• ITVI.USA
    12,814.390
    -64.910
    -0.5%
  • OTRI.USA
    28.180
    -0.280
    -1%
  • OTVI.USA
    12,761.130
    -64.740
    -0.5%
  • TLT.USA
    3.290
    0.010
    0.3%
  • TSTOPVRPM.ATLPHL
    2.630
    0.060
    2.3%
  • TSTOPVRPM.CHIATL
    3.080
    -0.090
    -2.8%
  • TSTOPVRPM.DALLAX
    1.180
    -0.060
    -4.8%
  • TSTOPVRPM.LAXDAL
    3.210
    -0.070
    -2.1%
  • TSTOPVRPM.PHLCHI
    1.630
    -0.090
    -5.2%
  • TSTOPVRPM.LAXSEA
    3.360
    0.070
    2.1%
  • WAIT.USA
    121.000
    1.000
    0.8%
  • ITVI.USA
    12,814.390
    -64.910
    -0.5%
  • OTRI.USA
    28.180
    -0.280
    -1%
  • OTVI.USA
    12,761.130
    -64.740
    -0.5%
  • TLT.USA
    3.290
    0.010
    0.3%
  • TSTOPVRPM.ATLPHL
    2.630
    0.060
    2.3%
  • TSTOPVRPM.CHIATL
    3.080
    -0.090
    -2.8%
  • TSTOPVRPM.DALLAX
    1.180
    -0.060
    -4.8%
  • TSTOPVRPM.LAXDAL
    3.210
    -0.070
    -2.1%
  • TSTOPVRPM.PHLCHI
    1.630
    -0.090
    -5.2%
  • TSTOPVRPM.LAXSEA
    3.360
    0.070
    2.1%
  • WAIT.USA
    121.000
    1.000
    0.8%
Air CargoAmerican ShipperCompany earningsNews

Alaska Air takes $399 million Q3 loss, but reduces cash burn

Alaska Air Group (NYSE: ALK) on Thursday reported a wider than expected adjusted net loss of $399 million in the third quarter versus 2019, with total revenue falling 71% to $701 million.

The adjusted net loss was $40 million lower than for the second quarter. Cargo and miscellaneous revenue was 25% lower at $45 million. 

Alaska lowered its daily cash burn in the quarter to $4 million per day from $5 million daily in the second quarter.  

The airline achieved an adjusted earnings per share of minus $3.23, compared to the consensus estimate of minus $2.95. Revenue was slightly ahead of Wall Street’s estimate of $684 million.

Revenue for Alaska’s primary passenger business dropped 74%.

Passenger traffic and revenue have improved each month since April’s bottom, with load factors reaching 48.5% in the third quarter. But bookings remain depressed, leading Cowen investment bank to estimate cash flow breakeven will be pushed to early 2021.

Alaska Air appears in position to weather the pandemic with $5.5 billion in liquidity. During the third quarter it received nearly $400 million in federal payroll support that applied to all airlines. So far, the company has only had to lay off about 400 employees because 4,000 employees accepted voluntary early retirement and incentive leave packages.

In related news, Alaska announced a partnership with Microsoft to use sustainable aviation fuel to offset the environmental impact of certain business air travel.

Under the first U.S. partnership of its kind, Microsoft will purchase biofuel credits from supplier SkyNRG for flights between Seattle-Tacoma International Airport and three popular California destinations. 

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

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Eric Kulisch, Air Cargo Editor

Eric is the Air Cargo Market Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals from the American Society of Business Publication Editors for government coverage and news analysis, and was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. Eric is based in Portland, Oregon. He can be reached for comments and tips at ekulisch@freightwaves.com
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