Winter Storms Chill Alaska Air Earnings

Alaska Air Group on Tuesday reported its second-best year in history with profits for 1996 of $38 million, more than double 1995.

But for the fourth quarter, which ended Dec. 31, the parent company of Alaska Airlines and Horizon Air incurred a net loss of $5.6 million.

“While pleased with our overall 1996 results, severe winter storms during the last six days of the year and continuing high fuel prices combined to deal a heavy blow to our fourth quarter,” said John F. Kelly, chairman, president and chief executive officer of Alaska Air Group.

For the fourth quarter, the company sustained a net loss of $5.6 million, or 38 cents per share, compared with a net loss of $800,000, or 6 cents a share, for the same period in 1995.

For the year, the company reported net income of $38 million, or $2.65 per share, compared with $17.3 million, or $1.28 per share, for 1995.