Alaska Air Group Inc (ALK)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	323,000	354,000	226,000	86,000	79,000	73,000	253,000	596,000	629,000	-43,000	-877,000	-1,696,000	-1,840,000	-954,000	51,000	693,000	1,016,000	809,000	677,000	585,000
Revenue (ttm)	US$ in thousands	10,426,000	10,359,000	10,347,000	10,165,000	9,646,000	9,082,000	8,208,000	7,100,000	6,241,000	5,058,000	3,833,000	2,727,000	3,566,000	4,986,000	6,674,000	8,541,000	8,781,000	8,617,000	8,440,000	8,308,000
Pretax margin		3.10%	3.42%	2.18%	0.85%	0.82%	0.80%	3.08%	8.39%	10.08%	-0.85%	-22.88%	-62.19%	-51.60%	-19.13%	0.76%	8.11%	11.57%	9.39%	8.02%	7.04%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $323,000K ÷ $10,426,000K
= 3.10%

The pretax margin of Alaska Air Group Inc. has shown fluctuations over the past eight quarters. Generally, the company has maintained a positive pretax margin, indicating its ability to generate earnings before taxes relative to its total revenue. In Q1 2022, the pretax margin was the highest at 8.44%, followed by Q4 2023 at 3.10% and Q3 2023 at 3.42%. However, a notable decline was observed in Q1 2023, where the pretax margin dropped to 0.85%. The company's performance in Q2 2023 and Q4 2022 also demonstrated lower pretax margins of 2.19% and 0.82%, respectively. Overall, Alaska Air Group Inc. should focus on consistently improving its operational efficiency and cost management to enhance its profitability in the future.