ALASKA AIR GROUP, INC. SEATTLE, April 21, 2016 /PRNewswire/ --
Financial Highlights:
-- Reported record first quarter net income, excluding special items, of
$183 million, a 23% increase over the first quarter of 2015. Adjusted
diluted earnings per share of $1.45 was a 29% increase over the first
quarter of 2015. This quarter's results exceed First Call analyst
consensus estimate of $1.42 per share.
-- Reported net income for the first quarter under Generally Accepted
Accounting Principles (GAAP) of $184 million or $1.46 per diluted share,
compared to net income of $149 million, or $1.12 per diluted share in
2015.
-- Paid $0.275 per-share quarterly cash dividend in the first quarter, a
38% increase over the dividend paid in the first quarter of 2015.
-- Repurchased 1.7 million shares of common stock for an average price of
$74 during the first quarter of 2016 for $127 million.
-- Generated approximately $530 million of operating cash flow and $410
million of free cash flow in the first quarter of 2016.
-- Grew passenger revenues by 4% compared to the first quarter of 2015.
-- Achieved return on invested capital of 25.6% for the twelve-month period
ending March 31, 2016, compared to 20.1% for the twelve-month period
ending March 31, 2015.
-- Lowered adjusted debt-to-capitalization ratio to 26% as of March 31,
2016.
-- Held $1.6 billion in unrestricted cash and marketable securities as of
March 31, 2016.
-- Placed an order on April 12, 2016, for 30 Embraer E175s with the option
to purchase an additional 33 E175s. The E175s will be flown by Horizon
Air beginning in 2017.
Planned Acquisition of Virgin America:
-- Announced an agreement on April 4, 2016, to acquire the outstanding
common stock of Virgin America, Inc. (Virgin America) for $2.6 billion
in cash. The transaction is expected to close late this year or early
2017, pending Virgin America shareholder and regulatory approval.
Operational Highlights:
-- Held the No. 1 spot in U.S. Department of Transportation on-time
performance among the six largest U.S. airlines for the 12-months ended
February 2016.
-- Recognized by Air Transport World as the Airline Market Leader for
strong financial performance and outstanding customer service.
-- Increased Visa Signature affinity cardholders by 12% compared to the
prior year.
-- Began offering Mileage Plan members the ability to redeem award miles
for flights with Hainan Airlines.
-- Announced the formation of McGee Air Services, a wholly-owned subsidiary
of Alaska Airlines, which will provide ground handling, aircraft
cleaning and airport mobility services.
New routes launched and announced in the first quarter are as follows:
New Non-Stop Routes Launched New Non-Stop Routes Announced
in Q1 (Launch Dates)
---------------------------- -----------------------------
Reno, Nevada to Orange San Diego, California to San
County, California Jose, California (6/8/16)
---------------------- -----------------------------
Orange County, California to Bellingham, Washington to Kona,
Santa Rosa, California Hawaii (11/12/16)
---------------------------- ------------------
Alaska Air Group, Inc., (NYSE: ALK) today reported first quarter 2016 GAAP net income of $184 million, or $1.46 per diluted share, compared to $149 million, or $1.12 per diluted share in the first quarter of 2015. Excluding the impact of mark-to-market fuel hedge adjustments, the company reported record adjusted net income of $183 million, or $1.45 per diluted share, compared to adjusted net income of $149 million, or $1.12 per diluted share, in 2015.
"We are proud to report record first quarter results," said CEO Brad Tilden. "These results are due to the efforts of employees at Alaska and Horizon who share a common sense of mission and a focus on low fares, operational reliability, and delivering a level of genuine and caring service that sets us apart. We see many of these same qualities in Virgin America, and we're very excited about our proposed combination. We are looking forward to the integration process and are confident that our team has what it takes to build the premier airline for people living on the West Coast."
The following table reconciles the company's reported GAAP net income and earnings per diluted share (Diluted EPS) during the first quarters of 2016 and 2015 to adjusted amounts:
Three Months Ended March 31,
----------------------------
2016 2015
---- ----
(in millions,
except per-
share amounts) Dollars Diluted EPS Dollars Diluted EPS
------- ----------- ------- -----------
Reported GAAP net
income $184 $1.46 $149 $1.12
Mark-to-market
fuel hedge
adjustments, net
of tax (1) (0.01) - -
--- ----- --- ---
Non-GAAP
adjusted income
and per-share
amounts $183 $1.45 $149 $1.12
==== ===== ==== =====
Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables. A glossary of financial terms can be found on the last page of this release.
