The parent company of Alaska Airlines announced a net revenue loss for the first quarter of 2021, but its overall performance suggests that business is on an upward trend for the Seattle-based company after a year of struggle amid COVID-19’s impact on travel.
Despite bleeding $131 million during the first three months of the year, Alaska Air Group achieved positive cash generation in March with $167 million in operating cash flow, and its loss was a vast improvement over the $232 million loss it endured during the first quarter of 2020, the company said in its quarterly earnings report on Thursday.
“This has been a long road, and I want to thank the employees at Alaska and Horizon for providing great guest service and everything they’ve done to get through the last challenging year and help us achieve positive cash flow in March,” said CEO Ben Minicucci, who assumed the post on March 31.
AIRLINES TEST ‘DIGITAL PASSPORTS’ FOR CORONAVIRUS VACCINATION STATUS
The company was supported by $546 million in grants and loans from the federal government under an extension of the Payroll Support Program and spent $411 million of that money to pay employee wages.
Alaska Air Group anticipates a supplemental payment of $80 million in late April for payroll support, the report added, and the Treasury Department said it will send the company $584 million in incremental payroll support under a third round of funding.
Alaska Air Group’s subsidiaries are not the only airlines to report improving finances. Federal support and higher passenger traffic helped Delta Air Lines achieve positive cash generation in March, despite an average daily cash burn of $11 million for the quarter.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
United Airlines burned about $10 million less during the first quarter of 2021 as compared to the last quarter of 2020.
