Alaska Air Group, Inc. reported significant financial growth in its third quarter and the first nine months of 2024, driven by increased operating revenue and the recent acquisition of Hawaiian Holdings, Inc. The company’s operating revenue for Q3 2024 reached $3,072 million, an 8% increase from $2,839 million in Q3 2023. Passenger revenue also rose by 8%, totaling $2,821 million compared to $2,618 million in the prior year. For the nine months ended September 30, 2024, operating revenue was $8,201 million, up from $7,873 million in the same period of 2023.

The acquisition of Hawaiian Holdings, completed on September 18, 2024, contributed to these results, with Hawaiian generating $95 million in revenue but incurring a net loss of $52 million for the period from acquisition to the end of September. The total cost of the acquisition was approximately $977 million, including cash payments and change of control payments.

Operating expenses for Q3 2024 increased to $2,731 million, up from $2,628 million in Q3 2023, primarily due to higher non-fuel operating expenses, which rose by 14% to $2,033 million. Notably, wages and benefits increased by $101 million, with $37 million attributed to Hawaiian. Despite the rise in expenses, operating income for Q3 2024 was $341 million, compared to $211 million in Q3 2023, and net income increased to $236 million from $139 million.

For the nine months ended September 30, 2024, net income was $324 million, up from $237 million in the same period in 2023. Basic earnings per share for Q3 2024 were $1.87, compared to $1.09 in Q3 2023, while for the nine months, it rose to $2.57 from $1.86.

As of September 30, 2024, Alaska Air Group reported total assets of $19,559 million, a significant increase from $14,613 million at the end of 2023. Cash and cash equivalents also saw a substantial rise to $1,015 million from $281 million. However, total liabilities increased to $14,080 million, up from $8,318 million, largely due to the acquisition-related debt.

The company anticipates continued growth, with expectations for a 1.5% to 2.5% increase in capacity for Q4 2024 and projected increases in revenue per available seat mile (RASM) and operating expenses. The integration of Hawaiian Airlines is expected to incur substantial costs, but management remains focused on achieving operational synergies and maintaining competitive performance in the airline industry.