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Summer travel recovery restores Alaska Airlines’ stability, growth plans

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Summer travel recovery restores Alaska Airlines’ stability, growth plans


SEATTLE — Alaska Air Group posted report third-quarter income and powerful monetary outcomes Thursday, stoked by excessive fares and full airplanes via the summer time. After a nightmarish breakdown in its operations within the spring, the airline recovered within the quarter to steer the trade in on-time efficiency.

Regardless of recession fears and a big enhance in labor prices from main contract offers with its pilots, Alaska Air CEO Ben Minicucci on Thursday proclaimed the airline was again on a development trajectory.

From July via September, Alaska Airways went a great distance towards restoring its repute for dependable service, which had been shredded within the spring when pilot and different employees shortages induced last-minute flight cancellations that ruined journey plans.

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In response, Alaska minimize its summer time flying schedule, decreasing capability by about 7%. At the same time as different airways continued to wrestle with employees shortages, that pullback steadied Alaska’s operation.

“This summer time we returned to delivering a dependable operation with a completion charge over 99% every month of the quarter,” Minicucci informed analysts on an earnings name Thursday. Meaning lower than 1% of flights have been canceled.

Journey statistics on the U.S. Division of Transportation web site present Alaska had the highest on-time efficiency amongst all U.S. airways in June and July. Aviation information firm Cirium exhibits it rating No. 2 in August behind Delta and No. 3 in September behind Delta and United.

Minicucci famous that Horizon Air, Alaska’s regional airline subsidiary, “additionally posted incredible working outcomes with the No. 1 completion charge within the trade at 99.5%.”

“I wish to thank all of our workers for an ideal summer time and every part that they do,” Minicucci mentioned.

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Document income from excessive fares

Chief Monetary Officer Shane Tackett mentioned the corporate gave each worker 90,000 frequent-flyer miles “in recognition of all of their extraordinary work through the pandemic and our ninetieth anniversary as an airline.”

Tackett mentioned with Alaska’s improved monetary outcomes, the corporate expects to pay out sturdy annual bonuses in January.

CEO Minicucci mentioned 65 newly educated pilots are popping out of Alaska’s coaching faculty every month and the objective is to extend that to 100 per thirty days.

He mentioned the exceptionally giant pay will increase awarded final month to the entry-level pilots at Horizon Air “offers us a powerful basis for our efforts in attracting, retaining and constructing a strong pilot pipeline.”

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The contract ratified this month with the Alaska Airways mainline pilots provides additional certainty to the pilot staffing.

“We’re on observe proper now to ship the pilots we’d like per thirty days on each the regional and the mainline facet,” Minicucci mentioned.

With air journey demand excessive and fewer seats obtainable, passengers have been caught with hovering ticket costs throughout the trade this summer time and airways raked in cash because of this.

Alaska’s $2.8 billion in income for the quarter was the best “ever recorded in our historical past,” Minicucci famous.

For the three months via September, Alaska posted a internet revenue of $40 million or 31 cents per share.

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Adjusted to exclude one-time prices — together with contract ratification bonuses after main labor offers with the pilots, in addition to prices for retiring Airbus jets — the online revenue was $325 million, or $2.53 per share, in contrast with an adjusted revenue in the identical quarter final yr of $187 million or $1.47 per share.

Nevertheless, the market reacted negatively to administration’s outlook for the fourth quarter outcomes. Alaska’s inventory closed at $39.88, down $1.97 or 4.7% for the day.

American, Delta and United all reported report income and enormous earnings within the third quarter. Every of these shares additionally fell Thursday, however not as a lot as Alaska’s.

Wall Avenue analysts lowered their estimates for Alaska’s fourth-quarter outcomes as administration projected greater labor prices following the contract agreements with their pilots.

“Shares have been down … on a 4Q outlook that falls wanting consensus,” analyst Dan McKenzie of Seaport International Securities informed buyers in a analysis be aware.

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Staffing up

Tackett mentioned one lesson administration realized from the pandemic is that its staffing was too lean.

