Alaska Air Group expects higher costs per passenger in Q4

Airline Industry Information, Oct 25, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

Alaska Air Group has said that it expects its costs per passenger to increase in the fourth quarter.

According to the airline, the costs will rise due to its new contract with its mechanics, which will increase the overall cost for wages and benefits by an estimated USD2m in the quarter. Annual costs are expected to increase by USD6.3m over the four-year period of the new contract.

Alaska Air Group also said that its costs will go up by USD3m due to higher maintenance costs, more expenses from employee incentive programmes and pension costs, Reuters reported.

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