A conference call regarding the first quarter results will be simulcast via the Internet at 8:30 a.m. Pacific time on April 21, 2016. It can be accessed through the company's website at www.alaskaair.com/investors. For those unable to listen to the live broadcast, a replay will be available after the conclusion of the call.
Additional Information About the Merger and Where to Find It
This communication may be deemed to be solicitation material in respect of the merger of Virgin America, Inc. ("Virgin America") with a wholly owned subsidiary of Alaska Air Group. Virgin America intends to file relevant materials with the Securities and Exchange Commission (the "SEC"), including a proxy statement in preliminary and definitive form, in connection with the solicitation of proxies for the merger. The definitive proxy statement will contain important information about the proposed merger and related matters. BEFORE MAKING A VOTING DECISION, STOCKHOLDERS OF VIRGIN AMERICA ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER RELEVANT MATERIALS CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT VIRGIN AMERICA AND THE MERGER. Stockholders will be able to obtain copies of the proxy statement and other relevant materials (when they become available) and any other documents filed by Virgin America with the SEC for no charge at the SEC's website at www.sec.gov. In addition, stockholders will be able to obtain free copies of the proxy statement from Virgin America by contacting Virgin America's Investor Relations Department by telephone at (650) 762-7000, by mail to Virgin America Inc., Attention: Investor Relations Department, 555 Airport Boulevard, Burlingame, California 94010, or by going to Virgin America's Investor Relations page on its corporate website at http://ir.virginamerica.com.
Participants in the Solicitation
Alaska Air Group, Virgin America and certain of their respective directors, executive officers and other employees may be deemed to be participants in the solicitation of proxies from Virgin America's stockholders in respect of the merger. Information concerning the ownership of Virgin America securities by Virgin America's directors and executive officers is included in their SEC filings on Forms 3, 4, and 5, and additional information about Virgin America's directors and executive officers is also available in Virgin America's proxy statement for its 2016 annual meeting of stockholders filed with the SEC on March 25, 2016, and is supplemented by other public filings made, and to be made, with the SEC by Virgin America. Information concerning Alaska Air Group's directors and executive officers is available in Alaska Air Group's proxy statement for its 2016 annual meeting of stockholders filed with the SEC on April 1, 2016. Other information regarding persons who may be deemed participants in the proxy solicitation, including their respective interests by security holdings or otherwise, will be set forth in the definitive proxy statement that Virgin America intends to file with the SEC. These documents can be obtained free of charge from the sources indicated above.
Forward-Looking Statements
This communication contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934, as amended. These statements relate to future events, Alaska Air Group and the proposed merger of Virgin America with a wholly owned subsidiary of Alaska Air Group. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," " expect," "may," "likely," "should," "project," "could," "plan," "goal," "potential," "pro forma," "seek," "estimate," "intend" or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, financial projections, guidance and estimates (including their underlying assumptions), statements regarding plans, objectives, expectations or consequences of announced transactions, and statements about the future performance, operations and services of Alaska Air Group. Alaska Air Group cautions readers not to place undue reliance on these statements. These forward-looking statements are subject to a variety of risks and uncertainties. Consequently, actual results and experience may materially differ from those contained in any forward-looking statements. Such risks and uncertainties include the following: the failure to obtain Virgin America stockholder approval of the proposed merger; the possibility that the closing conditions to the proposed merger may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant a necessary regulatory approval; delay in closing the merger or the possibility of non-consummation of the merger; the occurrence of any event that could give rise to termination of the merger agreement; the risk that stockholder litigation in connection with the contemplated merger may affect the timing or occurrence of the contemplated merger or result in significant costs of defense, indemnification and liability; risks inherent in the achievement of anticipated synergies and the timing thereof; risks related to the disruption of the merger to Virgin America and its management; the effect of the announcement of the merger on Virgin America's ability to retain and hire key personnel and maintain relationships with suppliers and other third parties; labor costs and relations; general economic conditions; increases in operating costs including fuel; competition; inability to meet cost reduction goals; seasonal fluctuations in our financial results; an aircraft accident; and changes in laws and regulations. These risks and others relating to Alaska Air Group are described in greater detail in Alaska Air Group's SEC filings, including Alaska Air Group's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2015, as well as in other documents filed by Alaska Air Group with the SEC after the date thereof. Alaska Air Group makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances occurring or existing after the date any forward-looking statement is made.
