Summary by Moomoo AI
Alaska Air Group, Inc. (Alaska Air) reported a record operating revenue of $10.4 billion for 2023, with a consolidated pretax income of $323 million, compared to $79 million in 2022. The increase was attributed to a rise in operating revenue, partially offset by higher operating expenses and non-operating expenses. The company faced challenges early in 2024 with the grounding of its B737-9 fleet following an accident onboard Flight 1282 in January. Safety inspections were mandated by the FAA, and the fleet was returned to service by early February. Alaska Air also negotiated with Boeing to ensure quality and safety standards for future aircraft deliveries. Labor negotiations in 2023 resulted in a new contract for McGee fleet and ramp service employees and a tentative agreement with Alaska mechanics. The company also announced plans to acquire Hawaiian Airlines, pending shareholder and regulatory approval, with an expected closure in 2025. Alaska Air's financial position remains strong with $1.8 billion in cash and marketable securities, and a debt-to-capitalization ratio of 46%. The company resumed its share repurchase program, spending $145 million in 2023.