Alaska Air Group posted stronger-than-expected earnings Wednesday in its first full quarter report filed since its merger with Hawaiian Airlines, which it anticipates will help generate $1 billion in additional pretax profit over the next three years.

Alaska Air Group finished last year with net income of $395 million, or $3.08 per share, compared to $235 million, or $1.83 per share, in 2023. Its adjusted full-year net income was $625 million, or $4.87 per share, compared to an adjusted full-year net income of $583 million, or $4.53 per share.

The airline reported net income for the fourth quarter of $71 million, or 55 cents per share, compared to a net loss for the fourth quarter of 2023 of $2 million, or 2 cents per share. Its adjusted net income in the fourth quarter rose to $125 million, or 97 cents per share, from adjusted net income of $38 million, or 30 cents per share, in the year-earlier quarter.

Alaska’s results for the fourth quarter and full year exceeded the high end of previously reported guidance, and include Hawaiian Airlines from Sept. 18, which is the date that it completed its $1.9 billion acquisition of the carrier. With its recent acquisition of Hawaiian, Alaska now serves more than 140 destinations throughout North America, Central America, Asia and the Pacific.

Alaska reported record full-year revenue of $11.7 billion. Its pretax margin of 4.6% was 7.1% on an adjusted basis and is expected to be among the best in the industry. Alaska ended the year with positive cash flow of $949 million, despite paying out $659 million in cash from the closing of the Hawaiian merger.

“This was a transformational year as we brought Hawaiian Airlines into Alaska Air Group and began our journey to unlock $1 billion in incremental pretax profit over the next three years,” Alaska CEO Ben Minicucci said in a statement.

Alaska and Horizon employees earned a record $325 million in bonuses in 2024. Horizon is a subsidiary of Alaska Air Group.

“We’re proud that our incentive plan will reward Alaska Airlines and Horizon Air employees with nearly six weeks of pay, which we believe will lead the industry,” Minicucci said. “Looking forward, our vision is clear and we’re focused on executing our strategic plan — leveraging the strengths of our combined network, enhancing the end-to-end travel experience for our guests, and delivering value for everyone who depends on us.”

Alaska reported that fourth-quarter revenue was stronger than expected across both Alaska and Hawaiian. It said results built on strength seen in the fall, and the year ended with momentum from sustained leisure demand and an uptick in corporate travel. Alaska said mild weather delivered reliable operational performance for its guests throughout the holidays, resulting in a higher-than-expected completion rate — the percentage of scheduled arrivals not canceled — and load factor, or percentage of available seating filled.

“Our success this year and our optimistic look ahead is built upon a proven strategy that puts the guest at the center of everything we do and unlocks new opportunities across our business,” Alaska Chief Commercial Officer Andrew Harrison said in a statement.

“We’re poised to capitalize on the strength of a combined global network, a powerful loyalty program, two beloved brands, and a remarkable travel experience that meets guests’ needs at every phase of the travel journey.”

The combining of the two carriers, however, comes with some employee fallout as Alaska eliminates merger-­related inefficiencies from Hawaiian’s nonunion workforce.

The majority of Hawaiian’s 1,300 or so noncontract workers have received permanent or interim positions, and Alaska has committed to maintaining and growing Hawaiian’s workforce of 6,000 unionized workers. Still, as many as 57 noncontract Hawaiian workers in Hawaii and another 16 noncontract workers from the mainland were laid off Dec. 17. Another 61 Hawaiian noncontract workers in Honolulu have been given notice of intended layoffs on March 17. Additional layoffs of noncontract workers at Hawaiian are expected as more jobs are eliminated from the combined airline; however, some workers could find new opportunities as the carrier expands its union jobs.

Alaska’s stock fell $1.48, or 2.2%, to $67.40 on Wednesday during the regular trading session, but then jumped $1.93, or 2.9%, to $69.33 in extended-hours trading after the earnings were announced. The company will hold a conference call with analysts at 6:30 a.m. Hawaii time today.