Alaska Air Group, Inc. (Alaska Air) reported a record operating revenue of $10.4 billion for 2023, surpassing pre-pandemic levels and marking the highest in the company's history. The company's consolidated pretax income under GAAP was $323 million, a significant increase from $79 million in 2022. This improvement was attributed to a $780 million rise in operating revenue, partially offset by a $456 million increase in operating expenses and $80 million in non-operating expenses. The revenue growth was primarily driven by the continued recovery in air travel demand. Alaska Air temporarily grounded its fleet of 65 B737-9 aircraft due to a safety incident but has since returned them to service, excluding the aircraft involved in the accident. The company has also initiated an audit of Boeing's...Show More

Alaska Air Group, Inc. (Alaska Air) reported a record operating revenue of $10.4 billion for 2023, surpassing pre-pandemic levels and marking the highest in the company's history. The company's consolidated pretax income under GAAP was $323 million, a significant increase from $79 million in 2022. This improvement was attributed to a $780 million rise in operating revenue, partially offset by a $456 million increase in operating expenses and $80 million in non-operating expenses. The revenue growth was primarily driven by the continued recovery in air travel demand. Alaska Air temporarily grounded its fleet of 65 B737-9 aircraft due to a safety incident but has since returned them to service, excluding the aircraft involved in the accident. The company has also initiated an audit of Boeing's production quality in response to the incident. Labor agreements were reached with various employee groups, including a new contract with McGee fleet and ramp service employees and Letters of Agreement with Mainline pilots. Looking ahead, Alaska Air anticipates modest capacity growth of 3% to 5% for 2024, although this may be at the lower end due to potential Boeing delivery delays. The company estimates the grounding of the B737-9 fleet impacted results by at least $150 million but expects full-year 2024 adjusted earnings per share to range between $3.00 and $5.00. Alaska Air's top priority remains the safe return of the B737-9 fleet and the restoration of its full schedule.