Alaska Air Group, Inc. · NYSE:ALK

Alaska Air — Q4 2023 Earnings Presentation

7 slides from Alaska Air's earnings presentation, Jan 25, 2024

  1. Slide 1: Alaska Air Group Q4 2023 Earnings

    ALASKA AIR GROUP Q4 2023 Earnings

  2. Slide 2: Safe Harbor / Non-GAAP Financial Information

    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

  3. Slide 3: Earnings Update

    Earnings Update  Air Group’s full year adjusted pretax margin finished among the best in the industry, driven by strong cost management and diversified revenue generation.  Unit costs declined 2.6% year-over-year in 2023, leading the industry and landing at the better end of Air Group’s initial fu

  4. Slide 4: Capacity & Unit Revenue

    Capacity & Unit Revenue Capacity and Unit Revenue y-o-y Trends  Strategic network reconfiguration leading to improved unit revenues and ~30% improvement in profitability in Q1, excluding 737-9 MAX grounding event  Excluding 737-9 MAX grounding, unit revenues were expected to be up 1% to 2% in Q1 2

  5. Slide 5: Unit Cost

    Unit Cost Evolution of FY 23 Unit Cost Expectations1 Trends  Our FY 2023 unit cost result far +2% exceeded industry performance at down 2.6%, on similar capacity growth year-over-year  Outperformance is inclusive of the (1%) pilot wage adjustment, effective September 1, 2023 (2%) (2.6%)  Adjustin

  6. Slide 6: Fuel Cost

    Fuel Cost LA vs USGC Refining Margin Spread Trends  LA vs USGC refining margin spreads $0.34 continued to widen throughout 2023, but $0.30 are expected to moderate in Q1 2024  Over 65% of our fuel consumption comes $0.19 from West Coast  For FY 2023, this refining differential drove ~$160M in add

  7. Slide 7: Balance Sheet

    Balance Sheet Debt-to-Capitalization Adjusted Net Debt/EBITDAR 61% 2.7x 49% 48% 46% 41% 1.4x 0.9x 1.0x 2019 2020 2021 2022 2023 2019 2021 2022 2023 Target Debt-to-Cap Range 40% - 50% Target Adj. Net Debt/EBITDAR < 1.5x

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