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Alaska Airlines Announces Second Quarter Results, Oneworld Invite
The Alaska Air Group reported their second-quarter results and an official invitation to join the Oneworld alliance. As with all airlines, the Seattle-based airline reported significant losses due to the COVID-19 pandemic. Alaska’s reported net loss was $214 million under Generally Accepted Accounting Principles (GAAP).
When compared to other airlines, these losses do not seem as severe, but the group reported $262 million in profits for the same quarter last year. Total net losses, excluding payroll support, special items and fuel hedging, the airlines lost $439 million.
Over the four months that make up the quarter, the airline also significantly lowered its cash burn rate. For March, the airline’s cash burn rate was $400 million per month and lowered to $120 million in June. The airline was also able to secure an extra $164 million in financing during the quarter.
Overall, the airline has $2.8 billion in unrestricted cash and $3.8 billion in cash and marketable securities. Alaska and Horizon also received $992 million from the CARES Act in April to support payroll expenses. The carrier also signed a letter of intent for loans up to $1.1 billion on top of the CARES Act.
Alaska Air Group CEO Brad Tilden said, “The rest of the leadership team and I could not be more proud of how the people of Alaska and Horizon reacted quickly and decisively to adjust our operations and our business.”
Alaska Receives oneworld Invite
Not everything was negative for Alaska during the second quarter, however. On July 23, the airline officially received an invitation to join the oneworld alliance. The carrier has been waiting for an official invitation since the intention to join was initially announced last February. The original announcement came when the airline announced a major partnership deal with American Airlines.
Alaska Airlines has stated that they are working to join the alliance by the end of this year. At that point, Alaska’s wholly-owned subsidiary Horizon Air will also join as a oneworld affiliate member.
Once the joining process is complete, passengers will be able to access all of the benefits that come with the Oneworld alliance. Alaska Mileage Plan members will be able to earn and spend miles with all Oneworld member airlines. Elite status members will also have access to equivalent level Oneworld status levels and those benefits. For top tier status holders the alliance opens up access to a network of over 650 airport lounges across the world.
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