Alaska Air Blames Loss on Fare Cuts, Fuel Cost
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Alaska Air Group Inc. reported a second-quarter net loss of $17.8 million, or $1.46 a share. This compares with a profit of $4.5 million, or 21 cents a share, for the 1991 quarter.
“Heavy fare cuts in Alaska and the continental U.S., coupled with a soft economy and rising fuel prices, converged to produce these severe losses,” said Raymond J. Vecci, chairman and chief executive of the Seattle-based carrier.
Despite a 14% increase in passenger traffic, the company, which is parent firm of Alaska Airlines, said operating revenues declined to $277.1 million from $278.3 million last year. The traffic gains were offset by a 13% decline in yield (the average amount one passenger pays to fly a mile). The yield for the quarter fell to 16.1 cents from 18.5 cents last year.
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