“The individuals of Alaska and Horizon are the inspiration of our firm and their kind-hearted spirit is why vacationers select to fly with us again and again,” mentioned Ben Minicucci, Chief Govt Officer of Alaska Air Group. “The care and industry-leading service they supply and the operational excellence they ship have allowed us to construct unbelievable loyalty and drive outcomes.”
Yesterday, Aviation Week Community’s Air Transport World (ATW) named Alaska the 2022 ATW Airline of the Year, the highest honor awarded among the many 48th Annual ATW Airline Trade Achievement Awards, citing the corporate’s distinctive strengths and main efficiency.
“We’re honored to be acknowledged by Air Transport World because the Airline of the 12 months – a testomony to our individuals and to every little thing they’ve completed via the previous few tumultuous years,” added Minicucci. “All through our historical past, Alaska has persistently outperformed the {industry}, and we’re effectively positioned to proceed that development, leveraging loyalty, alliances, community progress and our model to unlock important worth and ship $400 million of incremental income as a part of our 2025 strategic plan. Accelerating our transition to single fleets whereas upgauging for progress can also be a key a part of that technique. We care about progress as a result of it permits us to create worth for all who rely on us: higher alternatives for our staff, new jobs and elevated service to our communities, and returns for our homeowners.”
Runway for Worthwhile Progress
Members of Alaska’s management crew will define the aggressive benefits that underpin the corporate’s industry-leading efficiency and strategic progress plan:
- Including depth to our expansive community: Alaska plans to develop a mean of 4-8% per yr via 2025, partially by investing within the depth of its community. Alaska’s 1,200 flights per day take our friends to 120 locations throughout North and Central America, together with nonstop flights to transcontinental enterprise routes and 4 Hawaiian Islands. Alaska’s community has persistently produced industry-leading margins all through its historical past and its measured strategy to bringing capability again post-pandemic enabled a return to profitability forward of the {industry}. Along with the airline’s international companions within the oneworld® Alliance, friends can attain over 1,000 locations whereas incomes and redeeming miles on flights to areas around the globe.
- Working a single, extra environment friendly fleet: Immediately, the corporate will share plans to speed up the transition of its fleet of 300+ plane to all-Boeing 737 for its mainline operations and all-Embraer E175 jets for regional, by the tip of 2023. In keeping with Alaska’s low-cost excessive productiveness mindset, these transitions are anticipated to drive important financial advantages. Because the fleet grows to 400 plane by mid-decade, these will manifest via operational simplicity, flexibility and scalability, higher gasoline effectivity and decreased upkeep prices. The corporate can also be rising cargo enterprise operations by changing two passenger 737-800s to freighters, bringing the full freighter fleet to 5.
- Delivering best-in-class care: Care is the inspiration of Alaska’s tradition, fueled by its individuals and mirrored in every little thing they do. It has earned the airline excessive visitor satisfaction and long-term loyalty. The corporate will proceed to put money into growing its individuals via its Pathways program, which cultivates expertise from regional to mainline operations. As well as, it’s growing the subsequent technology of pilots and coaching current staff for brand new jobs via its Ascend Pilot Academy. The corporate can also be dedicated to creating measurable progress on initiatives to advance variety, fairness and inclusion.
With care central to every little thing Alaska Airways does, the corporate will proceed to put money into end-to-end visitor experiences that ship on its model promise. Immediately, the company announced infrastructure improvements for four of its main hubs – Seattle, Portland, San Francisco and Los Angeles. These investments complete $2.3 billion in infrastructure upgrades that may present a extra seamless and pleasant journey expertise for friends and supply entry to extra gates and state-of-the-art lounges and lobbies.
- Rising Alaska’s award-winning loyalty program with a renewed co-branded partnership: Alaska and Financial institution of America right this moment announced an extension of their co-branded credit card agreement via 2030. This settlement will improve advantages for friends and drive improved profitability for the airline. Alaska’s Mileage Plan™ is the {industry}’s most beneficiant loyalty rewards program, with miles earned based mostly on flight distance quite than {dollars} spent and skill to earn and redeem to over 1,000 international locations as a part of oneworld Alliance. Alaska’s co-branded bank card with Financial institution of America presently gives cardholders Alaska’s Well-known Companion Fare™, free checked bag, the chance to earn 3x the miles on eligible Alaska purchases, 50 % low cost on day passes for Alaska Lounge entry, 20 % again on all inflight purchases and plenty of different journey advantages.