“Final yr, we have been attempting to rent simply in time to satisfy the brand new capability, after which we’d get hit with a COVID wave and other people could be sick and absent, and we couldn’t function,” he mentioned. “Like others within the trade, now we have completely achieved a 180 on that. We’re now carrying extra folks than we’d like.”

Carrying the extra employees price an additional $15 million over the past quarter, Tackett mentioned.

In the meantime, Alaska Airways is accelerating its effort to streamline its jet fleet and revert to being an all- Boeing provider.

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The airline is quickly retiring its Airbus plane, changing them with bigger Boeing 737 MAXs. And regional airline subsidiary Horizon Air is changing its Bombardier Q400 turboprops with Embraer E175 jets.

Alaska has 35 MAX jets right now. By the tip of subsequent yr, all of the Airbus jets can be gone, and the airline expects to have 78 MAX jets, making up practically one-third of its mainline fleet.

Between now and the tip of the yr, and into the primary quarter of subsequent yr, Alaska will keep its decrease flying capability because it retires the Airbus jets and retrains pilots to function the MAX planes.

However the firm expects to develop after that. The airline can be again to its 2019 measurement by the center of subsequent yr, mentioned Tackett, and can develop capability past that, if demand holds.

CEO Minicucci mentioned the “long-term plan remains to be to develop till 2025.”

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Chief Industrial Officer Andrew Harrison informed analysts that within the fourth quarter, although Alaska can be flying 7% to 10% fewer seats than in 2019, it however expects income to extend by 12% to fifteen%, reflecting greater fares.

Past that time-frame, Harrison predicted clean operations, assured that the COVID-induced volatility and disruption of the primary half of this yr is firmly previously.

“We’re going to set ourselves up subsequent yr to actually function this airline like a Swiss watch,” Harrison mentioned.





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Alaska

Sky Watch Alaska: planets align plus the aurora forecast

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Sky Watch Alaska: planets align plus the aurora forecast


ANCHORAGE, Alaska (KTUU) – This is a great time of year to do some star gazing. If you have clear skies in your part of Alaska, take the time to check out the night — and morning — sky.

After sunset, look toward the southwest. Saturn and Venus are snuggled up together (of course, they are more than 800 million miles apart) in the evening sky. They set at about 9:40 p.m. in Southcentral.

Before 9:40 p.m., you can see four planets with the naked eye — Saturn, Venus, Jupiter and Mars. Jupiter and Mars stick around through the morning. Mars is very close to the moon right now.

The Aurora forecast is fairly weak for the next few weeks. That’s not to say there won’t be the occasional burst but overall, solar activity is expected to be fairly low until the beginning of February.

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If you get great pictures of the planets, the sky, or the aurora, don’t forget to send them to Alaska’s News Source.

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



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Short-lived cold snap, with another warming trend this weekend

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Short-lived cold snap, with another warming trend this weekend


ANCHORAGE, Alaska (KTUU) – Temperatures across the state are cooling off, as our strong low from the weekend moves into the Chukchi Sea. This will set up for colder air to spread across the state this week, as another short-lived cold snap is expected. While some light snow is possible for the Interior, areas of the Slope and Western Alaska, Southcentral will stay on the drier side until the night. Meanwhile, Southeast will continue to hold onto moderate rain with gusty conditions.

SOUTHCENTRAL:

Temperatures this morning are 10 to 20 degrees colder than yesterday, as colder air has settled back into Southcentral. Clear skies and calm winds are evident this morning for parts of the region, with light snow falling through the Copper River Basin. We’ll see fairly quiet conditions today, outside of Kodiak which will see increasing snow and rain into the afternoon and evening hours. This comes as our next area of low pressure moves up the Alaska Peninsula.

We’ll see light snow spreading north across the Kenai overnight into Wednesday, with light snow expected through Prince William Sound. Several inches are likely through the Kenai and Chugach Mountains, with the pass expected to see a couple of inches of accumulation. Western parts of the Kenai will see the potential for a few inches, while inland areas of Southcentral largely stay dry. If Anchorage and surrounding locations see any accumulation, it’ll amount to less than half an inch.

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As snow tapers off Wednesday, we’ll see the return to colder and drier conditions into Thursday. Thursday may be the coldest day this week across the region, before another warming trend carries us into next week. Right now holding with snow through early next week, but areas of wintry mix are possible as highs warm above freezing.

