1.46 per diluted share in 2016. As the acquisition ofVirgin America Inc. ("Virgin America") closed onDec. 14, 2016 , first quarter 2017 information reflects the results of Virgin America, including the impacts associated with purchase accounting. First quarter 2016 results do not include Virgin America. - Reported first quarter net income, excluding merger-related costs and mark-to-market fuel hedging adjustments, of
$130 million , compared to$183 million in the first quarter of 2016. Adjusted diluted earnings per share were$1.05 , compared to$1.45 in the first quarter of 2016. This quarter's results were in line with First Call analyst consensus estimate of$1.02 per share. - Paid
$0.30 per-share quarterly cash dividend in the first quarter, a 9% increase over the dividend paid in the first quarter of 2016. - Total assets surpassed
$10 billion for the first time inAir Group's history. - Generated approximately
$470 million of operating cash flow and used approximately$215 million for capital expenditures, resulting in$255 million of free cash flow in the first quarter of 2017. - Held
$1.7 billion in unrestricted cash and marketable securities as ofMarch 31, 2017 .
Operational Accomplishments and Highlights:
- Released the single largest new market announcement in
Air Group's history, adding 20 new nonstop markets fromSan Francisco International ("SFO"),San Jose International ("SJC") andSan Diego ("SAN"). In total, announced 26 and launched six new routes during the quarter, highlighting the primary purpose of the Virgin America acquisition, which is to grow the combined airline and become the premier carrier for guests on theWest Coast . - Reached a tentative agreement with the
International Brotherhood of Teamsters to amend the eight-year contract withHorizon Air's pilots, which will provide Horizon the ability to attract and retain the best pilots in the regional industry. - Granted "Single Carrier Determination" by the National Mediation Board ("NMB") for
Alaska Airlines and Virgin America, paving the way for labor integration and union representation. The NMB officially certified theAssociation of Flight Attendants as the union representative for Virgin America inflight teammates. - Took delivery of the first of 33 E175s to be flown by subsidiary
Horizon Air . - Became the first airline to take delivery of the Airbus A321neo in
April 2017 . The aircraft is the first of five scheduled for delivery through 2017. - Launched various new in-flight amenities, including Free Chat, upgraded food and beverage options and Premium Class service.
Added Condor Airlines as an Alaska Mileage Plan partner.Alaska Airlines : Ranked No. 1 in the "Airline Quality Rating" of performance and quality for 2016—a study performed byEmbry-Riddle Aeronautical University focused on four major areas of airline performance aspects important to air travel consumers.Alaska Airlines : Named one of top ten airlines in the world byTripAdvisor in 2017 Travelers' Choice awards.Alaska Airlines : Won the "Best Rewards Program" for Alaska Mileage Plan for carriers in the "Americas " region in the sixth annual FlyerTalk Award.
"We are pleased to report a solid profit for the first quarter," said
The following table reconciles the company's reported GAAP net income and earnings per diluted share ("diluted EPS") during the first quarters of 2017 and 2016 to adjusted amounts:
Three Months Ended March 31, |
|||||||||||||||
2017 |
2016 |
||||||||||||||
(in millions, except per-share amounts) |
Dollars |
Diluted EPS |
Dollars |
Diluted EPS |
|||||||||||
Reported GAAP net income |
$ |
99 |
$ |
0.79 |
$ |
184 |
$ |
1.46 |
|||||||
Mark-to-market fuel hedge adjustments |
10 |
0.08 |
(2) |
(0.02) |
|||||||||||
