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ALASKA AIR GROUP REPORTS IMPROVED SECOND QUARTER RESULTS

 SEATTLE, July 20 /PRNewswire/ -- Alaska Air Group Inc. (NYSE: ALK; PSE), today reported a second quarter net loss of $3.6 million, or 33 cents per share as compared to last year's second quarter loss of $17.8 million, or $1.46 per share.
 Operating revenues for the second quarter of 1993 were $277.5 million compared to $277.1 million last year. Operating expenses dropped 7 percent or $20.8 million to $275.4 million from $296.2 million last year. As a result, the second quarter produced a $2.1 million operating profit as compared to a $19.1 million operating loss last year.
 Passenger yields (a measure of the average ticket price) improved 8 percent over the prior year. Revenue passenger miles (traffic) and available seat miles (capacity) both declined 9 percent.
 "We are encouraged by the substantial improvement in our operating profits, which reflect cost reduction efforts begun last year. Our ongoing efforts to further cut costs and improve operating efficiencies should keep these trends continuing." stated Raymond J. Vecci, chairman and chief executive officer.
 "Nevertheless, these results are far from satisfactory. New rounds of fare discounting from financially troubled carriers, nationally and regionally, are expected to reverse the yield improvements we've seen so far this year. This continuing volatility in prices makes our cost reduction efforts even more important as we progress through the year," Vecci said.
 During the second quarter, Alaska Air Group redeemed its outstanding 10.21 percent Redeemable Preferred Stock, saving the company more than $4 million annually after taxes. International Lease Finance Corp. (ILFC) provided a $27 million loan carrying a 7 percent interest rate to assist with the stock redemption.
 For the six months ended June 30, 1993, the company reported a net loss of $18.6 million, or $1.59 per share as compared to a 1992 first half net loss of $33.5 million, or $2.77 per share. Including an accounting change, last year's first half loss was $38.0 million, or $3.11 per share. Passenger traffic declined 12 percent for the period, but operating revenues fell only 1 percent to $527.7 million due to the increase in yields. Operating expenses were $542.5 million, a 6 percent decrease over the $574.5 million for the 1992 six-month period.
 Alaska Air Group Inc. is the parent company of Alaska Airlines Inc. and Horizon Air Industries Inc.
 ALASKA AIR GROUP INC.
 CONSOLIDATED STATEMENT OF INCOME
 (In thousands, except per share)
 Quarter Six Months
 Ended June 30 1993 1992 1993 1992
 Operating Revenues:
 Passenger $246,301 $248,344 $471,058 $482,585
 Freight and mail 20,115 18,495 36,683 34,138
 Other 11,067 10,306 19,984 18,630
 Total operating revenues 277,483 277,145 527,725 535,353
 Operating Expenses:
 Wages and benefits 91,299 90,688 179,998 179,366
 Aircraft fuel 34,310 41,807 66,041 77,457
 Aircraft maintenance 15,350 23,133 34,376 45,610
 Aircraft rent 37,997 29,242 74,688 55,664
 Commissions 20,177 21,165 38,892 41,606
 Depreciation and
 amortization 14,437 14,009 28,857 27,990
 Other 61,831 76,152 119,637 146,824
 Total operating expenses 275,401 296,196 542,489 574,517
 Operating Income (Loss) 2,082 (19,051) (14,764) (39,164)
 Interest income 1,963 1,682 3,739 3,656
 Interest expense (9,253) (10,794) (19,116) (21,610)
 Interest capitalized 221 2,178 221 4,593
 Other income - net 202 112 1,272 516
 Total (6,867) (6,822) (13,884) (12,845)
 Loss before tax and
 accounting change (4,785) (25,873) (28,648) (52,009)
 Income tax credit (1,196) (8,099) (10,026) (18,553)
 Loss before accounting
 change (3,589) (17,774) (18,622) (33,456)
 Cumulative effect of accounting
 change (FAS 106) -- -- -- (4,567)
 Net Loss $ (3,589) $(17,774) $(18,622) $(38,023)
 Loss Per Share Calculations:
 Primary -
 Loss before accounting
 change $(3,589) $(17,774) $(18,622) $(33,456)
 Preferred stock dividends (875) (1,663) (2,526) (3,327)
 Loss before accounting
