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ALASKA AIR GROUP REPORTS NINETEENTH CONSECUTIVE PROFITABLE YEAR

ALASKA AIR GROUP REPORTS NINETEENTH CONSECUTIVE PROFITABLE YEAR
 SEATTLE, Jan. 28 /PRNewswire/ -- Alaska Air Group Inc. (NYSE: ALK; PSE) today reported a net profit of $10.3 million for 1991 compared with $17.2 million for 1990. After preferred stock dividends, primary earnings per share amounted to 27 cents for 1991 compared to 82 cents a year earlier. On a 10 percent increase in passenger traffic, revenues for the year rose 5 percent to $1.104 billion, from $1.047 billion a year ago. Operating expenses were $1.069 billion, resulting in a $34.6 million operating profit. This compares with a $28.4 million operating profit for 1990. However, income before tax for 1991 was $16.2 million compared to 1990's $27.9 million primarily due to higher interest expense.
 "While we are happy to report our 19th consecutive year of profitability, we are disappointed with declining earnings for a second successive year," commented Raymond J. Vecci, chairman and chief executive of Alaska Air Group. "On $1.1 billion of revenues, these earnings are clearly unacceptable. We can't predict when the economic climate will improve or whether irrational industry discounting will abate, but whatever the year brings, we are committed to achieving a satisfactory return for our investors in 1992," Vecci concluded.
 The company's net loss for the fourth quarter 1991 was $895,000 compared to
a loss of $10.1 million for fourth quarter 1990. After preferred stock dividends, the primary loss per share was 19 cents compared to 90 cents loss per share for last year's fourth quarter. On a 7 percent increase in passenger traffic, operating revenues for fourth quarter 1991 rose 3 percent to $264.6 million. The operating loss was $576,000, down from the $17.6 million operating loss posted for 1990. The fourth quarter improvement was largely due to a $24.3 million reduction in fuel expense. The average fuel price for the fourth quarter 1991 was 68 cents per gallon, 40 percent lower than the $1.14 per gallon for 1990.
 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 Year
 Ended Dec. 31: 1991 1990 1991 1990
 Operating Revenues:
 Passenger $238,108 $231,726 $999,859 $953,247
 Freight and mail 15,993 18,876 69,590 69,352
 Other 10,529 6,569 34,582 24,366
 Total operating revenues 264,630 257,171 1,104,031 1,046,965
 Operating Expenses:
 Wages and benefits 84,609 75,985 332,041 298,413
 Aircraft fuel 38,007 62,300 156,491 183,467
 Aircraft maintenance 18,657 18,836 82,983 73,361
 Aircraft rent 26,209 25,965 102,279 95,751
 Commissions 19,112 19,218 84,345 80,402
 Depreciation and
 amortization 13,086 11,621 51,767 43,121
 Other 65,526 60,799 259,499 244,031
 Total operating expenses 265,206 274,724 1,069,405 1,018,546
 Operating income (loss) (576) (17,553) 34,626 28,419
 Interest income 4,015 1,842 11,698 7,312
 Interest expense (10,846) (5,507) (40,180) (20,266)
 Interest capitalized 2,414 2,351 8,301 9,024
 Other income - net 1,832 1,798 1,762 3,429
 Total (2,585) 484 (18,419) (501)
 Income (loss) before tax (3,161) (17,069) 16,207 27,918
 Income tax (expense)
 credit 2,266 6,948 (5,869) (10,751)
 Net income (loss) $ (895) $(10,121) $ 10,338 $ 17,167
 Earnings per Common Share:
 Primary -
 Net income (loss) $ (895) $(10,121) $ 10,338 $ 17,167
 Preferred stock dividend 1,681 1,681 6,671 6,017
 Income (loss) applicable to
 common shares $ (2,576) $(11,802) $ 3,667 $ 11,150
 Average common shares
 outstanding (000) 13,220 13,178 13,413 13,675
 Earnings (loss) per
 common share $ (0.19) $ (0.90) $ 0.27 $ 0.82
 ALASKA AIR GROUP INC.
