Alaska Air Group Inc. concluded 2024 with record revenues of $11.7 billion and a GAAP pretax margin of 4.6%, marking a strong financial performance despite challenges earlier in the year.
On an adjusted basis, the full-year pretax margin of 7.1% is anticipated to be among the best in the industry, even as the company completed its acquisition of Hawaiian Airlines and navigated fleet grounding issues in the first quarter.
The consolidated results for the fourth quarter and full year include Hawaiian Airlines’ performance from September 18, 2024, onward.
Alaska Air Group reported a GAAP pretax margin of 2.2% and earnings per share (EPS) of $0.55 for the fourth quarter.
Adjusted pretax margin for the quarter was 3.9%, with adjusted EPS of $0.97, exceeding guidance by approximately $0.50 at the midpoint. For the full year, adjusted EPS reached $4.87, surpassing the higher end of the prior guidance range.
Fourth-quarter revenues outperformed expectations for both Alaska Airlines and Hawaiian Airlines, buoyed by sustained leisure demand, increased corporate travel, and strong holiday season performance.
Mild winter weather contributed to reliable operations, leading to higher-than-anticipated completion rates and load factors.
Sequential improvements in unit revenues were notable, climbing from 1% in the third quarter to 7% in the fourth quarter.
Early bookings in the first quarter of 2025 also show strong momentum, supported by stable industry capacity.
While unit costs for the fourth quarter rose 8.6% compared to pro forma 2023, the increase was mitigated by disciplined non-fuel cost management and better completion rates.
Delays in aircraft deliveries constrained capacity throughout 2024, but Alaska Air Group expects cost improvements in 2025 as resource levels and capacity normalize.
With its strong 2024 results and positive early indicators for 2025, Alaska Air Group is well-positioned to build on its momentum in the coming year.
Ben Minicucci CEO said: “This was a transformational year as we brought Hawaiian Airlines into Alaska Air Group and began our journey to unlock $1 billion in incremental pretax profit over the next three years.
“We’re proud that our incentive plan will reward Alaska Airlines and Horizon Air employees with nearly six weeks of pay, which we believe will lead the industry.
“Looking forward, our vision is clear and we’re focused on executing our strategic plan – leveraging the strengths of our combined network, enhancing the end-to-end travel experience for our guests, and delivering value for everyone who depends on us.”
