Thu, May 8, 8:08 PM (35 days ago)
**Alaska Air Group, Inc. (ALK) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total operating revenue increased by 9% to $3,137 million, driven by a 9% increase in passenger revenue, a 7% increase in loyalty program revenue, and a 23% increase in cargo and other revenue. - **Profit Margins:** Reported a loss before income tax of $233 million, compared to $178 million in Q1 2024. On a pro forma basis, the pretax loss for Q1 2024 was $343 million. - **Cash Flow:** Operating cash flow was $459 million, primarily from advance ticket sales and co-branded credit card agreements. Investing cash flow was -$381 million, mainly due to property and equipment expenditures and marketable securities purchases. Financing cash flow was -$236 million, primarily due to debt payments and share repurchases. - **Earnings Changes:** Basic and diluted loss per share were $1.35, compared to $1.05 in Q1 2024. - **Liquidity:** As of March 31, 2025, the company had $2.5 billion in cash and marketable securities, with an $850 million bank line-of-credit facility with no outstanding borrowings. **Operational Metrics:** - **Passenger Traffic:** Revenue passenger miles (RPMs) increased by 4%, and available seat miles (ASMs) increased by 4%. - **Load Factor:** Remained relatively stable at 81.3%, a slight decrease of 0.1 points. - **Yield:** Increased by 4.6% to 16.28 cents per RPM. - **Fuel Costs:** Economic fuel cost per gallon decreased by 13.6% to $2.61. **Trends and Uncertainties:** - **Capacity Growth:** The company anticipates capacity growth of 2-3% in Q2 2025. - **Unit Revenue:** Expected to be flat to down low single digits in Q2 2025. - **Unit Cost:** Expected to increase by mid to high single digits in Q2 2025. - **Economic Uncertainty:** The company is assessing various scenarios due to recent economic uncertainty and volatility. - **Integration:** The company is focused on the successful integration of Hawaiian Airlines into Air Group. **Future Operations Impact:** - **Fleet Plan:** The company has firm orders for 70 B737 aircraft, 9 B787-9 aircraft, and 5 E175 aircraft, with expected deliveries between 2025 and 2029. - **Debt Obligations:** The company has scheduled debt payments totaling $4,880 million over the next five years. - **Share Repurchases:** The company repurchased 1.8 million shares for $107 million in Q1 2025, with $893 million remaining under the authorized program.