Special items—merger-related costs |
40 |
0.33 |
— |
— |
|||||||||||
Income tax effect on special items and fuel hedge adjustments |
(19) |
(0.15) |
1 |
0.01 |
|||||||||||
Non-GAAP adjusted income and per-share amounts |
$ |
130 |
$ |
1.05 |
$ |
183 |
$ |
1.45 |
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 first quarter results will be simulcast online at
References in this news release 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, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, 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 any forward-looking statements. 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) |
||||||||||
Alaska Air Group, Inc. |
||||||||||
As the acquisition closed on December 14, 2016, amounts presented below include Virgin America results for the three months ended March 31, 2017 but not for the prior period. |
||||||||||
Three Months Ended March 31, |
||||||||||
(in millions, except per-share amounts) |
2017 |
2016 |
Change(a) |
|||||||
Operating Revenues: |
||||||||||
Passenger |
||||||||||
Mainline |
$ |
1,272 |
$ |
927 |
37 |
% |
||||
Regional |
212 |
206 |
3 |
% |
||||||
Total passenger revenue |
1,484 |
1,133 |
31 |
% |
||||||
Freight and mail |
24 |
24 |
— |
% |
||||||
Other—net |
241 |
190 |
27 |
% |
||||||
Total Operating Revenues |
1,749 |
1,347 |
30 |
% |
||||||
Operating Expenses: |
||||||||||
Wages and benefits |
448 |
336 |
33 |
% |
||||||
Variable incentive pay |
31 |
32 |
(3) |
% |
||||||
Aircraft fuel, including hedging gains and losses |
339 |
167 |
103 |
% |
||||||
Aircraft maintenance |
87 |
68 |
28 |
% |
||||||
Aircraft rent |
65 |
29 |
124 |
% |
||||||
Landing fees and other rentals |
115 |
80 |
44 |
% |
||||||
Contracted services |
81 |
60 |
35 |
% |
||||||
Selling expenses |
81 |
49 |
65 |
% |
||||||
Depreciation and amortization |
90 |
88 |
2 |
% |
||||||
Food and beverage service |
45 |
31 |
45 |
% |
||||||
Third-party regional carrier expense |
27 |
23 |
17 |
% |
||||||
Special items—merger-related costs |
40 |
— |
NM |
|||||||
Other |
134 |
94 |
43 |
% |
||||||
Total Operating Expenses |
1,583 |
1,057 |
50 |
% |
||||||
Operating Income |
166 |
290 |
(43) |
% |
||||||
Nonoperating Income (Expense): |
||||||||||
Interest income |
7 |
6 |
||||||||
Interest expense |
(25) |
(13) |
||||||||
Interest capitalized |
4 |
8 |
||||||||
Other—net |
— |
1 |
||||||||
Total Nonoperating Income (Expense) |
(14) |
2 |
(800) |
% |
||||||
Income Before Income Tax |
152 |
292 |
||||||||
Income tax expense |
53 |
108 |
||||||||
Net Income |
$ |
99 |
$ |
184 |
(46) |
% |
||||
Basic Earnings Per Share: |
$ |
0.80 |
$ |
1.47 |
(46) |
% |
||||
Diluted Earnings Per Share: |
$ |
0.79 |
$ |
1.46 |
(46) |
% |
||||
Shares Used for Computation: |
||||||||||
Basic |
123.495 |
124.550 |
(1) |
% |
||||||
Diluted |
124.299 |
125.328 |
(1) |
% |
||||||
Cash dividend declared per share: |
$ |
0.300 |
$ |
0.275 |
(a) |
See Combined Comparative information in the accompanying pages for year-over-year comparisons including Virgin America. |
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
|||||||
Alaska Air Group, Inc. |
|||||||
(in millions) |
March 31, 2017 |
December 31, 2016 |
|||||
Cash and marketable securities |
$ |
1,710 |
$ |
1,580 |
|||
Total current assets |
2,213 |
2,050 |
|||||
Property and equipment—net |
5,809 |
5,666 |
|||||
Goodwill |
1,942 |
1,934 |
|||||
Intangible assets |
139 |
143 |
|||||
Other assets |
199 |
169 |
|||||
Total assets |
10,302 |
9,962 |
|||||
Air traffic liability |
1,218 |
849 |
|||||
Current portion of long-term debt |
332 |
319 |
|||||
Other current liabilities |
1,285 |
1,367 |
|||||
Current liabilities |
2,835 |
2,535 |
|||||
Long-term debt |
2,531 |
2,645 |
|||||