Alaska Airlines, a subsidiary of Alaska Air Group (NYSE: ALK), together with its partner regional airlines, serves nearly 100 cities through an expansive network in the United States, Canada and Mexico. For reservations, visit https://www.alaskaair.com. For more news and information, visit the Alaska Airlines Newsroom at www.alaskaair.com/newsroom.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Alaska Air Group, Inc.
Three Months Ended March 31,
----------------------------
(in millions, except
per-share amounts) 2016 2015 Change
---- ---- ------
Operating Revenues:
Passenger
Mainline $927 $901 3%
Regional 206 186 11%
--- --- ---
Total passenger
revenue 1,133 1,087 4%
Freight and mail 24 23 4%
Other - net 190 159 19%
Total Operating
Revenues 1,347 1,269 6%
----- ----- ---
Operating Expenses:
Wages and benefits 336 306 10%
Variable incentive pay 32 26 23%
Aircraft fuel,
including hedging
gains and losses 167 235 (29)%
Aircraft maintenance 68 63 8%
Aircraft rent 29 26 12%
Landing fees and other
rentals 80 71 13%
Contracted services 60 52 15%
Selling expenses 49 53 (8)%
Depreciation and
amortization 88 76 16%
Food and beverage
service 31 25 24%
Other 94 83 13%
Third-party regional
carrier expense 23 15 53%
--- --- ---
Total Operating
Expenses 1,057 1,031 3%
----- ----- ---
Operating Income 290 238 22%
--- --- ---
Nonoperating Income
(Expense):
Interest income 6 5
Interest expense (13) (11)
Interest capitalized 8 8
Other - net 1 -
---
Total Nonoperating
Income (Expense) 2 2
--- ---
Income Before Income
Tax 292 240
Income tax expense 108 91
Net Income $184 $149
---- ----
Basic Earnings Per
Share: $1.47 $1.13
Diluted Earnings Per
Share: $1.46 $1.12
Shares Used for
Computation:
Basic 124.550 131.120
Diluted 125.328 132.230
Cash dividend declared
per share: $0.275 $0.20
CONDENSED
CONSOLIDATED
BALANCE SHEETS
(unaudited)
Alaska Air Group,
Inc.
(in millions) March 31, 2016 December 31,
2015
-------------- -------------
Cash and marketable
securities $1,564 $1,328
====== ======
Total current
assets 1,923 1,663
Property and
equipment-net 4,830 4,802
Other assets 76 65
--- ---
Total assets 6,829 6,530
===== =====
Air traffic
liability 868 669
Current portion of
long-term debt 116 114
Other current
liabilities 1,085 1,022
----- -----
Current liabilities 2,069 1,805
Long-term debt 531 569
Other liabilities
and credits 1,774 1,745
Shareholders'
equity 2,455 2,411
----- -----
Total liabilities
and shareholders'
equity $6,829 $6,530
====== ======
Debt-to-
capitalization
ratio, adjusted
for operating
leases(a) 26%:74% 27%:73%
====== ======
Number of common
shares outstanding 123.913 125.175
======= =======
(a) Calculated using the
present value of remaining
aircraft lease payments.
OPERATING STATISTICS SUMMARY (unaudited)
Alaska Air
Group, Inc.