- Preserving a resilient enterprise mannequin for long-term worth creation: Alaska’s legacy of {industry} outperformance is guided by sturdy ideas for administration and efficiency. Immediately, the corporate revealed the rules that drive its monetary sustainability and efficiency, offering further transparency round its monetary administration ideas and capital allocation strategy. Key elements embody:
- Producing returns on capital that persistently exceed the {industry} and the corporate’s price of capital
- Managing the enterprise and allocating capital with a long-term perspective and a constant set of priorities
- Putting a excessive worth on producing free money stream persistently and sustainably
- Sustainable on all fronts: Alaska’s dedication to long-term worth contains prioritized ESG commitments to extend variety in any respect ranges, to scale back the corporate’s affect on the local weather, and to offer clear accountability on key environmental, social and governance parameters. Final yr, the airline set formidable, however attainable sustainability objectives, together with being probably the most fuel-efficient U.S. airline and reaching net-zero carbon emissions by 2040. Additional embedding these commitments into its tradition, Alaska has linked a portion of its annual performance-based pay plan for all staff to the carbon depth of the operation, and a portion of executives’ compensation to reaching stronger BIPOC illustration in management.
Full 12 months 2022 Outlook
“Alaska’s crew is dedicated to outperforming the {industry}, even whereas navigating a uneven pandemic restoration and near-term financial volatility,” mentioned Shane Tackett, government vp finance and Chief Monetary Officer of Alaska Air Group. “As individuals return to journey, they’re selecting Alaska. And because of the caring spirit of our individuals, when friends strive us, they have an inclination to return again. We’re excited for the trail forward and assured in our potential to proceed creating worth for our staff, friends, communities and shareholders.”
As detailed within the firm’s fourth quarter 2021 and full-year outcomes, Alaska’s 2022 outlook contains the next metrics:
|
Key Metric |
Vary* |
|
Capability |
Up 1% to three% |
|
CASM ex-Gasoline (Excluding fleet transition prices and lease return expense) |
Up 3% to five% |
|
Capital Expenditures |
$1.6 billion to $1.7 billion |
*Vary will increase are in comparison with 2019 ranges
Webcast Info
Alaska’s Investor Day presentation might be accessible through webcast at https://investor.alaskaair.com from 11:30 a.m. Jap time, concluding at roughly 2:30 p.m. Jap time. The webcast and presentation supplies could be accessed via Alaska’s investor relations web site. A replay of the webcast might be accessible following the occasion.
About Alaska Air Group
Alaska Airways and our regional companions serve greater than 120 locations throughout the USA, Belize, Canada, Costa Rica and Mexico. We emphasize Next-Level Care for our friends, together with offering low fares, award-winning customer support and sustainability efforts. Alaska is a member of the oneworld international alliance. With the alliance and our further airline companions, friends can journey to greater than 1,000 locations on greater than 20 airways whereas incomes and redeeming miles on flights to areas around the globe. Study extra about Alaska at news.alaskaair.com. Alaska Airways and Horizon Air are subsidiaries of Alaska Air Group (NYSE: ALK).
Ahead Trying Statements
This presentation might include forward-looking statements topic to the protected harbor safety offered by Part 27A of the Securities Act of 1933, Part 21E of the Securities Alternate Act of 1934, and the Non-public Securities Litigation Reform Act of 1995. These statements relate to future occasions and contain recognized and unknown dangers and uncertainties which will trigger precise outcomes to be materially totally different from these indicated by our forward-looking statements, assumptions or beliefs. For a complete dialogue of potential danger elements, see Merchandise 1A of the Firm’s Annual Report on Type 10-Okay for the yr ended December 31, 2021. A few of these dangers embody competitors, labor prices, relations and availability, basic financial situations together with these related to pandemic restoration, will increase in working prices together with gasoline, lack of ability to fulfill price discount, ESG and different strategic objectives, seasonal fluctuations in demand and monetary outcomes, provide chain dangers, occasions that negatively affect aviation security and safety, and modifications in legal guidelines and laws that affect our enterprise. All the forward-looking statements are certified of their entirety by reference to the danger elements mentioned in our most up-to-date Type 10-Okay and in our subsequent SEC filings. We function in a frequently altering enterprise surroundings, and new danger elements emerge on occasion. Administration can’t predict such new danger elements, nor can it assess the affect, if any, of such new danger elements on our enterprise or occasions described in any forward-looking statements. We expressly disclaim any obligation to publicly replace or revise any forward-looking statements made right this moment to adapt them to precise outcomes. Over time, our precise outcomes, efficiency or achievements might differ from the anticipated outcomes, efficiency or achievements which are expressed or implied by our forward-looking statements, assumptions or beliefs and such variations is perhaps important and materially hostile.
SOURCE Alaska Air Group
