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Pre-Tax Margin 10.4% 13.0% 15.1% Free Cash Flow Margin 2.1% 7.7% 7.8% ROIC 13.6% 14.8% 16.7% Adj. Net Debt / EBITDAR 1.8x 1.6x 0.9x P/E Multiple 13.9x 18.6x 10.7x 11
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U.S. Market Share of Four Largest Carriers* *Total domestic revenue from Form 41. Airlines included in sample set: American, Aloha, Alaska, Jetblue, Continental, Delta, Frontier, Airtran, Hawaiian, America West, Midway, Spirit, Northwest, Pan American, Sun Country, TWA, ATA, United, US Airways, Virgin America, Southwest and Midwest Express 15
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41% 36% 32% 27% 16
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Virgin America Controllable Departures on Zero Virgin America Block Hours per Aircraft per Day 22
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23
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Pre-Tax Guest Income Satisfaction (50%) (10%) Performance- Based Pay Loyalty for weighted Safety Growth targets achieved (20%) (10%) Non-Fuel CASM (10%) 30
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Annual synergies (revenue & cost) expected from Virgin America integration 34
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• • • • • • • • • • • • • 35
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• • • • • • • • • • • • • 36
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• • • • • • • • • • • • • 39
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• • • 44
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• • • 45
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% of sales on Alaska Affinity Card Blended Credit Card Commission Rate 46
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₵ 47
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48
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₵ ₵ ₵ ₵ ₵ ₵ 49
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50
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• • • • • • 65
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• • 68
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WN AS UA AA DL 69
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UA AA DL AS WN 70
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TM 71
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72
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78
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• • • 79
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Ancillary Revenue Per Passenger, excluding Loyalty Revenue • • • • • 80
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ALK Corporate Customers % of TMC revenue under contract 81
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82
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83
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84
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85
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86
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₵ 87
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88
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1 2 3 4 89
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Adjusted for net present value of future operating lease commitments $ millions 90
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91
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92