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Alaska Airlines Earnings Up
But job cuts loom
The Associated Press
July 24, 2008, 11:54 AM PDT
Alaska Air Group says its second-quarter profit
rose 37 percent despite rising fuel prices, as it accounted for
fuel hedges that will close in future quarters.
But the operator of Alaska Airlines and Horizon Air also said it
will cut capacity, and suggested job losses are coming in the fall.
The company also announced several changes to its Alaska
Airlines frequent flier program.
They include requiring 25,000 miles for "Coach Saver" tickets,
instead of 20,000, and adding a $25 fee for Alaska Airlines
customers who use their miles on another airline.
The hedging gain is a result of the company's financial
maneuvers betting on rising oil prices. The value of those
transactions rises along with oil prices.
The company said it made more than 63 (m) million dollars during
the quarter that ended June 30th.
That was up from about 46 (m) million for the corresponding
period last year.
Alaska Air said without the fuel hedge gain, it would have lost
about 14 (m) million.
Copyright © 2008, The Associated Press
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