EXHIBIT 99.2
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Alaska Air Group, Inc.
Three Months Ended March 31 2001 2001 2002 2002
(In Millions Except Per Share Amounts) As Reported As Restated As Reported As Restated
- ---------------------------------------------------------------------------------------------------------
OPERATING REVENUES
Passenger $ 479.8 $ 477.5 $ 456.1 $ 455.9
Freight and mail 20.6 20.6 17.1 17.1
Other - net 15.6 18.3 23.7 27.1
- ---------------------------------------------------------------------------------------------------------
TOTAL OPERATING REVENUES 516.0 516.4 496.9 500.1
- ---------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Wages and benefits 192.0 191.5 204.6 202.9
Contracted services 20.9 21.8 22.8 24.7
Aircraft fuel 89.7 89.7 64.7 64.7
Aircraft maintenance 50.1 52.7 43.1 43.2
Aircraft rent 46.2 46.2 46.5 46.5
Food and beverage service 14.0 14.0 14.3 14.3
Commissions 15.4 15.4 12.4 12.4
Other selling expenses 31.8 31.8 30.2 30.2
Depreciation and amortization 29.9 30.4 31.7 32.3
(Gain) loss on sale of assets 0.8 0.8 (0.6) (0.6)
Landing fees and other rentals 28.3 27.9 30.1 29.8
Other 46.4 48.2 48.5 49.3
- ---------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 565.5 570.4 548.3 549.7
- ---------------------------------------------------------------------------------------------------------
OPERATING LOSS (49.5) (54.0) (51.4) (49.6)
- ---------------------------------------------------------------------------------------------------------
NONOPERATING INCOME (EXPENSE)
Interest income 8.1 7.2 4.4 4.4
Interest expense (12.1) (12.1) (11.9) (11.9)
Interest capitalized 3.6 4.2 0.2 0.2
Other - net (1.4) (0.9) 5.3 4.5
- ---------------------------------------------------------------------------------------------------------
(1.8) (1.6) (2.0) (2.8)
- ---------------------------------------------------------------------------------------------------------
Loss before income tax and accounting change (51.3) (55.6) (53.4) (52.4)
Income tax benefit (18.2) (19.9) (19.0) (18.7)
- ---------------------------------------------------------------------------------------------------------
Loss before accounting change (33.1) (35.7) (34.4) (33.7)
Cumulative effect of accounting change -- -- -- (51.4)
- ---------------------------------------------------------------------------------------------------------
Net Loss $ (33.1) $ (35.7) $ (34.4) $ (85.1)
=========================================================================================================
BASIC LOSS PER SHARE:
Loss before accounting change $ (1.25) $ (1.35) $ (1.30) $ (1.27)
Cumulative effect of accounting change -- -- -- (1.94)
- ---------------------------------------------------------------------------------------------------------
Net Loss $ (1.25) $ (1.35) $ (1.30) $ (3.21)
=========================================================================================================
DILUTED LOSS PER SHARE:
Loss before accounting change $ (1.25) $ (1.35) $ (1.30) $ (1.27)
Cumulative effect of accounting change -- -- -- (1.94)
- ---------------------------------------------------------------------------------------------------------
Net Loss $ (1.25) $ (1.35) $ (1.30) $ (3.21)
==========================================================================================================
Shares used for computation:
Basic 26.471 26.471 26.532 26.532
Diluted 26.471 26.471 26.532 26.532
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Alaska Air Group, Inc.
