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Home » Articles » Alaska Air Group (USA) delivers strong fourth quarter 2022 and full-year results

Alaska Air Group (USA) delivers strong fourth quarter 2022 and full-year results

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Record annual revenue of $9.6 billion, up 10% versus 2019;
Received nearly $1.5 billion in annual cash remuneration under the renewed co-brand credit card arrangement with Bank of America, the highest level in the program's history.

GLOGLO

Alaska Air Group Inc. (NYSE: ALK) today reported financial results for the fourth quarter and full year ended Dec. 31, 2022, and provided an outlook for the first quarter ending March 31, 2023.

“2022 was a year of significant recovery and accomplishment for Alaska Airlines,” said Alaska Airlines CEO Ben Minicucci. “Despite many challenges during the year, we ran one of the best operations, signed five new labor deals, and executed the majority of our single fleet transition. The results we posted today signal how well our teams are navigating this recovery. I want to thank our employees for their commitment to our success, and for the work they do every day to take great care of our guests. I am confident that we are well positioned to grow, compete and out-perform in 2023.”

Financial Results:
  • Reported net income for the fourth quarter and full year 2022 under Generally Accepted Accounting Principles (GAAP) of $22 million, or $0.17per diluted share, and $58 million, or $0.45 per diluted share. These results compare to net income for the fourth quarter and full year 2021 of $18 million, or $0.14 per diluted share, and $478 million, or $3.77 per diluted share.
  • Reported net income for the fourth quarter and full year 2022, excluding special items and mark-to-market fuel hedge accounting adjustments, of $118 million, or $0.92 per diluted share, and $556 million, or $4.35 per diluted share. These results compare to net income for the fourth quarter and net loss for the full year 2021, excluding special items and mark-to-market fuel hedge accounting adjustments, of $31 million, or $0.24 per diluted share, and $256 million, or $2.03 per share.
  • Recorded $257 million of incentive pay in 2022 earned by employees for meeting or exceeding profitability, safety and emissions targets. The payout is the richest in the 20-year history of the plan, representing nearly six weeks of pay for most employees.
  • Recorded $2.5 billion in operating revenue for the fourth quarter, resulting in $9.6 billion in operating revenue for the full year 2022, the highest annual total in company history.
  • Received nearly $1.5 billion in annual cash remuneration under the renewed co-brand credit card arrangement with Bank of America, the highest level in the program’s history.

 

Balance Sheet and Liquidity:
  • Announced plans to resume share repurchases in early 2023 to offset annual dilution. Repurchases are expected to range from $75 million to $100 million in 2023.
  • Ended the quarter with a debt-to-capitalization ratio of 49%, within our target range of 40% to 50%.
  • Repaid $52 million in debt in the fourth quarter, bringing total debt payments to $385 million for the full year 2022.
  • Held $2.4 billion in unrestricted cash and marketable securities as of Dec. 31, 2022.

 

Fleet Updates:
  • Retired ten Airbus A320 aircraft and nine Q400 aircraft during the fourth quarter. All remaining A320 aircraft have since been retired and all remaining Q400 aircraft will be retired by the end of January 2023.
  • Amended a previously existing aircraft purchase agreement with Boeing to convert 52 737 MAX aircraft options to firm purchases for delivery between 2024 and 2027. Alaska also added an incremental 105 delivery positions to purchase 737 MAX aircraft between 2026 and 2030.
  • Received four 737-9 aircraft during the quarter, bringing the total 737-9 fleet to 37.
  • Received three E175 aircraft during the quarter, bringing Horizon’s total E175 fleet to 33.

 

Other Operational Updates:
  • Partnered with Lyft to offer Mileage Plan members one mile for every $1 spent on all Lyft rides in the U.S. and Canada.
  • Added a new Mileage Plan partner, Mokulele Airlines, to offer guests more convenient connections within the Hawaiian Islands, starting in early 2023.
  • Launched the first U.S. electronic bag tag program, enabling guests to tag their luggage through the airline’s mobile app before they reach the airport.
  • Opened the renovated C Concourse Lounge in Seattle, the first of several investments that will improve the lounge experience with more seating and food and beverage choices for guests in Seattle, Portland, San Francisco and Los Angeles.

