Alaska Air Group reports 1Q results: loses $35.9 million - respond with fleet changes and more fees

Alaska Air Group Reports First Quarter 2008 Results: They lost $35.9 million.  Fuel costs strike again.

Two big announcements in their earnings report:

First, Horizon Air is going to get rid of their 20 CR7s regional jets over the next two years (in addition to losing their 12 Q200s that they already announced are going bye bye).  They are going to switch to a single aircraft fleet of Bombardier Q400 turboprops.  The Q400s seat 76 and burn 30 percent less fuel than the CR7s.  Having a single aircraft type also saves money on spare parts, training, and maintenance.  Horizon will have to reduce some flight frequencies because of fewer planes.

The second big announcement is a marathon of fee increases:

Alaska Airlines and Horizon Air plan to raise certain fees to better align them with the current costs of providing added services. These include increasing the charge for booking through reservations and airport sales agents from $10 to $15, raising the fee for overweight baggage from $25 to $50, increasing the charge for transporting pets in the cabin from $75 to $100 one-way, and raising the unaccompanied minor fee from $30 to $75 for one-way nonstop flights and from $60 to $75 for connecting flights. The increases are effective May 21, 2008.

By summer, the airlines also will begin charging $25 for a second checked bag. First class and top-tier Mileage Plan members and customers on flights within the state of Alaska will be exempt from the new fee.

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