Three Months Ended June 30 2001 2001 2002 2002
(In Millions Except Per Share Amounts) As Reported As Restated As Reported As Restated
- ----------------------------------------------------------------------------------------------------------
OPERATING REVENUES
Passenger $ 534.3 $ 533.6 $ 525.4 $ 525.4
Freight and mail 24.1 24.0 21.3 21.2
Other - net 20.9 25.2 27.4 29.1
- ----------------------------------------------------------------------------------------------------------
TOTAL OPERATING REVENUES 579.3 582.8 574.1 575.7
- ----------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Wages and benefits 194.1 194.0 212.4 211.8
Contracted services 20.9 21.9 22.3 22.4
Aircraft fuel 89.8 89.8 75.1 75.2
Aircraft maintenance 45.2 47.3 42.4 42.3
Aircraft rent 46.3 46.3 46.8 46.8
Food and beverage service 15.4 15.4 17.0 17.0
Commissions 16.4 16.3 11.5 11.5
Other selling expenses 32.8 32.8 33.5 33.5
Depreciation and amortization 31.6 32.2 34.2 34.0
Loss on sale of assets 0.4 0.4 0.0 0.1
Landing fees and other rentals 30.7 30.4 36.1 36.0
Other 44.4 47.0 49.6 50.1
- ----------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 568.0 573.8 580.9 580.7
- ----------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 11.3 9.0 (6.8) (5.0)
- ----------------------------------------------------------------------------------------------------------
NONOPERATING INCOME (EXPENSE)
Interest income 5.7 4.8 5.8 5.7
Interest expense (10.6) (10.6) (11.6) (11.6)
Interest capitalized 2.3 2.9 0.5 0.6
U.S. government compensation -- -- 5.6 0.1
Other - net (0.5) 0.4 -- 6.4
- ----------------------------------------------------------------------------------------------------------
(3.1) (2.5) 0.3 1.2
- ----------------------------------------------------------------------------------------------------------
Income (loss) before income tax 8.2 6.5 (6.5) (3.8)
Income tax expense (benefit) 3.5 3.0 (2.0) (0.9)
- ----------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) $ 4.7 $ 3.5 $ (4.5) $ (2.9)
==========================================================================================================
BASIC EARNINGS (LOSS) PER SHARE $ 0.18 $ 0.13 $ (0.17) $ (0.11)
==========================================================================================================
DILUTED EARNINGS (LOSS) PER SHARE $ 0.18 $ 0.13 $ (0.17) $ (0.11)
==========================================================================================================
Shares used for computation:
Basic 26.481 26.481 26.548 26.548
Diluted 26.526 26.526 26.548 26.548
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Alaska Air Group, Inc.
Three Months Ended September 30 2001 2001 2002 2002
(In Millions Except Per Share Amounts) As Reported As Restated As Reported As Restated
- ---------------------------------------------------------------------------------------------------------
OPERATING REVENUES
Passenger $ 536.8 $ 536.2 $ 569.8 $ 570.7
Freight and mail 22.6 22.6 21.0 21.1
Other - net 24.0 28.6 29.3 28.8
- ---------------------------------------------------------------------------------------------------------
TOTAL OPERATING REVENUES 583.4 587.4 620.1 620.6
- ---------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Wages and benefits 205.0 202.7 224.8 224.1
Contracted services 19.2 21.4 22.0 22.2
Aircraft fuel 85.6 85.6 82.8 82.7
Aircraft maintenance 42.7 43.6 35.8 35.8
Aircraft rent 46.0 46.0 48.3 48.3
Food and beverage service 15.2 15.2 18.6 18.6
Commissions 16.0 16.1 7.2 7.2
Other selling expenses 31.8 31.8 32.5 32.5
Depreciation and amortization 33.7 34.4 34.8 34.4
(Gain) loss on sale of assets 0.3 0.3 (0.2) (0.3)
Landing fees and other rentals 33.8 33.2 38.9 38.1
Other 41.3 43.5 51.0 51.5
- ---------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 570.6 573.8 596.5 595.1
- ---------------------------------------------------------------------------------------------------------
OPERATING INCOME 12.8 13.6 23.6 25.5
- ---------------------------------------------------------------------------------------------------------
NONOPERATING INCOME (EXPENSE)
Interest income 7.1 6.2 5.8 6.0
Interest expense (11.8) (11.8) (10.5) (11.3)
Interest capitalized 1.6 2.2 -- 0.7
U.S. government compensation 29.1 29.1 0.5 0.4
Other - net (0.5) 0.5 (3.0) (2.0)
- ---------------------------------------------------------------------------------------------------------
25.5 26.2 (7.2) (6.2)
- ---------------------------------------------------------------------------------------------------------
Income before income tax 38.3 39.8 16.4 19.3
Income tax expense 13.0 13.6 5.8 6.8
- ---------------------------------------------------------------------------------------------------------
NET INCOME $ 25.3 $ 26.2 $ 10.6 $ 12.5
=========================================================================================================
BASIC EARNINGS PER SHARE $ 0.95 $ 0.99 $ 0.40 $ 0.47
=========================================================================================================
DILUTED EARNINGS PER SHARE $ 0.95 $ 0.99 $ 0.40 $ 0.47
=========================================================================================================
Shares used for computation:
Basic 26.514 26.514 26.549 26.549
Diluted 26.559 26.559 26.562 26.562
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Alaska Air Group, Inc.
