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Despite setbacks, Alaska Air is profitable, plans to hire and grow

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Despite setbacks, Alaska Air is profitable, plans to hire and grow


A tough 12 months for air vacationers in 2022 was a profitable one for the airways, together with Alaska Air Group, the guardian firm of Alaska Airways and regional provider Horizon Air.

Alaska executives outlined Thursday aggressive progress plans for 2023, together with hiring 1000’s extra individuals and taking supply of dozens of latest airplanes. On an earnings name with analysts, CEO Ben Minicucci stated the airline employed almost 8,000 individuals in 2022 because it emerged from the pandemic downturn and plans to rent 3,500 extra this 12 months.

In two weeks, Alaska can pay out a document $257 million in annual incentive bonuses — almost six weeks of pay for many staff — for assembly or exceeding profitability, security and emissions targets in 2022.

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And anticipating a return to pre-pandemic air visitors ranges, the airline this 12 months will increase its plane seat capability between 8% and 10% because it takes supply of 37 extra Boeing 737 MAXs.

“Our purpose all through the pandemic has been to emerge a stronger, extra aggressive airline,” Minicucci stated. “We’re on that path.”

Dealing with operational issues

Alaska Air recorded a revenue of $22 million within the fourth quarter and $58 million for the complete 12 months in 2022, figures launched Thursday present.

That’s regardless of devoting virtually half-a-billion {dollars} to retiring its leased fleet of Airbus A320s and Bombardier Q400 turboprops, in addition to paying out $84 million in one-time labor contract ratification bonuses, the vast majority of that to its pilots.

The airline business had a tumultuous 12 months in 2022. It confronted labor shortages because the pandemic eased. Airports had been crowded and air fares skyrocketed as passenger visitors returned in pressure, with fewer airplane seats obtainable.

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Because of this, Alaska Air’s income in 2022 was 10% increased than in pre-pandemic 2019, regardless of flying 9% fewer seats than then.

The comparability with 2021 was even starker. In 2022, Alaska and Horizon carried 41.5 million passengers, 28% greater than the earlier 12 months. But income from fares at $8.8 billion was totally 60% increased.

The 12 months offered operational challenges, first a severe pilot scarcity in April and Might after which a extreme ice storm over the vacation in December. Alaska didn’t cope nicely with both.

The spring pilot scarcity brought about an unprecedented variety of flight cancellations that introduced chaos for passengers. By the summer season, Alaska and Horizon had the schedule again below management by lowering the variety of flights.

“As soon as we sorted out our April points with pilot coaching, we had been amongst one of the best within the business in each on-time and (flight) completion charges,” stated Alaska’s Chief Monetary Officer Shane Tackett.

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Nonetheless that reliability broke down once more over the Christmas interval when the ice storm hit Alaska’s hubs in each Seattle and Portland.

[Bad weather snarled holiday travel for many. Flight cancellations cost one Alaskan a new heart.]

Pacific Northwest winter storms have turn out to be a daily setback for Alaska Air. It has needed to cancel 1000’s of flights throughout earlier storms, notably in 2016, in early 2021 and once more in late 2021.

But on Thursday, executives dismissed the thought of over-staffing to deal with such occasions.

“Though it’s changing into the norm, as a result of it occurred final 12 months as nicely, this was a reasonably distinctive occasion that lasted a number of days and did ice over our plane right here in Seattle and in Portland,” stated CFO Tackett. “We’re not going to imagine that it occurs to us each single 12 months.”

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CEO Minicucci added that although the airline will plan for winter occasions with “some further cushion” of additional workers, it’s not sensible to plan for one thing as extreme because the December climate.

“Ice storms are large occasions that cripple a metropolis and there’s not loads you are able to do regardless of how a lot buffer you place in,” he stated.

Chief Business Officer Andrew Harrison stated the ice storm minimize Alaska’s income by about $45 million.

Prepared for progress

Alaska Airways moved shut in 2022 towards returning to an all- Boeing 737 fleet. This month Alaska Airways retired its final Airbus A320 and on Thursday Horizon Air retired its remaining Q400.

CCO Harrison stated many of the deliberate growth of capability this 12 months will come from flying bigger planes on longer routes, with about two thirds of the expansion within the Pacific Northwest and a 3rd in California.

