Alaska Air(ALK) - 2025 Q1 - Quarterly Results

Financial Performance - Alaska Air Group reported a total operating revenue of $3.137 billion for Q1 2025, a 41$2.232 billion in Q1 2024[22]. - The adjusted net loss for Q1 2025 was $95 million, or$0.77 per share, compared to a net loss of $116 million, or$0.92 per share, in Q1 2024[11]. - Total operating revenue for the three months ended March 31, 2025, was $3,137 million, a 9$2,877 million in the same period of 2024[45]. - Passenger revenue increased to $2,808 million, up 9$2,585 million year-over-year[45]. - The operating loss for the three months ended March 31, 2025, was $197 million, a 39$325 million in the same period of 2024[45]. - The company reported a net loss of $166 million in Q1 2025, compared to a net loss of$132 million in Q1 2024[26]. Cash Flow and Liquidity - The company generated operating cash flow of $459 million in Q1 2025 and held$2.5 billion in unrestricted cash and marketable securities as of March 31, 2025[15]. - Net cash provided by operating activities was $459 million in Q1 2025, compared to$292 million in Q1 2024, an increase of 57.1%[26]. - Adjusted net debt decreased to $3,812 million from$3,918 million as of December 31, 2024[39]. - The debt-to-capitalization ratio remained stable at 58% for both March 31, 2025, and December 31, 2024[39]. Capacity and Operations - Capacity (ASMs) increased by approximately 3.9% in Q1 2025, exceeding prior expectations of 2.5% to 3.5% growth[5]. - Revenue passengers increased by 34.6% to 13,159,000 in Q1 2025 from 9,774,000 in Q1 2024[31]. - Revenue passenger miles (RPMs) increased by 4.0% to 17,257 million from 16,597 million in the previous year[45]. - The load factor for the three months ended March 31, 2025, was 81.3%, slightly up from 81.2% in the same period of 2024[45]. Expenses and Cost Management - Total operating expenses increased to $3,334 million in Q1 2025, up from$2,398 million in Q1 2024, a rise of 39.1%[36]. - Total operating expenses rose to $3,334 million, a 4$3,202 million in the prior year[45]. - The company reported a 10% decrease in aircraft fuel expenses, totaling $681 million compared to$759 million in the prior year[45]. - Economic fuel cost per gallon decreased by 15.3% to $2.61 in Q1 2025 from$3.08 in Q1 2024[31]. Strategic Initiatives - Alaska Air Group aims to deliver $1 billion in incremental profit by 2027 as part of its Alaska Accelerate strategic plan[2]. - The integration of Hawaiian Airlines is showing strong initial progress, with Hawaiian unit revenue increasing by 8.8$107 million in Q1 2025, with year-to-date repurchases totaling $149 million[15]. - The average full-time equivalent employees (FTEs) increased by 29.4% to 29,773 in Q1 2025 from 23,013 in Q1 2024[31].