Alaska Air Group, parent of Alaska Airlines and Horizon Air, reported $165 million net income for the second-quarter, up 58.7% from a $104 million net income in the second-quarter of 2013.
Excluding the impact of mark-to-market fuel hedge adjustments of $13 million, the carrier reported a record second-quarter adjusted net income of $157 million, up 49.5% year-over-year compared with adjusted net income of $105 million in the year-ago quarter.
Noting the second-quarter results indicate Alaska Air Group’s 21st consecutive quarterly profit and a record second-quarter result, president and CEO Brad Tilden said: “Through strong demand, a growing network and steady [customer] support … we were able to overcome the impact of substantial new competition.”
Alaska Air Group’s total consolidated operating revenue for the second quarter was $1.4 billion, up 9.5% year-over-year. Expenses grew 2.8% year-over-year, to $1.1 billion, producing second-quarter operating income of $265 million, up 56.8% compared with the year-ago quarter.
Alaska’s second-quarter mainline passenger traffic grew 4.5% year-over-year to 7 billion RPMs on a 4.5% capacity rise to 8.1 billion ASMs. The mainline passenger load factor for the second quarter came to 86.8%, down 0.1 point from the year-ago quarter. Mainline passengers came to 5,307,000, up 4.6% year-over-year. Mainline yield rose 4.1% year-over-year to 13.86 cents. CASM ex-fuel grew 1.2% year-over-year to 7.44 cents.
Regional operating results—reflecting the second-quarter performance of Alaska Air Group subsidiary Horizon Air and third-party carriers—reflected a 10.5% year-over-year rise in traffic to 725 million RPMs. Capacity was up 11.2% year-over-year to 894 million ASMs, leading to a passenger load factor of 81.2%, down 0.4 point from the second quarter of 2013. Alaska’s regional carriers had 2,046,000 passengers during the second quarter, up 7.3% year-over-year from 1,907,000 passengers in the June 2013 quarter. Regional yield fell 5.9% year-over-year to 27.55 cents.
As of June 30, the company reported a mainline operating fleet of 134 aircraft, a gain of six aircraft compared to the June 2013 quarter. Regional carrier Horizon Air reported 51 aircraft in its fleet for the second quarter, a gain of three aircraft since the year-ago quarter.