01/27/2022 | Press release | Distributed by Public on 01/27/2022 05:09
Three Months Ended December 31, | ||||||||||
2021 | 2020 | |||||||||
(in millions, except per share amounts) | Dollars | Diluted EPS | Dollars | EPS | ||||||
Reported GAAP net income (loss) and diluted EPS | $ | 18 | $ | 0.14 | $ | (447) | $ | (3.60) | ||
Payroll support program wage offset | - | - | (22) | (0.18) | ||||||
Mark-to-market fuel hedge adjustments | 21 | 0.16 | (8) | (0.06) | ||||||
Special items - impairment charges and other | (6) | (0.05) | 277 | 2.23 | ||||||
Special items - restructuring charges | 2 | 0.02 | (102) | (0.82) | ||||||
Special items - merger-related costs | - | - | 1 | 0.01 | ||||||
Special items - net non-operating | - | - | 26 | 0.21 | ||||||
Income tax effect on special items and fuel hedge adjustments | (4) | (0.03) | (41) | (0.33) | ||||||
Non-GAAP adjusted net income (loss) and diluted EPS | $ | 31 | $ | 0.24 | $ | (316) | $ | (2.54) |
Twelve Months Ended December 31, | |||||||||
2021 | 2020 | ||||||||
(in millions, except per share amounts) | Dollars | Diluted EPS | Dollars | EPS | |||||
Reported GAAP net income (loss) and diluted EPS | $ | 478 | $ | 3.77 | $ | (1,324) | $ | (10.72) | |
Payroll support program wage offset | (914) | (7.21) | (782) | (6.33) | |||||
Mark-to-market fuel hedge adjustments | (47) | (0.37) | (8) | (0.06) | |||||
Special items - impairment charges and other | (1) | (0.01) | 627 | 5.08 | |||||
Special items - restructuring charges | (10) | (0.08) | 220 | 1.78 | |||||
Special items - merger-related costs | - | - | 6 | 0.05 | |||||
Special items - net non-operating | - | - | 26 | 0.21 | |||||
Income tax effect on special items and fuel hedge adjustments | 238 | 1.87 | (21) | (0.18) | |||||
Non-GAAP adjusted net loss and diluted EPS | $ | (256) | $ | (2.03) | $ | (1,256) | $ | (10.17) |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||||||
Alaska Air Group, Inc. | ||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
(in millions, except per share amounts) | 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||
Operating Revenues: | ||||||||||||
Passenger revenues | $ | 1,715 | $ | 657 | 161 | % | $ | 5,499 | $ | 3,019 | 82 | % |
Mileage Plan other revenues | 129 | 108 | 19 | % | 461 | 374 | 23 | % | ||||
Cargo and other | 55 | 43 | 28 | % | 216 | 173 | 25 | % | ||||
Total Operating Revenues | 1,899 | 808 | 135 | % | 6,176 | 3,566 | 73 | % | ||||
Operating Expenses: | ||||||||||||
Wages and benefits | 637 | 474 | 34 | % | 2,218 | 2,053 | 8 | % | ||||
Variable incentive pay | 42 | 65 | (35) | % | 151 | 130 | 16 | % | ||||
Payroll support program wage offset | - | (22) | NM | (914) | (782) | 17 | % | |||||
Aircraft fuel, including hedging gains and losses | 426 | 155 | 175 | % | 1,279 | 723 | 77 | % | ||||
Aircraft maintenance | 92 | 77 | 19 | % | 364 | 321 | 13 | % | ||||
Aircraft rent | 66 | 70 | (6) | % | 254 | 299 | (15) | % | ||||
Landing fees and other rentals | 141 | 94 | 50 | % | 555 | 417 | 33 | % | ||||
Contracted services | 68 | 43 | 58 | % | 235 | 181 | 30 | % | ||||
Selling expenses | 50 | 18 | 178 | % | 173 | 101 | 71 | % | ||||
