Alaska Airlines’ third-quarter managed corporate revenue grew by 9 percent year over year, with double-digit percentage growth from the technology and professional services sectors, according to a company filing with the U.S. Securities and Exchange Commission. Alaska projects similar trends in the fourth quarter.
The airline did not hold a third-quarter earnings call, which would have been its first since it closed its merger with Hawaiian Airlines on Sept. 18.
Corporate demand also showed “renewed strength in September and into October,” which drove meaningful yield improvements on close-in bookings, according to Alaska, which added that Hawaiian’s corporate portfolio “is materially smaller than Alaska’s and is concentrated primarily across neighbor islands flying with a small percentage between Hawaii and North America.”
Premium revenue during the quarter remained strong and continued to outperform the main cabin, according to Alaska. First-class revenue increased 10 percent year over year, with premium revenue up 8 percent. Premium capacity also grew 5 percent during the period. During a second-quarter call, the carrier said in September it would start to roll out additional First Class and Premium Class seating.
Alaska Q3 Metrics
Alaska reported third-quarter passenger revenue of more than $2.8 billion, an increase of 8 percent year over year. Total revenue was nearly $3.1 billion, up 8 percent. Net income was $236 million compared with $139 million a year prior.
Capacity during the quarter increased 6.8 percent year over year and is projected to grow 1.5 percent to 2.5 percent in the fourth quarter. The average fuel price for the third quarter was $2.61 per gallon, with a fourth-quarter projection of $2.55 to $2.65 per gallon.
