Alaska Air Group, Inc. released its investor update on September 12, 2024, providing insights into its financial performance. The company refers to itself as "air group" throughout the update. In this report, the company presents certain financial information as non-GAAP financial figures, which it believes may be useful to stakeholders but advises not to be considered a substitute for GAAP figures.
One notable metric that the company provides is the economic fuel expense, which it defines as the raw or "into-plane" fuel cost less any cash received from hedge counterparties for hedges that settle during the period, offset by the recognition of premiums originally paid for those hedges that settle during the period. This metric aims to more closely approximate the net cash outflow associated with purchasing fuel for the company's operation.
Unfortunately, the company states that it is unable to reconcile certain forward-looking non-GAAP financial figures without unreasonable effort because the adjusting items will not be known until the end of the indicated future periods and could be significant.
The update does not provide specific figures for the financial performance or changes in metrics since the last period. However, it offers insights into the company's approach to presenting financial information and its use of non-GAAP figures, particularly in the context of economic fuel expense. Following these announcements, the company's shares moved -0.8%, and are now trading at a price of $39.49. Check out the company's full 8-K submission here.
