Alaska Air Group reports first quarter results
May 5, 2020, 7:00 am
#1
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Alaska Air Group reports first quarter results
https://investor.alaskaair.com/news-...sults-covid-19
In terms of capacity:
In terms of cash burn: "Reduced cash burn from $400 million per month in March to $260 million in April, with the goal of reaching $200 million in June.". I believe United said they were burning $40m a day by comparison, with a goal to get to $20m/day after Oct 1st.
Neil
- Reported net loss for the first quarter of 2020 under Generally Accepted Accounting Principles (GAAP) of $232 million, or $1.87 per diluted share, compared to net income of $4 million, or $0.03 per diluted share in the first quarter of 2019.
- Reported net loss for the first quarter of 2020, excluding impairment charges, merger-related costs and mark-to-market fuel hedge accounting adjustments, of $102 million, or $0.82 per diluted share, compared to net income of $21 million or $0.17 per diluted share, in the first quarter of 2019.
- Reported impairment and other related charges of $160 million before tax related to certain aircraft, aircraft parts, and intangible assets.
- Flown capacity in April decreased more than 80% compared to the prior year, and capacity cuts in May will also be at least 80%. We continue to expect capacity cuts in June to be significant.
- Parked 156 mainline aircraft and 13 Horizon Air aircraft, and suspended flying for 8 SkyWest Airlines aircraft.
Neil
May 5, 2020, 8:28 am
#2
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Well this feels like a nugget.. originally it was only qualifying miles flown through 4/30/20, but now it looks to be all 2020 miles. Forgive me if I missed this previously:
Extended elite Mileage Plan status to all members until Dec. 31, 2021, and offered for all 2020 qualifying miles to apply to 2021 status achievement.
May 5, 2020, 8:56 am
#3
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May 5, 2020, 9:05 am
#4
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All miles flown in 2020 counting towards 2021 qualification would be pretty awesome. Also, wasn't using mark-to-market accounting? 
RIP SFO Lounge?
Suspended over $500 million in capital spending, largely through the deferral of pre-delivery aircraft payments and non-aircraft capital projects.
Last edited by JHake10; May 5, 2020 at 9:10 am
May 5, 2020, 9:35 am
#5
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May 5, 2020, 10:18 am
#7
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I can't imagine AS keeping planes they have to lease in this environment (they'll drop the leased pmVX planes as fast as they can- leasing a plane they have to park is just setting cash on fire)- the only ones they might like long term are the A321neos that VX actually bought (the economics on that plane are actually better than the 737Max9/10), but that's a really small fleet type for AS right now, and AS doesn't exactly need to buy planes these days.
May 5, 2020, 10:52 am
#8
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Recorded earnings call: https://edge.media-server.com/mmc/p/gpsi6iue
May 5, 2020, 11:50 am
#9
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Any elite-qualifying miles earned between January 1, 2020 and April 30, 2020 will be rolled over to 2021 to give you a head start on earning your status for 2022.
https://www.alaskaair.com/content/mi...rship-benefits
May 5, 2020, 12:48 pm
#10
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Not seeing it updated on the website yet. Not that they were that great at updating it before.
https://www.alaskaair.com/content/mi...rship-benefits
https://www.alaskaair.com/content/mi...rship-benefits
May 5, 2020, 12:53 pm
#11
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Given what I heard on the earnings call about their expectations for the year I'm not surprised at Megan's response to my tweet. There's no way having it only last through April made any sense for the business.
Neil
Neil
May 5, 2020, 1:06 pm
#12
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May 5, 2020, 1:16 pm
#13
Join Date: May 2013
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I can't imagine AS keeping planes they have to lease in this environment (they'll drop the leased pmVX planes as fast as they can- leasing a plane they have to park is just setting cash on fire)- the only ones they might like long term are the A321neos that VX actually bought (the economics on that plane are actually better than the 737Max9/10), but that's a really small fleet type for AS right now, and AS doesn't exactly need to buy planes these days.
May 5, 2020, 1:35 pm
#15
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In the news release, Alaska Air Group reports first quarter 2020 results; COVID-19 response, issued 05-May-2020 by Alaska Air Group over PR Newswire, we are advised by the company that in the Guests and Employees section, fourth bullet, should read "Any elite-qualifying miles earned between January 1, 2020 and April 30, 2020 will be rolled over to 2021." rather than "Extended elite Mileage Plan status to all members until Dec. 31, 2021, and offered for all 2020 qualifying miles to apply to 2021 status achievement." as originally issued inadvertently.