Alaska Air Revises Earnings for Quarter
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Alaska Airlines Inc. revised third-quarter net income lower by 7.9% because of a clerical error in accounting for a frequent-flier program.
The revised third-quarter net income is $61 million, down from $66.2 million reported previously, the carrier said in a Securities and Exchange Commission filing. The error reduced third-quarter net income for the parent company, Alaska Air Group Inc., to $74 million from $79.2 million.
Alaska Airlines mistakenly recorded revenue from partners in its frequent-flier program that offer bonus miles as an incentive to use their products, said Caroline Boren, an Alaska Air spokeswoman. The revenue should be booked in future quarters when flights are taken using the miles, she said, not when the mileage is awarded.
Shares of Alaska Air sank 22 cents to $32.08 on the NYSE.
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