Air cargo helps Alaska Air to maintain slight Q1 profit
SEATTLE's Alaska Airlines reported a flat year on year first quarter profit of US$4 million, drawn on revenues of $1
SEATTLE's Alaska Airlines reported a flat year on year first quarter profit of US$4 million, drawn on revenues of $1.89 billion, which increased two per cent.
Yet there was strong growth for its cargo unit during the first quarter of 2019, even as the overall US domestic air cargo market was flat, reported New York's Air Cargo World.
Operating revenues for the carrier's cargo and other segments rose 22 per cent year on year to $50 million for the three-month period ending on March 31.
Revenues were higher on total tonnage, which increased 17.9 per cent on better utilisation of the carrier's three 737-700BDSFs, and increased belly capacity across the carrier's passenger network.
Capacity was greatly increased in mid-2018 when Alaska began marketing space on the A320/321 fleet it introduced following the acquisition of Virgin America. Previously, Virgin America had not been a player in cargo.
The market has responded positively to the additional capacity offered across the ex-Virgin America fleet. Alaska said it carried some 1,451 tonnes of cargo on its Airbus fleet in the first quarter - equivalent to nearly seventy-one 737-700F flights carrying a maximum payload.