Alaska Airlines has released its latest quarterly report, revealing the US carrier raked in record-breaking operating revenues of $2.8 billion, the highest-ever quarterly intake in its 78-year history. Let's take a closer look at Alaska's latest results below.

A record-breaking quarter for Alaska Airlines

Alaska Airlines has broken its quarterly revenue record after generating a whopping $2.8 billion for the third quarter ending September 30th. The airline benefited from rejuvenated demand for air travel and a standout operational performance across the entire quarter.

Alaska Airlines CEO Ben Minicucci said,

"I am incredibly proud of our entire team for the strong results they delivered in the third quarter, through the busiest travel season in two years. We ran an industry-leading operation with completion rates of over 99% every month. We set a new revenue record and our double-digit pretax margin will likely lead the industry. Alaska and Horizon also ratified three major labor deals. This is a strong foundation that we look forward to building on in 2023."

The airline's quarterly revenues are an 18% improvement from what it managed during the same period in 2019. Of this $2.8 billion, over $2.6 billion came from Alaska's passenger operations, with just $67 million coming from cargo.

Notably, the airline's RASM (revenues per available seat mile) was a whopping 26.8% higher than in Q3 2019, which the airline puts down to "strong pricing, a robust demand environment and the execution of our commercial roadmap."

The carrier's net income under Generally Accepted Accounting Principles (GAAP) stood at $40 million compared to $194 million in 2021. However, excluding special items and mark-to-market fuel hedge accounting adjustments, net income was at $325 million for the quarter.

Several key moves

The Seattle-based airline realized a number of notable achievements over the last quarter, including important labor agreements and fleet changes. As Simple Flying reported this week, 82% of Alaska Airlines pilots ratified a new collective bargaining agreement (CBA) contract offering industry-leading pay and other perks, while the carrier also ratified a two-year contract extension with around 5,700 employees in August and reached an agreement to retain 700 Horizon Air pilots.

In terms of its fleet, Alaska welcomed five more Boeing 737 MAX 9 jets - taking it to 33 MAX 9s in total - whilst retiring six Airbus A320s and nine Dash 8 Q400s. The airline adds that, by January 2023, it will have phased out the remaining 23 A320s and 22 Q400s as it transitions to single fleets.

Another strong quarter to come

Alaska forecasts its excellent performance to continue into the fourth quarter, projecting revenues of up to $2.5 billion. Despite the airline forecasting its ASMs (available seat miles) will drop by up to 10% compared to Q4 2019, revenue is expected to rise by 12-15%.

However, the carrier expects to be operating at a cost per ASM excluding fuel and special items over 20% higher than 2019, which it attributes primarily to "the impacts of our three newly ratified labor agreements." Alaska projects its economic fuel cost per gallon will remain under $4 at between $3.50 to $3.70, aided by its fuel hedging strategy.