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Alaska Air Group

Topic: Company

 From HandWiki - Reading time: 6 min
Short description: U.S. airline holding company
Alaska Air Group, Inc.
TypePublic company
  • NYSE: ALK
  • DJTA component
  • S&P 600 component
IndustryTransportation
Founded1985; 39 years ago (1985)
HeadquartersSeaTac, Washington, United States
Area served
United States
Key people
RevenueIncrease US$9.65 billion (2022)
Decrease US$70 million (2022)
Decrease US$58 million (2022)
Total assetsIncrease US$14.2 billion (2022)
Total equityIncrease US$3.82 billion (2022)
Number of employees
25,469 (2022)
Subsidiaries
  • Alaska Airlines
  • Horizon Air
  • McGee Air Services
Websiteinvestor.alaskaair.com
Footnotes / references
[1][2]

Alaska Air Group is an American airline holding company based in SeaTac, Washington, United States. The group owns two certificated airlines, Alaska Airlines, a mainline carrier, and Horizon Air, a regional carrier.[3] Alaska Airlines in turn wholly owns an aircraft ground handling company, McGee Air Services.

History

Alaska Air Group was formed in 1985 as a holding company for Alaska Airlines, and a year later it acquired Horizon Air and Jet America Airlines. Jet America Airlines was merged into Alaska Airlines in 1987.[4]

In 2011, Alaska Air Group replaced the AMR Corporation in the Dow Jones Transportation Average following AMR's filing for bankruptcy.[5]

On March 29, 2016, Alaska Airlines announced that it would form a wholly owned subsidiary called McGee Air Services, a dedicated airline services company. McGee competes with other companies to provide ground handling, aircraft cleaning and wheelchair services to Alaska Airlines.[6]

On April 4, 2016, Alaska Air Group announced plans to acquire Virgin America, pending approval from US government regulators and Virgin America shareholders;[7] the acquisition was completed on December 14, 2016.[8] The total price was approximately $2.6 billion. Until 2018, Alaska Air Group continued to operate Alaska Airlines and Virgin America as separate airlines and continued to honor both Alaska's Mileage Plan and Virgin America's Elevate loyalty programs.[9] Following the acquisition of Virgin America, the actual number of Alaska Air Group employees had increased from 15,143 at the end of 2015 to 19,112 (12,224 at Alaska Airlines, 3,616 at Horizon Air, and 3,252 at Virgin America) by the end of 2016.[10]

On March 22, 2017, the company announced that Alaska Air Group would merge Virgin America and Alaska Airlines, with the combined airline to operate under the Alaska Airlines brand. The merger was largely completed on April 25, 2018 and the Virgin America brand was fully retired by June 2, 2019.[11]

On December 3, 2023, Alaska Air Group announced that it planned to purchase Hawaiian Airlines in a deal worth approximately $1.9 billion. The deal, if approved by regulators, would retain both Alaska Airlines and Hawaiian Airlines as separate brands.[12][13]

Corporate affairs

Business trends

The key trends for Alaska Air Group over recent years are shown below (as at year ending December 31):

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenue (US$m) 3,400 3,832 4,318 4,657 5,156 5,368 5,598 5,931 7,933 8,264 8,781 3,566 6,176 9,646
Net profit (US$m) 122 251 245 316 508 605 848 814 1,028 437 769 −1,324 478 58
Number of employees (average FTE) 11,955 12,163 12,739 13,858 14,760 21,641 22,126 17,596 19,375 22,564
Number of passengers (m) 23.3 24.8 25.9 27.4 29.3 31.9 41.9 44.0 45.8 46.7 17.9 32.4 41.5
Passenger load factor (%) 82.4 84.5 85.9 85.6 85.1 84.1 84.1 84.3 83.7 84.1 55.2 73.6 84.5
Number of aircraft (at year end) 190 196 212 285 304 330 332 291 311 311
Notes/sources [14] [15] [15] [15] [15] [15] [16] [17][18]
[10] 		[14][17]
[18] 		[19] [19] [lower-alpha 1][20] [1] [1]
  1. ↑ 2020: Activities and income in fiscal 2020 were severely reduced by the impact of the coronavirus pandemic

Headquarters

Alaska Air Group headquarters in SeaTac, Washington

The Alaska Air Group headquarters is located at 19300 International Boulevard, SeaTac, Washington, United States.