Three Months Ended December 31 2001 2001 2002
(In Millions Except Per Share Amounts) As Reported As Restated As Reported
- -----------------------------------------------------------------------------------------
OPERATING REVENUES
Passenger $ 422.1 $ 425.0 $ 485.7
Freight and mail 19.0 19.0 17.7
Other - net 21.1 22.1 24.3
- -----------------------------------------------------------------------------------------
TOTAL OPERATING REVENUES 462.2 466.1 527.7
- -----------------------------------------------------------------------------------------
OPERATING EXPENSES
Wages and benefits 208.2 207.3 219.3
Contracted services 21.0 21.7 23.7
Aircraft fuel 59.2 59.3 79.4
Aircraft maintenance 36.0 37.7 48.9
Aircraft rent 47.4 47.4 48.8
Food and beverage service 13.7 13.7 16.3
Commissions 12.4 12.3 3.9
Other selling expenses 28.5 28.5 28.7
Depreciation and amortization 36.5 37.2 31.8
Loss on sale of assets 3.2 3.1 0.9
Landing fees and other rentals 36.9 36.6 36.4
Other 45.4 46.1 49.4
Special charges 10.2 10.2 --
- -----------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 558.6 561.1 587.5
- -----------------------------------------------------------------------------------------
OPERATING LOSS (96.4) (95.0) (59.8)
- -----------------------------------------------------------------------------------------
NONOPERATING INCOME (EXPENSE)
Interest income 4.9 4.0 5.1
Interest expense (12.8) (12.9) (11.5)
Interest capitalized 0.6 1.3 1.2
U.S. government compensation 52.3 52.3 --
Other - net (1.3) (4.0) 0.1
- -----------------------------------------------------------------------------------------
43.7 40.7 (5.1)
- -----------------------------------------------------------------------------------------
Loss before income tax (52.7) (54.3) (64.9)
Income tax benefit (16.3) (16.9) (21.8)
- -----------------------------------------------------------------------------------------
NET LOSS $ (36.4) $ (37.4) $ (43.1)
=========================================================================================
BASIC LOSS PER SHARE $ (1.37) $ (1.41) $ (1.62)
=========================================================================================
DILUTED LOSS PER SHARE $ (1.37) $ (1.41) $ (1.62)
=========================================================================================
Shares used for computation:
Basic 26.528 26.528 26.556
Diluted 26.528 26.528 26.556
CONSOLIDATED STATEMENTS OF OPERATIONS
Alaska Airlines, Inc.
Three Months Ended March 31 2001 2001 2002 2002
(In Millions Except Per Share Amounts) As Reported As Restated As Reported As Restated
- --------------------------------------------------------------------------------------------------------------------------
OPERATING REVENUES
Passenger $ 385.1 $ 382.8 $ 374.2 $ 374.0
Freight and mail 18.3 18.3 15.9 15.9
Other - net 14.7 17.5 18.8 22.3
- --------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING REVENUES 418.1 418.6 408.9 412.2
- --------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Wages and benefits 155.3 154.7 167.3 165.7
Contracted services 17.9 18.8 19.9 21.8
Aircraft fuel 74.0 74.0 55.2 55.2
Aircraft maintenance 31.1 34.5 36.5 35.6
Aircraft rent 35.3 35.3 31.8 31.8
Food and beverage service 13.2 13.2 13.9 13.9
Commissions 15.9 15.9 14.3 14.2
Other selling expenses 26.0 26.0 24.9 24.9
Depreciation and amortization 23.1 23.6 27.6 28.2
Loss on sale of assets 0.9 0.9 0.1 --
Landing fees and other rentals 21.5 21.5 23.7 23.6
Other 36.4 38.0 35.5 36.3
- --------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 450.6 456.4 450.7 451.2
- --------------------------------------------------------------------------------------------------------------------------
OPERATING LOSS (32.5) (37.8) (41.8) (39.0)
- --------------------------------------------------------------------------------------------------------------------------
NONOPERATING INCOME (EXPENSE)
Interest income 9.5 8.6 5.0 5.0
Interest expense (12.1) (12.1) (11.9) (11.9)
Interest capitalized 2.6 3.2 0.1 0.1
Other - net (1.2) (0.5) 4.7 4.1
- --------------------------------------------------------------------------------------------------------------------------
(1.2) (0.8) (2.1) (2.7)
- --------------------------------------------------------------------------------------------------------------------------
Loss before income tax and cumulative effect of
accounting change (33.7) (38.6) (43.9) (41.7)
Income tax benefit (12.1) (13.9) (15.7) (14.9)
- --------------------------------------------------------------------------------------------------------------------------
Loss before accounting change (21.6) (24.7) (28.2) (26.8)
Cumulative effect of change in accounting -- -- -- (12.5)
- --------------------------------------------------------------------------------------------------------------------------
NET LOSS (21.6) (24.7) (28.2) (39.3)
==========================================================================================================================
OPERATING STATISTICS:
Revenue passengers (000) 3,198 3,198 3,193 3,193
RPMs (000,000) 2,895 2,895 2,977 2,977
ASMs (000,000) 4,428 4,428 4,467 4,467
Passenger load factor 65.4% 65.4% 66.7% 66.7%
Yield per passenger mile 13.30 (cents) 13.22 (cents) 12.57 (cents) 12.56 (cents)
Operating revenue per ASM 9.44 (cents) 9.45 (cents) 9.16 (cents) 9.23 (cents)
Operating expenses per ASM 10.18 (cents) 10.31 (cents) 10.09 (cents) 10.10 (cents)
Expense per ASM excluding fuel 8.51 (cents) 8.64 (cents) 8.86 (cents) 8.87 (cents)
Fuel cost per gallon 97.1 (cents) 97.1 (cents) 73.6 (cents) 73.6 (cents)
Fuel gallons (000,000) 76.2 76.2 75.0 75.0
Average number of employees 10,203 10,203 9,815 9,815
Aircraft utilization (blk hrs/day) 11.0 11.0 10.1 10.1
Operating fleet at period-end 96 96 102 102
CONSOLIDATED STATEMENTS OF OPERATIONS
Alaska Airlines, Inc.