Other liabilities and credits |
1,922 |
1,851 |
|||||
Shareholders' equity |
3,014 |
2,931 |
|||||
Total liabilities and shareholders' equity |
$ |
10,302 |
$ |
9,962 |
|||
Debt-to-capitalization ratio, adjusted for operating leases(a) |
58 |
% |
59 |
% |
|||
Number of common shares outstanding |
123.729 |
123.328 |
(a) |
Calculated using the present value of remaining aircraft lease payments. |
OPERATING STATISTICS SUMMARY (unaudited) |
|||||
Alaska Air Group, Inc. |
|||||
As the acquisition closed on December 14, 2016, Consolidated and Mainline amounts presented below include Virgin America results for the three months ended March 31, 2017 but not for the prior period. |
|||||
Three Months Ended March 31, |
|||||
2017 |
2016 |
Change(e) |
|||
Consolidated Operating Statistics:(a) |
|||||
Revenue passengers (000) |
10,018 |
7,835 |
27.9% |
||
RPMs (000,000) "traffic" |
11,708 |
8,571 |
36.6% |
||
ASMs (000,000) "capacity" |
14,394 |
10,453 |
37.7% |
||
Load factor |
81.3% |
82.0% |
(0.7)pts |
||
Yield |
12.68¢ |
13.22¢ |
(4.1)% |
||
PRASM |
10.31¢ |
10.84¢ |
(4.9)% |
||
RASM |
12.15¢ |
12.88¢ |
(5.7)% |
||
CASMex(b) |
8.37¢ |
8.51¢ |
(1.6)% |
||
Economic fuel cost per gallon(c) |
$1.78 |
$1.29 |
38.0% |
||
Fuel gallons (000,000) |
184 |
132 |
39.4% |
||
ASM's per gallon |
78.2 |
79.2 |
(1.3%) |
||
Average number of full-time equivalent employees (FTE) |
18,682 |
14,357 |
30.1% |
||
Mainline Operating Statistics: |
|||||
Revenue passengers (000) |
7,783 |
5,642 |
37.9% |
||
RPMs (000,000) "traffic" |
10,827 |
7,716 |
40.3% |
||
ASMs (000,000) "capacity" |
13,260 |
9,354 |
41.8% |
||
Load factor |
81.7% |
82.5% |
(0.8)pts |
||
Yield |
11.75¢ |
12.01¢ |
(2.2)% |
||
PRASM |
9.59¢ |
9.91¢ |
(3.2)% |
||
RASM |
11.44¢ |
11.99¢ |
(4.6)% |
||
CASMex(b) |
7.53¢ |
7.49¢ |
0.5% |
||
Economic fuel cost per gallon(c) |
$1.78 |
$1.28 |
39.1% |
||
Fuel gallons (000,000) |
164 |
113 |
45.1% |
||
ASM's per gallon |
80.8 |
82.8 |
(2.4%) |
||
Average number of FTE's |
15,007 |
11,123 |
34.9% |
||
Aircraft utilization |
10.8 |
10.6 |
1.9% |
||
Average aircraft stage length |
1,245 |
1,237 |
0.6% |
||
Operating fleet |
217 |
152 |
65 a/c |
||
Regional Operating Statistics:(d) |
|||||
Revenue passengers (000) |
2,234 |
2,192 |
1.9% |
||
RPMs (000,000) "traffic" |
880 |
855 |
2.9% |
||
ASMs (000,000) "capacity" |
1,134 |
1,100 |
3.1% |
||
Load factor |
77.6% |
77.7% |
(0.1)pts |
||
Yield |
24.13¢ |
24.09¢ |
0.2% |
||
PRASM |
18.73¢ |
18.72¢ |
0.1% |
||
Operating fleet |
73 |
67 |
6 a/c |
(a) |
Except for full-time equivalent employees, 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) |
See a reconciliation of economic fuel cost in the accompanying pages. |
(d) |
Data presented includes information related to flights operated by Horizon Air and third-party carriers. |
(e) |
See Combined Comparative information in the accompanying pages for year-over-year comparisons including Virgin America. |
SUPPLEMENTARY COMBINED COMPARATIVE FINANCIAL AND OPERATING INFORMATION (unaudited)
We believe that analysis of specific financial and operational results on a combined basis provides more meaningful year-over-year comparisons. The table below provides "Combined Comparative" results for the three months ended
Three Months Ended March 31, |
|||||||||
2017 |
2016 |
||||||||
As Reported |
Combined(a) |
Change |
|||||||
Combined Comparative Operating Results |
|||||||||
Passenger revenue |
$ |
1,484 |
$ |
1,462 |
2% |
||||
Other revenue |
265 |
248 |
7% |
||||||
Total Operating Revenues |
1,749 |
1,710 |
2% |
||||||
Non-fuel operating expense |
1,244 |
1,150 |
8% |
||||||
Fuel expense |
339 |
238 |
42% |
||||||
Total Operating Expenses |
1,583 |
1,388 |
14% |
||||||
Operating Income |
166 |
322 |