On May 3, 2018, Alaska Airlines unveiled plans to construct a 128,000-square-foot building near Sea-Tac Airport to provide office space for its growing workforce. The new building will be across the street from Alaska's Corporate Headquarters and adjacent to its Flight Training Center. Construction was expected to be completed by early 2020.[21]

Operations

Fleet

Alaska Air Group operates a mix of Boeing and Embraer aircraft through its subsidiaries Alaska Airlines and Horizon Air. As of October 2023, Alaska Airlines' fleet consists of about 225 Boeing 737 aircraft and Horizon Air's fleet consists of about 40 Embraer 175 aircraft, with the combined fleet under Alaska Air Group's management numbering over 250 aircraft.

Alaska Air Group has created a new branding identity for its Horizon Air subsidiary and other independently owned and separately directed affiliate regional airlines it chooses to contract to do regional flying business into markets too limited to be flown only on Alaska Airlines mainline equipment. Among the other airlines now sub-contracted to do additional flying for the Alaska Air Group is SkyWest Airlines, who has about 40 Embraer 175 aircraft dedicated to providing service for the Alaska Airlines are painted in a very similar manner to Horizon's. SkyWest's fleet however, is branded Alaska SkyWest to differentiate that airline's aircraft from those of Horizon Air.[22]

Route network

Through Alaska Airlines and Horizon Air, Alaska Air Group services the passenger and cargo markets of the Pacific Northwest with its extensive route network hub through Seattle/Tacoma and Portland International Airports, and the state of Alaska through Ted Stevens Anchorage International Airport. After the demise of Aloha Airlines and ATA Airlines in 2008, Alaska Air Group expanded heavily centering on Hawaii and other non-airline hub secondary mainland cities and airports, including San Diego International Airport and San Jose International Airport.[23] After the acquisition of Virgin America in 2016, Alaska Air Group further expanded into California through Virgin America's hubs at San Francisco and Los Angeles International Airports, and its focus city at Dallas Love Field in Texas .[24]

