Alaska Airlines has initiated the process to acquire Hawaiian Airlines, offering an all-cash deal of $18 per share. Additionally, the company completed the phase-out of Virgin America’s Airbus A321neos, transferring ten jets to American Airlines, with eight sold in the fourth quarter of 2023 and the remaining two in January 2024.
As per its filing with the United States Securities and Exchange Commission, Alaska Airlines recorded a $392 million charge in 2023, incorporating accelerated retirement costs for its Airbus and De Havilland Canada Dash-8-Q400 aircraft, compared to $496 million in 2022.
The airline concluded 2023 with a total of 231 aircraft, an increase from 2022's count. Throughout the year, it received 37 new aircraft, including one Boeing 737 MAX 8, 28 737 MAX 9, and eight Embraer E175 for Horizon Air. According to ch-aviation, it retired 60 aircraft in 2023, including older models like the ex-Virgin America Airbus A319ceo and A320ceos.
The grounding of the Boeing 737 MAX 9 fleet is expected to impact the company's 2024 financial results by $150 million. Despite this, Alaska Airlines forecasts an adjusted earnings per share of $3 to $5, up from 2023's diluted EPS of $1.83.
Originally planning a capacity growth of 3% to 5%, the airline has revised this estimate to 3% or less due to the MAX 9 groundings and potential delays in aircraft deliveries.
Alaska Airlines has scheduled the Boeing 737 MAX 9 to resume service on January 26, 2024, following a voluntary grounding that began on January 5 and a subsequent Emergency Airworthiness Directive from the Federal Aviation Administration that grounded the fleet nationwide.