 change applicable to
 common shares (4,464) (19,437) (21,148) (36,783)
 Cumulative effect of
 accounting change -- -- -- (4,567)
 Net loss applicable
 to common shares $(4,464) $(19,437) $(21,148) $(41,350)
 Avg common shares
 outstanding (000) 13,341 13,314 13,337 13,298
 Loss per common share:
 Loss before
 accounting change $ (0.33) $ (1.46) $ (1.59) $ (2.77)
 Cumulative effect of
 accounting change -- -- -- (0.34)
 Net loss per share $ (0.33) $ (1.46) $ (1.59) $ (3.11)
 Fully Diluted Anti- Anti- Anti- Anti-
 dilutive dilutive dilutive dilutive
 CONSOLIDATED BALANCE SHEET
 (In thousands)
 June 30, December 31,
 1993 1992
 Cash and marketable securities $ 96,877 $ 83,431
 Total current assets $ 256,839 $ 250,485
 Property and equipment-net 755,413 790,910
 Other assets 169,667 166,963
 Total assets $1,181,919 $1,208,358
 Current liabilities $ 388,295 $ 335,718
 Long-term debt and capital
 lease obligations 498,448 487,847
 Other liabilities 118,059 126,834
 Redeemable convertible preferred stock -- 61,235
 Shareholders' equity 177,117 196,724
 Total liabilities and capital $1,181,919 $1,208,358
 AIRLINE DATA
 Alaska Horizon
 Quarter Ended June 30 1993 1992 1993 1992
 Financial Data ($000)
 Operating revenues $224,099 $226,448 $53,747 $50,883
 Operating expenses 224,004 245,686 51,302 50,131
 Operating income (loss) 95 (19,238) 2,445 752
 Other expense (4,914) (3,890) (66) (548)
 Income (loss) before tax$ (4,819) $(23,128) $2,379 $ 204
 Operating Data
 Revenue passengers (000) 1,477 1,604 632 581
 RPMs (000,000) 1,282 1,423 128 118
 ASMs (000,000) 2,216 2,477 240 227
 Passenger load factor 57.9 pct. 57.4 pct. 53.1 pct. 52.2 pct.
 Breakeven load factor 60.3 pct. 66.1 pct. 50.5 pct. 52.1 pct.
 Revenue per psgr
 mile (cents) 15.2 14.1 39.9 40.9
 Operating cost per
 ASM (cents) 10.1 9.9 21.4 22.1
 Six Months Ended June 30 Alaska Horizon
 1993 1992 1993 1992
 Financial Data ($000):
 Operating revenues $422,809 $438,282 $105,526 $97,389
 Operating expenses 439,088 475,172 103,283 98,753
 Operating income (loss) (16,279) (36,890) 2,243 (1,364)
 Other expense (9,544) (7,245) (417) (952)
 Income (loss) before tax$(25,823) $(44,135) $ 1,826 $(2,316)
 Operating Data:
 Revenue passengers (000) 2,641 2,986 1,193 1,073
 RPMs (000,000) 2,293 2,668 243 219
 ASMs (000,000) 4,232 4,795 459 437
 Passenger load factor 54.2 pct. 55.6 pct. 53.0 pct. 50.2 pct.
 Breakeven load factor 59.3 pct. 64.0 pct. 51.9 pct. 51.7 pct.
 Revenue per psgr
 mile (cents) 16.2 14.6 41.3 42.2
 Operating cost per
 ASM (cents) 10.4 9.9 22.5 22.6
 AIRLINE DATA (continued)
 Quarter Ended June 30 Total(a)
 1993 1992
 Financial Data ($000):
 Operating revenues $277,483 $277,145
 Operating expenses 275,401 296,196
 Operating income (loss) 2,082 (19,051)
 Other expense (6,867) (6,822)
 Income (loss) before tax $ (4,785) $ (25,873)
 Operating Data
 Revenue passengers (000) 2,109 2,185
 RPMs (000,000) 1,410 1,541
 ASMs (000,000) 2,457 2,704
 Passenger load factor 57.4 pct. 57.0 pct.
 Breakeven load factor 58.7 pct. 63.8 pct.
 Revenue per psgr mile (cents) 17.5 16.1
 Operating cost per ASM (cents) 11.2 10.9
 Six Months Ended June 30 Total(a)
 1993 1992
 Financial Data ($000):
 Operating revenues $527,725 $535,353
 Operating expenses 542,489 574,517
 Operating income (loss) (14,764) (39,164)
 Other expense (13,884) (12,845)
 Income (loss) before tax $(28,648) $(52,009)
 Operating Data:
 Revenue passengers (000) 3,834 4,059
 RPMs (000,000) 2,536 2,887
 ASMs (000,000) 4,691 5,232
 Passenger load factor 54.1 pct. 55.2 pct.
 Breakeven load factor 57.8 pct. 62.1 pct.
 Revenue per psgr mile (cents) 18.6 16.7
 Operating cost per ASM (cents) 11.6 11.0
 (a) The "Total" columns include nonairline entities where appropriate.
 -0- 7/20/93
 /CONTACT: J. Ray Vingo, 206-433-3232, or Lou Cancelmi, 206-433-3170, both of Alaska Air/
 (ALK)


CO: Alaska Air Group ST: Washington IN: AIR SU: ERN

JH -- SE009 -- 6734 07/20/93 11:06 EDT
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Date:Jul 20, 1993
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