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The MAXs have extra seats than the Airbus A319s and A320s they’re changing. In addition they have extra high-fare premium seats, with 16 in a MAX 9 in comparison with 12 within the retired A320s.

Alaska Airways now has simply 10 Airbus plane left, all bigger A321s. And Horizon now flies solely Embraer E175 jets. Retraining of the Airbus pilots to fly Boeing jets ought to be accomplished this quarter. Out of just about 3,300 pilots at Alaska Airways, solely 150 pilots will probably be left flying the Airbus A321s.

[Neighbors push for changes to project that would expand international cargo operations at Anchorage airport]

The simplification of the Alaska and Horizon fleets will add effectivity and scale back prices going ahead.

“We’re well-positioned to develop, compete and outperform in 2023,” Minicucci stated.

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Harrison stated Alaska plans to have its fleet capability again to pre-pandemic ranges within the first half of the 12 months. With worldwide journey anticipated to growth in the summertime, he stated Alaska ought to get extra passengers connecting from companions like American Airways, Japan Air Traces and British Airways.

And he stated company journey completed the 12 months recovered to 75% of pre-pandemic ranges, regardless of a extreme pullback all 12 months in journey by the massive West Coast high-tech firms.

If a recession materializes as some concern, Tackett stated Alaska can pull again on the expansion plans accordingly.

Within the fourth quarter, Alaska’s $22 million revenue, or 17 cents per share, in comparison with $18 million, or 14 cents per share, a 12 months earlier.

For the complete 12 months, Alaska’s, $58 million revenue, or 45 cents per share, in comparison with $478 million, or $3.77 per share, a 12 months earlier.

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The upper revenue in 2021 was a results of Alaska receiving $914 million in authorities grants from the Payroll Help Program. Adjusting the 2021 figures to take away one-time objects corresponding to the federal government help, Alaska would have misplaced $256 million, or $2.03 per share.

As well as, in 2022 Alaska wrote off $496 million for retiring the Airbus and Q400 planes and paid out $84 million for contract ratification bonuses.

Alaska agreed 5 labor contract in 2022, by far the most important with its pilots. Administration additionally agreed contracts with dispatchers, clerical and workplace workers, passenger service staff, reservation brokers and baggage handlers. Negotiations with the flight attendants union continues.

Adjusting for the ratification bonuses, in addition to one-time gasoline hedge changes and revenue tax advantages, the adjusted core revenue for 2022 would have been $556 million or $4.35 per share.

Alaska initiatives earnings this 12 months of $5.50 to $7.50 per share and can resume share buybacks of as much as $100 million.

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Alaska shares rose barely Thursday, closing up 27 cents, or 0.53%, at $51.32.





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Alaska

Nearly 70 years ago, the world’s first satellite took flight. Three Alaska scientists were among the first North Americans to spot it.

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Nearly 70 years ago, the world’s first satellite took flight. Three Alaska scientists were among the first North Americans to spot it.


On any clear, dark night you can see them, gliding through the sky and reflecting sunlight from the other side of the world. Manmade satellites now orbit our planet by the thousands, and it’s hard to stargaze without seeing one.

The inky black upper atmosphere was less busy 68 years ago, when a few young scientists stepped out of a trailer near Fairbanks to look into the cold October sky. Gazing upward, they saw the moving dot that started it all, the Russian-launched Sputnik 1.

Those Alaskans, working for the Geophysical Institute at the University of Alaska Fairbanks, were the first North American scientists to see the satellite, which was the size and shape of a basketball and, at 180 pounds, weighed about as much as a point guard.

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The Alaska researchers studied radio astronomy at the campus in Fairbanks. They had their own tracking station in a clearing in the forest on the northern portion of university land. This station, set up to study the aurora and other features of the upper atmosphere, enabled the scientists to be ready when a reporter called the institute with news of the Russians’ secret launch of the world’s first manmade satellite.

Within a half-hour of that call, an official with the Naval Research Laboratory in Washington, D.C., called Geophysical Institute Deputy Director C. Gordon Little with radio frequencies that Sputnik emitted.

“The scientists at the Institute poured out of their offices like stirred-up bees,” wrote a reporter for the Farthest North Collegian, the UAF campus newspaper.

