Alaska Airlines and Horizon Air 2013 Annual Report Download - page 124

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2012 COMPARED WITH 2011
Our consolidated net income for 2012 was $316
million, or $4.40 per diluted share, compared to
net income of $245 million, or $3.33 per diluted
share, in 2011. Significant items impacting the
comparability between the periods were as
follows:
• Both periods included adjustments to reflect
the timing of net unrealized mark-to-market
gains or losses related to our fuel hedge
positions. For 2012, we recognized net
mark-to-market losses of $38 million ($23
million after tax, or $0.33 per share)
compared to losses of $30 million ($18
million after tax, or $0.26 per diluted share)
in 2011.
• In 2011, we incurred $39 million ($24
million, or $0.33 per diluted share) in
expense as part of Horizon's fleet transition
to an all-Q400 fleet.
Excluding the mark-to-market adjustments and
other special charges, our adjusted consolidated
net income for 2012 was $339 million, or $4.73
per diluted share, compared to an adjusted
consolidated net income of $287 million, or
$3.92 per share, in 2011.
Year Ended December 31,
2012 2011
(in millions, except
per-share amounts) Dollars
Diluted
EPS Dollars
Diluted
EPS
Net income and
diluted EPS as
reported ....... $316 $4.40 $245 $3.33
Fleet transition
costs, net of
tax ........... ——24 0.33
Mark-to-market fuel
hedge
adjustments, net
oftax ......... 23 0.33 18 0.26
Non-GAAP adjusted
income and per-
share
amounts ....... $339 $4.73 $287 $3.92
Our operating costs per ASM are summarized
below:
Year Ended
December 31,
2012 2011
%
Change
Consolidated:
Total operating expenses per
ASM (CASM) ............ 13.12¢ 13.06¢ 0.5
Less the following
components:
Aircraft fuel, including
hedging gains and
losses ............. 4.64 4.38 5.9
Fleet transition costs .... —0.13 NM
CASM, excluding fuel and
fleet transition costs ..... 8.48¢ 8.55¢ (0.8)
Mainline:
Total mainline operating
expenses per ASM
(CASM) ................ 12.09¢ 11.87¢ 1.9
Less the following
components:
Aircraft fuel, including
hedging gains and
losses ............. 4.53 4.27 6.1
CASM, excluding fuel ...... 7.56¢ 7.60¢ (0.5)
NM–Not Meaningful
OPERATING REVENUES
Total operating revenues increased $339 million,
or 8%, during 2012 compared to the same
period in 2011. The changes are summarized in
the following table:
Year Ended December 31,
(in millions) 2012 2011
%
Change
Passenger
Mainline......... $3,284 $2,995 10
Regional ........ 746 713 5
Total passenger
revenue ........... $4,030 $3,708 9
Freight and mail .......... 111 109 2
Other—net .............. 516 501 3
Total operating revenues . . . $4,657 $4,318 8
38