Depreciation and amortization | 100 | 100 | - | % | 394 | 420 | (6) | % | ||||
Food and beverage service | 42 | 20 | 110 | % | 139 | 90 | 54 | % | ||||
Third-party regional carrier expense | 41 | 36 | 14 | % | 147 | 128 | 15 | % | ||||
Other | 159 | 97 | 64 | % | 507 | 407 | 25 | % | ||||
Special items - impairment charges and other | (6) | 277 | NM | (1) | 627 | NM | ||||||
Special items - restructuring charges | 2 | (102) | NM | (10) | 220 | NM | ||||||
Special items - merger-related costs | - | 1 | NM | - | 6 | NM | ||||||
Total Operating Expenses | 1,860 | 1,403 | 33 | % | 5,491 | 5,341 | 3 | % | ||||
Operating Income (Loss) | 39 | (595) | NM | 685 | (1,775) | NM | ||||||
Non-operating Income (Expense): | ||||||||||||
Interest income | 6 | 8 | (25) | % | 25 | 31 | (19) | % | ||||
Interest expense | (27) | (34) | (21) | % | (128) | (98) | 31 | % | ||||
Interest capitalized | 2 | 3 | (33) | % | 11 | 11 | - | % | ||||
Other - net | 9 | 1 | NM | 36 | 17 | NM | ||||||
Special charges - net non-operating | - | (26) | NM | - | (26) | NM | ||||||
Total Non-operating Expense | (10) | (48) | (79) | % | (56) | (65) | (14) | % | ||||
Income (Loss) Before Income Tax | 29 | (643) | 629 | (1,840) | ||||||||
Income tax (benefit) expense | 11 | (196) | 151 | (516) | ||||||||
Net Income (Loss) | $ | 18 | $ | (447) | $ | 478 | $ | (1,324) | ||||
Basic Earnings (Loss) Per Share | $ | 0.14 | $ | (3.60) | $ | 3.82 | $ | (10.72) | ||||
Diluted Earnings (Loss) Per Share | $ | 0.14 | $ | (3.60) | $ | 3.77 | $ | (10.72) | ||||
Shares used for computation: | ||||||||||||
Basic | 125.708 | 124.013 | 125.063 | 123.450 | ||||||||
Diluted | 127.284 | 124.013 | 126.775 | 123.450 | ||||||||
Cash dividend declared per share | $ | - | $ | - | $ | - | $ | 0.375 |
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||
Alaska Air Group, Inc. | ||||
As of December 31 (in millions)
|
2021 | 2020 | ||
ASSETS | ||||
Current Assets | ||||
Cash and cash equivalents | $ | 470 | $ | 1,370 |
Marketable securities | 2,646 | 1,976 | ||
Total cash and marketable securities | 3,116 | 3,346 | ||
Receivables - net | 546 | 480 | ||
Inventories and supplies - net | 62 | 57 | ||
Prepaid expenses, assets held-for-sale, and other current assets | 196 | 123 | ||
Total Current Assets | 3,920 | 4,006 | ||
Property and Equipment | ||||
Aircraft and other flight equipment | 8,127 | 7,761 | ||
Other property and equipment | 1,489 | 1,398 | ||
Deposits for future flight equipment | 384 | 583 | ||
10,000 | 9,742 | |||
Less accumulated depreciation and amortization | 3,862 | 3,531 | ||
Total Property and Equipment - Net | 6,138 | 6,211 | ||
Operating lease assets | 1,453 | 1,400 | ||
Goodwill and intangible assets | 2,044 | 2,050 | ||
Other noncurrent assets | 396 | 379 | ||
Other Assets | 3,893 | 3,829 | ||
Total Assets | $ | 13,951 | $ | 14,046 |
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||
Alaska Air Group, Inc. | ||||
As of December 31 (in millions)
|
2021 | 2020 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current Liabilities | ||||
Accounts payable | $ | 200 | $ | 108 |
Accrued wages, vacation and payroll taxes | 457 | 527 | ||
