The reason the company is stating for the loss: charges stemming from the early buyout of MD-80 aircraft leases, severance costs for hundreds of clerical, office and passenger service employees, and fuel-hedging losses.
Now the loss is not a lot compared to the average of the industry in recent years. However the loss taken for the early buyout of the MD-80 leases was a wise decision. The airline is modernizing their fleet and the MD-80s are gas hogs. "We need to continue reducing costs, improving processes and growing in order to offer our customers a product they prefer at a price they're willing to pay," said Bill Ayer, chairman and chief executive of the Seattle-based airline.
Alaska Air Group Inc., stock price took a big hit tumbling nearly 7.5% in late afternoon trading to settle around $41.28 a share.
SeattlePI.com
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