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Alaska Air Group, Inc., reported third quarter 2013 GAAP net income of $289 million, or $4.08 per diluted share, compared to $163 million, or $2.27 per diluted share in the third quarter of 2012. Excluding the impact of mark-to-market fuel hedge adjustments of $20 million ($12 million after tax, or $0.17 per diluted share), and a one-time special revenue item of $192 million ($120 million after tax, or $1.70 per diluted share) that primarily resulted from the application of new accounting rules associated with the modified affinity card agreement, the company reported record adjusted net income of $157 million, or $2.21 per diluted share, compared to adjusted net income of $150 million, or $2.09 per diluted share, in 2012.
Alaska Air Group CEO Brad Tilden said:
“These results represent our best quarter ever and mark Alaska’s 18th consecutive quarterly profit. This is noteworthy given significant additional competition in some of our core markets. The balance and strength of our network combined with the ability of our people to respond quickly to changing business conditions are enabling us to succeed in this highly competitive industry.”
The following table reconciles the company’s reported GAAP net income and earnings per diluted share (EPS) during the third quarters of 2013 and 2012 to adjusted amounts:
| Three Months Ended September 30, | ||||
|---|---|---|---|---|
| (in millions, except per share amounts) | Dollars | Diluted EPS | Dollars | Diluted EPS |
| Reported GAAP net income | $289 | $4.08 | $163 | $2.27 |
| Mark-to-market fuel-hedge adjustments, net of tax | -12 | -0.17 | -13 | -0.18 |
| Special revenue item, net of tax | -120 | -1.7 | —- | —- |
| Non-GAAP adjusted income and per-share amounts | $157 | $2.21 | $150 | $2.09 |