Air traffic liability | 1,163 | 1,073 | ||
Other accrued liabilities | 625 | 424 | ||
Deferred revenue | 912 | 733 | ||
Current portion of operating lease liabilities | 268 | 290 | ||
Current portion of long-term debt | 366 | 1,138 | ||
Total Current Liabilities | 3,991 | 4,293 | ||
Long-Term Debt, Net of Current Portion | 2,173 | 2,357 | ||
Noncurrent Liabilities | ||||
Long-term operating lease liabilities, net of current portion | 1,279 | 1,268 | ||
Deferred income taxes | 578 | 407 | ||
Deferred revenue | 1,446 | 1,544 | ||
Obligation for pension and postretirement medical benefits | 305 | 665 | ||
Other liabilities | 378 | 524 | ||
Total Noncurrent Liabilities | 3,986 | 4,408 | ||
Commitments and Contingencies | ||||
Shareholders' Equity | ||||
Preferred stock, $0.01 par value, Authorized: 5,000,000 shares, none issued or outstanding | - | - | ||
Common stock, $0.01 par value, Authorized: 400,000,000 shares, Issued: 2021 - 135,255,808 shares; 2020 - 133,567,534 shares, Outstanding: 2021 - 125,905,864 shares; 2020 - 124,217,590 shares | 1 | 1 | ||
Capital in excess of par value | 494 | 391 | ||
Treasury stock (common), at cost: 2021 - 9,349,944 shares; 2020 - 9,349,944 shares | (674) | (674) | ||
Accumulated other comprehensive loss | (262) | (494) | ||
Retained earnings | 4,242 | 3,764 | ||
3,801 | 2,988 | |||
Total Liabilities and Shareholders' Equity | $ | 13,951 | $ | 14,046 |
SUMMARY CASH FLOW (unaudited) | ||||||
Alaska Air Group, Inc. | ||||||
(in millions) | Year Ended December 31, 2021 |
Nine Months Ended September 30, 2021(a)
|
Three Months Ended
December 31, 2021(b)
|
|||
Cash Flows from Operating Activities: | ||||||
Net income | $ | 478 | $ | 460 | $ | 18 |
Non-cash reconciling items | 434 | 322 | 112 | |||
Changes in working capital | 118 | 119 | (1) | |||
Net cash provided by operating activities | 1,030 | 901 | 129 | |||
Cash Flows from Investing Activities: | ||||||
Property and equipment additions | (292) | (190) | (102) | |||
Other investing activities | (716) | (753) | 37 | |||
Net cash used in investing activities | (1,008) | (943) | (65) | |||
Cash Flows used in Financing Activities: | (914) | (825) | (89) | |||
Net decrease in cash and cash equivalents | (892) | (867) | (25) | |||
Cash, cash equivalents, and restricted cash at beginning of period | 1,386 | 1,386 | 519 | |||
Cash, cash equivalents, and restricted cash at end of the period | $ | 494 | $ | 519 | $ | 494 |
Net cash provided by operating activities | $ | 1,030 | ||||
Payroll support program grant funds received(c)
|
(892) | |||||
Net cash provided by operating activities, ex. PSP grant funds received | $ | 138 |
OPERATING STATISTICS SUMMARY (unaudited) | ||||||||||
Alaska Air Group, Inc. | ||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||
Consolidated Operating Statistics:(a)
|
||||||||||
Revenue passengers (000) | 9,196 | 3,916 | 134.8% | 32,407 | 17,927 | 80.8% | ||||
RPMs (000,000) "traffic" | 11,279 | 4,366 | 158.3% | 38,598 | 20,493 | 88.3% | ||||
ASMs (000,000) "capacity" | 14,207 | 9,631 | 47.5% | 52,445 | 37,114 | 41.3% | ||||
Load factor | 79.4% | 45.3% | 34.1 pts | 73.6% | 55.2% | 18.4 pts | ||||
