Alaska Air Group, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total operating revenue reaching $11.735 billion, a 13% increase from $10.426 billion in 2023. This growth was bolstered by the acquisition of Hawaiian Holdings, which contributed $869 million in revenue from September 18, 2024, through the end of the year. Passenger revenue alone rose to $10.654 billion, up 12% from the previous year, driven by increased traffic and premium class offerings. The company also reported a net income of $395 million, translating to diluted earnings per share of $3.08, compared to $235 million and $1.83 per share in 2023.
The acquisition of Hawaiian Holdings marked a pivotal strategic development for Alaska Air Group, expanding its network and enhancing its competitive position in the airline industry. The integration process is underway, with plans to combine loyalty programs and operational systems in the coming years. The company anticipates achieving synergies from this acquisition, although it has also incurred significant integration costs, amounting to $208 million in 2024. The total purchase price for Hawaiian was approximately $977 million, which included cash payments for outstanding shares and change in control payments.
Operationally, Alaska Air Group carried 49.2 million revenue passengers in 2024, an increase of 11% from 44.6 million in 2023. The company’s average full-time equivalent employee count rose to 25,751, reflecting a 10% increase as it expanded its workforce to support growth and operational needs. The load factor for the year was reported at 83.9%, slightly up from 83.7% in 2023, indicating efficient capacity utilization. The company also noted a decrease in economic fuel costs per gallon to $2.74, down from $3.21 in the previous year, contributing to improved profitability.
Looking ahead, Alaska Air Group projects a capacity growth of 2% to 3% for 2025, driven by continued strength in leisure and corporate demand. The company expects to face cost pressures from wage increases due to new labor agreements and rising airport costs, but anticipates capturing some benefits from synergies related to the Hawaiian acquisition in the latter half of the year. The management remains focused on integrating Hawaiian effectively while maintaining operational excellence across its airlines.
About ALASKA AIR GROUP, INC.
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