Oregon Public Broadcasting

Despite the recession, some large Northwest companies are reporting healthy profits Thursday.

Microsoft, Amazon.com, and Alaska Air met or beat analyst expectations when they put out quarterly earnings.

Alaska Air Group posted a $29 million profit in the second quarter, reversing three consecutive quarters of losses. Correspondent Tom Banse reports on the Seattle-based carrier.

Falling oil prices made the biggest difference in the turnaround for Alaska Airlines and its sibling Horizon Air. Company chairman Bill Ayer says the carriers are also seeing a significant boost from charging fliers for checked luggage.

Alaska and Horizon expanded their fees for checked bags earlier this month.

On a conference call with analysts, Ayer said management has succeeded in – as he put it -- “right sizing” the operation to match lower demand.

Bill Ayer: “We wish we would never have to lay off people. But it is necessary because of dramatically lower passenger volumes. We look forward to the day when we can grow and bring many of these folks back.”

Ayer says Alaska and Horizon combined have shed about 1500 jobs over the past year. The CEO says looking forward his crystal ball “is as cloudy as ever.”

As a result, the airline intends to be conservative when it eventually adds back flights to its schedule.

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Alaska Air Group Inc.