Summary by Moomoo AI
Alaska Air Group reported a robust Q3 2024 performance with net income surging to $236 million, or $1.84 per share, up from $139 million in Q3 2023. Total operating revenue increased 8% to $3.07 billion, including $95 million contribution from newly acquired Hawaiian Airlines. Passenger revenue grew 8% to $2.82 billion, while cargo and other revenue rose 29% to $80 million.The company's operating expenses increased 4% to $2.73 billion, though fuel costs decreased 10% to $624 million due to lower refining margins. Non-fuel operating expenses, excluding special items, rose 14% to $2.03 billion, primarily driven by higher wages, variable incentive pay, and the incorporation of Hawaiian Airlines' operations since September 18.Looking ahead, Alaska Air expects Q4 capacity to increase 1.5% to 2.5% versus 2023, with RASM projected to grow mid-single digits. The company maintains a strong liquidity position with $2.5 billion in cash and marketable securities, while successfully completing a $2 billion debt refinancing post-quarter end that is expected to save approximately $30 million in annualized interest costs.
