Alaska Air reports USD 181m in Q4 2019 net income

Alaska Air has reported fourth quarter 2019 net income of USD 181 million, or USD 1.46 per diluted share, and full year 2019 net income of USD 769 million, or USD 6.19 per diluted share, the company said.

These results compare to fourth quarter 2018 net income of USD 23 million, or USD 0.19 per diluted share, and full year 2018 net income of USD 437 million, or USD 3.52 per diluted share.

In 2019, the company repurchased a total of 1,192,820 shares of common stock for approximately USD 75 million in 2019.

Alaska Air generated approximately USD 1.7 billion of operating cash flow, and used approximately USD 696 million for capital expenditures, resulting in approximately USD 1 billion of free cash flow in 2019, representing free cash flow conversion of 133%.

In 2019, the company grew passenger revenues by 8% compared to the fourth quarter of 2018, and by 6% compared to full-year 2018.

The company achieved the goal of 75% repayment on the USD 2 billion debt borrowed to fund the acquisition of Virgin America, driving debt-to-capitalization ratio to 41% as of Dec. 31, 2019, from 47% as of Dec. 31, 2018 and 51% as of Dec. 31, 2016.

The company reduced net adjusted debt to EBITDAR to 0.9x as of Dec. 31, 2019 from 1.7x as of Dec. 31, 2018.

Alaska Airlines and its regional partners fly 47 million guests a year to more than 115 destinations with an average of 1,300 daily flights across the United States and to Mexico, Canada and Costa Rica.