Alaska Air Group Posts Strong FY22

Photo Credit: Joris Wendt/AviationSource

LONDON – On January 26, U.S.-based Alaska Air Group published its financial standings for the fourth quarter and full year of 2022.

Alaska Air Group’s Q4 2022 Results…


Alaska Airlines

To start things off, the Alaska Air Group for 2022 has recorded strong growth in the wake of the COVID-19 pandemic.

Let’s take a dive into their fourth quarter (Q4) 2022 results –

  • The group reported a net income of $22 million or $0.17 per diluted share. This is an increase of $4 million over their Q4 2021 net income.
  • Their net income for Q4 2022 excluding special items and mark-to-market fuel hedges stood at $118 million or $0.92 per diluted share, a significant increase of $87 million over their Q4 2021 standing.
  • Alaska Air Group also spent $120 million in fleet adjustments and $6 million in labor costs during Q4 2022, a huge step up over Q4 2021 in which they only spent $6 million in fleet adjustments and $2 million in labor.

On top of the above net income, for Q4 2022, the group recorded total operating revenue of $2,479 million, this is broken down as $2,264 million in passenger revenue, $157 million in mileage plan revenue, and $58 million in cargo revenue.

When compared to Q4 2021, the group’s total operating revenue comes to $1,899 million, broken down as passenger revenue of $1,715 million, mileage plan revenue of $129 million, and cargo revenue of $55 million.

This means that between 2021 and 2022, for Q4 their passenger revenues are up by 32%, mileage plan revenues are up by 22% and cargo revenues are up by 5%.

Alaska Air Group’s FY 2022 Results…


Alaska Airlines

Let’s take a dive into their full-year (FY) 2022 results –

  • The group reported a net income of $58 million or $0.45 per diluted share. This is a significant decrease of $420 million over their FY 2021 net income.
  • Their net income for FY 2022 excluding special items and mark-to-market fuel hedges stood at $556 million or $4.35 per diluted share, a significant increase of $300 million over their FY 2021 standing.
  • Alaska Air Group also spent $496 million in fleet adjustments and $84 million in labor costs during FY 2022, a huge step up over FY 2021 in which they only spent $1 million in fleet adjustments and $10 million in labor.

On top of the above net income, for FY 2022, the group recorded total operating revenue of $9,646 million, this is broken down as $8,808 million in passenger revenue, $590 million in mileage plan revenue, and $248 million in cargo revenue.

When compared to FY 2021, the group’s total operating revenue comes to $6,176 million, broken down as passenger revenue of $5,499 million, mileage plan revenue of $461 million, and cargo revenue of $216 million.

This means that between 2021 and 2022, for the full year their passenger revenues are up by 60%, mileage plan revenues are up by 28% and cargo revenues are up by 15%.

In terms of fleet position, Alaska Air Group ended the year with a total of 293 aircraft, after retiring their Airbus A320 fleet, and their five remaining Dash Q400s will be retired by the end of January 2023.

The carrier amended a previous Boeing 737 MAX order with Boeing to convert 52 options to firm purchases which are set to be delivered between 2024 and 2027.

They also added an extra 105 delivery positions to purchase Boeing 737 MAX aircraft from 2026 until 2030.

Executive Comments…


Commenting on the group’s strong growth throughout 2022, Alaska Airlines Chief Executive Officer, Ben Minicucci, has said, “2022 was a year of significant recovery and accomplishment for Alaska Airlines.”

“Despite many challenges during the year, we ran one of the best operations, signed five new labor deals, and executed the majority of our single fleet transition.”

“I want to thank our employees for their commitment to our success, and for the work they do every day to take great care of our guests.”

“I am confident that we are well positioned to grow, compete and out-perform in 2023.”

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