Alaska Airlines and Horizon Air 2014 Annual Report Download - page 91

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(SkyWest) and Peninsula Airways, Inc. (PenAir) for regional capacity such that Alaska receives all
passenger revenue from those flights. Horizon operates a fleet of turboprop aircraft and sells all of its
capacity to Alaska pursuant to a capacity purchase arrangement. The majority of our revenues are
generated by transporting passengers, but in recent years we have focused on growing our ancillary
revenues. The percentage of revenues by category is as follows:
2014 2013 2012 2011 2010
Mainline passenger revenue 70% 70% 71% 69% 68%
Regional passenger revenue 15% 16% 16% 17% 17%
Other revenue 13% 12% 11% 12% 12%
Freight and Mail revenue 2% 2% 2% 2% 3%
Total 100% 100% 100% 100% 100%
We attempt to deploy aircraft into the network in ways that best optimize our revenues and profitability,
and reduce our seasonality.
The percentage of our capacity by region is as follows:
2014 2013 2012 2011 2010
West Coast 36% 34% 35% 37% 41%
Transcon/midcon 22% 22% 19% 19% 19%
Hawaii 18% 19% 20% 16% 11%
Alaska 15% 16% 17% 18% 19%
Mexico 6% 7% 7% 9% 8%
Canada 3% 2% 2% 1% 2%
Total 100% 100% 100% 100% 100%
MAINLINE
We offer extensive north/south service within the western U.S., Canada and Mexico, and passenger
and dedicated cargo services to and within the state of Alaska. We also provide long-haul east/west
service to Hawaii and 24 cities in the mid-continental and eastern U.S., primarily from Seattle, where we
have our largest concentration of departures; although we do offer long-haul departures from other
cities as well.
In 2014, we carried 21 million revenue passengers in our mainline operations. At December 31, 2014,
Alaska’s operating fleet consisted of 137 Boeing 737 jet aircraft, compared to 131 B737 aircraft as of
December 31, 2013.
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ŠForm 10-K