Thursday, January 22, 2015

Alaska Air Group 2014 profits up 19% to $605 million

Alaska Airlines 737-990(ER) (41732/4296) N408AS arrives at Ted Stevens International Airport (ANC/PANC) on May 5, 2013.
(Photo by Michael Carter)

Alaska Air Group, parent of Alaska Airlines and Horizon Air, posted a record full-year net profit for 2014 of $605 million, up 19.1% compared to 2013’s net profit of $508 million.

Alaska’s 2014 operating revenue grew 4.1% year-over-year to $5.37 billion. Operating expenses rose 2% year-over-year (YOY) to $4.41 billion, resulting in an operating profit for the year of $962 million, up 14.8% from $838 million in operating profit for 2013.

With the presentation of the year’s results, the group announced a $0.20 per-share dividend increase, up 60% from the 2014 third-quarter. The dividend will be paid to shareholders in March.

Alaska Air Group employees earned $116 million in incentive pay in 2014, or more than a month’s pay for most company employees. Over the past five years, the group has paid $473 million to employees in incentive pay, averaging 8.7% of annual pay.

Traffic rose 6.5% to 30.72 billion RPMs in 2014 on a 7.1% increase in capacity to 36.08 billion ASMs, producing a load factor of 85.1%, down 0.5 points from 2013. RASM grew 0.9% to 14.88¢ and CASM excluding fuel was 8.36¢, down 1.3%. Yield increased 0.7% YOY to 14.91¢.

Alaska Air Group’s fourth-quarter net income was $148 million, up 89.7% from a $73 million profit in the year-ago period. Operating revenue for the fourth quarter was $1.31 billion, up 7.9% YOY.

Fourth-quarter operating expenses were $1.06 billion, down 1.5% YOY. Operating profit for the quarter came to $242 million, up 86.2% from the 2013 fourth quarter.

(Mark Nensel - ATWOnline News)

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