(48)% |
||||||
Nonoperating income (expense) |
(14) |
(2) |
600% |
||||||
Income Before Tax |
152 |
320 |
(53)% |
||||||
Special items—merger-related costs |
40 |
2 |
NM |
||||||
Mark-to-market fuel hedge adjustments |
10 |
(3) |
NM |
||||||
Adjusted Income Before Tax |
$ |
202 |
$ |
319 |
(37)% |
||||
Combined Comparative Operating Statistics |
|||||||||
Revenue passengers (in 000) |
10,018 |
9,602 |
4.3% |
||||||
RPMs (in 000,000) |
11,708 |
11,186 |
4.7% |
||||||
ASMs (in 000,000) |
14,394 |
13,719 |
4.9% |
||||||
Load Factor |
81.3 |
% |
81.5 |
% |
(0.2) pts |
||||
PRASM |
10.31 |
¢ |
10.66 |
¢ |
(3.3)% |
||||
RASM |
12.15 |
¢ |
12.47 |
¢ |
(2.6)% |
||||
CASMex |
8.37 |
¢ |
8.36 |
¢ |
0.1% |
(a) |
Refer to our Investor Update issued on April 12, 2017 on Form 8-K for further details of the calculation of the three months ended March 31, 2016 combined data. |
OPERATING SEGMENTS (unaudited) |
|||||||||||||||||||||||||||
Alaska Air Group, Inc. |
|||||||||||||||||||||||||||
As the acquisition closed on December 14, 2016, Consolidated and Mainline amounts presented below include Virgin America results for the three months ended March 31, 2017 but not for the prior period. |
|||||||||||||||||||||||||||
Three Months Ended March 31, 2017 |
|||||||||||||||||||||||||||
(in millions) |
Mainline |
Regional |
Horizon |
Consolidating |
Air Group |
Special |
Consolidated |
||||||||||||||||||||
Operating revenues |
|||||||||||||||||||||||||||
Passenger |
|||||||||||||||||||||||||||
Mainline |
$ |
1,272 |
$ |
— |
$ |
— |
$ |
— |
$ |
1,272 |
$ |
— |
$ |
1,272 |
|||||||||||||
Regional |
— |
212 |
— |
— |
212 |
— |
212 |
||||||||||||||||||||
Total passenger revenues |
1,272 |
212 |
— |
— |
1,484 |
— |
1,484 |
||||||||||||||||||||
CPA revenues |
— |
— |
97 |
(97) |
— |
— |
— |
||||||||||||||||||||
Freight and mail |
23 |
1 |
— |
— |
24 |
— |
24 |
||||||||||||||||||||
Other—net |
222 |
17 |
1 |
1 |
241 |
— |
241 |
||||||||||||||||||||
Total operating revenues |
1,517 |
230 |
98 |
(96) |
1,749 |
— |
1,749 |
||||||||||||||||||||
Operating expenses |
|||||||||||||||||||||||||||
Operating expenses, excluding fuel |
998 |
200 |
103 |
(97) |
1,204 |
40 |
1,244 |
||||||||||||||||||||
Economic fuel |
292 |
36 |
— |
1 |
329 |
10 |
339 |
||||||||||||||||||||
Total operating expenses |
1,290 |
236 |
103 |
(96) |
1,533 |
50 |
1,583 |
||||||||||||||||||||
Nonoperating income (expense) |
|||||||||||||||||||||||||||
Interest income |
7 |
— |
— |
— |
7 |
— |
7 |
||||||||||||||||||||
Interest expense |
(22) |
— |
(2) |
(1) |
(25) |
— |
(25) |
||||||||||||||||||||
Other |
3 |
— |
— |
1 |
4 |
— |
4 |
||||||||||||||||||||
Total Nonoperating income (expense) |
(12) |
— |
(2) |
— |
(14) |
— |
(14) |
||||||||||||||||||||
Income (loss) before income tax |
$ |
215 |
$ |
(6) |
$ |
(7) |
$ |
— |
$ |
202 |
$ |
(50) |
$ |
152 |
|||||||||||||
Three Months Ended March 31, 2016 |
|||||||||||||||||||||||||||
(in millions) |
Mainline |
Regional |
Horizon |
Consolidating |
Air Group |
Special |
Consolidated |
||||||||||||||||||||
Operating revenues |
|||||||||||||||||||||||||||
Passenger |
|||||||||||||||||||||||||||
Mainline |
$ |
927 |
$ |
— |
$ |
— |
$ |
— |
$ |
927 |
$ |
— |
$ |
927 |
|||||||||||||
Regional |
— |
206 |
— |
— |
206 |
— |
206 |
||||||||||||||||||||
Total passenger revenues |
927 |
206 |
— |
— |
1,133 |
— |
1,133 |
||||||||||||||||||||
CPA revenues |
— |
— |
103 |
(103) |
— |
— |
— |
||||||||||||||||||||
Freight and mail |
23 |
1 |
— |
— |
24 |
— |
24 |
||||||||||||||||||||
Other—net |
172 |
17 |
1 |
— |
190 |
— |
190 |
||||||||||||||||||||
Total operating revenues |
1,122 |
224 |
104 |
(103) |
1,347 |
— |
1,347 |
||||||||||||||||||||
Operating expenses |
|||||||||||||||||||||||||||
