Managed business travel revenue for Alaska Airlines grew 22% year over year in the first quarter, according to Andrew Harrison, chief commercial officer, speaking on a first quarter earnings call. He said the increase was about 50% driven by yield and 50% by volume.
According to Harrison, tech companies saw the biggest improvement, with revenues up over 50% year over year, and professional services revenue up “an impressive 20%.” To put the speed of recovery into perspective, he said, managed business revenues increased 10% year over year in January, 30% in February and 24% in March.
The carrier’s managed corporate revenue has fully recovered to 2019 levels, while the tech sector is approximately 85% recovered, Harrison said. He said that Alaska does not anticipate any step back in corporate travel in the second quarter.
These results came despite the January grounding of the carrier’s Boeing 737 Max 9 aircraft after a “door-plug incident,” which created a hole in the plane. No one was seriously injured. Ben Minucci, CEO, said the situation cost the airline $162 million, which Boeing has fully compensated for.