Crowded into a trailer full of equipment about a mile north of their offices, the scientists received the radio beep-beep-beep from Sputnik and were able to calculate its orbit. They figured it would be visible in the northwestern sky at about 5 a.m. the next day.

On that morning, three of them stepped outside the trailer to see what Little described as “a bright star-like object moving in a slow, graceful curve across the sky like a very slow shooting star.”

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For the record, scientists may not have been the first Alaskans to see Sputnik. In a 1977 article, the founder of this column, T. Neil Davis, described how his neighbor, Dexter Stegemeyer, said he had seen a strange moving star come up out of the west as he was sitting in his outhouse. Though Stegemeyer didn’t know what he saw until he spoke with Davis, his sighting was a bit earlier than the scientists’.

The New York Times’ Oct. 7, 1957 edition included a front-page headline of “SATELLITE SEEN IN ALASKA,” and Sputnik caused a big fuss all over the country. People wondered about the implications of the Soviet object looping over America every 98 minutes. Within a year, Congress voted to create NASA.

Fears about Sputnik evaporated as three months later the U.S. launched its own satellite, Explorer 1, and eventually took the lead in the race for space.

Almost 70 later, satellites are part of everyday life. The next time you see a satellite streaking through the night sky, remember the first scientist on this continent to see one was standing in Alaska. And the first non-scientist to see a satellite in North America was sitting in Alaska.





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Western Alaska storm and southerly flow drives warmth back into the state

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Western Alaska storm and southerly flow drives warmth back into the state


ANCHORAGE, Alaska (KTUU) – Gusty winds and heavy snow has begun to spread into Western and Southwest Alaska, with a surge of warmer air. Temperatures in Southwest Alaska is already 10 to 35 degrees warmer than yesterday morning. This warmth will spread across the rest of the state through the weekend, with some of the most pronounced warmth along the Slope. We’ll see many areas this weekend into next week remaining well-above average.

SOUTHCENTRAL:

Temperatures are slowly warming across Southcentral, with many areas seeing cloud coverage increasing. While we could see some peeks of sunshine today, most locations will see mostly cloudy conditions. While we can’t rule out light flurries for inland locations, most of the precipitation today will occur near the coast. Snow looks to be the primary precipitation type, although later this evening a transition to rain or wintry mix will occur. This comes as temperatures quickly warm across Southcentral.

We’ll see highs today in the upper 20s and lower 30s for inland areas, while coastal regions warm into the 30s and 40s. The southerly flow aloft will remain with us for several days, pumping in the warmth and moisture. As a result, Kodiak could see over an inch of rain today, with gusty winds.

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While most of the precipitation this weekend remains near the coast, inland areas will see the best chance for wintry mix Sunday into Monday. Little to no accumulation is expected.

The key takeaways for this weekend, is snow transitioning to rain, with some gusty winds likely for parts of Southcentral this weekend.

SOUTHEAST:

Another fairly quiet day is expected across Southeast today, outside of some light snow near Yakutat. We’ll see a mix of sun and clouds with temperatures remaining on the cooler side. Parts of the Northern Panhandle may stay in the upper 20s today. The stretch of quiet weather will stay with us through the first half of Saturday, followed by an increase in precipitation and winds. This upcoming system may bring some heavy snowfall to Southeast, so be prepared for that potential this weekend. Temperatures warm into next week, back into the upper 30s and lower 40s for many areas.

INTERIOR:

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While temperatures this morning have bottomed out as low as -30 near Fort Yukon, temperatures will warm into the weekend. A wind advisory for the Alaska Range goes into effect at 9 Friday morning, where winds up to 60 mph will warm the Interior. Temperatures today for many locations will warm into the single digits, with some of the greatest warming arriving Saturday through next week. It’s likely we’ll spend most of next week with temperatures in the 20s and 30s, with the warmest locations near the Alaska Range. While we will largely stay dry, there is a chance for some light snow arriving Sunday night into Monday.

SLOPE/WESTERN ALASKA:

Temperatures will remain slightly above average for parts of the Slope today, with warming winds to build into the Slope this weekend. This comes as our area of low pressure in the Bering Sea continues to move farther north. Be prepared for gusty easterly winds along the Slope, leading to blowing snow and reduced visibility. We’ll see temperatures quickly warm well above average, with highs climbing into the 20s and 30s along the Slope into next week. While some snow is possible through the weekend, the heaviest activity will occur for the Brooks Range. We’ll see the potential for 4 to 12 inches of snowfall, with the highest amounts occurring along the southern slopes of the Brooks Range near Kobuk Valley. Winds could gusts as high as 45 mph, leading to greatly reduced visibility.

