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Alaska Air Group (LTS:0HC3) Gross Margin % : 22.75% (As of Sep. 2024)


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What is Alaska Air Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Alaska Air Group's Gross Profit for the three months ended in Sep. 2024 was $699 Mil. Alaska Air Group's Revenue for the three months ended in Sep. 2024 was $3,072 Mil. Therefore, Alaska Air Group's Gross Margin % for the quarter that ended in Sep. 2024 was 22.75%.


The historical rank and industry rank for Alaska Air Group's Gross Margin % or its related term are showing as below:

LTS:0HC3' s Gross Margin % Range Over the Past 10 Years
Min: -11.61   Med: 22.23   Max: 34.4
Current: 17.79


During the past 13 years, the highest Gross Margin % of Alaska Air Group was 34.40%. The lowest was -11.61%. And the median was 22.23%.

LTS:0HC3's Gross Margin % is ranked worse than
55.92% of 946 companies
in the Transportation industry
Industry Median: 19.835 vs LTS:0HC3: 17.79

Alaska Air Group had a gross margin of 22.75% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Alaska Air Group was 0.00% per year.


Alaska Air Group Gross Margin % Historical Data

The historical data trend for Alaska Air Group's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Alaska Air Group Gross Margin % Chart

Alaska Air Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.54 -11.61 21.92 17.23 17.93

Alaska Air Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.40 12.77 6.72 25.47 22.75

Competitive Comparison of Alaska Air Group's Gross Margin %

For the Airlines subindustry, Alaska Air Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Alaska Air Group's Gross Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Alaska Air Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Alaska Air Group's Gross Margin % falls into.



Alaska Air Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Alaska Air Group's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=1869 / 10426
=(Revenue - Cost of Goods Sold) / Revenue
=(10426 - 8557) / 10426
=17.93 %

Alaska Air Group's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=699 / 3072
=(Revenue - Cost of Goods Sold) / Revenue
=(3072 - 2373) / 3072
=22.75 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Alaska Air Group  (LTS:0HC3) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Alaska Air Group had a gross margin of 22.75% for the quarter that ended in Sep. 2024 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Alaska Air Group Gross Margin % Related Terms

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Alaska Air Group Business Description

Traded in Other Exchanges
Address
1930 International Boulevard, Seattle, WA, USA, 98188
Alaska Air Group Inc operates two airlines, Alaska and Horizon in three operating segments. The Mainline segment includes scheduled air transportation on Alaska's Boeing and Airbus jet aircraft for passengers and cargo throughout the U.S., and in parts of Mexico, and Costa Rica. The Regional segment includes Horizon's and other third-party carriers' scheduled air transportation for passengers across a shorter distance network within the U.S. and Canada under capacity purchase agreements (CPA). The Horizon segment includes the capacity sold to Alaska under a CPA. It earns revenues from Passenger tickets, including ticket breakage and net of taxes and fees, Passenger ancillary and Mileage Plan passenger revenue.

Alaska Air Group Headlines

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