Whether you want to capture a Kodiak moment or down a daiquiri by the Sea of Cortez, an Alaska Air Group unit can fly you there. Operating through primary subsidiary, Alaska Airlines, and regional carrier Horizon Air, the group flies to about 90 destinations in the US (mainly western states including Alaska and Hawaii), Canada, and Mexico. The group's primary hub is Seattle (accounting for almost two-thirds of passengers), but it also flies out of key markets such as Portland, Oregon; Los Angeles, Anchorage, Alaska; and Boise, Idaho.) Alaska Airlines has a fleet of about 115 Boeing 737 jets and Horizon Air operates about a dozen Bombardier jets and 40 turboprops.
In recent years Alaska Air Group and its competitors has had to fight to make a profit as fuel costs skyrocketed, passenger and cargo demand plunged, as the economy slid into a recession. In 2010, however, the company saw its net income soar to $251.1 million (more than a 100% increase over 2009). The airline increased its revenue passenger miles (the number of paying passengers multiplied by miles traveled) in 2010 by nearly 10%. Additionally, Alaska Air Group's yield per passenger mile (average amount passengers pay per mile) jumped up nearly 5%.
Passenger-related revenues were not the only success story for the airline in 2010. Freight and mail revenues at Alaska Air Group increased more than 10% in 2010 compared to the previous year. Although the bulk of freight and mail revenues comes from Alaska Airlines (about 97%), Horizon Air offers similar services on a regional scale.
The company made the decision in late 2010 to outsource heavy maintenance of its Horizon aircraft, a move that led to a reduction of about 100 aircraft mechanics and related personnel. Additional cost-control programs include both airlines moving to one model of aircraft (Alaska Airlines is transitioning to an all-737 fleet in 2008 and Horizon Air to a fleet of all Bombardier Q400s). The measures have helped Alaska Air Group to realize about an 18% increase in passenger revenues and nearly a 10% gain in freight and mail revenues in 2010 compared to the previous year.
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