Alaska Air Loss Widens On Higher Fuel Costs

Alaska Air reported a wider fourth-quarter loss before special items, citing sharply higher fuel costs and the inability of fares to keep pace with rising costs.

The parent of Alaska Airlines and regional carrier Horizon Air said the loss widened to $17.9 million from $3.4 million a year earlier.

“It’s frustrating to report a fourth quarter adjusted loss in what has been a solid year relative to other carriers,” Bill Ayer, chairman and chief executive officer, said in a statement. “The loss was driven primarily by skyrocketing fuel costs combined with fares that have not kept pace,” Ayer said.

Including the impact of fuel hedge accounting adjustments, the company reported fourth-quarter net income of $7.4 million, compared with a net loss of $11.6 million in 2006.