Like I've said previously, the American economy is doing nothing......thank God for the rest of the world. And the difference is all in a bush. How many times did you vote for him?
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Earnings from Alaska Airlines
By John Crawley
WASHINGTON, April 26 (Reuters) - Alaska Air Group (ALK,Trade), parent of Alaska Airlines, narrowed its first-quarter loss on Thursday and vowed to "do what it takes" to fight rivals vying for business on its West Coast turf.
The Seattle-based carrier also acknowledged near-term demand has weakened amid rising fuel costs, conditions that have affected other airlines heading into spring and summer travel, usually the industry's strongest period financially.
Alaska reported a net loss of $10.3 million, or 26 cents per share, compared with a loss of $79.1 million, or $2.36 per share, in the first quarter a year ago.
Excluding accounting adjustments for fuel hedge expenses and the impact of a 2006 after-tax charge of $81.9 million related to its transition from MD-80s to an all 737 fleet, the company would have reported a net loss of $15.8 million, or 39 cents per share, in the first quarter.
That compares with operating income of 8 cents per share in the year-ago period before one-time items led to a net loss.
Wall Street analysts had expected a loss of 30 cents per share for the first quarter of this year, excluding the special charges, according to Reuters Estimates.
While all airlines are bracing for Delta Air Lines ((DALRQ.PK)) to emerge from bankruptcy this spring as a leaner and more potent competitor, Seattle-based Alaska faces a focused threat from Delta and other rivals in its U.S. West Coast and Mexico markets.
Southwest Airlines (LUV,Trade) is reestablishing operations in San Francisco later this year in addition to service from Oakland, Los Angeles and other Southern California cities.
Delta is beefing up West Coast service as well as flights to Mexico. Alaska also expects to soon contend with low-cost startups, including San Francisco-based Virgin America -- a carrier branded by British entrepreneur Richard Branson.
Company officials blame general national economic conditions for the less than robust near-term travel outlook. Alaska said April load factor, a measure of paying customers per flight, will be slightly lower and advanced bookings for May and June appear flat.
Despite the pressures, senior Alaska officials said they were determined to stay dominant in bread-and-butter markets.
"We'll do whatever it takes to protect our franchise," Alaska Chief Executive Bill Ayer said in a conference call with analysts and reporters.
Southwest and United Airlines ((UAUA.O)) are strong in California, while Alaska is entrenched in Seattle, Portland, Oregon, and Alaska.
Alaska is counting on its familiar brand, lower operating costs, and a strong balance sheet to help fight challengers. Alaska is simplifying its fleet from old MD 80s to Boeing 737s and has nearly $1 billion in cash and equivalents on hand.
For the first quarter, Alaska improved its operating efficiency but was hit by higher fuel prices. The company paid $164 million, or $1.95 per gallon, for fuel compared with $140 million, or $1.67 per gallon, in the year-ago period.
Alaska shares rose nearly 3 percent earlier on Thursday but closed down 22 cents, or 0.61 percent lower, at $35.58 on the New York Stock Exchange.
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