Alaska Air Group reports a positive third quarter with net income excluding special items up 14.6% to $150.3 million.
Net income with special items was $163.4 million during the period. Special items include a $21.2 million gain in mark-to-market fuel hedges.
Operating income was up 88% to $269.5 million in the third quarter compared to 2011. Operating revenue was up 6.2% to $1.27 billion on a 4.9% decrease in operating expenses to $1 billion.
Passenger unit revenue was flat at 13.33 cents following a 7.2% increase in traffic on a 6.8% increase in capacity during the period.
Costs per available seat mile excluding fuel and fleet expenses was down 1.5% to 8.05 cents versus 2011.
Trailing 12-month return on invested capital was 12.7% at the end of September.
"Our pretax profit margin was one of the best in the industry, and it was made possible by the great service our people provide, low fares, and strong demand," says Brad Tilden, chief executive of Alaska, in a statement. "We recognise this is a difficult industry, but we're committed to working together to sustain this high level of performance in the quarters and years ahead."