 

Environmental, Social and Governance Updates:
  • Donated a retired Q400 to the Portland Community College Foundation, providing students of the Aviation Maintenance Technology and Aviation Science programs the opportunity to gain hands-on experience working on a commercial aircraft.
  • Completed the transition to paper cups for inflight beverages, which will replace more than 55 million plastic cups each year with a more sustainable alternative.
  • Donated 55 million miles to 20 different charities through Alaska’s Care Miles program in 2022.
  • Created a new Diversity, Equity and Inclusion Disability Office dedicated to ensuring Alaska becomes a leader in disability inclusion.

The following table reconciles the company’s reported GAAP net income per share (EPS) for the three and twelve months ended Dec. 31, 2022 and 2021 to adjusted amounts.

 

Three Months Ended December 31,

 

2022

 

2021

(in millions, except per-share amounts)

Dollars

 

Diluted EPS

 

Dollars

 

Diluted EPS

GAAP net income per share

$                 22

 

$             0.17

 

$                 18

 

$             0.14

Mark-to-market fuel hedge adjustments

12

 

0.09

 

21

 

0.16

Special items – fleet transition and other(a)

120

 

0.93

 

(6)

 

(0.05)

Special items – labor and related(b)

(6)

 

(0.04)

 

2

 

0.02

Income tax effect of reconciling items above

(30)

 

(0.23)

 

(4)

 

(0.03)

Non-GAAP adjusted net income (loss) per share

$              118

 

$             0.92

 

$                 31

 

$             0.24

 

 

Twelve Months Ended December 31,

 

2022

 

2021

(in millions, except per-share amounts)

Dollars

 

Diluted EPS

 

Dollars

 

Diluted EPS

GAAP net income per share

$                 58

 

$             0.45

 

$              478

 

$             3.77

Payroll Support Program grant wage offset

 

 

(914)

 

(7.21)

Mark-to-market fuel hedge adjustments

76

 

0.60

 

(47)

 

(0.37)

Special items – fleet transition and other(a)

496

 

3.88

 

(1)

 

(0.01)

Special items – labor and related(b)

84

 

0.66

 

(10)

 

(0.08)

Income tax effect of reconciling items above

(158)

 

(1.24)

 

238

 

1.87

Non-GAAP adjusted net income (loss) per share

$              556

 

$             4.35

 

$            (256)

 

$           (2.03)

   

(a)

Special items – fleet transition and other in the three and twelve months ended December 31, 2022 is primarily impairment charges and accelerated costs associated with the retirement of the A320 and Q400 fleets.

(b)

Special items – labor and related in the three and twelve months ended December 31, 2022 is primarily a one-time payment to Alaska pilots following ratification of a new collective bargaining agreement.

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 fourth quarter and full year results will be streamed online at 8:30 a.m. PST on Jan. 26, 2023. It can be accessed 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.

References in this update to “Air Group,” “Company,” “we,” “us,” and “our” refer to Alaska Air Group, Inc. and its subsidiaries, unless otherwise specified.

This news release may contain forward-looking statements subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. These statements relate to future events and involve known and unknown risks and uncertainties that may cause actual outcomes to be materially different from those indicated by our forward-looking statements, assumptions or beliefs. For a comprehensive discussion of potential risk factors, see Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Some of these risks include competition, labor costs, relations and availability, general economic conditions including those associated with pandemic recovery, increases in operating costs including fuel, inability to meet cost reduction, ESG and other strategic goals, seasonal fluctuations in demand and financial results, supply chain risks, events that negatively impact aviation safety and security, and changes in laws and regulations that impact our business. All of the forward-looking statements are qualified in their entirety by reference to the risk factors discussed in our most recent Form 10-K and in our subsequent SEC filings. We operate in a continually changing business environment, and new risk factors emerge from time to time. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on our business or events described in any forward-looking statements. We expressly disclaim any obligation to publicly update or revise any forward-looking statements made today to conform them to actual results. Over time, our actual results, performance or achievements may differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, assumptions or beliefs and such differences might be significant and materially adverse.

Alaska Airlines and our regional partners serve more than 120 destinations across the United States, Belize, Canada, Costa Rica and Mexico. We emphasize low fares and award-winning customer service. Alaska is a member of the oneworld global alliance. With the alliance and our additional airline partners, our guests can travel to more than 900 destinations on more than 20 airlines while earning and redeeming miles on flights to locations around the world. Learn more about Alaska at news.alaskaair.com. Alaska Airlines and Horizon Air are subsidiaries of Alaska Air Group. (NYSE: ALK).