 CONSOLIDATED BALANCE SHEET
 (In thousands)
 Dec. 31: 1991 1990
 Cash and marketable securities $ 102,835 $ 52,349
 Total current assets $ 225,574 $ 167,716
 Property and equipment-net 819,787 700,378
 Other assets 166,267 153,310
 Total assets $1,211,628 $1,021,404
 Current liabilities $ 250,269 $ 295,981
 Long-term debt and capital lease obligations 499,971 281,759
 Other liabilities and credits 115,994 103,166
 Redeemable convertible preferred stock 60,947 60,665
 Shareholders' equity 284,447 279,833
 Total liabilities and capital $1,211,628 $1,021,404
 AIRLINE DATA
 Selected airline data follows -
 Quarter Ended Dec. 31: Alaska Horizon
 Financial Data ($000) 1991 1990 1991 1990
 Data ($000):
 Operating revenues $217,284 $214,042 $ 47,534 $ 43,259
 Operating expenses 219,021 231,616 46,132 42,664
 Operating (loss) income (1,737) (17,574) 1,402 595
 Other income (expense) (1,645) 25 (204) (515)
 Income (loss) before
 tax $ (3,382) $(17,549) $ 1,198 $ 80
 Operating Data:
 Revenue passengers (000) 1,360 1,338 536 466
 RPMs (000,000) 1,152 1,091 109 92
 ASMs (000,000) 2,227 2,101 203 185
 Passenger load
 factor (percent) 51.7 51.9 53.7 49.7
 Breakeven load
 factor (percent) 54.2 57.9 52.2 49.6
 Revenue per passenger
 mile (cents) 16.8 17.5 41.3 44.8
 Operating cost
 per ASM (cents) 9.8 11.0 22.7 23.1
 Year Ended Dec. 31:
 Financial Data ($000):
 Operating revenues $921,519 $883,792 $183,142 $163,820
 Operating expenses 893,236 858,984 175,245 158,007
 Operating income 28,283 24,808 7,897 5,813
 Other income (expense) (11,695) (342) (1,827) (3,211)
 Income before tax $ 16,588 $ 24,466 $ 6,070 $ 2,602
 Operating Data:
 Revenue passengers (000) 5,866 5,457 2,022 1,816
 RPMs (000,000) 4,948 4,494 405 357
 ASMs (000,000) 8,789 8,380 786 720
 Passenger load
 factor (percent) 56.3 53.6 51.5 49.6
 Breakeven load
 factor (percent) 55.9 51.9 49.6 49.0
 Revenue per passenger
 mile (cent) 16.7 17.8 42.9 43.4
 Operating cost
 per ASM (cent) 10.2 10.3 22.3 21.9
 AIRLINE DATA (continued)
 Selected airline data follows -
 Quarter Ended Dec. 31: Total(A)
 Financial Data ($000) 1991 1990
 Operating revenues $264,630 $257,171
 Operating expenses 265,206 274,724
 Operating (loss) income (576) (17,553)
 Other income (expense) (2,585) 484
 Income (loss) before tax $ (3,161) $(17,069)
 Operating Data:
 Revenue passengers (000) 1,896 1,804
 RPMs (000,000) 1,261 1,183
 ASMs (000,000) 2,430 2,285
 Passenger load factor (percent) 51.9 51.8
 Breakeven load factor (percent) 53.6 56.5
 Revenue per passenger mile (cents) 18.9 19.6
 Operating cost per ASM (cents) 10.9 12.0
 Year Ended Dec. 31:
 Financial Data ($000):
 Operating revenues $1,104,031 $ 1,046,965
 Operating expenses 1,069,405 1,018,546
 Operating income 34,626 28,419
 Other income (expense) (18,419) (501)
 Income before tax $ 16,207 $ 27,918
 Operating Data:
 Revenue passengers (000) 7,889 7,274
 RPMs (000,000) 5,353 4,851
 ASMs (000,000) 9,575 9,099
 Passenger load factor (percent) 55.9 53.3
 Breakeven load factor (percent) 55.1 51.8
 Revenue per passenger mile (cents) 18.7 19.6
 Operating cost per ASM (cents) 11.2 11.2
 (A) The "Consolidated" columns include nonairline entities where
 appropriate.
 -0- 1/28/92
 /CONTACT: J. Ray Vingo, 206-433-3232, or Greg Witter, 206-431-3799, both of Alaska Air Group/
 (ALK) CO: Alaska Air Group; Alaska Airlines; Horizon Air ST: Washington IN: AIR SU: ERN


LM -- SE004 -- 4143 01/28/92 10:31 EST
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