top of page
Writer's pictureIshfaaq Peerally

Alaska Air Group 4Q20 Earnings Analysis


Alaska Air Group Stock Analysis

Catalysts


  • Had marketable securities for a rainy day and now facing a storm better than competition

  • Vaccination going at a fast rate in the US

  • Domestic aviation will recover faster than international

  • Assistance from Government on wages

  • To acquire 68 new Boeings by 2023 with option of buying 52 more by 2026, selling all Airbus

  • Great management with CEO Brad Tilden retiring in March


Financial Analysis


  • Revenues of $808 million in 4Q20 down 64% YoY

  • Revenues of $2.28 billion in FY20 down 59% YoY

  • Net loss of 430 million in 4Q20 vs net income of $181 million in 4Q19

  • Net loss of $1.3 billion in FY20 vs net income of $769 million in FY19

  • Cash and marketable securities of $3.3 billion, up 120% YoY

  • Total Debt of $3.5 billion including current portion of $1.1 billion

  • Book value of $3.0 billion down from $4.3 billion YoY

  • No increase in shares outstanding

  • To lower cash balance in repaying debt ahead of expected recovery with 80% of flights by Summer 2021

  • Daily Cashburn of $3.8 million down from $4.0 million last quarter



Alaska Airlines Stock Analysis

78 views0 comments

Recent Posts

See All

Comments


bottom of page