Alaska Air Group, parent of Alaska Airlines and Horizon Air, recorded a first-quarter net loss of US$10.3 million compared to a loss of US$79.1 million in the 2006 quarter, but said that excluding special items in both years it would have reported a 2007 quarterly loss of US$15.8 million versus a 2006 profit of US$2.8 million. "Higher fuel costs, increased competition and a softer revenue environment in the first quarter make it imperative that we continue to drive changes to keep ticket prices affordable and attract new customers," said Chairman and CEO Bill Ayer.

The 2006 first-quarter result included an impairment charge of US$131.1 million related to the decision to retire MD-80s earlier than planned, while this year's result included the impact of mark-to-market adjustments related to fuel hedge contracts. Group operating revenues rose 3.3% in the quarter to US$759.4 million while operating expenses dropped 9.7% to US$777.5 million, sending operating loss down to US$18.1 million from US$125.2 million in the 2006 quarter.

At Alaska Airlines, pre-tax loss decreased to US$7.5 million from US$124.7 million a year earlier as revenues rose 11.8% to US$659.8 million and expenses fell 6.3% to US$669.7 million. RPMs dipped 0.3% to 4.07 billion as ASMs lifted 2.8% to 5.69 billion, sending load factor down 2.3 points to 71.4%. Yield was up 2% to 13.43 cents, RASM was essentially level at 10.58 cents, CASM was down 17.6% to 10.57 cents and CASM excluding fuel and fleet transition costs declined 1.3% to 7.80 cents. Horizon Air posted a pre-tax loss of US$9.2 million, worsened from a loss of US$400,000 in the prior year, on a 10.5% gain in revenue to US$161.6 million.