Go Back  FlyerTalk Forums > Miles&Points > Airlines and Mileage Programs > Alaska Airlines | Mileage Plan
Reload this Page >

Alaska Air Group reports Q1 2021 financial results

Alaska Air Group reports Q1 2021 financial results

Old Apr 22, 21, 8:08 am
  #1  
Original Poster
 
Join Date: Aug 2018
Location: PDX
Programs: AS MVP Gold 75K
Posts: 1,628
Alaska Air Group reports Q1 2021 financial results

https://investor.alaskaair.com/news-...r-2021-results

Reported a net loss for the first quarter of 2021 under Generally Accepted Accounting Principles (GAAP) of
$131 million, or $1.05 per share, compared to a net loss of $232 million, or $1.89 per share in the first quarter of 2020

Not pretty, but loads are starting to increase and cash burn is improving so there is hope on the horizon.
RAD_PDX is offline  
Old Apr 22, 21, 9:47 am
  #2  
 
Join Date: Aug 2007
Location: Near SEA
Programs: UA MM, AS MVPG, Marriott Lifetime Gold
Posts: 7,914
Feels significant
RAD_PDX likes this.
bmvaughn is offline  
Old Apr 22, 21, 10:01 am
  #3  
 
Join Date: Apr 2019
Location: LAX/ONT
Programs: AS MVPG, DL Plat, Hilton Diamond, IHG Plat Ambassador, Marriott G, Hertz PC, Avis PC
Posts: 204
what about handing out a larger water bottle on longer routes, so we don't need multiple small ones? simple change.

I am not sure what counts towards Mileage Plan revenue, not much impacts there compared to passenger revenue.
simonsuo is offline  
Old Apr 22, 21, 10:05 am
  #4  
Original Poster
 
Join Date: Aug 2018
Location: PDX
Programs: AS MVP Gold 75K
Posts: 1,628
Originally Posted by simonsuo View Post
what about handing out a larger water bottle on longer routes, so we don't need multiple small ones? simple change.

I am not sure what counts towards Mileage Plan revenue, not much impacts there compared to passenger revenue.
Not likely. It will go back to pouring into cups from the large bottles to hopefully no plastic bottles at all (#FillBeforeYouFly). All of the small bottles in Y are a covid thing and I imagine will be phased out as soon as possible.
RAD_PDX is offline  
Old Apr 22, 21, 10:09 am
  #5  
 
Join Date: Apr 2003
Programs: B6 Mosaic, Bonvoy LT Titanium (x SPG LT), IHG Spire, UA Silver
Posts: 4,810
As expected, California is still down 50% in ASMs with no plan to increase capacity at the moment. They said on the call there are still plenty of available seats. Seems they will wait until later into the 2nd half of the year to see if traffic starts to return.

Will be getting up to around 32 flights to Hawaii system which is close to what they had before though the starting points will be different given that OAK-HI service is gone.

Clear that the focus will be on SEA/AK for now.

Transcons down 70% with no plans as expected to install lie flats. They would need to be selling 3/4 of lie flat seats at $1,000+ fares to make it worthwhile and they don't feel they can do that. Doesn't bode well for the near term future of their California transcons as capacity increases on competitors with premium heavy aircraft.

Last edited by sfozrhfco; Apr 22, 21 at 10:16 am
sfozrhfco is offline  
Old Apr 22, 21, 10:15 am
  #6  
Original Poster
 
Join Date: Aug 2018
Location: PDX
Programs: AS MVP Gold 75K
Posts: 1,628
Some quotes related to the lack of lie flats / exiting the premium transcon markets

"Our product is made for the conditions we have today"
"We have 12 and 16 seats... with the largest amount of pitch for any non-lie flat"
"First Class is performing on Hawaii/North-South Flights, still little demand for transcon F"
"We are totally happy with our decision to not move into that market. We would have to sell 3/4 of our fares at $1000+ to make a profit..."
RAD_PDX is offline  
Old Apr 22, 21, 10:18 am
  #7  
 
