ALASKA AIR Reports Profitable Q2 Earnings for FY2023

☀️Earnings Overview

On July 25 2023, ALASKA AIR ($NYSE:ALK) reported their Q2 earnings results for the fiscal year 2023, which concluded on June 30 2023. Total revenue for the quarter came to USD 2838.0 million, showing a 6.8% growth from the same period one year prior. Net income for the quarter was USD 240.0 million, an increase of 72.7%.

Stock Price

ALASKA AIR opened at $50.4 and closed at $48.2, a drop of 9.7% from the prior closing price of $53.3. Despite the decline, ALASKA AIR reported a year-over-year increase in Net Income and EBITDA of 4% and 3%, respectively. The airline’s strong performance was attributed to its cost-efficient operations, which allowed it to outperform other airlines in the industry despite the recent travel restrictions. Furthermore, CASM (cost per available seat mile) decreased by 4%, helped by a decrease in labor costs and aircraft ownership costs.

Overall, ALASKA AIR reported profitable results in the second quarter of FY2023, despite a dip in stock prices. The airline’s cost-efficient operations and strong liquidity position are expected to help it maintain its profitability going forward. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Alaska Air. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Alaska Air. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Alaska Air. More…

Key Ratios Snapshot

Some of the financial key ratios for Alaska Air are shown below. More…

Analysis

At GoodWhale, we have conducted a detailed analysis of ALASKA AIR‘s fundamentals. After careful evaluation of their financial and business aspects, we have marked ALASKA AIR as low risk investment. We have taken various factors into account while coming to this conclusion such as their revenue growth, debt-to-equity ratio, cash flow and other metrics. However, while performing our analysis, we have also detected one risk warning in their income sheet. If you would like to take a more in-depth look at it, please become a registered user on our website. We are certain that you will find the information to be very helpful in deciding your investment strategies. More…

Peers

The airline industry is a fiercely competitive market. The top four airlines in the United States are Alaska Air Group Inc, United Airlines Holdings Inc, American Airlines Group Inc, and Spirit Airlines Inc. All four of these airlines are constantly vying for market share and trying to outdo each other.

Alaska Air Group Inc is the seventh largest airline in the United States. The company was founded in 1932 and is headquartered in Seattle, Washington. Alaska Air Group Inc operates a fleet of Boeing and Airbus aircraft and serves more than 100 destinations across the United States, Canada, and Mexico.

United Airlines Holdings Inc is the world’s largest airline. The company was founded in 1926 and is headquartered in Chicago, Illinois. United Airlines Holdings Inc operates a fleet of Boeing and Airbus aircraft and serves more than 370 destinations across six continents.

American Airlines Group Inc is the world’s largest airline. The company was founded in 1930 and is headquartered in Fort Worth, Texas. American Airlines Group Inc operates a fleet of Boeing and Airbus aircraft and serves more than 550 destinations across more than 40 countries.

Spirit Airlines Inc is an ultra-low-cost carrier. The company was founded in 1980 and is headquartered in Miramar, Florida. Spirit Airlines Inc operates a fleet of Airbus aircraft and serves more than 60 destinations across the United States, Caribbean, and Latin America.

– United Airlines Holdings Inc ($NASDAQ:UAL)

United Airlines Holdings Inc is an American airline headquartered in Chicago, Illinois. It is the world’s third-largest airline when measured by revenue, after American Airlines and Delta Air Lines. United operates a large domestic and international route network, with an extensive presence in the Asia-Pacific region. The airline has a significant presence in the United hub of Los Angeles.

– American Airlines Group Inc ($NASDAQ:AAL)

American Airlines Group Inc has a market cap of 8.58B as of 2022, a Return on Equity of 5.3%. The company has been in operation since 1930 and is one of the largest airlines in the world. American Airlines Group Inc provides passenger and cargo transportation services across the globe. The company has a wide network of destinations and offers a variety of services to its passengers. American Airlines Group Inc is a publicly traded company listed on the New York Stock Exchange.

– Spirit Airlines Inc ($NYSE:SAVE)

Spirit Airlines Inc is an airline company that has a market cap of 2.13B as of 2022. The company has a return on equity of -10.47%. Spirit Airlines operates in the ultra-low-cost carrier segment of the US airline industry. The company provides air transportation for passengers and cargo. Its routes span the US, Latin America, and the Caribbean.

Summary

Alaska Air released their earnings results for Q2 of FY2023, ending on June 30th, 2023. Total revenue saw an increase of 6.8% year-over-year, totaling USD 2838.0 million. Net income saw an even larger increase of 72.7%, totaling USD 240.0 million. Despite the good financial performance, the stock price moved down on the same day.

This could be due to market expectations for higher earnings than reported or investors taking profits after the stock had risen prior to the earnings announcement. Despite the decline, it may be worth considering as an investment given the strong performance of the company during Q2 of FY2023. Investors should do their own research and assess whether the potential return is worth the risk.