Alaska Air Group, Inc. · NYSE:ALK
Alaska Air — Q1 2025 Earnings Presentation
10 slides from Alaska Air's earnings presentation, Apr 24, 2025
Slide 1: Alaska Air Group Q1 2025 Earnings
ALASKA AIR GROUP Q1 2025 Earnings | April 25, 2025 )
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 Consolidated Statement of Operations, Consolidated Balance Sheets, and Summary Cash Flow include Hawaiian Airlines from September 18, 2024 onward. For comparability of financial and operational results, historical information has also been provided on a pro forma basis
Slide 4: Alaska Accelerate initiatives off to a strong start
Alaska Accelerate initiatives off to a strong start Industry-leading Q1 RASM, 5-6pts ahead of network carriers (Domestic PRASM 6-7 pts ahead) Hawaiian operations outperforming, 14pt margin improvement y/y SEA connecting traffic up 15% and PDX up 200% in Q2 from banked schedules Premium revenue remai
Slide 5: Q1 2025 unit revenues lead the industry
Q1 2025 unit revenues lead the industry Up high single m@ Unit revenue improvement expected to digit % lead the industry, coming in 5-6 points above network peers in Q1 2025 m@ Premium demand continues to ~6% outperform with revenue up 10% ona system basis and up 17% for our 5.0% Hawaiian Airlines a
Slide 6: Unit costs tracking in line with expectations
Unit costs tracking In line with expectations 2024 Proforma m™l2025E m@ Unit costs were up 2.1% y/y in Q1 2025 driven by strong cost performance 1% B® Q2 2025 unit costs will increase mid to 0% high single digits, in line with our expectations, given low growth, Up MSD to HSD % pressure in wages and
Slide 7: Capacity growth driven by higher Hawaiian aircraft utilization
Capacity growth driven by higher Hawaiian aircraft utilization BAS Assets BHA Assets m FY 2025 AAG capacity growth is still expected to be 2% to 3%, driven by growth in Hawaiian Airlines Assets as GTF engine impacts are lapped, utilization is increased, and network changes are implemented. Further a
Slide 8: Fuel Costs
Fuel Costs —USGC Crack —Platts Jet/Kero LA Crack m@ Crude oil prices have moderated from $0.84 the start of the year while refining margins experienced more volatility @ West Coast refining supply was negatively impacted by unplanned maintenance events during Q1. After declining in early March to be
Slide 9: Balance Sheet and Share Repurchases
Balance Sheet and Share Repurchases Adjusted Net Debt/EBITDAR Share Repurchases m Year to date share repurchases have totaled $149 million’ 2.4x atx m Nearly $400 million repurchased over the last 6 months, representing 6.4 ce eeeeeeeeeeeee ak a million shares or approximately 5% of r ALK’s market c
Slide 10: Integration Milestones remain on track
Integration Milestones remain on track Single Loyalty Single Operating Certificate Single Passenger Service System Joint Collective Bargaining Agreements 2H 2025 Q4 2025 Q2 2026 2025-2027 Launched Hawai'i resident program, Huaka‘i by Hawaiian Upcoming launch of single loyalty program platform & prem