Alaska Air Profit Rises 35% as Costs Fall
SEATTLE (TheStreet) -- Alaska Air (ALK) said quarterly net income rose 35% as costs fell.
Excluding items, the carrier reported net income of $50 million, or 70 cents a share. Analysts surveyed by Thomson Reuters had estimated 71 cents. Revenue rose 8% to $1.1 billion, in line with estimates. In the same period a year earlier, excluding items, Alaska earned $37 million, or 51 cents a share.
Including items, primarily $10 million in fuel hedge losses, Alaska earned $44 million, or 61 cents a share, compared with net income of $64 million, or 88 cents a share, in the same period a year earlier.
During the quarter, consolidated passenger revenue per available seat mile rose 0.8% while consolidated cost per available seat mile excluding fuel and special items declined by 1.2% to 8.72 cents.
The carrier said it achieved a 12-month return on invested capital of 13%, surpassing its goal of 10%. At year-end, Alaska had $1.3 billion in unrestricted cash and marketable securities.
-- Written by Ted Reed in Charlotte, N.C.
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