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Alaska Air Group reports third quarter 2021 results Thu , 21 Oct 2021 06:00:00 -0400 | PRNewswire SEATTLE , Oct. 21 , 2021 / PRNewswire / -- Alaska Air Group ( NYSE : ALK ( https://www.benzinga.com/stock/ALK#NYSE ) ) today reported financial results for its third quarter ending Sept. 30 , 2021 , and provided outlook for the fourth quarter ending Dec. 31 , 2021 . The third quarter marks a significant stride forward in Alaska Air Group's path to recovery . Alaska's goal from the beginning of the pandemic has been deliberate - scaling the business back up in a measured way , leveraging the company's strong balance sheet , and running a resilient operation , all with the aim of producing consistent industry - leading financial performance . " We are thrilled to return to profitability this quarter , leading the industry with a 12 % pretax profit margin , " said CEO Ben Minicucci . " Thanks to each one of our employees for running our operation and showing remarkable care for our guests , and credit to the leadership team for laying out a measured plan and executing it with discipline . We're all feeling the momentum and look forward to building on our strong foundation for growth in 2022 and beyond . " Financial Results : Reported net income for the third quarter of 2021 under Generally Accepted Accounting Principles ( GAAP ) of $ 194 million , or $ 1.53 per share , compared to a net loss of $ 431 million , or $ 3.49 per share in the third quarter of 2020 . Reported net income for the third quarter of 2021 , excluding special items and mark - to - market fuel hedge accounting adjustments , of $ 187 million , or $ 1.47 per share , compared to an adjusted net loss of $ 399 million or $ 3.23 per share , in the third quarter of 2020. This quarter's adjusted results compare to the First Call analyst consensus estimate of $ 1.30 per share . Generated adjusted pre - tax margin for the third quarter of 2021 of 12 % . Reported a debt - to - capitalization ratio of 51 % , a reduction of 10 points from Dec. 31 , 2020 . Made a $ 100 million voluntary contribution to the defined benefit plan for Alaska's pilots in the third quarter , boosting estimated combined funded status of all defined benefit plans to 94 % . Held $ 3.2 billion in unrestricted cash and marketable securities as of Sept. 30 , 2021 . Prepaid $ 425 million in debt from the 364 - day term loan facility , bringing total debt payments to $ 1.2 billion for the year . Operational Updates : Exercised options for 12 Boeing 737-9 aircraft slated for delivery in 2023 and 2024 , and added options for an additional 25 deliveries , bringing Alaska's total firm commitments for 737-9 aircraft to 93 and available options to 52 . Ratified amended wage agreement for Horizon Air pilots , represented by the International Brotherhood of Teamsters . Opened new San Francisco International Airport Lounge with 9,200 square feet of Bay - Area inspired amenities . Announced new nonstop flights between San Francisco and Loreto and Ixtapa / Zihuatanejo , with service slated to begin Dec. 18. Since the onset of the pandemic , approximately 70 new markets have been announced or commenced operation . Resumed and expanded inflight meals , snacks , and drinks in all classes of service . Continued to exceed internal metrics for guest satisfaction , highlighting our commitment to providing our guests a smooth and safe experience throughout their journey . Near the top of the industry for on - time arrivals and completion rates in the third quarter . Environmental , Social and Governance Updates : Appointed Adrienne Lofton , vice president of global marketing at Google , to the Company's board of directors . Announced formation of Alaska Star Ventures , an entity created to identify and further technologies that accelerate Alaska Airlines ' path to net zero carbon emissions . Supported the Afghan Humanitarian Airlift Mission and the U.S. military by operating Civil Reserve Air Fleet flights in the evacuation of individuals and families from Afghanistan . Awarded $ 260,000 in LIFT Grants to 25 nonprofits focused on a clear vision to provide the next generation of leaders with the knowledge , skills and providing pathways for success through the Alaska Airlines Foundation . The following table reconciles the company's reported GAAP net income ( loss ) per share ( EPS ) for the three and nine months ended Sept. 30 , 2021 and 2020 to adjusted amounts . Three Months Ended September 30 , 2021 2020 ( in millions , except per - share amounts ) DollarsDiluted EPSDollarsEPS GAAP net income ( loss ) per share $ 194 $ 1.53 $ ( 431 ) $ ( 3.49 ) Payroll support program wage offset ( 398 ) ( 3.22 ) Mark - to - market fuel hedge adjustments ( 3 ) ( 0.02 ) Special items - impairment charges and other ( 9 ) ( 0.07 ) 121 0.98 Special items restructuring charges 322 2.60 Special items - merger - related costs 1 0.01 Income tax effect of reconciling items above 2 0.01 ( 11 ) ( 0.09 ) Non - GAAP adjusted net income ( loss ) per share $ 187 $ 1.47 $ ( 399 ) $ ( 3.23 )