Operating expenses, excluding fuel |
701 |
186 |
105 |
(102) |
890 |
— |
890 |
||||||||||||||||||||
Economic fuel |
144 |
25 |
— |
— |
169 |
(2) |
167 |
||||||||||||||||||||
Total operating expenses |
845 |
211 |
105 |
(102) |
1,059 |
(2) |
1,057 |
||||||||||||||||||||
Nonoperating income (expense) |
|||||||||||||||||||||||||||
Interest income |
6 |
— |
— |
— |
6 |
— |
6 |
||||||||||||||||||||
Interest expense |
(12) |
— |
(1) |
— |
(13) |
— |
(13) |
||||||||||||||||||||
Other |
7 |
— |
— |
2 |
9 |
— |
9 |
||||||||||||||||||||
Total Nonoperating income (expense) |
1 |
— |
(1) |
2 |
2 |
— |
2 |
||||||||||||||||||||
Income (loss) before income tax |
$ |
278 |
$ |
13 |
$ |
(2) |
$ |
1 |
$ |
290 |
$ |
2 |
$ |
292 |
(a) |
The Air Group Adjusted column represents the financial information that is reviewed by management to assess performance of operations and determine capital allocation and does not include certain charges. See Note A in the accompanying pages for further information. |
(b) |
Includes merger-related costs and mark-to-market fuel-hedge accounting adjustments. |
GAAP TO NON-GAAP RECONCILIATIONS (unaudited) |
|||||
Alaska Air Group, Inc. |
|||||
As the acquisition closed on December 14, 2016, amounts presented below include Virgin America results for the three months ended March 31, 2017 but not for the prior period. |
|||||
CASM Excluding Fuel and Special Items Reconciliation |
|||||
Three Months Ended March 31, |
|||||
2017 |
2016 |
||||
Consolidated: |
|||||
CASM |
11.00 |
¢ |
10.11 |
¢ |
|
Less the following components: |
|||||
Aircraft fuel, including hedging gains and losses |
2.36 |
1.60 |
|||
Special items—merger-related costs |
0.27 |
— |
|||
CASM excluding fuel and special items |
8.37 |
¢ |
8.51 |
¢ |
|
Mainline: |
|||||
CASM |
10.11 |
¢ |
9.01 |
¢ |
|
Less the following components: |
|||||
Aircraft fuel, including hedging gains and losses |
2.28 |
1.52 |
|||
Special items—merger-related costs |
0.30 |
— |
|||
CASM excluding fuel and special items |
7.53 |
¢ |
7.49 |
¢ |
Fuel Reconciliation |
|||||||||||||||
Three Months Ended March 31, |
|||||||||||||||
2017 |
2016 |
||||||||||||||
(in millions, except for per-gallon amounts) |
Dollars |
Cost/Gallon |
Dollars |
Cost/Gallon |
|||||||||||
Raw or "into-plane" fuel cost |
$ |
325 |
$ |
1.76 |
$ |
165 |
$ |
1.26 |
|||||||
Losses on settled hedges |
4 |
0.02 |
4 |
0.03 |
|||||||||||
Consolidated economic fuel expense |
329 |
1.78 |
169 |
1.29 |
|||||||||||
Mark-to-market fuel hedge adjustment |
10 |
0.06 |
(2) |
(0.02) |
|||||||||||
GAAP fuel expense |
$ |
339 |
$ |
1.84 |
$ |
167 |
$ |
1.27 |
|||||||
Fuel gallons |
184 |
132 |
Note A: Pursuant to Regulation G, we are providing reconciliation of reported non-GAAP financial measures to their most directly comparable financial measures reported on a GAAP basis. We believe that consideration of these non-GAAP financial measures may be important to investors for the following reasons:
- By eliminating fuel expense and certain special items (including merger-related costs) from our unit metrics, we believe that we have better visibility into the results of operations and our non-fuel cost-reduction initiatives. Our industry is highly competitive and is characterized by high fixed costs, so even a small reduction in non-fuel operating costs can result in a significant improvement in operating results. In addition, we believe that all domestic carriers are similarly impacted by changes in jet fuel costs over the long run, so it is important for management (and thus investors) to understand the impact of (and trends in) company-specific cost drivers such as labor rates and productivity, airport costs, maintenance costs, etc., which are more controllable by management.
