Alaska Airlines' fourth-quarter passenger revenue increased 8 percent year over year to $2.1 billion, as premium revenue continued to grow for the carrier.
First Class revenue was up 19 percent year over year in the quarter as the amount of First Class seating increased 13.6 percent, EVP and COO Andrew Harrison said in an earnings call. Revenue for Alaska's Premium Class—which offers extra legroom, complimentary alcoholic beverages and priority boarding—was up 16 percent year over year on 14.5 percent more seats, he said. Demand for premium seating on regional Embraer 175 aircraft has been "solid," he said.
In 2017, when Alaska had only First Class and no premium product on its regional fleet, premium revenue made up 7 percent of its total revenue. As of the fourth quarter, that had grown to 22 percent of total revenue.
"Our goal is to keep our cabins affordable, provide generous benefits to our loyalty members and compete effectively against our peers," Harrison said. "This momentum will continue into 2020 as we complete the remainder of the retrofit and focus on more effectively merchandising our premium cabin."
Alaska reported traffic was up 3.9 percent year over year in the quarter as capacity increased 3.5 percent. Load factor was up 0.4 percentage points to 83.7 percent. Yield was up 3.7 percent year over year.
Alaska reported net income of $181 million for the quarter, up from $23 million in the fourth quarter of 2018. For the full year, net income was $769 million, up from $437 million in 2018.
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