NYSE$ALK

Alaska Air Group Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Alaska Air Group reported financial results for the first quarter ending March 31, 2023, showing a return to pre-pandemic levels of flying and progress on its roadmap to profitable growth.

Alaska Air Group reported a net loss of $142 million for Q1 2023, but excluding special items and fuel hedge adjustments, the net loss was $79 million. The company is on track to meet its full-year financial targets, including an adjusted pre-tax margin of 9% to 12%.

  • Returned to pre-pandemic levels of flying with a roadmap to profitable growth on track.
  • Productivity improved by 6% and pilot training throughput doubled over the prior year.
  • Resumed the share repurchase program, buying back 413,554 shares for $18 million.
  • Activated new benefits for Alaska Visa Signature cardholders, driving cash remuneration up 17% year-over-year.

Headline financials

Total Revenue

$2.2B

Previous: $1.68B+30.6%
EPS (adj)

-$0.62

Previous: -$1.33+53.4%
RASM

$0.14

Previous: $0.12+14.6%
CASMex

$0.11

Previous: $0.11-0.8%
Fuel Cost per Gallon

$3.41

Previous: $2.62+30.2%
Capital Expenditures

-$124M

Previous: -$288M+56.9%
Free Cash Flow

-$266M

Previous: -$431M+38.3%
Net Income

-$142M

Previous: -$143M+0.7%
Operating Income

-$186M

Previous: -$202M+7.9%
Gross Profit

-$876M

Previous: -$558M-57.0%
Cash & Equivalents

$516M

Previous: $628M-17.8%
Total Assets

$14.3B

Previous: $14.2B+0.6%
Stock-Based Comp

$23M

Previous: $5M+360.0%

Revenue & EPS history

Alaska Air · Revenue · Quarterly

$2.2B

Q1 2023+30.6%vs Q1 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Alaska Air · $58M total across 1 segment · Q1 2023

  • Cargo and Other
    $58M+0.0%

Forward guidance

Second quarter guidance reflects the continuation of improving operational and financial performance trends that we experienced in March. For the full year, we continue to expect achievement of our previous guidance, including adjusted pre-tax margins of 9% to 12%, and earnings per share of $5.50 to $7.50.

Tailwinds

  • Capacity (ASMs) % change versus 2022: Up 6% to 9%
  • Total revenue % change versus 2022: Up 2.5% to 5.5%
  • Cost per ASM excluding fuel and special items (CASMex) % change versus 2022: Up 1% to 3%
  • Economic fuel cost per gallon: $2.95 to $3.15
  • Adjusted pre-tax margin %: 14% to 17%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.4%

Avg return

Earnings day

-1.1%

Avg return

5 days after

+1.0%

Avg return

30 days after

45%

31 / 69 earnings

Positive

+8.5%

Q4 2015

Best reaction

-17.6%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%-4.5%-5.7%
Q4 2025+4.2%+7.2%+7.6%
Q3 2025-6.1%-10.4%-15.2%
Q2 2025+0.9%-1.7%+11.4%
Q1 2025-10.1%-5.2%+10.0%
Q4 2024-2.1%+2.3%+1.9%
Q3 2024+4.1%+2.7%+11.3%
Q2 2024-8.0%-4.4%-14.1%
Q1 2024+5.4%+5.5%+1.3%
Q4 2023+2.7%+2.4%+7.9%
Q3 2023-2.0%-2.4%+12.6%
Q2 2023-10.3%-9.8%-21.0%
Q1 2023+1.7%-2.6%+2.0%
Q4 2022-0.1%+0.6%-7.3%
Q3 2022-2.0%+3.7%+11.5%
Q2 2022-1.5%-2.3%+4.7%
Q1 2022-3.6%-8.2%-21.5%
Q4 2021-0.1%+4.8%+10.1%
Q3 2021-6.0%-5.2%-7.9%
Q2 2021+1.1%+3.0%-5.6%
Q1 2021+0.6%+0.4%-1.1%
Q4 2020-7.7%-7.7%+23.9%
Q3 2020+4.7%-5.6%+20.2%
Q2 2020-3.4%-3.6%-2.4%
Q1 2020-3.3%+4.3%+47.1%
Q4 2019+2.4%-1.1%-18.9%
Q3 2019+3.9%+1.2%-0.2%
Q2 2019-1.0%-2.4%-11.7%
Q1 2019-0.3%+1.8%-0.3%
Q4 2018-0.4%+1.3%-2.1%
Q3 2018+0.6%+3.5%+13.6%
Q2 2018+7.7%+6.3%+9.7%
Q1 2018-0.2%+1.0%-10.7%
Q4 2017-0.2%-0.8%+0.4%
Q3 2017-17.6%-16.3%-17.6%
Q2 2017+1.0%-2.2%-13.3%
Q1 2017-7.1%-7.7%-5.3%
Q4 2016+4.6%+4.2%+2.7%
Q3 2016+1.5%-1.4%+8.2%
Q2 2016+1.7%+4.8%+5.6%
Q1 2016-5.9%
Q4 2015+8.5%
Q3 2015+5.8%
Q2 2015-2.3%
Q1 2015+6.2%
Q4 2014+5.6%
Q3 2014+7.3%
Q2 2014-7.9%
Q1 2014-1.5%
Q4 2013-2.7%
Q3 2013+4.7%
Q2 2013+2.3%
Q1 2013-0.4%
Q4 2012-0.1%
Q3 2012-0.2%
Q2 2012+1.8%
Q1 2012-1.3%
Q4 2011-8.2%
Q3 2011+5.2%
Q2 2011-6.0%
Q1 2010+2.6%
Q1 2011-1.5%
Q4 2010-3.1%
Q4 2008-3.1%
Q3 2009-0.3%
Q3 2010-0.3%
Q2 2009+2.7%
Q4 2009+2.7%
Q2 2010+2.7%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro