12-Jul-2013 9:14 AM

Alaska Airlines estimates 2013 ROIC at 13.4%, reduces maximum hedging tenor

Alaska Airlines provided (11-Jul-2013) a capital allocation and business update with the following highlights:

  • Estimated 2013 return on invested capital: 13.4%, with estimated weighted average cost of capital of 7%-8%;
  • Estimated 2013 operating cash flow: USD782 million, a USD29 million increase on 2012;
  • USD1.4 billion reduction in net debt since 2008, with adjusted debt-to-capitalisation of 53%;
  • Maximum hedging tenor reduced from 36 months to 18 months, resulting in an estimated hedge premium spend of USD15 million p.a. [more - original PR]