Alaska Air Group’s fourth-quarter managed corporate revenue posted a solid year-over-year increase, Alaska chief revenue officer and chief commercial officer Andrew Harrison said on a Thursday earnings call, underscored by a sharp increase in December.
The October-December period was the first full quarter after Alaska closed its acquisition of Hawaiian Airlines.
“Managed corporate business travel has shown strength all year and really spiked in December, with revenues up 35 percent [year over year], helping drive overall fourth quarter corporate revenues up 8 percent year over year,” Harrison said.
For the full year, managed corporate revenue was up 15 percent compared with 2023, Harrison said, adding that “advanced bookings are shaping up well.” In the fourth quarter, withheld managed business revenue for future periods was up 20 percent year over year, “continuing to support close-in booking strength.”
The technology (up 15 percent year over year) and professional services (up 13 percent) sectors led the increases, Harrison said. “We continue to see upside from several of our largest accounts, but … an even greater opportunity for us will come from international business travel,” he said, citing the upcoming launch of Hawaiian Airlines daily nonstop flights between Seattle and Tokyo Narita, set for May.
Alaska Q4, FY2024 Metrics
Reported fourth-quarter financials reflect consolidated results, while comparable prior-year periods exclude Hawaiian results, according to Alaska.
Alaska reported fourth-quarter passenger revenue of nearly $3.2 billion, a 37 percent increase year over year, on total revenue of more than $3.5 billion, which represents a 38 percent increase.
“December, in particular, exceeded expectations, driven by a combination of close-in strength from corporate demand, higher load factors and strong operational performance as we connected the Hawaiian and Alaska networks with codeshare,” Harrison said.
Full-year 2024 passenger revenue was nearly $10.7 billion on total revenue of more than $11.7 billion, up 12 percent and 13 percent compared with 2023, respectively.
Q4 net income was $71 million compared with a Q4 2023 loss of $2 million. Full-year 2024 net income was $395 million, up from $235 million in 2023. The average fuel price was $2.54 per gallon for the quarter and $2.74 for the full year. Capacity for Q4 increased 2.5 percent year over year.
Guidance for the first quarter includes capacity to increase 2.5 percent to 3.5 percent. Full-year capacity is projected to increase 2 percent to 3 percent, assuming 14 Boeing 737 Max and three Boeing 787 aircraft deliveries, Alaska CFO Shane Tackett said.
