Alaska Air Group posts fourth-quarter 2020 net loss of US$316 million

©Alaska Airlines

Alaska Air Group has posted a fourth-quarter 2020 GAAP net loss of US$430 million, compared to net income of US$181 million in 2019. Excluding the impact of payroll support program wage offsets, special items and mark-to-market fuel hedge adjustments, the company reported a fourth-quarter adjusted net loss of US$316 million compared to adjusted net income of US$181 million in the fourth quarter of 2019.

The company reported a full-year 2020 GAAP net loss of US$1.3 billion, compared to net income of US$769 million in the prior year. Excluding the impact of payroll support program wage offsets, special items and mark-to-market fuel hedge adjustments, the company reported an adjusted net loss of US$1.3 billion, compared to adjusted net income of US$798 million in 2019.

Alaska Air Group accessed approximately US$5 billion in new liquidity in 2020, including US$1.2 billion raised in the capital markets and approximately US$600 million in bank financing. The company reached an agreement with the U.S. Treasury in January 2021 to receive an extension of payroll support totaling US$533 million, US$266 million of which was received on Jan. 15, 2021 and extended the period available to draw funds under the CARES Act loan program from March 26, 2021 to May 28, 2021.

Alska Air Group announced plans to expand the mainline fleet and restructure the existing aircraft purchase agreement with Boeing. In total, Alaska Air Group will take delivery of 68 737-9 MAX aircraft between 2021 and 2024, inclusive of 32 previous purchase commitments and 13 aircraft to be leased from Air Lease Corporation.

The company permanently removed an additional 20 Airbus A320 aircraft from the fleet in the fourth quarter, resulting in 40 Airbus aircraft removed in 2020. A total of 31 Airbus aircraft remain in the operating fleet as of the end of the year. Alaska Air Group held US$3.4 billion in cash and marketable securities as of Jan. 22, 2021, and total liquidity of US$5.2 billion.

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