Yield | 15.20¢ | 15.06¢ | 0.9% | 14.25¢ | 14.73¢ | (3.3)% | ||||
RASM | 13.36¢ | 8.39¢ | 59.2% | 11.78¢ | 9.61¢ | 22.6% | ||||
CASMex(b)
|
10.12¢ | 11.35¢ | (10.8)% | 9.80¢ | 12.25¢ | (20.0)% | ||||
Economic fuel cost per gallon(b)
|
$2.26 | $1.39 | 62.6% | $2.02 | $1.58 | 27.8% | ||||
Fuel gallons (000,000) | 179 | 117 | 53.0% | 656 | 461 | 42.3% | ||||
ASMs per gallon | 79.4 | 82.3 | (3.6)% | 79.9 | 80.5 | (0.7)% | ||||
Average full-time equivalent employees (FTEs) | 21,043 | 16,050 | 31.1% | 19,375 | 17,596 | 10.1% | ||||
Mainline Operating Statistics: | ||||||||||
Revenue passengers (000) | 6,900 | 2,545 | 171.1% | 23,268 | 12,280 | 89.5% | ||||
RPMs (000,000) "traffic" | 10,078 | 3,622 | 178.2% | 33,755 | 17,438 | 93.6% | ||||
ASMs (000,000) "capacity" | 12,737 | 8,047 | 58.3% | 45,741 | 31,387 | 45.7% | ||||
Load factor | 79.1% | 45.0% | 34.1 pts | 73.8% | 55.6% | 18.2 pts | ||||
Yield | 13.97¢ | 13.54¢ | 3.2% | 13.07¢ | 13.48¢ | (3.0)% | ||||
RASM | 12.39¢ | 7.73¢ | 60.3% | 10.99¢ | 9.01¢ | 22.0% | ||||
CASMex(b)
|
9.14¢ | 10.60¢ | (13.8)% | 8.96¢ | 11.57¢ | (22.6)% | ||||
Economic fuel cost per gallon(b)
|
$2.25 | $1.37 | 64.2% | $2.01 | $1.59 | 26.4% | ||||
Fuel gallons (000,000) | 150 | 88 | 69.7% | 530 | 358 | 48.0% | ||||
ASMs per gallon | 84.8 | 90.9 | (6.8)% | 86.2 | 87.7 | (1.7)% | ||||
Average number of FTEs | 15,855 | 11,665 | 35.9% | 14,366 | 13,214 | 8.7% | ||||
Aircraft utilization | 10.0 | 8.3 | 20.5% | 9.7 | 8.3 | 16.9% | ||||
Average aircraft stage length | 1,356 | 1,298 | 4.5% | 1,324 | 1,272 | 4.1% | ||||
Operating fleet(d)
|
217 | 197 | 20 a/c | 217 | 197 | 20 a/c | ||||
Regional Operating Statistics:(c)
|
||||||||||
Revenue passengers (000) | 2,296 | 1,371 | 67.5% | 9,139 | 5,647 | 61.8% | ||||
RPMs (000,000) "traffic" | 1,201 | 744 | 61.3% | 4,842 | 3,055 | 58.5% | ||||
ASMs (000,000) "capacity" | 1,469 | 1,584 | (7.3)% | 6,704 | 5,727 | 17.1% | ||||
Load factor | 81.7% | 47.0% | 34.7 pts | 72.2% | 53.3% | 18.9 pts | ||||
Yield | 25.57¢ | 22.47¢ | 13.8% | 22.49¢ | 21.90¢ | 2.7% | ||||
RASM | 21.82¢ | 11.71¢ | 86.3% | 17.12¢ | 12.82¢ | 33.5% | ||||
Operating Fleet | 94 | 94 | - a/c | 94 | 94 | - a/c |
FINANCIAL INFORMATION AND OPERATING STATISTICS - 2021 Compared with 2019 (unaudited) | ||||||||||||
Alaska Air Group, Inc. | ||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||
2021 | 2019 | Change | 2021 | 2019 | Change | |||||||
Passenger revenues | $ | 1,715 | $ | 2,057 | (17) | % | $ | 5,499 | $ | 8,095 | (32) | % |
Mileage plan other revenue | 129 | 119 | 8 | % | 461 | 465 | (1) | % | ||||
Cargo and other | 55 | 52 | 6 | % | 216 | 221 | (2) | % | ||||
Total operating revenues | $ | 1,899 | $ | 2,228 | (15) | % | $ | 6,176 | $ | 8,781 | (30) | % |
Operating expense, excluding fuel and special items | $ | 1,438 | $ | 1,500 | (4) | % | $ | 5,137 | $ | 5,796 | (11) | % |
Economic fuel | 405 | 476 | (15) | % | 1,326 | 1,884 | (30) | % | ||||
Special items | 17 | - | NM | (972) | 38 | NM | ||||||
Total operating expenses | $ | 1,860 | $ | 1,976 | (6) | % | $ | 5,491 | $ | 7,718 | (29) | % |
Total nonoperating expense | $ | (10) | $ | (9) | 11 | % | $ | (56) | $ | (47) | 19 | % |
