Alaska Airlines Suffers From Accounting Rules

Share this content

Due to a Securities and Exchange Commission change in accounting for frequent flyer mileage, the parent company of Alaska Airlines will suffer a cumulative adjustment of $56.9 million for the years prior to December 1999.

As a result of this change, the troubled airline - known as the 10th-largest carrier in the United States, will see an increase of $1.7 million in the first quarter 2000 loss.

The accounting change calls for deferring recognition of a part of the revenue from the sale of mileage credits until passengers redeem the miles. Other airlines also have adopted the rules.

A spokesperson for the airlines said the changes are consistent with industry standards and that the financial aspects of its mileage program are strong.


Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.