Three Months Ended March 31,
----------------------------
2016 2015 Change
---- ---- ------
Consolidated
Operating
Statistics:(a)
Revenue
passengers
(000) 7,835 7,316 7.1%
RPMs
(000,000)
"traffic" 8,571 7,723 11.0%
ASMs
(000,000)
"capacity" 10,453 9,257 12.9%
Load factor 82.0% 83.4% (1.4)pts
Yield 13.22¢ 14.08¢ (6.1)%
PRASM 10.84¢ 11.74¢ (7.7)%
RASM 12.88¢ 13.71¢ (6.1)%
CASM
excluding
fuel(b) 8.51¢ 8.61¢ (1.2)%
Economic fuel
cost per
gallon(b) $1.29 $1.98 (34.8)%
Fuel gallons
(000,000) 132 119 10.9%
ASM's per
gallon 79.2 77.8 1.8%
Average
number of
full-time
equivalent
employees
(FTE) 14,357 13,274 8.2%
Mainline
Operating
Statistics:
Revenue
passengers
(000) 5,642 5,236 7.8%
RPMs
(000,000)
"traffic" 7,716 6,994 10.3%
ASMs
(000,000)
"capacity" 9,354 8,347 12.1%
Load factor 82.5% 83.8% (1.3)pts
Yield 12.01¢ 12.88¢ (6.8)%
PRASM 9.91¢ 10.79¢ (8.2)%
RASM 11.99¢ 12.75¢ (6.0)%
CASM
excluding
fuel(b) 7.49¢ 7.66¢ (2.2)%
Economic fuel
cost per
gallon(b) $1.28 $1.97 (35.0)%
Fuel gallons
(000,000) 113 103 9.7%
ASM's per
gallon 82.8 81.0 2.2%
Average
number of
FTE's 11,123 10,380 7.2%
Aircraft
utilization 10.6 10.6 -%
Average
aircraft
stage length 1,237 1,199 3.2%
Operating
fleet 152 137 15 a/c
Regional
Operating
Statistics:(c)
Revenue
passengers
(000) 2,192 2,080 5.4%
RPMs
(000,000)
"traffic" 855 728 17.4%
ASMs
(000,000)
"capacity" 1,100 910 20.9%
Load factor 77.7% 80.0% (2.3)pts
Yield 24.09¢ 25.58¢ (5.8)%
PRASM 18.72¢ 20.46¢ (8.5)%
Operating
fleet 67 60 7 a/c
(a) Except for full-time equivalent
employees, data includes
information related to third-
party regional capacity purchase
flying arrangements.
(b) See a reconciliation of operating
expenses excluding fuel, a
reconciliation of economic fuel
costs, and Note A in the
accompanying pages, for a
discussion of why these measures
may be important to investors.
(c) Data presented includes information
related to flights operated by
Horizon Air and third-party
carriers.
OPERATING SEGMENTS (unaudited)
Alaska Air Group, Inc.
Three Months Ended March 31, 2016
---------------------------------
Alaska
------
(in millions) Mainline Regional Horizon Consolidating Air Group Special
Adjusted(a) Items(b) Consolidated
-------- -------- ------- ------------- ------------ -------- ------------
Operating revenues
Passenger
Mainline $927 $ - $ - $ - $927 $ - $927
Regional - 206 - - 206 - 206
--- --- --- --- --- --- ---
Total passenger
revenues 927 206 - - 1,133 - 1,133
CPA revenues - - 103 (103) - - -
Freight and mail 23 1 - - 24 - 24
Other-net 172 17 1 - 190 - 190
--- --- --- --- --- --- ---
Total operating
revenues 1,122 224 104 (103) 1,347 - 1,347
----- --- --- ---- ----- --- -----
Operating expenses
Operating expenses,
excluding fuel 701 186 105 (102) 890 - 890
Economic fuel 144 25 - - 169 (2) 167
--- ---
Total operating
expenses 845 211 105 (102) 1,059 (2) 1,057
--- --- --- ---- ----- --- -----
Nonoperating income (expense)
Interest income 6 - - - 6 - 6
Interest expense (12) - (1) - (13) - (13)
Other 7 - - 2 9 - 9
--- --- --- --- --- --- ---
Total Nonoperating
income (expense) 1 - (1) 2 2 - 2
Income (loss) before
income tax $278 $13 $(2) $1 $290 $2 $292
==== === === === ==== === ====
Three Months Ended March 31, 2015
---------------------------------
Alaska
------
(in millions) Mainline Regional Horizon Consolidating Air Group Special
Adjusted(a) Items(b) Consolidated
-------- -------- ------- ------------- ------------ -------- ------------
Operating revenues
Passenger
Mainline $901 $ - $ - $ - $901 $ - $901
Regional - 186 - - 186 - 186
--- --- --- --- --- --- ---
Total passenger
revenues 901 186 - - 1,087 - 1,087
CPA revenues - - 99 (99) - - -
Freight and mail 22 1 - - 23 - 23
Other-net 142 16 1 - 159 - 159
--- --- --- --- --- --- ---
Total operating