Income before income tax | 29 | 243 | (88) | % | $ | 629 | $ | 1,016 | (38) | % | ||
Consolidated Operating Statistics: | ||||||||||||
Revenue passengers (000) | 9,196 | 11,715 | (22) | % | 32,407 | 46,733 | (31) | % | ||||
RPMs (000,000) "traffic" | 11,279 | 13,928 | (19) | % | 38,598 | 56,040 | (31) | % | ||||
ASMs (000,000) "capacity" | 14,207 | 16,648 | (15) | % | 52,445 | 66,654 | (21) | % | ||||
Load Factor | 79.4% | 83.7% | (4.3) | pts | 73.6% | 84.1% | (10.5) | pts | ||||
Yield | 15.20¢ | 14.77¢ | 3 | % | 14.25¢ | 14.45¢ | (1) | % | ||||
RASM | 13.36¢ | 13.38¢ | - | % | 11.78¢ | 13.17¢ | (11) | % | ||||
CASMex | 10.12¢ | 9.01¢ | 12 | % | 9.80¢ | 8.70¢ | 13 | % | ||||
FTEs | 21,043 | 22,506 | (7) | % | 19,375 | 22,126 | (12) | % |
OPERATING SEGMENTS (unaudited) | ||||||||||||||
Alaska Air Group, Inc. | ||||||||||||||
Three Months Ended December 31, 2021 | ||||||||||||||
(in millions) | Mainline | Regional | Horizon |
Consolidating & Other(a)
|
Air Group Adjusted(b)
|
Special Items(c)
|
Consolidated | |||||||
Operating revenues | ||||||||||||||
Passenger revenues | $ | 1,408 | $ | 307 | $ | - | $ | - | $ | 1,715 | $ | - | $ | 1,715 |
CPA revenues | - | - | 84 | (84) | - | - | - | |||||||
Mileage Plan other revenue | 115 | 14 | - | - | 129 | - | 129 | |||||||
Cargo and other | 55 | - | - | - | 55 | - | 55 | |||||||
Total Operating Revenues | 1,578 | 321 | 84 | (84) | 1,899 | - | 1,899 | |||||||
Operating Expenses | ||||||||||||||
Non-fuel operating expenses | 1,164 | 258 | 101 | (85) | 1,438 | (4) | 1,434 | |||||||
Fuel expense | 339 | 66 | - | - | 405 | 21 | 426 | |||||||
Total Operating Expenses | 1,503 | 324 | 101 | (85) | 1,843 | 17 | 1,860 | |||||||
Total Non-operating Income (Expense) | (7) | - | (5) | 2 | (10) | - | (10) | |||||||
Income (Loss) Before Income Tax | $ | 68 | $ | (3) | $ | (22) | $ | 3 | $ | 46 | $ | (17) | $ | 29 |
Pre-tax Margin | 2.4 | % | 1.5 | % | ||||||||||
Three Months Ended December 31, 2020 | ||||||||||||||
(in millions) | Mainline | Regional | Horizon |
Consolidating & Other(a)
|
Air Group Adjusted(b)
|
Special Items(c)
|
Consolidated | |||||||
Operating revenues | ||||||||||||||
Passenger revenues | $ | 490 | $ | 167 | $ | - | $ | - | $ | 657 | $ | - | $ | 657 |
CPA revenues | - | - | 105 | (105) | - | - | - | |||||||
Mileage Plan other revenue | 90 | 18 | - | - | 108 | - | 108 | |||||||
Cargo and other | 42 | - | - | 1 | 43 | - | 43 | |||||||
Total Operating Revenues | 622 | 185 | 105 | (104) | 808 | - | 808 | |||||||
Operating Expenses | ||||||||||||||
Non-fuel operating expenses | 853 | 266 | 85 | (110) | 1,094 | 154 | 1,248 | |||||||
Fuel expense | 121 | 42 | - | - | 163 | (8) | 155 | |||||||
Total Operating Expenses | 974 | 308 | 85 | (110) | 1,257 | 146 | 1,403 | |||||||
Total Non-operating Income (Expense) | (18) | - | (6) | 2 | (22) | (26) | (48) | |||||||
Income (Loss) Before Income Tax | $ | (370) | $ | (123) | $ | 14 | $ | 8 | $ | (471) | $ | (172) | $ | (643) |
Pre-tax Margin | (58.3) | % | (79.6) | % |
OPERATING SEGMENTS (unaudited) | ||||||||||||||
Alaska Air Group, Inc. | ||||||||||||||
