Alaska Air Group, Inc. · NYSE:ALK
Alaska Air — Q3 2023 Earnings Presentation
9 slides from Alaska Air's earnings presentation, Oct 19, 2023
Slide 1: Alaska Air Group Q3 2023 Earnings
ALASKA AIR GROUP Q3 2023 Earnings %% ’
Slide 2: Safe Harbor
Safe Harbor This presentation may contain forward-looking statements subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. These statements relate to f
Slide 3: Earnings Update
Earnings Update Q) Air Group’s adjusted pre-tax margins continued to be amongst the best in the industry in Q3 2023 as premium product differentiation and strong unit cost performance continue to support results Q) Unit revenues versus 2019 reflect our diversified revenue base and strong product off
Slide 4: Adjusted pre-tax margin by quarter
❑ 20%+ ❑ 1Q23 2Q23 3Q23 4Q23 - E 1Q24 - E
Slide 5: Unit Revenue
Unit Revenue Unit Revenue Change (vs. 2019) 23% === <--==—= High Teens 16% 12% == Double Digits ween eee] Single Digits 1Q23 2Q23 —ALK 3Q23 4Q23 -E — Legacy Carriers = Low-Cost Carriers Trends Q We are the only domestic-focused carrier to offer first class, premium class, lounges, and global partner
Slide 6: Revenue Diversification
Revenue Diversification % Non-Main Cabin Revenue! % Premium Cabin Revenue? Trends Q 100% of Air Group fleet offers first 5 45% 31% class and premium economy cabins 41% | +4 pts o7y, | t4 pts Q Investments in fleet and premium cabin offerings create opportunity for 3Q19 3Q23 3Q19 3Q23 sustaining high
Slide 7: Capacity and Unit Costs (vs. 2022)
Capacity and Unit Costs (vs. 2022) Trends Q) We achieved our best unit cost result 13.9% 13.7% this year in Q3 2023 driven by Mere improving productivity and ongoing cost discipline Q) Outperformance is inclusive of pilot wage adjustment, effective September 1, 2023. QO) We expect full year 2023 uni
Slide 8: Requesting data for
❑ Requesting data for ❑ 2017-2022 ❑
Slide 9: Debt-to-Capitalization and Adjusted Net Debt/EBITDAR
Debt-to-Capitalization Adjusted Net Debt/EBITDAR 61% 27x sores B97 sense AB Gree reenee A8%acceeees AI% i 1 2019 2020 2021 2022 $Q23 2019 2021 2022 = 123. 2Q23) 3Q23 _ Target Debt-to-Cap Range 40% - 50% * Target Adj. Net Debt/EBITDAR < 1.5x