NYSE$ALK

Alaska Air Group Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Alaska Air Group reported strong Q3 2023 results, led the industry in completion rate, and delivered an adjusted pretax margin among the best in the industry despite West Coast fuel price headwinds.

Alaska Air Group reported a net income of $139 million, or $1.08 per share, for the third quarter of 2023. Excluding special items and mark-to-market fuel hedge accounting adjustments, net income was $237 million, or $1.83 per share. The company recorded $2.8 billion in operating revenue and reduced CASM excluding fuel and special items by 5% compared to the third quarter of 2022.

  • Reported net income for the third quarter of 2023 under Generally Accepted Accounting Principles (GAAP) of $139 million, or $1.08 per share.
  • Recorded $2.8 billion in operating revenue.
  • Reduced CASM excluding fuel and special items by 5% compared to the third quarter of 2022.
  • Finished the third quarter with an industry-leading completion rate of 99.7%.

Headline financials

Total Revenue

$2.84B

Previous: $2.83B+0.4%
EPS (adj)

$1.83

Previous: $2.53-27.7%
RASM

$0.15

Previous: $17.30-99.1%
CASMex

$0.10

Previous: $10.05-99.0%
Fuel Cost per Gallon

$3.26

Previous: $3.66-10.9%
Capital Expenditures

-$991M

Previous: -$947M-4.6%
Free Cash Flow

-$852M

Previous: -$907M+6.1%
Net Income

$139M

Previous: $40M+247.5%
Operating Income

$211M

Previous: $62M+240.3%
Gross Profit

-$925M

Previous: -$1.11B+17.0%
Cash & Equivalents

$647M

Previous: $688M-6.0%
Total Assets

$15.2B

Previous: $14.5B+4.4%
Stock-Based Comp

$17M

Previous: $13M+30.8%

Revenue & EPS history

Alaska Air · Revenue · Quarterly

$2.84B

Q3 2023+0.4%vs Q3 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Alaska Air · $62M total across 1 segment · Q3 2023

  • Cargo and Other
    $62M-7.5%

Forward guidance

Alaska Air Group provided outlook for the fourth quarter ending December 31, 2023.

Tailwinds

  • Capacity (ASMs) % change versus 2022: Up 11% to 14%
  • Total revenue % change versus 2022: Up 1% to 4%
  • Cost per ASM excluding fuel and special items (CASMex) % change versus 2022: Down 3% to 5%

Headwinds

  • Economic fuel cost per gallon: $3.30 to $3.40
  • Adjusted pretax margin %: 0% to 2%

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 Q3 2023

Historical avgQ3 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%

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