SeaTac’s Alaska Air Group reported record second quarter profits today on strong demand for its services.
The airline holding company, parent of Alaska Airlines and Horizon Air, beat Wall Street predictions for its per share income.
Alaska said its net income excluding special items was $110.8 million for the quarter or $1.53 per share. The Wall Street consensus prediction was $1.51 a share.
The airline’s earnings in the same quarter last year excluding special items was $89.6 million or $1.22 a share.
“Significantly higher revenues driven by strong demand, our growing route network and our preferred product led to a record second-quarter profit,” said Brad Tilden, Alaska’s chief executive officer. “Our people are doing a terrific job, and I want to thank them for running a safe operation, taking great care of our customers and producing those excellent results.”
Including special items such as the value of hedged fuel at market prices, the airline holding company’s net income was $67.5 million or 93 cents a share.
The airline company bragged that its second quarter achievements weren’t all financial.
Alaska, for instance, was the most on-time airline among the nation’s 10 largest in the year ending in May. The airline also ranked highest in passenger satisfaction among traditional network carriers in a J.D. Power and Associates survey in 2012 for the fifth consecutive year. The company also won “Best Regional Airline in North America” at the 2012 World Airline Awards.
While it achieved record profits, Alaska said it achieved return on invested capital of 12.3 percent in the past 12 months compared with 11.5 percent for the same period in 2011 and 2010.
Ratings agency Standard and Poor’s raised the company’s outlook from “stable” to “positive.”
The airline launched 10 new non-stop routes, many of them to Hawaii and in California, in the second quarter. In the third quarter, Alaska has already announced seven new non-stop routes such as Seattle to San Antonio, San Diego to Orlando and Portland to Washington, D.C.