UNITED STATES SECURITIES AND EXCHANGE COMMISSION
FORM 8-K
CURRENT REPORT
Pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934
December 16, 2002
(Date of Report)
ALASKA AIR GROUP, INC.
Delaware (State or other jurisdiction of incorporation or organization) |
91-1292054 (I.R.S. Employer Identification No.) |
19300 Pacific Highway South, Seattle, Washington 98188
(Address of principal executive offices)
(206) 431-7040
(Registrants telephone number)
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ITEM 9. Regulation FD Disclosure | ||||||||
Signature |
ITEM 9.
Regulation FD Disclosure
FORWARD-LOOKING INFORMATION
This report may contain forward-looking statements that are based on the best
information currently available to management. These forward-looking
statements are intended to be subject to the safe harbor protection provided by
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements are indicated by phrases such
as will, should, the Company believes, we expect or any other language
indicating a prediction of future events. There can be no assurance that
actual developments will be those anticipated by the Company. Actual results
could differ materially from those projected as a result of a number of
factors, some of which the Company cannot predict or control. For a discussion
of these factors, please see Item 1 of the Companys Annual Report on Form 10-K
for the year ended December 31, 2001. The Company expressly disclaims any duty
to update these projections, and makes no representation as to their continued
accuracy in the event it does not provide such updates.
Fourth Quarter 2002 Estimates
Forecast | Change | |||||||
Q4 | Yr/Yr | |||||||
Alaska Airlines |
||||||||
Capacity (ASMs in millions) |
4,737 | 14.9 | % | |||||
Fuel gallons (000,000) |
79.6 | 14.3 | % | |||||
Cost per ASM excluding fuel (cents) |
8.8 | (9.0 | )% |
For November 2002, Alaska experienced a 6.8% increase in traffic on a 11.6% increase in capacity. However, revenue per available seat mile (RASM) decreased 7.4% for November 2002 as compared to November 2001. This decrease in RASM is due principally to a 3.5% decrease in yield and a 3.0pt. decrease in load factor.
Compared to November 2000, traffic in 2002 decreased 1.8%, capacity increased 7% , and RASM decreased 13%.
Horizon Air |
||||||||
Capacity (ASMs in millions) |
627 | 32.2 | % | |||||
Fuel gallons (000,000) |
13.9 | 15.8 | % | |||||
Cost per ASM excluding fuel (cents) |
15.5 | (24.4 | )% |
For November 2002, Horizon experienced a 24.5% increase in traffic on a 35.7% increase in capacity. However, revenue per available seat mile (RASM) decreased 14.3% for November 2002 as compared to November 2001. This decrease in RASM is due principally to a 5.5% decrease in yield and a 5.3pt. decrease in load factor.
Compared to November 2000, traffic in 2002 increased 2%, capacity increased 9%, and RASM decreased 20%.
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Capacity and Traffic Estimates for 2002
Provided below are capacity (ASMs in millions) estimates for the full year of 2002.
Alaska Airlines capacity |
19,339 | 7.9 | % | |||||
Horizon Air capacity |
2,422 | 12.8 | % |
Other Financial Information
Cash and Short-Term Investments
Cash and short-term investments amounted to approximately $654 million on
November 30, 2002.
Fuel Cost per Gallon (including realized hedging gains)
Cost per | % Change from | |||||||
Gallon | Prior Year | |||||||
Alaska: November |
83.1 cents | 12.4 | % | |||||
Horizon: November |
85.9 cents | 10.1 | % | |||||
Current fuel hedge positions for Alaska and Horizon are as follows:
Approximate % of | Approximate Crude | |||||||
Expected | Oil Price per | |||||||
Fuel Requirements | Barrel | |||||||
October December 2002 |
40 | % | $ | 22 | ||||
January December 2003 |
35 | % | $ | 22 | ||||
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Operating Fleet Plan
Provided below are estimated changes in the Alaska and Horizon fleets for 2002
- 2003.
On Hand | Estimated Change During | |||||||||||||||
Seats | YE 2001 | 2002 | 2003 | |||||||||||||
Alaska Airlines |
||||||||||||||||
B737-200C |
111 | 9 | ||||||||||||||
B737-400 |
138 | 39 | 1 | |||||||||||||
B737-700 |
120 | 16 | 6 | |||||||||||||
B737-900 |
172 | 5 | 1 | 5 | ||||||||||||
MD-80 |
140 | 32 | (1 | ) | (4 | ) | ||||||||||
Total |
101 | 1 | 7 | |||||||||||||
Horizon Air |
||||||||||||||||
Dash 8-100/200 |
37 | 29 | (1 | ) | ||||||||||||
Dash 8-400 |
70 | 12 | 3 | |||||||||||||
F-28 |
69 | 10 | (6 | ) | (4 | ) | ||||||||||
CRJ 700 |
70 | 9 | 7 | 2 | ||||||||||||
Total |
60 | 3 | (2 | ) | ||||||||||||
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ALASKA AIR GROUP, INC.
Registrant
Date: December 16, 2002
/s/ Terri K. Maupin
Terri K. Maupin
Staff Vice President/Finance and Controller
/s/ Bradley D. Tilden
Bradley D. Tilden
Executive Vice President/Finance and Chief Financial Officer
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