Alaska Airlines’ Plans for the Rest of 2015
Highlights: What Contributed to Alaska Airlines' 1Q15 Growth? (Part 4 of 5)
Second quarter expectations
Alaska Airlines (ALK) had a successful year in 2014, despite the intense competition it faced as Delta Air Lines (DAL) rapidly expanded into Seattle—Alaska Airlines’ home ground. However, the company came out stronger and its performance metrics improved in 1Q15.
Alaska Airlines’ management expects that in the second quarter, capacity will be up about 10.5%. Apart from this, the company also expects that its total seats to Hawaii from the West Coast will be up 12%. Revenue is expected to increase by 3.49% to $1,423 million in 2Q15—compared to $1,375 million in 2Q14. EPS (earnings per share) is expected to grow by 35% to $1.62 per share in 2Q15—compared to $1.20 per share in 2Q14.
New economy class section
Alaska Airlines is expected to unveil its new coach class sections in the spring. The new class sections would be a basic economy class fare. They would provide passengers with better adjustable leather seats and power outlets at the back of every seat. The company also has plans to have innovative space bins in its new Boeing jets—promising to offer 45% more room.
Focus on long-term goal
Alaska Air Group has been successful in making a mark in the airline industry due to its dedicated focus on cost control measures, schedule planning, operational efficiency, effective marketing, long-term emphasis on high productivity and low cost, and customer focus.
Customer satisfaction
One thing that the company and its employees have focused on and benefited from is customer satisfaction. This helped in the growth of the dedicated Alaska Airline flyers. Next month, the company will start preferred seating. The customers will enjoy extra leg room, a free drink, and priority boarding.
Strengthening the mileage plan
Alaska Airlines is working towards strengthening its mileage program. This would help grow its loyal customer base.
To learn more about Southwest Airlines (LUV), United Continental (UAL) and Delta Air Lines’ 1Q15 results, read Southwest Airlines Starts the Year on a Great Note, United Continental: A Smooth Start to 2015, and Delta Air Lines: A Strong Start to a New Year.
The SPDR S&P Transportation ETF (XTN) and the iShares Transportation Average ETF (IYT) hold 11% and 38% in airline stocks, respectively.
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