Alaska Air reports a profitable 2012

Alaska Air Group, parent of Alaska Airlines and Horizon Air, reported a 2012 net income for 2012 of $316 million, up 29% from a $245 million net profit in the year-ago period. The company said this is its ninth consecutive year of adjusted profits and the third year in a row the company has exceeded its goal of a 10% return on invested capital.

Revenue rose 8% to $4.66 billion while expenses increased 7% to $4.13 billion, producing an operating profit of $532 million, up 18% from $449 million in the prior-year.
Fourth-quarter net income was $44 million, down 31% from the $64 million net profit for the year-ago quarter.

Full-year traffic rose 8.1% to 24.4 billion RPMs on a 6.3% increase in capacity to 28.1 billion ASMs, producing a load factor of 86.6%, up 1.4 points. Yield rose 1.4% to 13.45 cents as RASM increased 2.3% to 13.62 cents and CASM ex-fuel was 7.56 cents, down 0.5%.

In October 2012, the carrier placed an aircraft order for 50 Boeing 737, including 37 737 MAX aircraft.

During the fourth quarter, Alaska Airlines began service from San Diego to Orlando, Portland to Lihue, Bellingham to Maui, and Anchorage to Kona, bringing the total new routes for the year to 21.

(Kathryn M. Young - ATWOnline News)