Alaska Air Group 1Q21 Earnings Analysis


Alaska Airlines Stock Analysis

Catalysts

  • Had marketable securities for a rainy day and now facing a storm better than competition

  • Vaccination going at a fast rate in the US

  • Domestic aviation will recover faster than international

  • Assistance from Government on wages

  • To acquire 68 new Boeings by 2023 with option of buying 52 more by 2026, selling all Airbus

  • Joined Oneworld Alliance recently


Risks

  • Recovery from pandemic takes longer than expected and people are still fearful of traveling

  • Higher oil prices

  • Inflation


Financial Analysis

  • Revenues of $797 million in 1Q20 down 52% YoY

  • Net loss of $131 million in 1Q21 vs net loss of $232 million in 1Q20

  • $411 million from Payroll Support Program (PSP) in 1Q21 under CARES Act

  • Non-GAAP net loss of $436 million vs $102 million in 1Q20

  • Capacity 33% down from 1Q19 levels

  • Passenger load factor of 52% (62% in March 2021) vs 80% in 1Q19

  • Balance Sheet

  • Total Assets: $14.2 Billion, Total Liabilities: $11.3 Billion, Book Value: $2.87 Billion

  • Current Assets: $4.28 Billion, Current Liabilities: $4.76 Billion,

  • Cash and marketable Securities: $3.54 Billion, Debt: $3.57 Billion


Read the full analysis on my Investment Research Partnership: https://ishfaaqpeerally.teachable.com/courses/662813/lectures/32034616


Alaska Airlines Stock Analysis

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