Three Months Ended June 30 2001 2001 2002 2002
(In Millions Except Per Share Amounts) As Reported As Restated As Reported As Restated
- ------------------------------------------------------------------------------------------------------------------
OPERATING REVENUES
Passenger $ 434.7 $ 434.1 $ 433.6 $ 433.6
Freight and mail 21.4 21.4 20.0 20.0
Other - net 15.2 19.2 23.3 25.1
- ------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING REVENUES 471.3 474.7 476.9 478.7
- ------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Wages and benefits 157.5 157.5 175.2 174.5
Contracted services 18.2 19.2 19.2 19.4
Aircraft fuel 74.1 74.1 64.2 64.2
Aircraft maintenance 32.1 32.6 36.1 36.1
Aircraft rent 35.0 35.0 31.8 31.8
Food and beverage service 14.7 14.7 16.2 16.2
Commissions 18.2 18.2 14.2 14.2
Other selling expenses 26.6 26.6 27.8 27.8
Depreciation and amortization 24.6 25.2 28.8 28.5
Loss on sale of assets 0.3 0.3 0.1 0.2
Landing fees and other rentals 23.3 23.4 28.4 28.5
Other 35.6 37.7 37.1 37.5
- ------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 460.2 464.5 479.1 478.9
- ------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 11.1 10.2 (2.2) (0.2)
- ------------------------------------------------------------------------------------------------------------------
NONOPERATING INCOME (EXPENSE)
Interest income 6.8 6.0 6.1 6.1
Interest expense (10.6) (10.6) (11.6) (11.6)
Interest capitalized 1.2 1.9 0.4 0.4
U.S. government compensation 0.0 -- 0.0 0.1
Other - net (0.2) 0.6 4.6 5.1
- ------------------------------------------------------------------------------------------------------------------
(2.8) (2.1) (0.5) 0.1
- ------------------------------------------------------------------------------------------------------------------
Income (loss) before income tax 8.3 8.1 (2.7) (0.1)
Income tax expense (benefit) 3.5 3.5 (0.2) 0.7
- ------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 4.8 4.6 (2.5) (0.8)
==================================================================================================================
OPERATING STATISTICS:
Revenue passengers (000) 3,698 3,698 3,616 3,616
RPMs (000,000) 3,290 3,290 3,372 3,372
ASMs (000,000) 4,683 4,683 4,929 4,929
Passenger load factor 70.3% 70.3% 68.4% 68.4%
Yield per passenger mile 13.21 (cents) 13.19 (cents) 12.86 (cents) 12.86 (cents)
Operating revenue per ASM 10.06 (cents) 10.14 (cents) 9.68 (cents) 9.71 (cents)
Operating expenses per ASM 9.82 (cents) 9.92 (cents) 9.72 (cents) 9.71 (cents)
Expense per ASM excluding fuel 8.24 (cents) 8.34 (cents) 8.42 (cents) 8.41 (cents)
Fuel cost per gallon 92.3 (cents) 92.3 (cents) 78.0 (cents) 78.0 (cents)
Fuel gallons (000,000) 80.3 80.3 82.3 82.3
Average number of employees 10,201 10,201 10,222 10,222
Aircraft utilization (blk hrs/day) 11.1 11.1 10.8 10.8
Operating fleet at period-end 100 100 102 102
CONSOLIDATED STATEMENTS OF OPERATIONS
Alaska Airlines, Inc.
