Alaska Air Group Issues Analyst Earnings Advisory.Business Editors SEATTLE--(BUSINESS WIRE)--Oct. 11, 2000 Alaska Air Group, Inc. (NYSE NYSE See: New York Stock Exchange :ALK ALK Alkohol (German: alcohol) ALK Alkaline ALK Anaplastic Lymphoma Kinase ALK Automatisierte Liegenschaftskarte ALK Activin Receptor-Like Kinase ALK Alkylation ALK Srilankan Airlines (ICAO code) ) today announced that it does not expect third quarter earnings per share to meet current analyst estimates. The company said that it expects to report a profit in the range of $0.50 to $0.70 per share (diluted), compared to analyst estimates that range from $1.05 to $1.50 per share. The reasons for the anticipated decline are a 3.2 percent reduction in available seat miles Available seat miles (ASM) is a measure of an airline flight's passenger carrying capacity. It is equal to the number of seats available multiplied by the number of miles flown. This measures an airlines capacity for transporting passengers. at Alaska Airlines Alaska Airlines, (NYSE: ALK) is an airline based in Seattle, Washington, United States. It operates hubs at Seattle-Tacoma International Airport, Ted Stevens Anchorage International Airport, Los Angeles International Airport, and Portland International Airport. , higher fuel expenses, previously announced changes in accounting for the company's frequent flyer frequent flyer Hospital practice A popular term for a Pt who is regularly admitted to a particular ER or health care facility, for various reasons program, and higher labor and maintenance costs. Another factor affecting earnings per share is an increase in the effective income tax rate. The rate will increase because non-deductible expenses will have a proportionally greater impact at the lower level of anticipated pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. . The effective tax rate is expected to be approximately 60 percent, compared with 40 percent in 1999, and the higher rate is expected to cause a reduction in earnings per share of $0.25 to $0.30. After two quarters of negative growth, Alaska Airlines expects available seat mile growth of less than 2 percent in the fourth quarter and approximately 10 percent in 2001. Horizon Air experienced a 4 percent growth in available seats and a 0.6 percent increase in RPMs (revenue passenger miles) in the third quarter, but higher fuel and maintenance costs will have a negative impact on pretax income. The company will release final results for the third quarter on October 17. FORWARD-LOOKING INFORMATION This press release contains forward-looking statements that are based on the best information currently available to management. These forward-looking statements are intended to be subject to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. protection provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are indicated by phrases such as "will," "should," "the Company believes," "we expect" or any other language indicating a prediction of future events. There can be no assurance that actual developments will be those anticipated by the Company. Actual results could differ materially from those projected as a result of a number of factors, some of which the Company cannot predict or control. For a discussion of some of these factors, please see Item 1 of the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1999. Alaska Air Group is the parent company of Alaska Airlines, Inc. and Horizon Air Industries, Inc. |
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