About Alaska Air Group, Inc
The fifth-largest airline in the US, Alaska Air Group ferries more than 46 million passengers each year to nearly 120 destinations through its two carrier brands, Alaska Airlines and Horizon Air. It completes an average of 1,300 flights per day from the US, Canada, Costa Rica, and Mexico. In 2019, passengers to and from Seattle, Portland, and the Bay Area accounted for more than three-quarters of our total guests. Alaska Airlines' fleet comprises over 165 Boeing 737, more than 735 jet aircrafts and more than 70 Airbus A320.
Alaska Air comprises three reportable segments, Mainline, Regional, and Horizon.
The Mainline segment accounts for some 80% of Alaska Air's sales and offers long-haul flights from the western US, particularly Seattle, Portland, and the Bay Area, throughout the US, Canada, Mexico, and Costa Rica on its 166 Boeing 737s and 71 Airbus A320s. It also includes cargo services mainly to and within Alaska.
Alaska Air's Regional business consists of shorter-haul flights operated by Horizon, SkyWest, and PenAir (collectively Air Group), which together carry over 10 million passengers annually in Washington, Oregon, Idaho, and California. Horizon's fleet, which carries some 70% of Air Group's regional passengers, comprises 30 E175 jets and over 30 Bombardier Q400 turboprops. The regional fleet operated by SkyWest consisted of more than 30 E175 aircraft. The Regional segment generates roughly 15% of Alaska Air's sales.
The Horizon segment brings in the remaining 5% or so of sales. It consists of capacity sold to Alaska under capacity purchase agreements.
Delaware-based Alaska Air Group serves around 115 destinations through an expansive network in Alaska, US, Hawaii, Canada, Costa Rica, and Mexico. The company leases operations, training, and data facilities in Portland and Spokane, as well as line maintenance stations in Boise, Bellingham, San Jose, Redmond, Seattle, and Spokane. It also leases call center facilities in Phoenix and Boise.
Sales and Marketing
Alaska Air's airline tickets are distributed through the airline's website and through traditional and online travel agencies. The travel agencies use global distribution systems to obtain fare and inventory data from airlines and reservation call centers, located in Phoenix; Kent, Washington; and Boise, Idaho.
As its name implies, Alaska Air Group transports more passengers between Alaska and the US mainland than any other airline. Besides its own flights, the regional segment provides passenger service through contracts with SkyWest Airlines, Horizon, and Peninsula Airways.
Advertising expense was $72 million, $79 million and $91 million during the years ended December 31, 2019, 2018 and 2017.
Alaska Air's revenue has achieved lift-off in the last five years with an overall growth of 57%.
In 2019 the company's sales grew 6% to $8.8 billion due to the growth on all segments.
Net income rose 76% from $437 million in 2018 to $769 million in 2019.
Alaska Air's cash on hand ended the year at $232 million. The company's operations generated $1.7 billion, while its investing activities used $791 million and its financing activities used $813 million. Alaska Air's main cash uses were aircraft and other flight equipment purchases, capital expenditures, net payments of long-term debt, and dividends.
Alaska Air strives toward maintaining and improving competitive cost structure by setting aggressive unit cost-reduction goals.
The company's strategy includes being the premier carrier for people living on the West Coast. This results in a high concentration of our business in key West Coast markets. Alaska Air believes that concentrating their service offerings in this way allows them to maximize investment in personnel, aircraft and ground facilities, as well as to gain greater advantage from sales and marketing efforts in those regions. As a result, The company remains highly dependent on our key markets.
The company routinely engages in analysis and discussions regarding their strategic position, including alliances, codeshare arrangements, interline arrangements, and frequent flyer program enhancements, and will continue to have future discussions with other airlines regarding similar activities.
19300 International Blvd
Seatac, WA 98188-5304
Phone: 1 (206) 392-5040
Employer Type: Publicly Owned
Stock Symbol: ALK
Stock Exchange: , NYSE
President and COO, Alaska Airlines: Benito Minicucci
Chairman, President and CEO, Alaska Air Group, Inc., Chairman and CEO, Alaska Airlines, Inc., and Chairman, Virgin America and Horizon Air Industries, Inc.: Bradley D. Tilden
COO, Horizon Air Industries, Inc.: Constance Von Muehlen
Employees (This Location): 67
Employees (All Locations): 24,000
King Salmon, AK
Prudhoe Bay, AK
Costa Mesa, CA
Los Angeles, CA
Palm Springs, CA
San Diego, CA
San Jose, CA
Fort Lauderdale, FL
Kailua Kona, HI
Kansas City, MO
Saint Louis, MO
Las Vegas, NV
San Antonio, TX
Salt Lake City, UT
East Wenatchee, WA
Walla Walla, WA
San Jose Del Cabo, Mexico