Attached files
| file | filename |
|---|---|
| EX-99.3 - JANUARY 2018 TRAFFIC REPORT - ALASKA AIR GROUP, INC. | ex993trafficreport021518.htm |
| EX-99.2 - FEBRUARY 15, 2018 INVESTOR UPDATE - ALASKA AIR GROUP, INC. | ex992investorupdate021518.htm |
| 8-K - ALASKA AIR GROUP FORM 8-K - ALASKA AIR GROUP, INC. | alk8-kinvestorupdate021518.htm |
Exhibit 99.1
Investor Update - Impact of New Accounting Standards
References in this update to “Air Group,” “Company,” “we,” “us,” and “our” refer to Alaska Air Group, Inc. and its subsidiaries, unless otherwise specified.
This update includes a preview of the prior year impacts for the new revenue recognition accounting standard and retirement benefits accounting standard that became applicable for the Company beginning January 1, 2018. We have elected to apply the new standards using a full retrospective transition, which will require us to restate prior period financial information. For a more complete discussion of the new accounting standards, and their impacts on our accounting policies, see our 2017 Form 10-K which filed on February 15, 2018.
As we have elected to apply the new accounting standards using a full retrospective transition method, we are providing a preview of the impacts to certain key metrics, including passenger revenue per available seat mile (PRASM), revenue per available seat mile (RASM) and costs per available seat mile excluding fuel and special charges (CASMex).
2016(a) | ||||||||||||||||||
PRASM | RASM | CASMex | ||||||||||||||||
As Reported | As Recast | % Change | As Reported | As Recast | % Change | As Reported | As Recast | % Change | ||||||||||
Q1 2016 | 10.84¢ | 11.66¢ | 7.6 | 12.88¢ | 12.86¢ | (0.2) | 8.51¢ | 8.59¢ | 0.9 | |||||||||
Q2 2016 | 11.42¢ | 12.35¢ | 8.1 | 13.51¢ | 13.54¢ | 0.2 | 7.78¢ | 7.87¢ | 1.2 | |||||||||
Q3 2016 | 11.79¢ | 12.75¢ | 8.1 | 13.97¢ | 13.96¢ | (0.1) | 8.20¢ | 8.30¢ | 1.2 | |||||||||
Q4 2016 | 11.29¢ | 12.13¢ | 7.4 | 13.36¢ | 13.31¢ | (0.4) | 8.45¢ | 8.51¢ | 0.7 | |||||||||
Full Year 2016 | 11.34¢ | 12.23¢ | 7.8 | 13.44¢ | 13.43¢ | (0.1) | 8.23¢ | 8.31¢ | 1.0 | |||||||||
2017(a) | ||||||||||||||||||
PRASM | RASM | CASMex | ||||||||||||||||
As Reported | As Recast | % Change | As Reported | As Recast | % Change | As Reported | As Recast | % Change | ||||||||||
Q1 2017 | 10.31¢ | 11.13¢ | 8.0 | 12.15¢ | 12.09¢ | (0.5) | 8.37¢ | 8.40¢ | 0.4 | |||||||||
Q2 2017 | 11.57¢ | 12.47¢ | 7.8 | 13.46¢ | 13.46¢ | — | 7.94¢ | 7.99¢ | 0.6 | |||||||||
Q3 2017 | 11.29¢ | 12.12¢ | 7.4 | 13.12¢ | 13.05¢ | (0.5) | 7.98¢ | 8.00¢ | 0.3 | |||||||||
Q4 2017 | 10.71¢ | 11.30¢ | 5.5 | 12.34¢ | 12.20¢ | (1.1) | 8.64¢ | 8.67¢ | 0.3 | |||||||||
Full Year 2017 | 10.98¢ | 11.77¢ | 7.2 | 12.78¢ | 12.71¢ | (0.5) | 8.23¢ | 8.26¢ | 0.4 | |||||||||
(a) Actual as reported and as recast financial data reported in 2016 excludes Virgin America information prior to December 14, 2016 acquisition.