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Alaska Air Group, Inc.

                     
 

Three Months Ended December
31,

 

Twelve Months Ended December
31,

(in millions, except per-share amounts)

2022

 

2021

 

Change

 

2022

 

2021

 

Change

Operating Revenue

                     

Passenger revenue

$        2,264

 

$        1,715

 

32 %

 

$        8,808

 

$        5,499

 

60 %

Mileage Plan other revenue

157

 

129

 

22 %

 

590

 

461

 

28 %

Cargo and other revenue

58

 

55

 

5 %

 

248

 

216

 

15 %

Total Operating Revenue

2,479

 

1,899

 

31 %

 

9,646

 

6,176

 

56 %

                       

Operating Expenses

                     

Wages and benefits

709

 

637

 

11 %

 

2,640

 

2,218

 

19 %

Variable incentive pay

117

 

42

 

179 %

 

257

 

151

 

70 %

Payroll Support Program grant wage offset

 

 

— %

 

 

(914)

 

NM

Aircraft fuel, including hedging gains and

losses

668

 

426

 

57 %

 

2,668

 

1,279

 

109 %

Aircraft maintenance

93

 

92

 

1 %

 

424

 

364

 

16 %

Aircraft rent

69

 

66

 

5 %

 

291

 

254

 

15 %

Landing fees and other rentals

146

 

141

 

4 %

 

581

 

555

 

5 %

Contracted services

86

 

68

 

26 %

 

329

 

235

 

40 %

Selling expenses

77

 

50

 

54 %

 

295

 

173

 

71 %

Depreciation and amortization

105

 

100

 

5 %

 

415

 

394

 

5 %

Food and beverage service

54

 

42

 

29 %

 

197

 

139

 

42 %

Third-party regional carrier expense

37

 

41

 

(10) %

 

182

 

147

 

24 %

Other

181

 

159

 

14 %

 

717

 

507

 

41 %

Special items – fleet transition and other

120

 

(6)

 

NM

 

496

 

(1)

 

NM

Special items – labor and related

(6)

 

2

 

NM

 

84

 

(10)

 

NM

Total Operating Expenses

2,456

 

1,860

 

32 %

 

9,576

 

5,491

 

74 %

Operating Income

23

 

39

 

(41) %

 

70

 

685

 

(90) %

Non-operating Income (Expense)

                     

Interest income

18

 

6

 

200 %

 

53

 

25

 

112 %

Interest expense

(24)

 

(27)

 

(11) %

 

(108)

 

(128)

 

(16) %

Interest capitalized

6

 

2

 

200 %

 

14

 

11

 

27 %

Other – net

12

 

9

 

33 %

 

50

 

36

 

39 %

Total Non-operating Income (Expense)

12

 

(10)

 

NM

 

9

 

(56)

 

116 %

Income Before Income Tax

35

 

29

     

79

 

629

   

Income tax expense

13

 

11

     

21

 

151

   

Net Income

$             22

 

$             18

     

$             58

 

$           478

   
                       

Basic Earnings Per Share

$          0.17

 

$          0.14

     

$          0.46

 

$          3.82

   

Diluted Earnings Per Share

$          0.17

 

$          0.14

     

$          0.45

 

$          3.77

   
                       

Shares used for computation:

                     

Basic

127.303

 

125.708

     

126.657

 

125.063

   

Diluted

128.470

 

127.284

     

127.899

 

126.775

   

 

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

     

Alaska Air Group, Inc.

     

As of December 31 (in millions)

2022

 

2021

ASSETS

     

Current Assets

     

Cash and cash equivalents

$                              338

 

$                              470

Marketable securities

2,079

 

2,646

Total cash and marketable securities

2,417

 

3,116

Receivables – net

296

 

546

Inventories and supplies – net

104

 

62

Prepaid expenses and other current assets

223

 

196

Total Current Assets

3,040

 

3,920

       

Property and Equipment

     

Aircraft and other flight equipment

9,053

 

8,127

Other property and equipment

1,661

 

1,489

Deposits for future flight equipment

670

 

384

 

11,384

 

10,000

Less accumulated depreciation and amortization

4,127

 

3,862

Total Property and Equipment – Net

7,257

 

6,138

       

Other Assets

     

Operating lease assets

1,566

 

1,453

Goodwill and intangible assets

2,038

 

2,044

Other noncurrent assets

380

 

396

Total Other Assets

3,984

 

3,893

       

Total Assets

$                         14,281

 

$                         13,951

 

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

     

Alaska Air Group, Inc.

