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Actionable news in ALK: ALASKA AIR GROUP Inc,

Alaska Air: Managing Director, Investor Relations

The following excerpt is from the company's SEC filing.

(206) 392-5134

(206) 392-5656


October 22, 2015

Alaska Air Group Reports Record



Financial Highlights:

Reported record

quarter net income, excluding special items, of

$277 million

increase over the

quarter of

Reported adjusted earnings per share of

per diluted share, a

and ahead of First Call analyst consensus estimate of

per share.

Earned net income for the

quarter under Generally Accepted Accounting Principles (GAAP) of

$274 m illion

per diluted share, compared to net income of

$198 million

per diluted share in


$90 million

of employee incentive pay through the first nine months of

in recognition of Air Group employees’ progress on meeting customer service, safety, operational and financial goals.

Generated record adjusted pretax margin in the

adjusted pretax margin for the trailing 12-month period ended

September 30, 2015

for the same period in the prior year.

Achieved trailing 12-month after-tax return on invested capital of

, a 700 basis point improvement from the

reported for the 12-month period ended

September 30, 2014


1.6 million

shares of common stock for

$119 million

, and

5.6 million

$381 million

during the first nine months of

, representing

of the total shares outstanding at the beginning of the year.

Paid a

per-share quarterly cash dividend on August 14,

, a 60% increase over the dividend paid in the third quarter of 2014.

Year-To-Date Accomplishments and Highlights:

Ranked "Highest in Customer Satisfaction Among Traditional Carriers" in 2015 by J.D. Power for the eighth year in a row.

Ranked "Highest in Customer Satisfaction with Airline Loyalty Rewards Programs" in 2015 by J.D. Power for the second consecutive year.

Awarded Fast Travel Platinum status from the International Air Transport Association, which is awarded to airlines offering four or more Fast Travel options to at least 80% of their passengers.

Rated the #1 Best Airline Rewards Program by U.S. News and World Report.

Announced that a free first checked bag is a permanent feature of the Alaska Airlines Visa Signature affinity credit card.

Held the No. 1 spot in U.S. Department of Transportation on-time performance among the six largest U.S. airlines for the 12 months ended August 2015.


quarter customer satisfaction score by 1.2 percentage points over prior year.

Increased fuel efficiency (as measured by seat-miles per gallon) by

compared to the

, as part of our effort to be the airline leader in environmental stewardship.

Began offering customers the option to upgrade to Preferred Plus Seating, providing customers the ability to select bulkhead and exit-row seating 24 hours in advance of flight. Preferred Plus Seating also includes priority boarding and a complimentary beer, wine or cocktail.

Amended our agreement with Skywest Airlines to replace all eight CRJ-700 regional aircraft with Embraer E175 aircraft.

Contracted for eight additional E175 aircraft, beginning in 2017, bringing the total E175 fleet to 23 aircraft by the end of 2017.

Launched "Beyond Service" customer service training to all customer-facing employees. Nearly 6,000 of Alaska and Horizon employees have completed the training.

Began our award-winning intensive leadership training workshop, Gear Up 2, for over 1,200 leaders at Alaska and Horizon.

Announced a 10-year sponsorship agreement with the University of Washington which includes, among other things, exclusive naming rights for Alaska Airlines Field at Husky Stadium and Alaska Airlines Arena.

New routes announced in the

quarter are as follows:

New Nonstop Routes Announced (Launch Dates)

Portland, Oregon, to Minneapolis/St. Paul, Minnesota (2/18/16)

Portland to Omaha (2/18/16)

Portland to Dallas (2/18/16)

Portland to Kansas City, Missouri (2/18/16)

SEATTLE — Alaska Air Group, Inc., (NYSE: ALK) today reported

GAAP net income of

per diluted share in the

. Excluding the impact of mark-to-market fuel hedge adjustments of $

5 million

$3 million

after tax, or

per diluted share), the company reported record adjusted net income of

per diluted share, compared to adjusted net income of

$200 million

"This was the busiest summer in our 83-year history and represents our highest quarterly profit ever," said CEO Brad Tilden. "I want to thank our employees who are building a fundamentally strong business and our customers for their incredible loyalty and support."

The following table reconciles the company's reported GAAP net income and earnings per diluted share (EPS) during the

quarters of

to adjusted amounts:

Three Months Ended September 30,

(in millions, except per-share amounts)


Diluted EPS

Reported GAAP net income

Mark-to-market fuel hedge adjustments, net of tax

Non-GAAP adjusted income and per-share amounts

Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables. A glossary of financial terms can be found on the last page of this release.

A conference call regarding the

quarter results will be simulcast online at 8:30 a.m. Pacific time on

. It can be accessed through the company's website at

. For those unable to listen to the live broadcast, a replay will be available after the conclusion of the call.

References in this news release to “Air Group,” “company,” “we,” “us” and “our” refer to Alaska Air Group, Inc. and its subsidiaries, unless otherwise specified. Alaska Airlines, Inc. and Horizon Air Industries, Inc. are referred to as “Alaska” and “Horizon,” respectively, and together as our “airlines.”

This news release may contain forward-looking statements...