- Cost per ASM (CASM) excluding fuel and certain special items, such as merger-related costs, is one of the most important measures used by management and by the Air Group Board of Directors in assessing quarterly and annual cost performance.
- Adjusted income before income tax and CASM excluding fuel (and other items as specified in our plan documents) are important metrics for the employee incentive plan, which covers the majority of
Air Group employees. - CASM excluding fuel and certain special items is a measure commonly used by industry analysts, and we believe it is the basis by which they compare our airlines to others in the industry. The measure is also the subject of frequent questions from investors.
- Disclosure of the individual impact of certain noted items provides investors the ability to measure and monitor performance both with and without these special items. We believe that disclosing the impact of certain items, such as merger-related costs and mark-to-market hedging adjustments, is important because it provides information on significant items that are not necessarily indicative of future performance. Industry analysts and investors consistently measure our performance without these items for better comparability between periods and among other airlines.
- Although we disclose our passenger unit revenues, we do not (nor are we able to) evaluate unit revenues excluding the impact that changes in fuel costs have had on ticket prices. Fuel expense represents a large percentage of our total operating expenses. Fluctuations in fuel prices often drive changes in unit revenues in the mid-to-long term. Although we believe it is useful to evaluate non-fuel unit costs for the reasons noted above, we would caution readers of these financial statements not to place undue reliance on unit costs excluding fuel as a measure or predictor of future profitability because of the significant impact of fuel costs on our business.
Glossary of Terms
Aircraft Utilization - block hours per day; this represents the average number of hours per day our aircraft are in transit
Aircraft Stage Length - represents the average miles flown per aircraft departure
ASMs - available seat miles, or "capacity"; represents total seats available across the fleet multiplied by the number of miles flown
CASM - operating costs per ASM, or "unit cost"; represents all operating expenses including fuel and special items
CASMex - operating costs excluding fuel and special items per ASM; this metric is used to help track progress toward reduction of non-fuel operating costs since fuel is largely out of our control
Debt-to-capitalization ratio - represents adjusted debt (long-term debt plus the present value of future operating lease payments) divided by total equity plus adjusted debt
Diluted Earnings per Share - represents earnings per share ("EPS") using fully diluted shares outstanding
Diluted Shares - represents the total number of shares that would be outstanding if all possible sources of conversion, such as stock options, were exercised
Economic Fuel - best estimate of the cash cost of fuel, net of the impact of our fuel-hedging program
Free Cash Flow - total operating cash flow generated less cash paid for capital expenditures
Load Factor - RPMs as a percentage of ASMs; represents the number of available seats that were filled with paying passengers
Mainline - represents flying
PRASM - passenger revenue per ASM; commonly called "passenger unit revenue"
Productivity - number of revenue passengers per full-time equivalent employee
RASM - operating revenue per ASMs, or "unit revenue"; operating revenue includes all passenger revenue, freight & mail, Mileage Plan and other ancillary revenue; represents the average total revenue for flying one seat one mile
Regional - represents capacity purchased by
RPMs - revenue passenger miles, or "traffic"; represents the number of seats that were filled with paying passengers; one passenger traveling one mile is one RPM
Yield - passenger revenue per RPM; represents the average revenue for flying one passenger one mile
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alaska-air-group-reports-first-quarter-2017-results-300445872.html
SOURCE
Media contact: Media Relations, (206)304-0008, newsroom@alaskaair.com; Investor contact: Lavanya Sareen, Managing Director, Investor Relations, (206) 392-5656