Financial Highlights:

Reported net income for the second quarter of 2019 under Generally Accepted Accounting Principles (GAAP) of $262 million, or $2.11 per diluted share, compared to net income of $193 million, or $1.56 per diluted share in the second quarter of 2018.

Reported net income for the second quarter of 2019, excluding merger-related costs and mark-to-market fuel hedge accounting adjustments of $270 million, or $2.17 per diluted share, compared to $206 million or $1.66 per diluted share, in the second quarter of 2018. This quarter's adjusted results compare to the First Call analyst consensus estimate of $2.13 per share.

Paid a $0.35 per-share quarterly cash dividend in the second quarter, a 9% increase over the dividend paid in the second quarter of 2018.

Repurchased a total of 408,665 shares of common stock for approximately $25 million in the first six months of 2019.

Generated $1 billion of operating cash flow in the first six months of 2019, including merger-related costs.

Held $1.6 billion in unrestricted cash and marketable securities as of June 30, 2019.

Reduced debt-to-capitalization ratio to 45% as of June 30, 2019, compared to 47% as of Dec. 31, 2018.

Operational Highlights:

Alaska technicians, represented by the Aircraft Mechanics Fraternal Association, ratified an integrated seniority list and a transition agreement, including a two-year contract extension, in July 2019.

Reached a tentative agreement with the International Association of Machinists on a new five-year contract for Alaska's clerical, office, passenger service, ramp and stores employees.

Added EL AL Israel Airlines as a new global Mileage Plan partner.

Announced a new route connecting Paine Field in Everett, Washington, to Palm Springs, California.

Finished painting the Alaska Airlines livery on all Airbus aircraft.

Completed cabin interior renovations of 14 Airbus aircraft and 11 737-700 aircraft.

Installed high-speed satellite Wi-Fi on the 44th mainline aircraft.

Recognition and Awards:

Ranked "Highest in Customer Satisfaction Among Traditional Carriers" in 2019 by J.D. Power for the 12th year in a row.

Earned top spot for customer satisfaction on the American Customer Satisfaction Index Travel Report for 2018 - 2019.

Ranked as the best U.S. airline by Wallethub.

Named as No. 2 Domestic Airline by Travel & Leisure "World's Best Awards."

Alaska Air Group Inc. today reported second quarter 2019 GAAP net income of $262 million, or $2.11 per diluted share, compared to $193 million, or $1.56 per diluted share in the second quarter of 2018. Excluding the impact of merger-related costs, mark-to-market fuel hedge adjustments and other special items, the company reported adjusted net income of $270 million, or $2.17 per diluted share, compared to $206 million, or $1.66 per diluted share in 2018.

"The three-percentage point improvement in our adjusted pretax margin shows that our revenue initiatives and cost management efforts are paying off. We set an ambitious plan and are executing it," said Alaska CEO Brad Tilden. "But what our people really do best is provide genuine, caring service for our guests, and that's why they earned our 12th-straight J.D. Power award this year. From all of us on the leadership team, thank you to our employees for your fantastic performance. We're all looking forward to building on this momentum in the months and years ahead."

The following table reconciles the company's reported GAAP net income and earnings per diluted share (diluted EPS) for the three and six months ended June 30, 2019, and 2018 to adjusted amounts.