Alaska Air Group Performance

Alaska Air Group Reports January 2017 Operational Results

On a combined basis, Air Group reported a 6.9 percent increase in traffic on a 7.6 percent increase in capacity compared to January 2016. Load factor decreased 0.5 points to 78.1 percent. These statistics include flights operated by Alaska, Virgin America, Horizon, and those under third-party capacity purchase agreements.

Alaska Airlines

Alaska Air Group Inc. (NYSE:  ALK) today reported January operational results on a consolidated basis, for its mainline operations operated by subsidiaries Alaska Airlines, Inc. (Alaska) and Virgin America Inc., (Virgin America), and for its regional flying operated by subsidiary Horizon Air Industries, Inc. (Horizon) and third-party regional carriers, SkyWest Airlines and Peninsula Airlines (Regional). Winter storms significantly impacted the operational performance across the network in January 2017. Detailed information is provided below.

Air Group's acquisition of Virgin America took place on Dec. 14, 2016. Operational results below include Virgin America results from pre-acquisition periods for comparative purposes.

AIR GROUP On a combined basis, Air Group reported a 6.9 percent increase in traffic on a 7.6 percent increase in capacity compared to January 2016. Load factor decreased 0.5 points to 78.1 percent. These statistics include flights operated by Alaska, Virgin America, Horizon, and those under third-party capacity purchase agreements.

The following table shows the operational results for January, compared to the prior-year period(1):

 

 

January

 
 

2017

 

2016

 

Change

 

Revenue passengers (000)

3,246

 

3,070

 

5.7%

 

Revenue passenger miles RPM (000,000) "traffic"

3,837

 

3,590

 

6.9%

 

Available seat miles ASM (000,000) "capacity"

4,911

 

4,565

 

7.6%

 

Passenger load factor

78.1%

 

78.6%

 

(0.5) pts

 

 

   

(1)

2016 information has been adjusted to include Virgin America operating results for comparison purposes.

ALASKA Alaska reported a 5.9 percent increase in traffic on a 6.4 percent increase in capacity compared to January 2016. Load factor decreased 0.3 points to 79.3 percent. Alaska also reported 77.7 percent of its flights arrived on time in January, compared to 87.0 percent reported in January 2016. 

The following table shows Alaska's operational results for January, compared to the prior-year period:

 

 

January

 
 

2017

 

2016

 

Change

 

Revenue passengers (000)

1,915

 

1,811

 

5.7%

 

RPMs (000,000)

2,638

 

2,491

 

5.9%

 

ASMs (000,000)

3,327

 

3,128

 

6.4%

 

Passenger load factor

79.3%

 

79.6%

 

(0.3) pts

 

On-time arrivals as reported to U.S. DOT

77.7%

 

87.0%

 

(9.3) pts

 

VIRGIN AMERICA Virgin America traffic increased 10.3 percent on an 11.9 percent increase in capacity compared to January 2016. Load factor decreased 1.0 point to 76.2 percent. Virgin America also reported 62.9 percent of its flights arrived on time in January, compared to 74.5 percent in January 2016. 

The following table shows Virgin America operational results for January compared to the prior-year period:

 

 

January

 
 

2017

 

2016

 

Change

 

Revenue passengers (000)

612

 

561

 

9.1%

 

RPMs (000,000)

920

 

834

 

10.3%

 

ASMs (000,000)

1,208

 

1,080

 

11.9%

 

Passenger load factor

76.2%

 

77.2%

 

(1.0) pt

 

On-time arrivals as reported to U.S. DOT

62.9%

 

74.5%

 

(11.6) pts

 

REGIONAL Regional traffic increased 5.3 percent on a similar increase in capacity compared to January 2016. Load factor was flat at 74.2 percent. Regional also reported 64.1 percent of its flights arrived on time in January, compared to 84.0 percent in January 2016. 

The following table shows regional operational results for January compared to the prior-year period:

 

 

January

 
 

2017

 

2016

 

Change

 

Revenue passengers (000)

719

 

698

 

3.0%

 

RPMs (000,000)

279

 

265

 

5.3%

 

ASMs (000,000)

376

 

357

 

5.3%

 

Passenger load factor

74.2%

 

74.2%

 

— pts

 

On-time arrivals as reported to U.S. DOT

64.1%

 

84.0%

 

(19.9) pts

 



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