Alaska Airlines Group in an 8 September 2020 filing to the Securities and Exchange Commission disclosed that their cash burn in August to be around $80 million or on average $2.58 million per day as a result of improved ticket sales.

However, the airline stated that they expect cash burn in September to almost double from August as they expect the cash burn to be around $150 million or on average $5 million a day in September. The airline added that the increase is due primarily to higher scheduled debt service payments and increased costs related to the recent increases in capacity.

Alaska Airlines Passengers carried

Alaska Airlines Passengers carried

The Airline has seen passengers increase Month over Month from June onwards as seen on the above diagram and expects to carry between 1.15-1.25 million passengers in September which is around a 65-70% fall YoY.

With the COVID-19 Pandemic causing demand for air travel to be significantly impacted, this has had an unprecedented impact on the airline. The airline stated that they monitor demand to determine their capacity decisions and expects their 3Q 2020 capacity to be down by around 55%.

Alaska Airlines as of 8 September 2020 holds a strong liquidity position of cash and short-term investments totalling around $3.6 billion which should help them weather the COVID-19 Pandemic in the short to medium term.

Connect with us on Facebook – here