Heavy snow is impacting Western and Southwest Alaska this morning, with winds gusting up to 50 mph. Numerous winter weather alerts, as well as a coastal flood advisory is in effect. The heaviest snow will fall for the Seward Peninsula and east of Norton Sound, where up to a foot or more of snow is to be expected. The heaviest amounts will fall today, with the activity set to lighten up through Sunday. In addition to the snow, gusty winds will lead to areas of blowing snow. Visibility could be reduced down to less than half a mile at times. As southerly flow continues to pump in warmth, we’ll see a transition from snow to rain later today into Saturday for parts of Southwest Alaska.

ALEUTIANS:

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Gusty winds and heavy rain will fall through the Aleutians today, where up to .75″ of rain is possible. As the area of low pressure moves north, we’ll see a new low form just south of the Eastern Aleutians. This will lead to additional rain and winds into the weekend. Winds could gusts upwards of 50 mph through the Eastern Aleutians and through the Alaska Peninsula. With ridging to our east, more rain and winds remain with us into early next week. There is the potential that the Pribilof Islands see a return to snow Sunday, as colder air moves into the Bering Sea.

OUTLOOK AHEAD:

Well above average warmth will stay with us as we close out January. While one more short-lived cold snap is possible, we may have to wait until February before we tap into warmer conditions. Temperatures through the close of January will keep average monthly temperatures 5 to 12 degrees above average for much of the state. The overall trend still favors a wetter pattern, although with warmer weather the southern parts of the state will favor more rain or a mixed bag of precipitation.

Have a wonderful and safe holiday weekend.

See a spelling or grammar error? Report it to web@ktuu.com

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Alaska governor, ally of Trump, will keep flags at full-staff for Inauguration Day • Alaska Beacon

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Alaska governor, ally of Trump, will keep flags at full-staff for Inauguration Day • Alaska Beacon


Alaska will join several other Republican-led states by keeping flags at full-staff on Inauguration Day despite the national period of mourning following President Jimmy Carter’s death last month.

Gov. Mike Dunleavy announced his decision, which breaks prior precedent, in a statement on Thursday. It applies only to flags on state property. Flags on federal property are expected to remain at half-staff.

Flags on state property will be returned to half-staff after Inauguration Day for the remainder of the mourning period.

The governors of Indiana, Idaho, Iowa, Texas, Florida, Tennessee, Oklahoma, North Dakota, Nebraska, Montana and Alabama, among others, have announced similar moves. 

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U.S. Speaker of the House Mike Johnson, a Republican from Louisiana, said on Tuesday that flags at the U.S. Capitol would remain at full-staff on Inauguration Day. 

Their actions follow a statement from President-elect Donald Trump, who said in a Jan. 3 social media post that Democrats would be “giddy” to have flags lowered during his inauguration, adding, “Nobody wants to see this, and no American can be happy about it. Let’s see how it plays out.”

Dunleavy is seen as a friend of the incoming president and has met with him multiple times over the past year. Dunleavy and 21 other Republican governors visited Trump last week in Florida at an event that Trump described as “a love fest.”

Since 1954, flags have been lowered to half-staff during a federally prescribed 30-day mourning period following presidential deaths. In 1973, the second inauguration of President Richard Nixon took place during the mourning period that followed the death of President Harry Truman. 

Then-Gov. Bill Egan made no exceptions for Alaska, contemporary news accounts show, and no exception was made for Nixon’s inauguration in Washington, D.C., either. 

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A spokesperson for Dunleavy’s office said the new precedent is designed to be a balance between honoring the ongoing mourning period for former President Jimmy Carter and recognizing the importance of the peaceful transition of power during the presidential inauguration. 

“Temporarily raising the flags to full-staff for the inauguration underscores the significance of this democratic tradition, while returning them to half-staff afterward ensures continued respect for President Carter’s legacy,” the spokesperson said.

GET THE MORNING HEADLINES.

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