Alaska Airlines
, which had a year full of highlights and lowlights, including the Boeing 737 MAX 9
door plug blowout in January, has reported its Q4 2024 and 2024 results, with the group, now also consisting of Hawaiian Airlines, ending the year with a $395 million profit.

Transformational year

Ben Minicucci, the chief executive officer (CEO) of Alaska Air Group, said that 2024 was a transformational year for the group as it welcomed Hawaiian Airlines
under its wing in September 2024. This began Alaska Airlines’ journey toward unlocking $1 billion in incremental pre-tax profit over the next three years, the CEO added.

“We’re proud that our incentive plan will reward Alaska Airlines and Horizon Air
employees with nearly six weeks of pay, which we believe will lead the industry.”

Alaska and Hawaiian Airlines
Photo: Alaska Airlines

Photo: Alaska Airlines

Minicucci continued that the group’s vision is evident as it focuses on executing its strategic plan, ‘Alaska Accelerate.’ The executive said that the plan will leverage the strengths of the two airlines’ networks, enhancing the end-to-end passenger experience for the group’s customers and delivering value for each dependent stakeholder.

Alaska Air Group pointed out that Q4 2024 and 2024 results include Hawaiian Airlines’ performance, with prior comparable periods excluding the recently acquired carrier’s financial performance.

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Results beyond expectations

The group, which also includes Horizon Air and other Alaska Airlines subsidiaries, said that Q4 2024 revenue was stronger than expected across both Alaska Airlines and Hawaiian Airlines, continuing strong trends from the fall.

Alaska Air Group exited the year with momentum driven by sustained leisure demand and an uptick in corporate travel, which improved close-in demand. Milder winter weather also helped the group to deliver reliable performance for its customers throughout the Holidays, including higher-than-expected completion rate and load factor (Q4 2024: 83.8%, 2024: 83.9%).

“After inflecting positive in August, unit revenues improved nearly 6 points sequentially from 1% in the third quarter to 7% in the fourth quarter. This momentum has continued, with ongoing close-in strength in early Q1 bookings.”

SimpleFlying_737 MAX of Alaska Taking Off In Front of the SEA Tower_20230811-1551-DSC_8259_JAK

Photo: Joe Kunzler | Simple Flying

Nevertheless, Alaska Airlines ended 2024 with a net income of $395 million, fueled by $11.7 billion in revenues (up 13% compared to 2024) and costs climbing to $11.1 billion, up 11% year-over-year (YoY).

“Throughout 2024, unit costs remained pressured from constrained capacity as a result of aircraft delivery delays, but are expected to improve through 2025 as we normalize resource levels and capacity compared to 2024.”

The airline group ended the year with 392 aircraft in its fleet, compared to 314 at the end of 2024. Ch-aviation data showed that Hawaiian Airlines has 71 aircraft in its fleet, while Alaska Airlines and Horizon Air operate 239 and 44 aircraft, respectively. In 2024, the group welcomed 49.2 million passengers.

Alaska Airlines also spent $659 million in cash on the Hawaiian Airlines acquisition in 2024. The total transaction value was $1.9 billion, with Alaska Airlines paying $18 per share in cash and acquiring the carrier’s $900 million debt.

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Positive outlook

The company said that combined with a stable industry backdrop, it was encouraged by early indications for Q1 and a constructive start to 2025. Its guidance indicated that the group expects capacity, measured in available seat miles (ASM), to go up from 2.5% to 3.5% in Q1 YoY, while full-year capacity should improve between 2% and 3% YoY (both pro forma versus 2024).

Meanwhile, pro forma, Q1 revenue per ASM (RASM), and cost per ASM, excluding fuel (CASMex), should be up in the high single digits and low single digits to mid-single digits, respectively, versus 2024.

Alaska Airlines & Hawaiian Airlines PHX

Photo: Lukas Souza | Simple Flying

However, Q1 should be loss-making, with the group predicting an adjusted loss per share (EPS) of $0.70 to $0.50. Full-year adjusted EPS should be more than $5.75.

In addition, the company detailed that Hawaiian Airlines’ assets were unprofitable in 2024, which should continue into Q1. However, while these assets should be profit-generating in Q2, Q3, and Q4, it would not be enough to offset the Q1 loss, resulting in a potential full-year loss for the carrier’s assets.

Alaska Air Group was the third major US carrier to announce its Q4 and 2024 results. Delta Air Lines
and United Airlines
revealed their financial performance on January 10 and January 22, respectively.

The former carrier ended the year with an adjusted net income of $3.9 billion, while the latter’s 2024 net income climbed to $3.1 billion.

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