Join Date: Aug 2007
Location: Near SEA
Programs: UA MM, AS MVPG, Marriott Lifetime Gold
Posts: 7,914
Have to imagine with future travel at 80% of pre-Covid levels that leisure travel is over-indexing against what it was in 2019.
bmvaughn is offline  
Old Apr 22, 21, 10:50 am
  #8  
 
Join Date: Apr 2003
Programs: B6 Mosaic, Bonvoy LT Titanium (x SPG LT), IHG Spire, UA Silver
Posts: 4,810
Originally Posted by bmvaughn View Post
Have to imagine with future travel at 80% of pre-Covid levels that leisure travel is over-indexing against what it was in 2019.
They are hoping for 50% corporate by year end but a lot of that will likely be intra-West.
sfozrhfco is offline  
Old Apr 22, 21, 7:50 pm
  #9  
FlyerTalk Evangelist
 
Join Date: Jul 1999
Location: Over the Bay Bridge, CA
Programs: Jumbo mas
Posts: 32,848
Originally Posted by sfozrhfco View Post
They are hoping for 50% corporate by year end but a lot of that will likely be intra-West.
And that is a cash cow. $250+ one way for shorter hops, on aircraft that do many legs in a day (as well does the crew).
anteater likes this.
Eastbay1K is offline  
Old Apr 23, 21, 1:14 am
  #10  
 
Join Date: Jun 2009
Location: WA State
Programs: Alaska MVP Gold, Hilton Gold, Red Lion Gold
Posts: 126
While the loss is an insane number to hear - look at year over year. First quarter is always hard. We had under 21 days of COVID issues the same quarter last year compared to every single day this year. To me this is good news!
mikexner is offline  
Old Apr 23, 21, 6:59 am
  #11  
 
Join Date: Apr 2003
Programs: B6 Mosaic, Bonvoy LT Titanium (x SPG LT), IHG Spire, UA Silver
Posts: 4,810
Originally Posted by Eastbay1K View Post
And that is a cash cow. $250+ one way for shorter hops, on aircraft that do many legs in a day (as well does the crew).
While that may be, AS has basically retreated back to their original strengths to largely be an intra-west airline-with many of those flights now contracted out to QX/OO. Will be interesting to see what they end up doing in CA over the next couple of years and what competitors will do as well.
sfozrhfco is offline  
Old Apr 23, 21, 9:13 am
  #12  
FlyerTalk Evangelist
 
Join Date: Aug 2007
Location: SEA, but up and down the coast a lot
Programs: OneSky Alliance Elite+ with Zirconium and oak leaf cluster, Braniff Unobtainium
Posts: 18,653
Originally Posted by sfozrhfco View Post
While that may be, AS has basically retreated back to their original strengths to largely be an intra-west airline-with many of those flights now contracted out to QX/OO. Will be interesting to see what they end up doing in CA over the next couple of years and what competitors will do as well.
I would expect them to do in CA markets what they did pre-merger, gradually add service where it makes sense, trying things. Its clear they are in all of them in some form or another for the long haul. Look at where SJC and SAN have gone over a decade. Id imagine it will be like that.
eponymous_coward is offline  
Old Apr 23, 21, 10:14 am
  #13  
 
Join Date: Oct 2010
Location: La Jolla, Ca
Programs: AA 2MM LT PLT; AS MVP Gold; HHonors Diamond; IHG PLT
Posts: 3,110
Originally Posted by eponymous_coward View Post
I would expect them to do in CA markets what they did pre-merger, gradually add service where it makes sense, trying things. Its clear they are in all of them in some form or another for the long haul. Look at where SJC and SAN have gone over a decade. Id imagine it will be like that.
+1. As a refugee of AA's 2007 recession retreat from the intra-California market, who suffered as a WN A-Lister for several years, I welcomed AS with open arms. WN remains the only real player, still vulnerable to AS' success cherry picking in SAN, elsewhere. As international travel returns, OW codeshares should provide opportunities to gain share ex-LAX, SFO, and possibly new opportunities like LAS.
diver858 is offline  

Thread Tools
Search this Thread
Search Engine: