Alaska Air Group reports December 2016 performance

Alaska Air Group Inc. today reported December and full-year operational results on a combined basis, for its subsidiaries Alaska Airlines, Inc. (Alaska) and Virgin America Inc., (Virgin America), and for its regional flying operated by subsidiary Horizon Air Industries, Inc. and third-party regional carriers, SkyWest Airlines and PenAir (Regional).

Air Group’s acquisition of Virgin America took place on Dec. 14, 2016. Operational results below include full period-to-date results from Virgin America for both the current period and the prior period for comparison.

AIR GROUP

On a combined basis, Air Group reported a 5.6 percent increase in traffic on a 5.0 percent increase in capacity compared to December 2015. Load factor increased 0.5 points to 83.1 percent. These statistics include flights operated by Alaska, Virgin America, Horizon, and those under third-party capacity purchase agreements.

The following table shows the operational results for December(1) and full-year 2016(1), compared to the prior-year periods(2):

December Full Year
2016 2015 Change 2016 2015 Change

Revenue passengers (in thousands) 3,509 3,361 4.4% 41,945 38,919 7.8%
Revenue passenger miles RPM (in millions) 4,125 3,905 5.6% 48,754 44,014 10.8%
Available seat miles ASM (in millions) 4,962 4,726 5.0% 57,951 52,605 10.2%
Passenger load factor 83.1% 82.6% 0.5 pts 84.1% 83.7% 0.4 pts

(1) 2016 information includes full period-to-date Virgin America operating results.

(2) 2015 information has been adjusted to include Virgin America operating results for comparison purposes.

ALASKA AIRLINES

Alaska reported a 4.2 percent increase in traffic on a 2.5 percent increase in capacity compared to December 2015. Load factor increased 1.4 points to 85.0 percent. Alaska also reported 76.1 percent of its flights arrived on time in December, compared to the 85.3 percent reported in December 2015.

The following table shows Alaska’s operational results for December and full-year 2016, compared to the prior-year periods:

December Full Year
2016 2015 Change 2016 2015 Change

Revenue passengers (in thousands) 2,052 1,965 4.4% 24,421 22,869 6.8%
RPMs (in millions) 2,806 2,694 4.2% 32,859 30,340 8.3%
ASMs (in millions) 3,302 3,221 2.5% 38,715 35,912 7.8%
Passenger load factor 85.0% 83.6% 1.4 pts 84.9% 84.5% 0.4 pts
On-time arrivals as reported to U.S. DOT(1) 76.1% 85.3% (9.2) pts 87.3% 86.4% 0.9 pts

(1) Winter storms in the Pacific Northwest caused the year-over-year decline in on-time performance in the month of December.

VIRGIN AMERICA

Virgin America traffic increased 9.0 percent on an 11.0 percent increase in capacity compared to December 2015. Load factor decreased (1.4) points to 79.2 percent. Virgin America also reported 70.2 percent of its flights arrived on time in December, compared to 71.1 percent in December 2015.

The following table shows Virgin America operational results for December and full-year 2016, compared to the prior-year periods:

December Full Year
2016 2015 Change 2016 2015 Change

Revenue passengers (in thousands) 675 629 7.3% 8,073 7,036 14.7%
RPMs (in millions) 1,013 929 9.0% 12,175 10,436 16.7%
ASMs (in millions) 1,279 1,152 11.0% 14,575 12,691 14.8%
Passenger load factor 79.2% 80.6% (1.4) pts 83.5% 82.2% 1.3 pts
On-time arrivals as reported to U.S. DOT 70.2% 71.1% (0.9) pts 76.8% 79.9% (3.1) pts

REGIONAL FLYING

Regional traffic increased 8.5 percent on an 8.2 percent increase in capacity compared to December 2015. Load factor increased 0.2 points to 80.3 percent. Regional also reported 61.6 percent of its flights arrived on time in December, compared to the 68.8 percent reported in December 2015.

The following table shows regional operational results for December and full-year 2016, compared to the prior-year periods:

December Full Year
2016 2015 Change 2016 2015 Change

Revenue passengers (in thousands) 782 767 2.0% 9,451 9,015 4.8%
RPMs (in millions) 306 282 8.5% 3,720 3,238 14.9%
ASMs (in millions) 381 352 8.2% 4,661 4,001 16.5%
Passenger load factor 80.3% 80.1% 0.2 pts 79.8% 80.9% (1.1) pts
On-time arrivals(1) 61.6% 68.8% (7.2) pts 85.2% 83.4% 1.8 pts

(1) Winter storms in the Pacific Northwest caused the year-over-year decline in on-time performance in the month of December.