Alaska Air Group (ALK) risk factors, FY2024 10-K

Other

1. 01Our reputation and financial results could be harmed in the event of an airline accident or incident
2. 02As is the case for all airlines, our operations often are affected by delays, cancellations and other conditions caused by factors largely beyond our control
3. 03We rely on vendors and third parties for certain critical activities and sourcing, which could expose us to disruptions in our operation or unexpected cost increases
4. 04Impacts of climate change, including physical and transition risks, as well as market responses, may have a material adverse result on our operations and financial position
5. 05The airline industry continues to face potential security concerns and related costs
6. 06The airline industry is highly competitive and susceptible to price discounting and changes in capacity, which could have a material adverse effect on our business. If we cannot successfully compete in the marketplace, our business, financial condition, and operating results will be materially adversely affected
7. 07Our concentration in certain markets could cause us to be disproportionately impacted by adverse changes in circumstances in those locations
8. 08We are dependent on a limited number of suppliers for aircraft and parts
9. 09We rely on partner airlines for codeshare and loyalty program marketing arrangements
10. 10As we evolve our brand we will engage in strategic initiatives that may not be favorably received by all of our guests
11. 11The Company's reputation could be harmed if it is exposed to significant negative publicity
12. 12Our business, financial condition, and results of operations are substantially exposed to the volatility of jet fuel prices. Significant increases in jet fuel costs or significant disruptions in the supply of jet fuel would harm our business
13. 13Economic uncertainty, including a recession, would likely impact demand for our product and could harm our financial condition and results of operations
14. 14Our financial condition or results of operations may be negatively affected by increases in expenses related to the airports in which we operate
15. 15The application of the acquisition method of accounting resulted in us recording goodwill and identifiable intangible assets, which could result in significant future impairment charges and negatively affect our financial results
16. 16A significant increase in labor costs or unsuccessful attempts to strengthen our relationships with union employees could adversely affect our business and results of operations
17. 17The inability to attract, retain, and train qualified personnel, or maintain our culture, could result in guest impacts and adversely affect our business and results of operations
18. 18Our executive officers and other senior management personnel are critical to the long-term success of our business. If we experience significant turnover and loss of key personnel, and fail to find suitable replacements with comparable skills, our performance could be adversely impacted
19. 19We rely heavily on automated systems to operate our business, including expanded reliance on systems managed or hosted by third parties. Failure to invest in new technology or a disruption of our current systems or their operators could harm our business
20. 20Failure to appropriately comply with evolving and expanding information security rules and regulations or to safeguard our employee or guest data could result in damage to our reputation and cause us to incur substantial legal and regulatory cost
21. 21Cybersecurity threats have and will continue to impact our business. Failure to appropriately mitigate these risks could negatively impact our operations, onboard safety, reputation and financial condition
22. 22Changes in government regulation imposing additional requirements and restrictions on our operations and business model could negatively impact our revenue and operating costs and result in service delays and disruptions
23. 23We may be unable to integrate Hawaiian’s business with ours successfully and realize the anticipated benefits of the acquisition, which could negatively impact our stock price and our future business and financial results
24. 24The need to integrate Hawaiian’s workforce into joint collective bargaining agreements with Alaska's workforce presents the potential for delay in achieving expected synergies and other benefits or labor disputes that could adversely affect our operations and costs
25. 25We are expected to incur substantial expenses related to the acquisition and the integration of Hawaiian Airlines’ business
26. 26Our ability to use Hawaiian Airlines' net operating loss carryforwards to offset future taxable income for U.S. federal and state income tax purposes may be limited as a result of the previous ownership changes, this acquisition or taxable income if it does not reach sufficient levels