     

As of December 31 (in millions except share amounts)

2022

 

2021

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Current Liabilities

     

Accounts payable

$                            221

 

$                            200

Accrued wages, vacation and payroll taxes

619

 

457

Air traffic liability

1,180

 

1,163

Other accrued liabilities

846

 

625

Deferred revenue

1,123

 

912

Current portion of operating lease liabilities

247

 

268

Current portion of long-term debt

276

 

366

Total Current Liabilities

4,512

 

3,991

       

Long-Term Debt, Net of Current Portion

1,883

 

2,173

       

Noncurrent Liabilities

     

Long-term operating lease liabilities, net of current portion

1,469

 

1,279

Deferred income taxes

574

 

578

Deferred revenue

1,374

 

1,446

Obligation for pension and post-retirement medical benefits

348

 

305

Other liabilities

305

 

378

Total Noncurrent Liabilities

4,070

 

3,986

       

Commitments and Contingencies

     
       

Shareholders’ Equity

     

Preferred stock, $0.01 par value, Authorized: 5,000,000 shares, none

issued or outstanding

 

Common stock, $0.01 par value, Authorized: 400,000,000 shares, Issued:

2022 – 136,883,042 shares; 2021 – 135,255,808 shares, Outstanding: 2022 –

127,533,098 shares; 2021 – 125,905,864 shares

1

 

1

Capital in excess of par value

577

 

494

Treasury stock (common), at cost: 2022 – 9,349,944 shares; 2021 – 9,349,944

shares

(674)

 

(674)

Accumulated other comprehensive loss

(388)

 

(262)

Retained earnings

4,300

 

4,242

 

3,816

 

3,801

Total Liabilities and Shareholders’ Equity

$                      14,281

 

$                      13,951

 

SUMMARY CASH FLOW (unaudited)

         

Alaska Air Group, Inc.

         

(in millions)

Year Ended
December 31, 2022

 

Nine Months Ended
September 30, 2022(a)

 

Three Months Ended

December 31, 2022(b)

Cash Flows from Operating Activities:

         

Net income

$                             58

 

$                                 36

 

$                                  22

Non-cash reconciling items

953

 

719

 

234

Changes in working capital

407

 

654

 

(247)

Net cash provided by operating activities

1,418

 

1,409

 

9

           

Cash Flows from Investing Activities:

         

Property and equipment additions

(1,671)

 

(947)

 

(724)

Other investing activities

453

 

59

 

394

Net cash used in investing activities

(1,218)

 

(888)

 

(330)

           

Net cash used in financing activities

(325)

 

(296)

 

(29)

           

Net increase (decrease) in cash and cash equivalents

(125)

 

225

 

(350)

Cash, cash equivalents, and restricted cash at
beginning of year

494

 

494

 

719

Cash, cash equivalents, and restricted cash at end
of year

$                           369

 

$                               719

 

$                               369

   

(a)

As reported in Form 10-Q for the third quarter of 2022.

(b)

Cash flows for the three months ended December 31, 2022 can be calculated by subtracting cash flows for the nine months ended September 30, 2022, as reported in Form 10-Q for the third quarter 2022, from the year ended December 31, 2022.

 

OPERATING STATISTICS SUMMARY (unaudited)

               

Alaska Air Group, Inc.

                     
 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

2022

 

2021

 

Change

 

2022

 

2021

 

Change

Consolidated Operating Statistics:(a)

                     

Revenue passengers (000)

10,331

 

9,196

 

12.3 %

 

41,468

 

32,407

 

28.0 %

RPMs (000,000) “traffic”

12,855

 

11,279

 

14.0 %

 

51,330

 

38,598

 

33.0 %

ASMs (000,000) “capacity”

15,030

 

14,207

 

5.8 %

 

60,773

 

52,445

 

15.9 %

Load factor

85.5 %

 

79.4 %

 

6.1 pts

 

84.5 %

 

73.6 %

 

