Prolly not gonna matter now...

April 24, 2008 Alaska Air Group, parent of Alaska Airlines, reported a wider quarterly loss on Thursday as revenue could not keep pace with rising fuel costs.
Fuel costs for the first quarter rose 45 percent, or USD$89 million, to USD$282 million. Fuel is the company's largest expense, and Alaska Air's problems mirror the rest of the industry.
"Given the magnitude of this increase and the softening economy, we're taking aggressive actions now to improve our business and profitability," said Bill Ayer, chairman and chief executive.
The company announced cost cuts and revenue enhancements that it hopes will boost full-year pre-tax income by about USD$150 million.
First, it said it would further reduce the size of the fleet at its regional Horizon Air subsidiary, which will result in "some job losses." It hopes to address those losses through attrition.
Also, within two years, Horizon Air will go from a fleet of 65 aircraft and three aircraft types to a fleet comprised of only larger, 76-seat Bombardier Q400s, the company said.
Alaska Airlines and Horizon Air are evaluating routes to remove frequency in underperforming markets and redeploy in more profitable areas. The airlines anticipate shifting 3 percent to 5 percent of existing network capacity to generate new revenue in the fall schedule.
Alaska Air Group also will raise various fees later this spring and summer, including charging USD$25 for a second checked bag for most passengers.
Alaska Airlines and Horizon Air will fly more direct routes, establish procedures for using only one engine during taxiing, and use more ground-based power systems rather than aircraft auxiliary power while at the gate. Alaska Air Group hopes to save 1 million gallons of jet fuel per month through these procedures.
The company reported a first-quarter net loss of USD$35.9 million, compared with a net loss of $10.3 million a year earlier. Both periods include adjustments resulting from mark-to-market fuel hedge accounting.
Excluding the impact of these adjustments, the company would have reported a loss of USD$36.3 million, compared with a loss of USD$15.8 million a year earlier.
Revenue rose to USD$839 million from USD$759 million a year earlier. Mainline passenger traffic increased 11.3 percent on a capacity increase of 6.8 percent. Load factor increased by 3 percentage points to 74.4 percent.

(Reuters)