SOUTHEAST:

The winter storm warning for Skagway and higher elevations expired at 6am this morning. While some light snow showers are still possible, little accumulation will occur the rest of the day. Scattered to periodic showers are occurring elsewhere across Southeast today, with less than half an inch of rainfall through the day. Any moisture available into the evening will see a transition to some wintry mix or snow into Wednesday morning. However, the better chance will come from another low lifting north into the panhandle. Any snow and wintry mix we see for Wednesday will primarily stay confined to the central and southern panhandle. We’ll see much cooler weather taking hold this week for Southeast.

INTERIOR:

Some areas of light snow are possible this morning, with less than half an inch to be expected. While temperatures are still warm for much of the Interior, highs will steadily fall throughout the day. Many areas will see lows bottom out near or below zero by tomorrow morning. We’ll see high pressure keep things dry and sunny through the next couple of days, with the coldest stretch of weather from Wednesday morning into Thursday morning. Much like the rest of the state will experience, a warming trend arrives this weekend. We’ll see the return to highs in the 20s, with some snow in the forecast. Be prepared for some gusty conditions through the Alaska Range by the close of this week.

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SLOPE/WESTERN ALASKA:

Areas of light snow and blowing winds will continue to impact the Slope, with a winter weather advisory remaining in place for the Central Brooks Range and the Beaufort Sea Coast. Both locations will see up to 1 inch of snow and gusty winds up to 35 mph. While the winter weather advisory will expire for the Central Brooks Range this afternoon, the Beaufort Sea Coast will see the alert continue into Tuesday evening. Snow and blowing snow will be the primary impact today, with a return to colder weather through the rest of this week, this comes as high pressure settles into the area.

The storm responsible for the damaging winds for Southcentral over the weekend, has pushed north into the Chukchi Sea. We’ll still see some light snow accumulations for Western Alaska, with 1 to 3 inches expected. Some fo the heaviest snow will fall across the Seward Peninsula and the Western Brooks Range.

An area of low pressure in the Bering Sea will keep gusty winds and snow in the forecast for Gambell/St. Lawrence. Be prepared for heavy snow at times and areas of reduced visibility. Overall, colder weather will settle into Western Alaska, with the possibility of morning fog in the valleys over the next few mornings.

ALEUTIANS:

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Some light areas of snow will occur for the Pribilof Islands and into parts of the Alaska Peninsula today, as a weak low moves up the Peninsula. This will be the main focus for snow into Wednesday for Southcentral. This low will bring heavy precipitation and gusty winds for the Eastern Aleutians and the Alaska Peninsula. Looking ahead through the rest of the week, we can expect to see more a ridge beginning to build into the region. This ridge will slowly shift east, keeping several upper level disturbances traversing the Aleutians. Temperatures will remain fairly warm in the 30s and 40s.

OUTLOOK AHEAD:

Model consensus continues to agree on another warming trend heading our way into next week. This stretch of warmth will likely lead to many spots cementing themselves within the top warmest January’s on record. While we’ll spend the rest of this week on the colder side, highs steadily climb this weekend into next week. We’ll see highs in Southcentral climbing back above freezing, with areas of the Interior climbing back into the 20s.

Have a safe and wonderful Tuesday!

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

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Anchorage, Alaska hit by hurricane-force winds, structures damaged across city

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Anchorage, Alaska hit by hurricane-force winds, structures damaged across city


Associated Press

Hurricane-force winds cause widespread damage in Alaska’s largest city

Thousands of residents across Alaska’s largest city were still without power Monday, a day after a powerful storm brought hurricane-force winds that downed power lines, damaged trees, forced more than a dozen planes to divert, and caused a pedestrian bridge over a highway to partially collapse. A 132-mph (212-kph) wind gust was recorded at a mountain weather station south of Anchorage. A large low-pressure system in the Bering Sea brought the high winds, moisture and warmer than average temperatures — in the low 40s Fahrenheit (slightly over 4.4 degrees Celsius) — to Anchorage on Sunday, said National Weather Service meteorologist Tracen Knopp.



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