References

  1. ↑ 1.0 1.1 1.2 "Alaska Air Group, Inc. 2022 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 13, 2023. https://www.sec.gov/ix?doc=/Archives/edgar/data/766421/000076642123000009/alk-20221231.htm. 
  2. ↑ "Executive Leadership". Alaska Airlines, Inc.. May 17, 2021. https://newsroom.alaskaair.com/executive-leadership. 
  3. ↑ "Alaska Air Group, Form 8-K, Current Report, Filing Date Oct 10, 2017". secdatabase.com. http://pdf.secdatabase.com/2022/0000766421-17-000059.pdf. 
  4. ↑ "Alaska Airlines history by decade". Alaska Airlines. https://www.alaskaair.com/content/about-us/history/history-by-decade. 
  5. ↑ Hwang, Inyoung (30 November 2011). "Alaska Air to Replace AMR in Dow Jones Transportation Average". Bloomberg Businessweek. http://www.businessweek.com/news/2011-11-30/alaska-air-to-replace-amr-in-dow-jones-transportation-average.html. 
  6. ↑ "Alaska Airlines Announces the Formation of a New Subsidiary - McGee Air Services". March 29, 2016. http://www.mcgeeairservices.com/20160329.html. 
  7. ↑ "Alaska Air to acquire Virgin America in $4bn deal". BBC News. April 4, 2016. https://www.bbc.com/news/business-35960128. 
  8. ↑ "Alaska Air Group closes acquisition of Virgin America, becomes the 5th largest U.S. airline". Alaska Airlines (Press release). Alaska Airlines, Inc. December 14, 2016.
  9. ↑ Kim, Susanna (April 4, 2016). "What You Should Know About the Virgin America, Alaska Air Merger". ABC News Internet. https://abcnews.go.com/Business/virgin-america-alaska-air-merger/story?id=38143131. 
  10. ↑ 10.0 10.1 "Alaska Air Group, Form 10-K, Annual Report, Filing Date February 28, 2017". secdatabase.com. http://pdf.secdatabase.com/1979/0000766421-17-000016.pdf. 
  11. ↑ Goldman, David; Ostrower, Jon (March 23, 2017). "Alaska Airlines is killing off the Virgin America brand". Cable News Network. https://money.cnn.com/2017/03/22/news/companies/virgin-america-alaska-airlines-brand/. 
  12. ↑ "Alaska Airlines and Hawaiian Airlines to Combine, Expanding Benefits and Choice for Travelers Throughout Hawai'i and the West Coast". Hawaiian Airlines (Press release). December 3, 2023. Retrieved December 3, 2023.
  13. ↑ "Alaska, Hawaiian airlines merging after $1.9B deal" (in en-US). December 3, 2023. https://www.khon2.com/local-news/alaska-hawaiian-air-announce-the-two-will-combine-companies/. 
  14. ↑ 14.0 14.1 "Alaska Air Revenue 2006-2018 | ALK". https://www.macrotrends.net/stocks/charts/ALK/alaska-air/revenue. 
  15. ↑ 15.0 15.1 15.2 15.3 15.4 "Alaska Air Group Annual Report 2014". March 27, 2015. https://investor.alaskaair.com/static-files/85b5971e-c481-44f3-8686-5841f7e47dac. 
  16. ↑ "Alaska Air Group Form 10-K Annual Report for the fiscal year ended December 31, 2015". February 11, 2016. https://investor.alaskaair.com/static-files/550e2d06-103d-403d-a542-36aa7d87cbd5. 
  17. ↑ 17.0 17.1 "Alaska Air Group reports December 2017 and full-year operational results". January 12, 2018. https://investor.alaskaair.com/news-releases/news-release-details/alaska-air-group-reports-december-2017-and-full-year-operational. 
  18. ↑ 18.0 18.1 "ALK Investor Day 2018". 2018. https://alaskaairgroupinc.gcs-web.com/static-files/94dea078-6b34-4db7-837a-452723220c5b. 
  19. ↑ 19.0 19.1 "Alaska Air Group reports fourth quarter 2019 and full-year results". January 28, 2020. https://investor.alaskaair.com/news-releases/news-release-details/alaska-air-group-reports-fourth-quarter-2019-and-full-year. 
  20. ↑ "Alaska Air Group, Form 10-K, Annual Report, Filing Date February 26, 2021". Alaska Air Group. https://investor.alaskaair.com/static-files/676042ac-140c-4143-9f41-4139632eb056. 
  21. ↑ "Alaska Airlines reinforces hometown commitment with office expansion near Sea-Tac Airport". May 3, 2018. https://investor.alaskaair.com/news-releases/news-release-details/alaska-airlines-reinforces-hometown-commitment-office-expansion. 
  22. ↑ "Information about the planes we fly". Alaska Airlines, Inc.. http://www.alaskaair.com/as/www2/company/Fleet/Fleet.asp. 
  23. ↑ Segal, Dave (February 15, 2013). "Alaska Airlines successfully fills voids in Hawaii left by failed airlines". The Honolulu Star-Advertiser. https://skift.com/2013/02/15/alaska-airlines-ceo-abates-rumors-that-a-merger-with-hawaiian-could-be-next/. 
  24. ↑ "Cities served". Alaska Airlines, Inc.. https://newsroom.alaskaair.com/cities-served. 

External links



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