iahflyr

SEATTLE (AP) - Alaska Air Group Inc. on Thursday said its first-quarter loss deepened as soaring fuel prices rose much faster than sales, and announced plans to cancel some service as it retires fuel-guzzling older planes.

The company, which operates Alaska Airlines and Horizon Air, lost $35.9 million, or 97 cents per share, compared with a loss of $10.3 million, or 26 cents per share, during the same period a year earlier.

Both periods included adjustments related to the value of the company's fuel hedges. Without those changes, the company said it would have lost $36.3 million, or 98 cents per share for the quarter ended March 31.

Analysts expected the company to lose 97 cents per share, on average, according to a survey by Thomson Financial. Those forecasts typically exclude one-time items.

Alaska said revenue rose to $839.5 million from $759.4 million. Analysts predicted sales of $823.2 million.

The company said its fuel bill jumped 45 percent from the year-ago quarter.

In response, Alaska said its regional Horizon division will remove 20 Bombardier CRJ-700 regional jets from service within two years, along with 12 Bombardier Q200s already planned for removal by June 2009.

That will leave the Horizon with a fleet of at least 48 Bombardier Q400s -- down from a fleet of 65 total planes now -- meaning jobs and flights in some markets will need to be cut, Alaska said.

The carrier also plans to raise fees at both divisions on booking through the company, overweight baggage and transporting pets inside the plane. The airlines will also begin charging $25 for a second checked bag.

"Rising fuel and service costs without equivalent fare increases have forced us to make these changes," Gregg Saretsky, Alaska's executive vice president of flight and marketing, said in a statement.

In addition, Alaska said it will stop flying between Orange County and Oakland, Calif., and between San Diego and San Francisco, and will reduce service on certain other routes.

cfii2007

Didn't someone predict that most CRJ's would wind up in the desert at some point??

757Driver

Yes.

Boyd did quite some time ago.

FL410

Looks like I will know what furlough is like...... Vomit....

JungleBus

Boyd was talking about 50 seat RJs. At these fuel prices, though, we're getting to the point that it's tough to make a profit with 70 seaters... most other regionals are making money with 70 seaters because it's the major they contract with that eats the fuel bill. QX doesn't have that advantage; with only 40% of their passengers connecting to Alaska their operation is more like that of a major airline, except trying to turn a profit with regional airplanes .

GolfKilo73

"Alaska Air Group had cash and short-term investments of $922 million at March 31, 2008, and has more than $1 billion today. Alaska Air Group has the second-best fuel hedge position in the industry, with half of Alaska and Horizon’s planned consumption for the remainder of 2008 indexed to a crude oil price of $76 per barrel."

Quoted from Alaska's memo announcing the 1st qtr loss.

It's interesting how the company posts a loss while at the same time increasing cash and short term investments by more than $70 million.

Don't forget the stock buyback Alaska Air Group just purchased for a total of $150 million.

FL410 I doubt you'll actually need that sick sack.

mike734

Alaska almost always loses money the first quarter. We make it up in the summer.

threegreen

still not bad though, IF only fuel was not so high

Fishfreighter

The CRJ download isn't news. It was in the 8k and 10k SEC reports months ago.