Alaska Air (ALK)

Risks

• Mandatory vaccination programs could have a material adverse impact on the Company's operations and financial results.
• Our reputation and financial results could be harmed in the event of an airline accident or incident.
• Our operations are often affected by factors beyond our control, including delays, cancellations and other conditions, which could harm our business, financial condition and results of operations.
• We rely on vendors for certain critical activities and sourcing, which could expose us to disruptions in our operation or unexpected cost increases.
• Impacts of climate change, including legal, regulatory or market responses, may have a material adverse result on our operations and/or financial position.
• Changes in government regulation imposing additional requirements and restrictions on our operations could increase our operating costs and result in service delays and disruptions.
• The airline industry continues to face potential security concerns and related costs.
• The 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.
• The airline industry may undergo further restructuring, consolidation, or the creation or modification of alliances or joint ventures, any of which could have a material adverse effect on our business, financial condition and results of operations.
• Our concentration in certain markets could cause us to be disproportionately impacted by adverse changes in circumstances in those locations.
• We are dependent on a limited number of suppliers for aircraft and parts.
• We rely on partner airlines for codeshare and frequent flyer marketing arrangements.
• Economic uncertainty, or another recession, would likely impact demand for our product and could harm our financial condition and results of operations.
• Failure 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.
• Cyber security 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.
• Our business, financial condition and results of operations are substantially exposed to the volatility of jet fuel prices. Significant increases in jet fuel costs would harm our business.
• We have a significant amount of debt and fixed obligations, and have incurred substantial incremental debt in response to the COVID-19 pandemic. These obligations could lead to liquidity restraints and have a material adverse effect on our financial position.
• Our maintenance costs will increase as our fleet ages, and we will periodically incur substantial maintenance costs due to the timing of maintenance events of our aircraft.
• The application of the acquisition method of accounting resulted in us recording goodwill, which could result in significant future impairment charges and negatively affect our financial results.
• As we evolve our brand we will engage in strategic initiatives that may not be favorably received by all of our guests.`
• The Company's brand and reputation could be harmed if it is exposed to significant negative publicity distributed through social media.
• A significant increase in labor costs, unsuccessful attempts to strengthen our relationships with union employees or loss of key personnel could adversely affect our business and results of operations.
• The 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.
• Our amended and restated certificate of incorporation provides that the Court of Chancery of the State of Delaware will be the sole and exclusive forum for most legal actions involving actions brought against us by stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or other employees.