Alaska Air Group, Inc. has recently released its 10-Q report, providing a detailed look into its financial performance. The company operates airlines through its Mainline, Regional, and Horizon segments, offering scheduled air transportation services on Boeing jet aircraft for passengers and cargo in the United States and parts of Canada, Mexico, and other countries. The report includes an overview of the company's financial condition, results of operations, liquidity, and capital resources.
Alaska Air Group, Inc. provided reconciliations of reported non-GAAP financial measures to their most directly comparable financial measures reported on a GAAP basis. The company believes that excluding certain costs from its unit metrics provides better visibility into the results of operations. In the second quarter of 2024, the company reported consolidated pretax income of $316 million, compared to $325 million in the prior year. Total operating revenue increased by $59 million, or 2%, in the second quarter of 2024 compared to the same period in 2023. Passenger revenue increased by 2% on a 2% increase in passenger traffic, driven by increased gauge and departures throughout the network.
Total operating expenses increased by $74 million, or 3%, compared to the second quarter of 2023. Aircraft fuel expense increased by 7% compared to the second quarter of 2023, primarily due to higher fuel consumption and per gallon costs of crude oil. Non-fuel operating expenses, excluding special items, increased by 4% in the second quarter of 2024 compared to the same period in 2023. Wages and benefits increased by $28 million, or 4%, driven by higher wages.
Looking ahead, the company provided its expectations for the third quarter and full year 2024 results. Full year adjusted EPS guidance has been lowered to reflect the economics of a newly signed tentative agreement with Alaska's flight attendants and a moderating domestic revenue environment. For the third quarter, the company expects capacity to increase by 2% to 3% and CASMex to increase by high single digits. Additionally, the economic fuel cost per gallon is expected to range from $2.85 to $2.95.
As a result of these announcements, the company's shares have moved -5.0% on the market, and are now trading at a price of $34.53. If you want to know more, read the company's complete 10-Q report here.