revenues 1,065 203 100 (99) 1,269 - 1,269
----- --- --- --- ----- --- -----
Operating expenses
Operating expenses,
excluding fuel 639 164 91 (98) 796 - 796
Economic fuel 203 32 - - 235 - 235
---
Total operating
expenses 842 196 91 (98) 1,031 - 1,031
--- --- --- --- ----- --- -----
Nonoperating income (expense)
Interest income 5 - - - 5 - 5
Interest expense (7) - (4) - (11) - (11)
Other 7 - 1 - 8 - 8
--- --- --- --- --- --- ---
Total Nonoperating
income (expense) 5 - (3) - 2 - 2
Income (loss) before
income tax $228 $7 $6 $(1) $240 $ - $240
==== === === === ==== === === ====
(a) The adjusted column represents the
financial information that is
reviewed by management to assess
performance of operations and
determine capital allocations and
does not include certain charges.
See Note A in the accompanying
pages for further information.
(b) Includes mark-to-market fuel-
hedge accounting adjustments.
Alaska Air Group, Inc.
CASM EXCLUDING FUEL RECONCILIATION (unaudited)
Three Months Ended March
31,
-------------------------
(in cents) 2016 2015
---- ----
Consolidated:
CASM 10.11 ¢ 11.14 ¢
Less the following components:
Aircraft fuel, including
hedging gains and losses 1.60 2.53
---- ----
CASM excluding fuel 8.51 ¢ 8.61 ¢
==== === ==== ===
Mainline:
CASM 9.01 ¢ 10.09 ¢
Less the following components:
Aircraft fuel, including
hedging gains and losses 1.52 2.43
---- ----
CASM excluding fuel 7.49 ¢ 7.66 ¢
==== === ==== ===
FUEL RECONCILIATIONS (unaudited)
Three Months Ended March 31,
----------------------------
2016 2015
---- ----
(in millions, except
for per-gallon
amounts) Dollars Cost/Gallon Dollars Cost/Gallon
------- ----------- ------- -----------
Raw or "into-plane"
fuel cost $165 $1.26 $229 $1.93
Losses on settled
hedges 4 0.03 6 0.05
--- ---- --- ----
Consolidated economic
fuel expense 169 1.29 235 1.98
--- ---- --- ----
Mark-to-market fuel
hedge adjustment (2) (0.02) - -
--- ----- --- ---
GAAP fuel expense $167 $1.27 $235 $1.98
==== ===== ==== =====
Fuel gallons 132 119
=== ===
Note A: Pursuant to Regulation G, we have provided reconciliation of reported non-GAAP financial measures to their most directly comparable financial measures reported on a GAAP basis. We believe that consideration of these non-GAAP financial measures may be important to investors for the following reasons:
-- By eliminating fuel expense and certain special items from our unit
metrics, we believe that we have better visibility into the results of
operations and our non-fuel cost-reduction initiatives. Our industry is
highly competitive and is characterized by high fixed costs, so even a
small reduction in non-fuel operating costs can result in a significant
improvement in operating results. In addition, we believe that all
domestic carriers are similarly impacted by changes in jet fuel costs
over the long term, so it is important for management (and thus
investors) to understand the impact of (and trends in) company-specific
cost drivers such as labor rates and productivity, airport costs,
maintenance costs, etc., which are more controllable by management.
-- Cost per ASM (CASM) excluding fuel and certain special items is one of
the most important measures used by management and by the Air Group
Board of Directors in assessing quarterly and annual cost performance.
-- Adjusted Income before income tax and CASM excluding fuel (and other
items as specified in our plan documents) are important metrics for the
employee incentive plan that covers all Air Group employees.
-- CASM excluding fuel and certain special items is a measure commonly used
by industry analysts, and we believe it is the basis by which they
compare our airlines to others in the industry. The measure is also the
subject of frequent questions from investors.
