Alaska Air Group Takes Flight: Record-Breaking Results and Strategic Growth

Alaska Air Group, the parent company of Alaska Airlines, has delivered a strong performance in its 2024 fourth quarter earnings report. The company's Vice President of Finance, Planning and Investor Relations, Ryan St. John, reported GAAP net income of $71 million for the quarter and $395 million for the full year.
However, when excluding special items and mark-to-market fuel hedge adjustments, Air Group's adjusted net income came in at a respectable $125 million for the fourth quarter and $625 million for the full year. This demonstrates the company's continued ability to navigate the complex aviation industry while maintaining profitability.
The report marks a significant milestone for Alaska Air Group, which acquired Hawaiian Airlines in September 2024. The acquisition has provided the company with a leading position in a top 25 U.S. hub, an incredibly valuable brand, and a mix of wide-body and narrow-body aircraft. This strategic move is expected to drive scale, relevance, and loyalty among the company's customers.
Benito Minicucci, CEO of Alaska Air Group, highlighted the company's strong results in his opening remarks. 'We delivered an adjusted EPS of $0.97 for the fourth quarter and $4.87 for the full year 2024, both exceeding our guidance,' he said. 'Our teams rose to the challenge with an unwavering commitment to safety and restored Air Group to the safe reliable operation we're known and trusted for.'
The company's aggressive share repurchase program has also seen significant activity in recent months. In December 2024, Alaska Air Group repurchased $248 million in shares, bringing the full-year total to over $300 million. This was followed by the launch of a newly authorized $1 billion share repurchase program in January.
One notable highlight from the report is the record-breaking bonus payout for employees. The company will distribute over $300 million, equivalent to 6 weeks of pay, making it the largest payout in its history and the highest in the industry. This demonstrates the company's commitment to investing in its people and culture.
As Alaska Air Group looks to the future, the company is focused on delivering remarkable travel experiences rooted in safety, care, and performance. With a strong strategic plan in place and continued momentum from 2024, investors are likely to be excited about the prospects for this industry leader.