10.9 pts

Yield

17.61¢

 

15.20¢

 

15.9 %

 

17.16¢

 

14.25¢

 

20.4 %

RASM

16.49¢

 

13.36¢

 

23.4 %

 

15.87¢

 

11.78¢

 

34.8 %

CASMex(b)

11.14¢

 

10.12¢

 

10.1 %

 

10.41¢

 

9.80¢

 

6.3 %

Economic fuel cost per gallon(b) 

$3.55

 

$2.26

 

57.1 %

 

$3.42

 

$2.02

 

69.3 %

Fuel gallons (000,000)

185

 

179

 

3.4 %

 

758

 

656

 

15.5 %

ASMs per gallon

81.2

 

79.4

 

2.3 %

 

80.2

 

79.9

 

0.3 %

Departures (000)

95

 

94

 

1.1 %

 

404

 

377

 

7.2 %

Average full-time equivalent employees
(FTEs)

23,195

 

21,043

 

10.2 %

 

22,564

 

19,375

 

16.5 %

Mainline Operating Statistics:

                     

Revenue passengers (000)

8,237

 

6,900

 

19.4 %

 

31,795

 

23,268

 

36.6 %

RPMs (000,000) “traffic”

11,994

 

10,078

 

19.0 %

 

46,812

 

33,755

 

38.7 %

ASMs (000,000) “capacity”

14,004

 

12,737

 

9.9 %

 

55,224

 

45,741

 

20.7 %

Load factor

85.6 %

 

79.1 %

 

6.5 pts

 

84.8 %

 

73.8 %

 

11.0 pts

Yield

16.39¢

 

13.97¢

 

17.3 %

 

15.92¢

 

13.07¢

 

21.8 %

RASM

15.49¢

 

12.39¢

 

25.0 %

 

14.91¢

 

10.99¢

 

35.7 %

CASMex(b)

10.05¢

 

9.14¢

 

10.0 %

 

9.45¢

 

8.96¢

 

5.5 %

Economic fuel cost per gallon(b)

$3.52

 

$2.25

 

56.4 %

 

$3.40

 

$2.01

 

69.2 %

Fuel gallons (000,000)

163

 

150

 

8.7 %

 

646

 

530

 

21.9 %

ASMs per gallon

85.9

 

84.8

 

1.3 %

 

85.5

 

86.2

 

(0.8) %

Departures (000)

62

 

56

 

10.7 %

 

244

 

207

 

17.9 %

Average full-time equivalent employees
(FTEs)

17,792

 

15,855

 

12.2 %

 

17,224

 

14,366

 

19.9 %

Aircraft utilization

9.9

 

10.0

 

(1.0) %

 

9.9

 

9.7

 

2.1 %

Average aircraft stage length

1,341

 

1,356

 

(1.1) %

 

1,347

 

1,324

 

1.7 %

Operating fleet(d)

225

 

217

 

8 a/c

 

225

 

217

 

8 a/c

Regional Operating Statistics:(c)

                     

Revenue passengers (000)

2,094

 

2,296

 

(8.8) %

 

9,673

 

9,139

 

5.8 %

RPMs (000,000) “traffic”

861

 

1,201

 

(28.3) %

 

4,518

 

4,842

 

(6.7) %

ASMs (000,000) “capacity”

1,027

 

1,469

 

(30.1) %

 

5,549

 

6,704

 

(17.2) %

Load factor

83.9 %

 

81.7 %

 

2.2 pts

 

81.4 %

 

72.2 %

 

9.2 pts

Yield

34.66¢

 

25.57¢

 

35.5 %

 

29.97¢

 

22.49¢

 

33.3 %

RASM

30.08¢

 

21.82¢

 

37.9 %

 

25.34¢

 

17.12¢

 

48.0 %

Departures (000)

33

 

38

 

(13.2) %

 

160

 

170

 

(5.9) %

Operating fleet(d)

86

 

94

 

(8) a/c

 

86

 

94

 

(8) a/c

   

(a)

Except for FTEs, data includes information related to third-party regional capacity purchase flying arrangements.

(b)

See a reconciliation of this non-GAAP measure and Note A for a discussion of potential importance of this measure to investors in the accompanying pages.

(c)

Data presented includes information related to flights operated by Horizon and third-party carriers.

(d)

Excludes all aircraft removed from operating service.