-- Disclosure of the individual impact of certain noted items provides
investors the ability to measure and monitor performance both with and
without these special items. We believe that disclosing the impact of
certain items, such as mark-to-market hedging adjustments or special
revenues, is important because it provides information on significant
items that are not necessarily indicative of future performance.
Industry analysts and investors consistently measure our performance
without these items for better comparability between periods and among
other airlines.
-- Although we disclose our passenger unit revenues, we do not (nor are we
able to) evaluate unit revenues excluding the impact that changes in
fuel costs have had on ticket prices. Fuel expense represents a large
percentage of our total operating expenses. Fluctuations in fuel prices
often drive changes in unit revenues in the mid-to-long term. Although
we believe it is useful to evaluate non-fuel unit costs for the reasons
noted above, we would caution readers of these financial statements not
to place undue reliance on unit costs excluding fuel as a measure or
predictor of future profitability because of the significant impact of
fuel costs on our business.
Note B: Air Group has two operating airlines - Alaska Airlines and Horizon Air. Each is a regulated airline with separate management teams primarily in operational roles. To manage the two operating airlines, management views the business in three operating segments. Alaska operates a fleet of passenger jets (Alaska Mainline) and contracts with Horizon, SkyWest Airlines, Inc. (SkyWest), and Peninsula Airways, Inc. (PenAir) for regional capacity under which Alaska receives all passenger revenue from those flights (Alaska Regional). Horizon operates a fleet of turboprop aircraft and sells all of its capacity to Alaska pursuant to a capacity purchase arrangement (Horizon). The Company believes the amounts paid by Alaska to Horizon approximate current market rates received by other regional carriers for similar flying and are available to pay for various Horizon operating expenses such as crew expenses, maintenance, and aircraft ownership costs. All inter-company revenues and expenses between Alaska and Horizon are eliminated in consolidation.
Glossary of Terms
Aircraft Utilization - block hours per day; this represents the average number of hours our aircraft are flying
Aircraft Stage Length - represents the average miles flown per aircraft departure
ASMs - available seat miles, or "capacity"; represents total seats available across the fleet multiplied by the number of miles flown
CASM - operating costs per ASM, or "unit cost"; represents all operating expenses including fuel and special items
CASMex - operating costs excluding fuel and special items per ASM; this metric is used to help track progress toward reduction of non-fuel operating costs since fuel is largely out of our control
Debt-to-capitalization ratio - represents adjusted debt (long-term debt plus the present value of future operating lease payments) divided by total equity plus adjusted debt
Diluted Earnings per Share - represents earnings per share using fully diluted shares outstanding
Diluted Shares - represents the total number of shares that would be outstanding if all possible sources of conversion, such as stock options, were exercised
Economic Fuel - best estimate of the cash cost of fuel, net of the impact of our fuel-hedging program
Free Cash Flow - total operating cash flow generated less cash paid for capital expenditures
Load Factor - RPMs as a percentage of ASMs; represents the number of available seats that were filled with paying passengers
Mainline - represents flying Boeing 737 jets and all associated revenues and costs
PRASM - passenger revenue per ASM; commonly called "passenger unit revenue"
Productivity - number of revenue passengers per full-time equivalent employee
RASM - operating revenue per ASMs, or "unit revenue"; operating revenue includes all passenger revenue, freight & mail, Mileage Plan, and other ancillary revenue; represents the average total revenue for flying one seat one mile
Regional - represents capacity purchased by Alaska from Horizon, SkyWest, and PenAir. In this segment, Alaska Regional records actual on-board passenger revenue, less costs such as fuel, distribution costs, and payments made to Horizon, SkyWest and PenAir under the respective capacity purchased arrangement (CPAs). Additionally, Alaska Regional includes an allocation of corporate overhead such as IT, finance, other administrative costs incurred by Alaska and on behalf of Horizon.
RPMs - revenue passenger miles, or "traffic"; represents the number of seats that were filled with paying passengers; one passenger traveling one mile is one RPM
Yield - passenger revenue per RPM; represents the average revenue for flying one passenger one mile
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alaska-air-group-reports-record-first-quarter-2016-results-300255109.html
SOURCE Alaska Air Group
