Alaska Air Group ( (ALK) ) has released its Q4 earnings. Here is a breakdown of the information Alaska Air Group presented to its investors.
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Alaska Air Group, Inc., headquartered in Seattle, is a major player in the aviation sector, operating through its subsidiaries Alaska Airlines, Hawaiian Holdings, Inc., Horizon Air, and McGee Air Services, and serving over 140 destinations across multiple continents. The company recently announced its financial results for the fourth quarter and full year 2024, showcasing a record full-year revenue of $11.7 billion and a notable acquisition of Hawaiian Airlines, contributing to its extensive network.
In 2024, Alaska Air Group reported substantial financial achievements, including surpassing its adjusted earnings per share guidance for both the fourth quarter and the full year. The company repurchased $250 million in outstanding shares during the fourth quarter and rewarded its employees with record performance-based pay. These achievements were part of a transformative year marked by the integration of Hawaiian Airlines and efforts to unlock $1 billion in incremental pretax profit over the coming years.
Key performance metrics revealed a strong financial standing, with a GAAP pretax margin of 4.6% for the full year and an adjusted pretax margin of 7.1%. The fourth quarter also saw an adjusted earnings per share of $0.97, surpassing expectations. The company generated $1.5 billion in operating cash flow and authorized a new $1 billion share repurchase plan. Additionally, Alaska Air Group made strategic announcements, such as launching Seattle as an international gateway and expanding its service offerings.
Looking ahead, Alaska Air Group is optimistic about its strategic plan, focusing on leveraging its combined network strengths and enhancing the travel experience for guests. The management’s outlook for 2025 includes expectations of high-single-digit growth in revenue per available seat mile (RASM) and adjusted earnings per share exceeding $5.75, indicating a positive trajectory for the company moving forward.
