Alaska Air Group Sees Large Revenue Increase in First Post-Merger Quarter

By Jesse Sokolow on 26 April 2017
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DSC_0305 2Alaska Air Group reported financial results for the first quarter of 2017.

This is the first quarter that the company’s results have included those of Virgin America, which Alaska acquired on December 14, 2016.  It is important to note that Q1 2016 results do not include Virgin America.

Alaska reported net income of $99 million for Q1 2017, significantly lower than last year’s net income of $184 million. The airline said that the drop reflects the costs associated with the Virgin acquisition.

The carrier’s revenue was $1.484 billion, a 31% increase over last year’s $1.133 billion.

Passenger traffic for the quarter was 14.394 billion RPMs, or revenue passenger miles, a 36.6% increase over 8.571 billion RPMs during the first quarter of 2016. Capacity 14.394 billion ASMs, or available seat miles, 37.7% higher than 10.453 billion ASMs last year. The carrier’s load factor decreased, however, down 0.7 percentage points to 81.3% from 82%.

“With the biggest integration decisions behind us, the hard work of executing the plan now lies ahead,” said Alaska CEO Bra Tilden.

(Photo: Accura Media Group)

Related posts:

  1. Alaska Air Group Sees Increase in Traffic, Decline in Load Factor in October
  2. Alaska Sees Traffic Increase for May
  3. Alaska Air Group Sees Traffic and Load Factor Increase in January
  4. JetBlue Sees Massive Increase in First Quarter Profit

Accura News