Three Months Ended September 30 2001 2001 2002 2002
(In Millions Except Per Share Amounts) As Reported As Restated As Reported As Restated
- -------------------------------------------------------------------------------------------------------------------
OPERATING REVENUES
Passenger $ 441.8 $ 441.1 $ 467.1 $ 468.0
Freight and mail 20.8 20.8 19.7 19.6
Other - net 17.4 22.3 25.2 24.8
- -------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING REVENUES 480.0 484.2 512.0 512.4
- -------------------------------------------------------------------------------------------------------------------
Operating Expenses
Wages and benefits 166.6 164.3 186.0 185.4
Contracted services 16.8 19.0 19.0 19.1
Aircraft fuel 71.7 71.8 70.7 70.7
Aircraft maintenance 32.2 32.9 31.6 31.6
Aircraft rent 33.7 33.7 32.1 32.2
Food and beverage service 14.5 14.4 17.8 17.8
Commissions 16.3 16.4 12.1 12.1
Other selling expenses 26.3 26.3 26.1 26.1
Depreciation and amortization 26.7 27.3 29.5 29.2
Loss on sale of assets 0.6 0.6 0.5 0.5
Landing fees and other rentals 25.9 25.9 30.2 30.1
Other 32.8 34.6 39.5 38.9
- -------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 464.1 467.2 495.1 493.7
- -------------------------------------------------------------------------------------------------------------------
OPERATING INCOME 15.9 17.0 16.9 18.7
- -------------------------------------------------------------------------------------------------------------------
NONOPERATING INCOME (EXPENSE)
Interest income 7.9 7.0 6.3 6.4
Interest expense (11.9) (11.8) (11.3) (11.2)
Interest capitalized 1.0 1.5 0.5 0.5
U.S. government compensation 18.7 18.7 0.3 0.2
Other - net (0.3) 0.6 (2.3) (1.5)
- -------------------------------------------------------------------------------------------------------------------
15.4 16.0 (6.5) (5.6)
- -------------------------------------------------------------------------------------------------------------------
Income before income tax 31.3 33.0 10.4 13.1
Income tax expense 10.1 10.7 3.2 4.2
- -------------------------------------------------------------------------------------------------------------------
NET INCOME 21.2 22.3 7.2 8.9
===================================================================================================================
OPERATING STATISTICS:
Revenue passengers (000) 3,747 3,747 3,978 3,978
RPMs (000,000) 3,328 3,328 3,673 3,673
ASMs (000,000) 4,687 4,687 5,207 5,207
Passenger load factor 71.0% 71.0% 70.5% 70.5%
Yield per passenger mile 13.27 (cents) 13.25 (cents) 12.72 (cents) 12.74 (cents)
Operating revenue per ASM 10.24 (cents) 10.33 (cents) 9.83 (cents) 9.84 (cents)
Operating expenses per ASM 9.90 (cents) 9.97 (cents) 9.51 (cents) 9.48 (cents)
Expense per ASM excluding fuel 8.37 (cents) 8.44 (cents) 8.15 (cents) 8.13 (cents)
Fuel cost per gallon 90.1 (cents) 90.1 (cents) 81.6 (cents) 81.6 (cents)
Fuel gallons (000,000) 79.6 79.6 86.6 86.6
Average number of employees 10,222 10,222 10,465 10,465
Aircraft utilization (blk hrs/day) 10.3 10.3 11.2 11.2
Operating fleet at period-end 102 102 102 102
CONSOLIDATED STATEMENTS OF OPERATIONS
Alaska Airlines, Inc.
Three Months Ended December 31 2001 2001 2002
(In Millions Except Per Share Amounts) As Reported As Restated As Reported
- -----------------------------------------------------------------------------------------------------
OPERATING REVENUES
Passenger $ 346.7 $ 349.6 $ 392.2
Freight and mail 17.7 17.7 16.6
Other - net 17.1 18.2 21.0
- -----------------------------------------------------------------------------------------------------
TOTAL OPERATING REVENUES 381.5 385.5 429.8
- -----------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Wages and benefits 167.3 166.4 179.9
Contracted services 18.3 19.0 20.4
Aircraft fuel 50.0 49.9 67.2
Aircraft maintenance 29.7 29.7 41.9
Aircraft rent 33.6 33.6 32.4
Food and beverage service 13.1 13.2 15.6
Commissions 13.7 13.6 7.6
Other selling expenses 23.8 23.8 23.1
Depreciation and amortization 29.2 30.0 28.4
Loss on sale of assets 3.2 3.2 1.0
Landing fees and other rentals 28.8 28.7 28.3
Other 35.1 35.4 38.0
- -----------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 445.8 446.5 483.8
- -----------------------------------------------------------------------------------------------------
OPERATING LOSS (64.3) (61.0) (54.0)
- -----------------------------------------------------------------------------------------------------
NONOPERATING INCOME (EXPENSE)
Interest income 5.4 4.4 5.7
Interest expense (12.8) (12.9) (11.5)
Interest capitalized 0.3 0.9 1.0
U.S. government compensation 52.9 52.9 --
Other - net (1.2) (3.1) 0.2
- -----------------------------------------------------------------------------------------------------
44.6 42.2 (4.6)
- -----------------------------------------------------------------------------------------------------
Loss before income tax (19.7) (18.8) (58.6)
Income tax benefit (5.2) (4.9) (20.4)
- -----------------------------------------------------------------------------------------------------
NET LOSS (14.5) (13.9) (38.2)
=====================================================================================================
OPERATING STATISTICS:
Revenue passengers (000) 3,025 3,025 3,367
RPMs (000,000) 2,736 2,736 3,164
ASMs (000,000) 4,121 4,121 4,758
Passenger load factor 66.4% 66.4% 66.5%
Yield per passenger mile 12.67 (cents) 12.78 (cents) 12.40 (cents)
Operating revenue per ASM 9.26 (cents) 9.35 (cents) 9.03 (cents)
Operating expenses per ASM 10.82 (cents) 10.84 (cents) 10.17 (cents)
Expense per ASM excluding fuel 9.60 (cents) 9.62 (cents) 8.76 (cents)
Fuel cost per gallon 71.9 (cents) 71.9 (cents) 84.7 (cents)
Fuel gallons (000,000) 69.6 69.6 79.3
Average number of employees 9,834 9,834 10,065
Aircraft utilization (blk hrs/day) 9.2 9.2 10.3
Operating fleet at period-end 101 101 102
CONSOLIDATED STATEMENTS OF OPERATIONS
Horizon Air, Inc.
Three Months Ended March 31 2001 2001 2002 2002
(In Millions Except Per Share Amounts) As Reported As Restated As Reported As Restated
- --------------------------------------------------------------------------------------------------------------------------
OPERATING REVENUES
Passenger $ 98.2 $ 98.2 $ 86.3 $ 86.3
Freight and mail 2.3 2.3 1.2 1.2
Other - net 1.5 1.5 5.7 5.7
- --------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING REVENUES 102.0 102.0 93.2 93.2
- --------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Wages and benefits 36.7 36.7 37.3 37.3
Contracted services 3.7 3.7 3.9 3.9
Aircraft fuel 15.7 15.7 9.5 9.5
Aircraft maintenance 19.0 18.2 6.6 7.6
Aircraft rent 11.0 11.0 14.8 14.8
Food and beverage service 0.8 0.8 0.4 0.4
Commissions 2.9 2.9 2.3 2.3
Other selling expenses 5.8 5.8 5.3 5.3
Depreciation and amortization 6.4 6.4 3.9 3.9
Loss on sale of assets (0.1) (0.1) (0.6) (0.6)
Landing fees and other rentals 6.9 6.9 6.4 6.4
Other 9.9 9.9 12.7 12.7
- --------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 118.7 117.9 102.5 103.5
- --------------------------------------------------------------------------------------------------------------------------
OPERATING LOSS (16.7) (15.9) (9.3) (10.3)
- --------------------------------------------------------------------------------------------------------------------------
NONOPERATING INCOME (EXPENSE)
Interest expense (1.1) (1.1) (0.5) (0.5)
Interest capitalized 1.1 1.1 0.2 0.2
Other - net (0.4) (0.4) 0.6 0.4
- --------------------------------------------------------------------------------------------------------------------------
(0.4) (0.4) 0.3 0.1
- --------------------------------------------------------------------------------------------------------------------------
LOSS BEFORE INCOME TAX (17.1) (16.3) (9.0) (10.2)
==========================================================================================================================
OPERATING STATISTICS:
Revenue passengers (000) 1,177 1,177 1,095 1,095
RPM's (000,000) 336 336 329 329
ASM's (000,000) 543 543 531 531
Passenger load factor 61.8% 61.8% 62.0% 62.0%
Yield per passenger mile 29.24 (cents) 29.24 (cents) 26.20 (cents) 26.20 (cents)
Operating revenue per ASM 18.78 (cents) 18.78 (cents) 17.56 (cents) 17.56 (cents)
Operating expense per ASM 21.85 (cents) 21.71 (cents) 19.31 (cents) 19.50 (cents)
Expense per ASM excluding fuel 18.96 (cents) 18.83 (cents) 17.52 (cents) 17.71 (cents)
Fuel cost per gallon 100.1 (cents) 100.1 (cents) 77.2 (cents) 77.2 (cents)
Fuel gallons (000) 15.6 15.6 12.3 12.3
Average number of employees 3,923 3,923 3,452 3,452
Aircraft utilization (blk hrs/day) 8.1 8.1 7.1 7.1
Operating fleet at period-end 63 63 62 62
CONSOLIDATED STATEMENTS OF OPERATIONS
Horizon Air, Inc.