Twelve Months Ended December 31, 2021 | ||||||||||||||
(in millions) | Mainline | Regional | Horizon |
Consolidating & Other(a)
|
Air Group Adjusted(b)
|
Special Items(c)
|
Consolidated | |||||||
Operating revenues | ||||||||||||||
Passenger revenues | $ | 4,411 | $ | 1,088 | $ | - | $ | - | $ | 5,499 | $ | - | $ | 5,499 |
CPA revenues | - | - | 406 | (406) | - | - | - | |||||||
Mileage Plan other revenue | 402 | 59 | - | - | 461 | - | 461 | |||||||
Cargo and other | 212 | - | - | 4 | 216 | - | 216 | |||||||
Total Operating Revenues | 5,025 | 1,147 | 406 | (402) | 6,176 | - | 6,176 | |||||||
Operating Expenses | ||||||||||||||
Non-fuel operating expenses | 4,101 | 1,096 | 373 | (433) | 5,137 | (925) | 4,212 | |||||||
Fuel expense | 1,065 | 261 | - | - | 1,326 | (47) | 1,279 | |||||||
Total Operating Expenses | 5,166 | 1,357 | 373 | (433) | 6,463 | (972) | 5,491 | |||||||
Total Non-operating Income (Expense) | (38) | - | (21) | 3 | (56) | - | (56) | |||||||
Income (Loss) Before Income Tax | $ | (179) | $ | (210) | $ | 12 | $ | 34 | $ | (343) | $ | 972 | $ | 629 |
Pre-tax Margin | (5.6) | % | 10.2 | % | ||||||||||
Twelve Months Ended December 31, 2020 | ||||||||||||||
(in millions) | Mainline | Regional | Horizon |
Consolidating & Other(a)
|
Air Group Adjusted(b)
|
Special Items(c)
|
Consolidated | |||||||
Operating revenues | ||||||||||||||
Passenger revenues | $ | 2,350 | $ | 669 | $ | - | $ | - | $ | 3,019 | $ | - | $ | 3,019 |
CPA revenues | - | - | 386 | (386) | - | - | - | |||||||
Mileage Plan other revenue | 309 | 65 | - | - | 374 | - | 374 | |||||||
Cargo and other | 170 | - | - | 3 | 173 | - | 173 | |||||||
Total Operating Revenues | 2,829 | 734 | 386 | (383) | 3,566 | - | 3,566 | |||||||
Operating Expenses | ||||||||||||||
Non-fuel operating expenses | 3,630 | 993 | 323 | (399) | 4,547 | 71 | 4,618 | |||||||
Fuel expense | 569 | 162 | - | - | 731 | (8) | 723 | |||||||
Total Operating Expenses | 4,199 | 1,155 | 323 | (399) | 5,278 | 63 | 5,341 | |||||||
Total Non-operating Income (Expense) | (19) | - | (22) | 2 | (39) | (26) | (65) | |||||||
Income (Loss) Before Income Tax | $ | (1,389) | $ | (421) | $ | 41 | $ | 18 | $ | (1,751) | $ | (89) | $ | (1,840) |
Pre-tax Margin | (49.1) | % | (51.6) | % |
CASM Excluding Fuel and Special Items Reconciliation | ||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
(in cents) | 2021 | 2020 | 2021 | 2020 | ||||
Consolidated: | ||||||||
CASM | 13.09 | ¢ | 14.57 | ¢ | 10.47 | ¢ | 14.39 | ¢ |
Less the following components:
|
||||||||
Payroll support program wage offset | - | (0.23) | (1.75) | (2.11) | ||||
Aircraft fuel, including hedging gains and losses | 3.00 | 1.61 | 2.44 | 1.95 | ||||
Special items - impairment charges and other(a)
|
(0.04) | 2.89 | - | 1.69 | ||||
Special items - restructuring charges(b)
|
0.01 | (1.06) | (0.02) | 0.59 | ||||
Special items - merger-related costs | - | 0.01 | - | 0.02 | ||||
CASM excluding fuel and special items | 10.12 | ¢ | 11.35 | ¢ | 9.80 | ¢ | 12.25 | ¢ |
Mainline: | ||||||||
CASM | 11.77 | ¢ | 14.11 | ¢ | 9.52 | ¢ | 13.66 | ¢ |
Less the following components:
|
||||||||
