Airline Weekly | International : Analytical : Essential

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Alaska Airlines

Annual revenues:	$3,506m
Annual operating profit:	$179m
Annual net profit:	$92m
Operating profit margin:	5%

(Figures are from the period of JAN07-DEC07 in U.S. dollars.)

Fleet:
Type	Number in Fleet
B737-400	40
B737-700	20
B737-800	50
B737-900	12
DC-9-83	7

For more detailed fleet information, visit www.ch-aviation.ch

Strengths and opportunities:
- Long record of financial success and good customer service; learned a long time ago how to coexist with Southwest
- Innovative with technology
- Has good balance sheet
- Strong grip on Alaska routes which peak in the summer; good network in Mexico to keep things going in the winter; also flying to Hawaii now
- Replacing all MD-80s with B737-800s
- Seattle too small for big airlines to hub but big enough to suport a carrier of Alaska's size
- Marketing relationships with Delta, Northwest, American and many other airlines
- Achieved major cost restructuring in 2005
- Seattle attracts lots of tourists in the summer

Weaknesses and threats:
- Depends on revenue premium to offset costs that are high relative to many LCCs
- Exposed to Southwest, Virgin America, Northwest, United and others with a big presence in the western U.S.; not geographically well diversified
- Growth opportunites from Seattle and Portland questionable
- Strong unions and tough operational environment in Seattle

Financial data is sourced from company reports. The strengths and weaknesses are based on an analysis by Airline Weekly's editors. Information provided on airlineweekly.com is for general informational purposes only and should not be construed as investment advice.

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