Three Months Ended June 30 2001 2001 2002 2002
(In Millions Except Per Share Amounts) As Reported As Restated As Reported As Restated
- --------------------------------------------------------------------------------------------------------------------------
OPERATING REVENUES
Passenger $ 104.4 $ 104.4 $ 96.4 $ 96.4
Freight and mail 2.6 2.6 1.2 1.2
Other - net 6.9 6.9 5.5 5.5
- --------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING REVENUES 113.9 113.9 103.1 103.1
- --------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Wages and benefits 36.6 36.6 37.2 37.2
Contracted services 3.4 3.4 4.2 4.2
Aircraft fuel 15.7 15.7 11.0 11.0
Aircraft maintenance 13.1 14.7 6.2 6.2
Aircraft rent 11.3 11.3 14.9 14.9
Food and beverage service 0.7 0.7 0.8 0.8
Commissions 3.1 3.1 2.1 2.1
Other selling expenses 6.3 6.2 5.7 5.7
Depreciation and amortization 6.7 6.7 5.1 5.1
Loss on sale of assets 0.1 0.1 (0.1) (0.1)
Landing fees and other rentals 7.3 7.3 7.8 7.8
Other 8.7 8.7 12.3 12.3
- --------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 113.0 114.5 107.2 107.2
- --------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 0.9 (0.6) (4.1) (4.1)
- --------------------------------------------------------------------------------------------------------------------------
NONOPERATING INCOME (EXPENSE)
Interest income 0.4
Interest expense (1.0) (1.0) (0.5) (0.5)
Interest capitalized 1.0 1.0 0.1 0.1
U.S. government compensation
Other - net (0.1) (0.2) 1.5 1.3
- --------------------------------------------------------------------------------------------------------------------------
(0.1) (0.2) 1.1 1.3
- --------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAX 0.8 (0.8) (3.0) (2.8)
==========================================================================================================================
OPERATING STATISTICS:
Revenue passengers (000) 1,250 1,250 1,192 1,192
RPM's (000,000) 358 358 374 374
ASM's (000,000) 575 575 607 607
Passenger load factor 62.2% 62.2% 61.7% 61.7%
Yield per passenger mile 29.19 (cents) 29.19 (cents) 25.79 (cents) 25.79 (cents)
Operating revenue per ASM 19.79 (cents) 19.79 (cents) 16.97 (cents) 16.97 (cents)
Operating expense per ASM 19.64 (cents) 19.90 (cents) 17.65 (cents) 17.65 (cents)
Expense per ASM excluding fuel 16.91 (cents) 17.16 (cents) 15.84 (cents) 15.84 (cents)
Fuel cost per gallon 98.4 (cents) 98.4 (cents) 80.8 (cents) 80.8 (cents)
Fuel gallons (000) 16.0 16.0 13.6 13.6
Average number of employees 3,786 3,786 3,417 3,417
Aircraft utilization (blk hrs/day) 8.1 8.1 7.5 7.5
Operating fleet at period-end 63 63 62 62
CONSOLIDATED STATEMENTS OF OPERATIONS
Horizon Air, Inc.
