Alaska Airlines air cargo volumes are defying national trends, and that has helped the company's profits, according to the director of the airlines' cargo unit.

Director Joe Sprague said that for the first time ever, Alaska Airlines cargo surpassed $100 million in revenue from airfreight and mail.

Alaska Airlines' cargo business was recently credited, along with changes to its mileage plan, for aiding the Alaska Air Group in posting a fourth-quarter profit for 2008. Excluding special items, the company reported a net profit of $16.4 million, or $0.45 per diluted share, compared to a net loss of $17.9 million, or $0.46 per share, in the fourth quarter of 2007, according to a company statement.

Alaska Airlines transitioned its cargo fleet to newer more efficient Boeing 737-400s in the last two years with four combination passenger/freight aircraft called combis. The airline also added one Boeing 737-400 all freight aircraft to its fleet.

The company posted $103 million in freight revenue for 2008, despite plummeting numbers nationwide and worldwide.

According to Sprague, the Seattle-based airline bested trends because of U.S. Postal Service mail volumes in Alaska, as well as increased shipments of seafood headed to processors in Washington State.

"Alaska is the big enchilada," said Sprague. "Freight and mail to and from the state are the reasons for this."

Steve Deaton, a USPS mail specialist, recently told the Anchorage Air Cargo Association that bypass mail volumes in the state continue to increase, despite double-digit losses in first-class and priority mail.

Alaska's sister airline, Horizon Air, contributed to the Alaska Air Group's cargo figures by adding nearly $4 million in airfreight revenue to the totals, Sprague said.

Sprague also credits the airline's strong showing to its new fleet of Boeing aircraft, which added volume and frequency to help improve the company's revenue numbers.

"A big factor here in Alaska is that we had all five aircraft - the combi's and the freighter - at full capacity for the first time since getting them online," said Sprague.

Sprague said that while mail volumes were up, freight volumes are down statewide from previous years.

"Overall freight volumes separate from the mail volumes were in decline statewide, but not as bad as the rest of nation or worldwide," Sprague said.

U.S. domestic freight volumes were down 18.7 percent in 2008, according to the Air Transport Association.

Alaska volumes were flat through July 2008, increased to 11.8 percent over last year in August, then dropped 9.6 percent in September, down to 6 percent in October, and were flat in Nov. and December, according to Sprague.

"We saw an upturn because this was the first full year with our freighter and combis," said Sprague. "The last few years we were in transition and our cargo capacity was affected."

Rob Stapleton can be reached at

rob.stapleton@alaskajournal.com.