Alaska Air posts higher second quarter earnings

July 24 Thu Jul 24, 2014 7:27am EDT

July 24 (Reuters) - Alaska Air Group reported a higher second-quarter profit on Thursday, aided by lower fuel and maintenance costs and fees for items such as checked baggage.

Net income came to $165 million, or $1.19 a share, compared with $104 million, or 74 cents a share, a year earlier. Adjusted for fuel hedges, profit was $1.13 a share.

Revenue rose 9 percent to $1.38 billion. Yield, a measure of the average fare, rose 2.8 percent to 15.14 cents.

Alaska Air, parent of Alaska Airlines and Horizon Air, faces more competition in its home market of Seattle as Delta Air Lines builds a hub there for mainly international flights.

The company, which split its stock and announced additional share buybacks in the second quarter, said pretax margin widened to 18.3 percent in the period from 13.5 percent a year earlier.

(Reporting by Karen Jacobs in Atlanta; Editing by Chizu Nomiyama)

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