Payroll support program wage offset | - | (0.07) | (1.75) | (2.17) | ||||
Aircraft fuel, including hedging gains and losses | 2.66 | 1.40 | 2.33 | 1.79 | ||||
Special items - impairment charges and other(a)
|
(0.05) | 3.44 | - | 1.80 | ||||
Special items - restructuring charges(b)
|
0.02 | (1.27) | (0.02) | 0.65 | ||||
Special items - merger-related costs | - | 0.01 | - | 0.02 | ||||
CASM excluding fuel and special items | 9.14 | ¢ | 10.60 | ¢ | 8.96 | ¢ | 11.57 | ¢ |
Fuel Reconciliation | |||||||||
Three Months Ended December 31, | |||||||||
2021 | 2020 | ||||||||
(in millions, except for per gallon amounts) | Dollars | Cost/Gal | Dollars | Cost/Gal | |||||
Raw or "into-plane" fuel cost | $ | 434 | $ | 2.42 | $ | 159 | $ | 1.36 | |
Losses (gains) on settled hedges | (29) | (0.16) | 4 | 0.03 | |||||
Consolidated economic fuel expense | $ | 405 | $ | 2.26 | $ | 163 | $ | 1.39 | |
Mark-to-market fuel hedge adjustments | 21 | 0.12 | (8) | (0.07) | |||||
GAAP fuel expense | $ | 426 | $ | 2.38 | $ | 155 | $ | 1.32 | |
Fuel gallons | 179 | 117 | |||||||
Twelve Months Ended December 31, | |||||||||
2021 | 2020 | ||||||||
(in millions, except for per gallon amounts) | Dollars | Cost/Gal | Dollars | Cost/Gal | |||||
Raw or "into-plane" fuel cost | $ | 1,383 | $ | 2.11 | $ | 713 | $ | 1.54 | |
Losses (gains) on settled hedges | (57) | (0.09) | 18 | 0.04 | |||||
Consolidated economic fuel expense | $ | 1,326 | $ | 2.02 | $ | 731 | $ | 1.58 | |
Mark-to-market fuel hedge adjustments | (47) | (0.07) | (8) | (0.01) | |||||
GAAP fuel expense | $ | 1,279 | $ | 1.95 | $ | 723 | $ | 1.57 | |
Fuel gallons | 656 | 461 | |||||||
Debt-to-capitalization, including operating leases | ||||
(in millions) | December 31, 2021 | December 31, 2020 | ||
Long-term debt, net of current portion | $ | 2,173 | $ | 2,357 |
Long-term and current capitalized operating leases | 1,547 | 1,558 | ||
COVID-19 Related Borrowings(a)
|
- | 734 | ||
Adjusted debt, net of current portion of long-term debt | $ | 3,720 | $ | 4,649 |
Shareholders' equity | 3,801 | 2,988 | ||
Total Invested Capital | $ | 7,521 | $ | 7,637 |
Debt-to-capitalization ratio, including operating leases | 49% | 61% |
Adjusted net debt to earnings before interest, taxes, depreciation, amortization, special items and rent | ||||
(in millions) | December 31, 2021 | December 31, 2020 | ||
Current portion of long-term debt | $ | 366 | $ | 1,138 |
Current portion of operating lease liabilities | 268 | 290 | ||
Long-term debt | 2,173 | 2,357 | ||
Long-term operating lease liabilities, net of current portion | 1,279 | 1,268 | ||
Total adjusted debt | 4,086 | 5,053 | ||
Less: Total cash and marketable securities | (3,116) | (3,346) | ||
Adjusted net debt | $ | 970 | $ | 1,707 |
(in millions) | Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||
GAAP Operating Income (Loss) | $ | 685 | $ | (1,775) |
Adjusted for: | ||||
Payroll Support Program wage offset and special items | (925) | 71 | ||
Mark-to-market fuel hedge adjustments | (47) | (8) | ||
Depreciation and amortization | 394 | 420 | ||
Aircraft rent | 254 | 299 | ||
EBITDAR | $ | 361 | $ | (993) |
Adjusted net debt to EBITDAR | 2.7x | (1.7x) |