Alaska Air Group reported $44 million in net income for the fourth quarter, down from $64 million during the same period of 2012.
The Seattle-based carrier saw fuel hedge losses of $10 million during the quarter, contributing to a 30% increase in aircraft fuel expenses in the fourth quarter of 2012 when compared to the same period in 2011.
When adjusting for special items including the hedge losses, the carrier made $50 million during the quarter, up from $37 million in the fourth quarter of 2011.
Alaska reported $316 in full-year net income for 2012, up from a $245 million profit in 2011. When adjusted, full-year income totalled $339 million, up from $287 million.
Total operating revenues were up 8% to $1.13 billion for the fourth quarter, up from $1.04 billion a year earlier. Operating income dropped 35% to $74 million for the quarter, down from $114 million in the fourth quarter of 2011.
The Alaska Airlines mainline carrier made $793 million in operating revenues for the fourth quarter, up from $726 in the last three months of 2011. The Horizon Air regional carrier also increased revenues to $188 million in that period, up from $176 million.
Total operating expenses increased to $1.06 billion in the fourth quarter, up 14% from 930 million. Aircraft maintenance expenses increased to $61 million, up from $53 million in the fourth quarter of 2012.
Alaska Airlines and Horizon achieved a record load factor of 85.9% in 2012, up 1.4 percentage points from 2011.