Alaska Air Group Inc. has announced that they suffered a net loss of $214 million for the second quarter of 2020. In addition to their financial results for Q2, the airline group also confirmed that Alaska Airlines is joining the Oneworld alliance.
Alaska Airlines Airbus A320 registered N837VA. Photo by Brandon Ravelo | AeroNewsX
Alaska Airlines released its financial results for the second quarter of 2020 on Thursday, July 23rd, and the figures for this year highlight the challenges the pandemic has caused the aviation industry. According to this quarter's financial results for 2020, the airline group recorded a loss of 214 million dollars. However, in comparison to the previous year, for the second quarter of 2019, Alaska Air Group made a profit of $262 million. The airline group has also reduced the amount of cash they were spending each month. In March the group spent around “$400 million per month” but has now been able to reduce this figure by 70% to around “$120 million in June."
The airline group, which owns Alaska Airlines and regional carrier Horizon Air said that “excluding the payroll support program”, hedged fuel adjustments and other “special items”, losses for this quarter would have been $439 million. As of July 22nd, the airline group had “$3.8 billion in cash and marketable securities.” Alaska Air Group have also signed “a non-binding letter of intent with the US Treasury to obtain up to $1.1 billion” in loans as part of the government’s coronavirus relief package.
The Seattle based-company said that as of July 22nd, 89 aircraft “remain temporarily parked” and that 43 Boeing 737 jets have returned to service. In July of this year, Alaska Air “eliminated 300 management positions” and even “offered incentive leaves to pilots” in order to reduce costs for the group.
Commenting on the financial results for this quarter, the company’s Chief Executive, Brad Tilden, said: “Airlines are currently navigating the biggest demand contraction in the history of aviation.” He continued on by saying that: “Being tested in moments like this reveals character, and I'm confident in our future because of the way our people are responding every day with grit, determination and perseverance. Those are the qualities that will carry our airline and our country through this crisis and beyond."
In other news, Alaska Airlines has received an “official” invitation to join the Oneworld alliance and will become the alliance’s fourteenth member airline. Back in February of this year, Alaska Airlines had expressed an intention to become a member of Oneworld. After receiving the official invitation, Alaska Air said in their statement that “the company is working to accelerate the timeline and join the partnership by the end of 2020.” Alaska Airlines already codeshares with Oneworld members American Airlines, British Airways, Cathay Pacific, Finnair, Japan Airlines and Qantas.
Alaska Air Group has an operational fleet of 319 aircraft, which includes Airbus A320 family jets, Boeing 737s, Embraer 175s and Bombardier Q400s.
Alaska Airlines will also become “the alliance’s second member airline in the United States.”
Oneworld governing board chairman and Qantas Group CEO Alan Joyce, said: “We are delighted to welcome Alaska Airlines into Oneworld. With its strong position in the US West Coast and its partnership with American Airlines, Alaska Airlines will be a great asset to Oneworld, positioning us to deliver even more value to our member airlines and customers.”
In a statement on the airline joining the alliance, Chairman and CEO of Alaska Airlines, Brad Tilden said: “We’re excited to become a member of Oneworld, the industry’s premier alliance, and honoured to receive this invitation.” He added: “Oneworld will open up a tremendous international network for our business and leisure travellers when they’re ready to start flying overseas again, in addition to greater connectivity around the U.S. through our network for international visitors. We’re eager to build deeper ties with the six Oneworld members we already cooperate with, and looking forward to working with new partners that are some of the best airlines in the world.”