Alaska Air Group reports 1995 profit.SEATTLE--(BUSINESS WIRE)--Jan. 26, 1996--Alaska Air Group Inc. (NYSE NYSE See: New York Stock Exchange ) today reported 1995 net income of $17.3 million, or $1.28 per share, ($1.26 per share fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), compared to net income of $22.5 million, or $1.68 per share, ($1.62 per share fully diluted) in 1994. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $75.9 million, compared to $75.0 million in 1994. Operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for all of 1995 rose to $1.418 billion, an increase of 7.7 percent, while operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased to $1.342 billion, up 8.1 percent. "Our 1995 results were achieved despite the most intense competition in our company's history," said John F. Kelly Kel·ly , Ellsworth Born 1923. American abstract painter and sculptor whose works are characterized by flat color areas with sharply defined edges. Kelly, Emmett 1898-1979. , chairman and chief executive officer. "They reflect our success in continuing to reduce costs and to increase productivity while effectively communicating to the marketplace our commitment to deliver superior service at a competitive price." "Entering 1996, the ingredients to sustain profitable growth are in place," said Kelly. "We are a low cost carrier. Our product is superior. Our employees are inspired and dedicated. Our cash position is strong and our capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. are modest." Alaska Alaska (əlă`skə), largest in area of the United States but third smallest (exceeding only Vermont and Wyoming) in population, occupying the northwest extremity of the North American continent, separated from the coterminous United States Airlines' 1995 passenger traffic increased 13.1 percent on a capacity increase of 14.9 percent. This produced a passenger load factor of 61.8 percent, compared to 62.8 percent in 1994. The airline's operating cost per available seat mile (ASM (1) (Association for Systems Management) An international membership organization based in Cleveland, Ohio. Founded in 1947 and disbanded in 1996, it sponsored conferences in all phases of administrative systems and management. ) declined 6.8 percent from 8.27 cents to 7.71 cents. It's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have yield per revenue passenger mile Revenue passenger miles (RPMs) is a measure of a passenger traffic for an airline flight, bus, or train calculated by multiplying the total number of revenue-paying passengers aboard the vehicle by the distance traveled measured in miles. (RPM (1) (Revolutions Per Minute) With electric and electronics devices, RPM measures the rotational speed of the motor's spindle. Floppy disks rotate at 300 RPM, while hard disks rotate from 3,000 to 15,000 RPM. ) decreased 5.0 percent. Alaska Airlines' pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern profit for 1995 increased to $43.9 million from $39.3 million in 1994. Horizon Air's passenger traffic increased 14.8 percent on a capacity increase of 21.4 percent. Load factor declined 3.4 points to 59.5 percent. Horizon's operating cost per ASM declined 7.1 percent from 20.95 cents to 19.47 cents. Its yield per RPM declined 5.6 percent. Horizon Air's pretax profit for 1995 decreased to $4.2 million from $13.5 million in 1994. For the fourth quarter, Air Group had a net loss of $800,000, or $0.06 per share, compared to a net loss of $5.1 million, or $0.38 per share, for the fourth quarter of 1994. Operating revenues for the fourth quarter rose to $341.1 million, an increase of 7.3 percent, while operating expenses increased to $334.0 million, up 5.4 percent. Alaska Airlines' fourth quarter 1995 passenger traffic increased 8.8 percent on a capacity increase of 4.8 percent. Load factor rose 2.3 points to 62.8 percent. The airline's operating cost per ASM increased 1.2 percent from 7.81 cents to 7.90 cents, due to higher fuel costs and heavier passenger loads. Alaska's fourth quarter pretax profit was $2.5 million compared to a $6.3 million pretax loss pretax loss A loss reported before tax benefits are considered. in 1994. Horizon's fourth quarter 1995 passenger traffic increased 4.1 percent on a capacity increase of 7.6 percent. Load factor declined 2.0 points to 60.9 percent. The airline's operating cost per ASM declined 3.5 percent from 20.70 cents to 19.97 cents. Horizon's fourth quarter pretax profit was $600,000 compared to a $1.0 million pretax profit in 1994. Alaska Air Group is the parent company of 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. Inc. and Horizon Air Industries Inc. -0-
ALASKA AIR GROUP INC.
CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share amounts)
Quarter Ended Year Ended
Dec. 31, Dec. 31,
1995 1994 1995 1994
Operating Revenues: Passenger $300.8 $278.0 $1,258.2 $1,170.2 Freight and mail 23.4 24.1 95.2 91.5 Other 16.9 15.9 64.1 53.9 Total operating revenues 341.1 318.0 1,417.5 1,315.6 Operating Expenses: Wages and benefits 105.3 99.2 427.8 401.7 Aircraft fuel 49.7 42.4 181.2 152.3 Aircraft maintenance 18.1 15.9 79.2 68.3 Aircraft rent 43.7 45.4 172.1 168.5 Commissions 21.3 21.1 93.1 91.9 Depreciation and amortization 17.4 14.9 68.3 56.6 Other 78.5 77.9 319.9 301.3 Total operating expenses 334.0 316.8 1,341.6 1,240.6 Operating Income 7.1 1.2 75.9 75.0
Interest income 3.7 2.2 10.4 7.8
Interest expense (11.8) (13.3) (51.5) (47.0)
Interest capitalized .2 .1 .2 .4
Gain (loss) on sale of assets 1.3 (.2) (.2) (1.0)
Other income - net .2 1.5 (.8) 5.8
(6.4) (9.7) (41.9) (34.0)
Income (loss) before income tax .7 (8.5) 34.0 41.0 Income tax expense (credit) 1.5 (3.4) 16.7 18.5 Net Income (Loss) $ (.8) $ (5.1) $ 17.3 $ 22.5 Primary Earnings (Loss) Per Share $(0.06) $(0.38) $1.28 $1.68 Fully Diluted Earnings Per Share (a) (a) $1.26 $1.62 Shares used for Computation: Primary 13.6 13.4 13.5 13.4 Fully Diluted 21.8 19.2 20.8 19.6 (a) Anti-dilutive
ALASKA AIR GROUP INC.
CONSOLIDATED BALANCE SHEET
(In millions)
Dec. 31, 1995 Dec. 31, 1994
Cash and marketable securities $ 135.1 $ 104.9 Total current assets $ 338.4 $ 272.6 Property and equipment-net 814.0 859.3 Other assets 161.0 183.9 Total assets $ 1,313.4 $ 1,315.8 Current liabilities $ 444.8 $ 419.7 Long-term debt and capital lease obligations 522.4 589.9 Other liabilities and credits 133.7 114.9 Shareholders' equity 212.5 191.3 Total liabilities and equity $ 1,313.4 $ 1,315.8 AIRLINE DATA
Quarter Ended Dec. 31
Alaska Horizon
Financial Data (in millions): 1995 1994 1995 1994
Operating revenues $273.8 $252.4 $68.7 $66.4 Operating expenses 266.6 251.3 68.7 66.1 Operating income 7.2 1.1 - .3 Other income (expense) (4.7) (7.4) .6 .7 Income before tax $ 2.5 $ (6.3) $ .6 $ 1.0 Operating Data: Revenue passengers (000) 2,592 2,319 928 937 RPMs (000,000) 2,119 1,947 209 201 ASMs (000,000) 3,373 3,218 344 319 Passenger load factor 62.8% 60.5% 60.9% 62.9% Breakeven load factor 63.4% 63.2% 60.7% 62.0% Revenue per passenger mile (in cents) 11.20 11.05 30.87 31.24 Operating cost per ASM (in cents) 7.90 7.81 19.97 20.70 Aircraft utilization (block hours) 10.4 10.5 7.4 8.1
Year Ended Dec. 31
Alaska Horizon
Financial Data (in millions): 1995 1994 1995 1994
Operating revenues $1,142.3 $1,061.6 $279.5 $256.9 Operating expenses 1,069.9 998.7 275.3 244.0 Operating income 72.4 62.9 4.2 12.9 Other income (expense) (28.5) (23.6) - .6 Income before tax $ 43.9 $ 39.3 $ 4.2 $ 13.5 Operating Data: Revenue passengers (000) 10,140 8,958 3,796 3,482 RPMs (000,000) 8,584 7,587 841 733 ASMs (000,000) 13,885 12,082 1,414 1,165 Passenger load factor 61.8% 62.8% 59.5% 62.9% Breakeven load factor 59.4% 60.2% 58.5% 59.1% Revenue per passenger mile (in cents) 11.59 12.20 31.48 33.35 Operating cost per ASM (in cents) 7.71 8.27 19.47 20.95 Aircraft utilization (block hours) 10.8 10.3 7.9 8.4 CONTACT: Alaska Air Group, Seattle Seattle (sēăt`əl), city (1990 pop. 516,259), seat of King co., W Wash., built on seven hills, between Elliott Bay of Puget Sound and Lake Washington; inc. 1869. Harry Lehr, 206/431-7032 Lou Cancelmi, 206/433-3170 |
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