Three Months Ended September 30 2001 2001 2002 2002
(In Millions Except Per Share Amounts) As Reported As Restated As Reported As Restated
- ------------------------------------------------------------------------------------------------------------------------
OPERATING REVENUES
Passenger $ 98.4 $ 98.4 $ 108.9 $ 108.9
Freight and mail 1.9 1.9 1.4 1.4
Other - net 7.2 7.2 5.2 5.2
- ------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING REVENUES 107.5 107.5 115.5 115.5
- ------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Wages and benefits 38.4 38.4 38.7 38.7
Contracted services 3.3 3.2 4.2 4.2
Aircraft fuel 13.8 13.8 12.0 12.0
Aircraft maintenance 10.5 10.7 4.3 4.3
Aircraft rent 12.3 12.3 16.2 16.2
Food and beverage service 0.8 0.8 0.8 0.8
Commissions 3.0 3.1 1.3 1.3
Other selling expenses 5.5 5.5 6.4 6.4
Depreciation and amortization 6.7 6.7 4.9 4.8
Loss on sale of assets (0.3) (0.3) (0.7) (0.8)
Landing fees and other rentals 7.9 7.9 8.6 8.6
Other 8.7 8.7 12.4 12.6
- ------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 110.6 110.8 109.1 109.1
- ------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) (3.1) (3.3) 6.4 6.4
- ------------------------------------------------------------------------------------------------------------------------
NONOPERATING INCOME (EXPENSE)
Interest income 0.3
Interest expense (0.7) (0.6) (0.6) (0.6)
Interest capitalized 0.6 0.6 0.1 0.1
U.S. government compensation 10.4 10.4 0.2 0.2
Other - net (0.1) (0.3) (0.4)
- ------------------------------------------------------------------------------------------------------------------------
10.3 10.3 (0.6) (0.4)
- ------------------------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAX 7.2 7.0 5.8 6.0
========================================================================================================================
OPERATING STATISTICS:
Revenue passengers (000) 1,207 1,207 1,334 1,334
RPM's (000,000) 357 357 424 424
ASM's (000,000) 555 555 657 657
Passenger load factor 64.3% 64.3% 64.6% 64.6%
Yield per passenger mile 27.59 (cents) 27.59 (cents) 25.66 (cents) 25.66 (cents)
Operating revenue per ASM 19.36 (cents) 19.36 (cents) 17.58 (cents) 17.58 (cents)
Operating expense per ASM 19.92 (cents) 19.97 (cents) 16.60 (cents) 16.60 (cents)
Expense per ASM excluding fuel 17.44 (cents) 17.47 (cents) 14.77 (cents) 14.77 (cents)
Fuel cost per gallon 94.0 (cents) 94.0 (cents) 81.9 (cents) 81.9 (cents)
Fuel gallons (000) 14.7 14.7 14.7 14.7
Average number of employees 3,811 3,811 3,518 3,518
Aircraft utilization (blk hrs/day) 7.6 7.6 7.7 7.7
Operating fleet at period-end 65 65 63 63
CONSOLIDATED STATEMENTS OF OPERATIONS
Horizon Air, Inc.
Three Months Ended December 31 2001 2001 2002
(In Millions Except Per Share Amounts) As Reported As Restated As Reported
- ----------------------------------------------------------------------------------------------
OPERATING REVENUES
Passenger $ 79.0 $ 79.0 $ 97.9
Freight and mail 1.3 1.3 1.1
Other - net 4.7 4.7 4.4
- ----------------------------------------------------------------------------------------------
TOTAL OPERATING REVENUES 85.0 85.0 103.4
- ----------------------------------------------------------------------------------------------
OPERATING EXPENSES
Wages and benefits 40.9 40.9 39.4
Contracted services 3.4 3.5 4.3
Aircraft fuel 9.3 9.3 12.2
Aircraft maintenance 6.4 8.0 7.0
Aircraft rent 13.8 13.8 16.3
Food and beverage service 0.6 0.6 0.7
Commissions 2.3 2.2 0.7
Other selling expenses 4.6 4.7 5.6
Depreciation and amortization 6.9 6.9 3.2
Loss on sale of assets (0.1) (0.1) (0.1)
Landing fees and other rentals 8.1 8.1 8.4
Other 10.4 10.4 11.1
Special charges 10.2 10.2 --
- ----------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 116.8 118.5 108.8
- ----------------------------------------------------------------------------------------------
OPERATING LOSS (31.8) (33.5) (5.4)
- ----------------------------------------------------------------------------------------------
NONOPERATING INCOME (EXPENSE)
Interest income
Interest expense (0.3) (0.3) (0.5)
Interest capitalized 0.3 0.3 0.2
U.S. government compensation (0.6) (0.6) --
Other - net (0.1) (0.9) (0.1)
- ----------------------------------------------------------------------------------------------
(0.7) (1.5) (0.4)
- ----------------------------------------------------------------------------------------------
LOSS BEFORE INCOME TAX (32.5) (35.0) (5.8)
==============================================================================================
OPERATING STATISTICS:
Revenue passengers (000) 1,034 1,034 1,194
RPM's (000,000) 300 300 386
ASM's (000,000) 474 474 632
Passenger load factor 63.3% 63.3% 61.1%
Yield per passenger mile 26.33 (cents) 26.33 (cents) 25.35 (cents)
Operating revenue per ASM 17.95 (cents) 17.93 (cents) 16.36 (cents)
Operating expense per ASM 22.51 (cents) 22.85 (cents) 17.22 (cents)
Expense per ASM excluding fuel 20.55 (cents) 20.89 (cents) 15.29 (cents)
Fuel cost per gallon 77.4 (cents) 77.4 (cents) 87.7 (cents)
Fuel gallons (000) 12.0 12.0 13.9
Average number of employees 3,534 3,534 3,518
Aircraft utilization (blk hrs/day) 6.7 6.7 7.5
Operating fleet at period-end 60 60 63