Alaska Air Bounces Back with 2009 Profit

Alaska Air Group executed a $257 million turnaround in 2009, reporting net income of $121.6 million compared with a $135.9 million loss in 2008. Excluding special items ($55.2 million in noncash fuel hedge gains and $22.3 million in costs related to transition to a new pilot contract), Alaska’s net income for 2009 was $88.7 million.

Alaska Airlines’ 2009 revenue was $3 billion, a 6.7 percent reduction from the prior year. Horizon Airlines’ revenue was $654.4 million, a 10.8 percent drop. Expenses at Alaska and Horizon were down 17.8 percent and 20.8 percent, respectively, mainly due to a precipitous drop in fuel costs.

Alaska Air Group’s net profit for the fourth quarter was $24.1 million, including a $19.7 million noncash gain in its fuel hedge portfolio.