Alaska Airlines’ third quarter losses reported today were $17.4 million, compared to a net income of $90.2 million in the same quarter last year. Alaska contributed the change to a voluntary severance program in connection with a labor contract, fuel hedging losses and the buyout of five MD-80 leases. Alaska has purchased some of the leased MD-80s to accelerate their retirement, according to a spokeswoman.
Alaska announced in March it planned to retire its fleet of 26 MD-80s and transition to an all-Boeing 737 fleet by the end of 2008. Retiring the fleet by the end of 2008 will cost the airline $750 million, but it expects to save $115 million per year in operating expenses by transitioning to a common fleet of next-generation 737s.
On a side note, Bill Ayer, Alaska Airlines’ chairman, CEO and president, will be the speaker at the Dec. 12 Wings Club Luncheon in New York.
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Posted by: vimax | May 31, 2009 at 02:47 PM