Alaska Air Group, Inc. · NYSE:ALK
Alaska Air — Q2 2024 Earnings Presentation
9 slides from Alaska Air's earnings presentation, Jul 18, 2024
Slide 1: Q2 2024 Earnings
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Slide 2: Safe Harbor / Non-GAAP Financial Information
Safe Harbor Non-GAAP Financial Information
Slide 3: Earnings Update
Earnings Update Q Air Group achieved record quarterly revenue of $2.9 billion during Q2 2024, with approximately 46% generated from diverse revenue streams outside the main cabin, including 33% from premium segments. QO With an adjusted pretax margin of 15.8%, Air Group expects to lead the industry
Slide 4: Capacity
Capacity Q As school calendars shift earlier in the year, June has become a stronger peak a month. Moving forward, y/y unit revenues are expected to inflect positively in August EH ! i coy peceeeee . Q Q3 2024 capacity is expected to increase a approximately 2% to 3%, with growth eee a nearly flat i
Slide 5: Unit Cost
Q Air Group’s record labor deal with flight Core CASMex Maintenance / — 3Q CASMex Guide attendants, now incorporated in guidance, is expected to add ~2 points of pressure in each of Q3 and Q4 2024. Additionally, annualization of prior labor contracts is still occurring through September Slightly ele
Slide 6: Unit Cost
Q In 2023, Air Group’s unit costs inflected 1% (1%) . (6%) (7%) ai Q2 Q3 Q4 —— 2023 ——2024E negative in 2H, creating a more challenging y/y comparison in 2024 Cost management and productivity remain strong today, with productivity expected to improve sequentially throughout 2024 Air Group’s relative
Slide 7: Premium
Q Fleet modifications commencing in waoen----------------------t es September 2024 will add more premium seats to 64% of Air Group’s fleet with no reduction in seat count. 737-Q9O0ER/MAX 9 seat count to remain at 178 and 737- 800 to increase from 159 to 161 seats Modifications will add one additiona
Slide 8: Fuel Cost
LA vs USGC Refining Margin Spread $0.34 $0.30 $0.19 2Q23 3Q23 4Q23 Notes Q Q2 2024 economic fuel cost per gallon was $2.84, lower than our original expectation, driven primarily by lower West Coast refining margins Refining margins remained relatively stable throughout the quarter, supported by high
Slide 9: Balance Sheet
Balance Sheet Debt-to-Capitalization Adjusted Net Debt/EBITDAR 2.7K 61% ; : } i C ; 2019 2020 2021 2022 2023 1Q24 =2Q24 2019 2021 2022 2023 1Q24 2Q24 wll Target Debt-to-Cap Range 40%-50% tennant Target Adj. Net Debt/EBITDAR < 15x