Given the unusual nature of 2021 and 2020, we believe that some analysis of specific financial and operational results compared to 2019 provides meaningful insight. The table below includes comparative results from 2022 to 2019.

FINANCIAL INFORMATION AND OPERATING STATISTICS – 2022 Compared with 2019 (unaudited)

Alaska Air Group, Inc.

                     
                       
 

Three Months Ended December 31,

 

Year Ended December 31,

 

2022

 

2019

 

Change

 

2022

 

2019

 

Change

Passenger revenue

$        2,264

 

$        2,057

 

10 %

 

$        8,808

 

$        8,095

 

9 %

Mileage Plan other revenue

157

 

119

 

32 %

 

590

 

465

 

27 %

Cargo and other revenue

58

 

52

 

12 %

 

248

 

221

 

12 %

Total Operating Revenue

$        2,479

 

$        2,228

 

11 %

 

$        9,646

 

$        8,781

 

10 %

                       

Operating expense, excluding fuel and
special items

$        1,674

 

$        1,500

 

12 %

 

$        6,328

 

$        5,796

 

9 %

Aircraft fuel, including hedging gains and
losses

668

 

476

 

40 %

 

2,668

 

1,884

 

42 %

Special items

114

 

 

NM

 

580

 

38

 

NM

Total Operating Expenses

$        2,456

 

$        1,976

 

24 %

 

$        9,576

 

$        7,718

 

24 %

                       

Total Non-operating Income (Expense)

$              12

 

$              (9)

 

NM

 

$                9

 

$            (47)

 

119 %

Income Before Income Tax

$              35

 

$            243

 

(86) %

 

$              79

 

$        1,016

 

(92) %

                       

Consolidated Operating Statistics:

                     

Revenue passengers (000)

10,331

 

11,715

 

(12) %

 

41,468

 

46,733

 

(11) %

RPMs (000,000) “traffic”

12,855

 

13,928

 

(8) %

 

51,330

 

56,040

 

(8) %

ASMs (000,000) “capacity”

15,030

 

16,648

 

(10) %

 

60,773

 

66,654

 

(9) %

Load Factor

85.5 %

 

83.7 %

 

1.8 pts

 

84.5 %

 

84.1 %

 

0.4 pts

Yield

17.61¢

 

14.77¢

 

19 %

 

17.16¢

 

14.45¢

 

19 %

RASM

16.49¢

 

13.38¢

 

23 %

 

15.87¢

 

13.17¢

 

21 %

CASMex

11.14¢

 

9.01¢

 

24 %

 

10.41¢

 

8.70¢

 

20 %

FTEs

23,195

 

22,506

 

3 %

 

22,564

 

22,126

 

2 %

 

OPERATING SEGMENTS (unaudited)

           

Alaska Air Group, Inc.

                         
 

Three Months Ended December 31, 2022

(in millions)

Mainline

 

Regional

 

Horizon

 

Consolidating
& Other(a)

 

Air Group
Adjusted(b)

 

Special
Items(c)

 

Consolidated

Operating Revenue

                         

Passenger revenue

$        1,966

 

$        298

 

$          —

 

$                  —

 

$       2,264

 

$           —

 

$        2,264

CPA revenue

 

 

71

 

(71)

 

 

 

Mileage Plan other revenue

146

 

11

 

 

 

157

 

 

157

Cargo and other revenue

58

 

 

 

 

58

 

 

58

Total Operating Revenue

2,170

 

309

 

71

 

(71)

 

2,479

 

 

2,479

Operating Expenses

                         

Operating expenses, excluding fuel

1,408

 

243

 

92

 

(69)

 

1,674

 

114

 

1,788

Fuel expense

572

 

84

 

 

 

656

 

12

 

668

Total Operating Expenses

1,980

 

327

 

92

 

(69)

 

2,330

 

126

 

2,456

Non-operating Income (Expense)

18

 

 

(7)

 

1

 

12

 

 

12

Income (Loss) Before Income Tax

$           208

 

$        (18)

 

$        (28)

 

$                  (1)

 

$          161

 

$       (126)

 

$             35

Pretax Margin

               

6.5 %

     

1.4 %

                           
 

Three Months Ended December 31, 2021

(in millions)

Mainline

 

Regional

 

Horizon

 

Consolidating
& Other(a)

 

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