February 16, 2025
Alaska Air Group Reports Record $11.7 Billion Revenue for 2024

Alaska Air Group Reports Record $11.7 Billion Revenue for 2024

Alaska Air Group (NYSE: ALK) concluded 2024 with record revenues of $11.7 billion, despite Hawaiian Airlines acquisition and fleet grounding issues.
Alaska Airlines and Hawaiian Airlines aircraft
Photo Credit: Alaska Air Group

Alaska Air Group Inc. (NYSE: ALK) concluded 2024 with record revenues of $11.7 billion and a strong GAAP pretax margin of 4.6%.

Despite the challenges posed by the Hawaiian Airlines acquisition and fleet grounding earlier in the year, the company anticipates an adjusted full-year pre-tax margin of 7.1%.

Alaska Air Group: 2024 Performance


The company achieved record revenues of $11.7 billion, driven by strong demand across both its Alaska and Hawaiian Airlines brands.

Despite the challenges of integrating Hawaiian Airlines and navigating operational hurdles earlier in the year, Alaska Air Group expects to deliver an adjusted full-year pretax margin of 7.1%. This figure anticipated to be among the highest within the industry.  

CEO Ben Minicucci emphasized the transformative nature of 2024, highlighting the successful acquisition of Hawaiian Airlines. He pointed to the initiation of a strategic plan aimed at unlocking $1 billion in incremental pretax profit over the next three years.

This ambitious goal underscores the company’s confidence in its ability to capitalize on the combined strengths of its two major brands.

Furthermore, Alaska Air Group demonstrated a strong commitment to employee welfare by implementing an industry-leading incentive plan. This will reward Alaska Airlines and Horizon Air employees with nearly six weeks of pay.  

Alaska Airlines and Hawaiian Airlines aircraft parked together.
Photo Credit: Alaska Air Group

Q4 Revenue Surge

The fourth quarter witnessed a surge in revenue, exceeding expectations across both airlines. This positive trajectory was fueled by a combination of factors. These include sustained leisure travel demand and a resurgence in corporate travel.

Notably, unit revenues demonstrated significant improvement, rising nearly 6 points sequentially from 1% in the third quarter to 7% in the fourth quarter. This upward trend, coupled with strong close-in demand and a stable industry capacity backdrop, has instilled optimism for a robust start to 2025.  

“Alaska Accelerate” Strategy


Alaska Air Group’s “Alaska Accelerate” strategy serves as the roadmap for future growth and success. This comprehensive plan focuses on building scale, relevance, and loyalty while prioritizing a remarkable travel experience for guests.

The company aims to leverage the combined strengths of its global network and its powerful loyalty program. It also benefits from the distinct appeal of both the Alaska and Hawaiian Airlines brands.

The focus will be squarely on a guest-centric approach and identifying new opportunities across its business.

Larry D. Moore, CC BY 4.0, via Wikimedia Commons

Operational Updates  


The company’s commitment to expansion is evident in its recent operational updates. Seattle is poised to become a key international gateway, with the addition of new nonstop routes to Tokyo Narita and Seoul Incheon planned for 2025.

This strategic move aligns with the company’s broader goal of adding 12 international widebody destinations by 2030. Domestically, Alaska Air Group is expanding its route network with the introduction of new nonstop service between San Diego International Airport and Ronald Reagan Washington National Airport. It will also expand service from Alaska and Oregon with new routes connecting Anchorage to Detroit and Sacramento, and Portland to Houston, Fairbanks, and Eugene.  

Furthermore, Hawaiian Airlines continues to strengthen its cargo operations. The airline received two A330-300 freighter aircraft from Amazon during the fourth quarter, bringing the total number of freighters in its fleet to six.

This expansion underscores Hawaiian Airlines’ commitment to serving the growing demand for air cargo services.  

Summary


The airline Group now enters 2025 on a firm financial footing, with ambitious growth plans. The consolidated group has now passed the hurdle of the major Hawaiian Airlines acquisition successfully.

Alaska Air Group’s strong financial performance in 2024, coupled with a strong growth plan now positions the company for continued success in the year to come.

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