Alaska Air Group's September Traffic Up, Load Factor Down
Alaska Air Group, Inc. ALK reported moderate traffic figures for September 2018. Consolidated traffic, measured in revenue passenger miles (RPMs), inched up 0.6% to 4.19 billion.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 3.2% to 5.18 billion. However, load factor or percentage of seats filled by passengers declined 210 basis points (bps) to 80.8% as capacity expansion outpaced traffic growth.
In the first nine months of 2018, the carrier generated RPMs of 41.27 billion (up 5.6% year over year) and ASMs of 49.26 billion (up 6.7% year over year). Load factor came in at 83.8% compared with 84.6% in the first nine months of 2017.
The decline in load factor highlights the fact that Alaska Air Group is suffering from woes related to capacity overexpansion.
Apart from traffic figures, Alaska Air Group’s wholly-owned subsidiary — Alaska Airlines —recently stated that it will operate non-stop flights connecting Seattle-Tacoma International Airport (Sea-Tac) to El Paso International Airport. The carrier has decided to operate non-stop flights connecting El Paso and San Diego International Airport. The flights will operate on a daily basis and expected to commence on Feb 19, 2019. The carrier has planned to utilize the Embraer 175 Jets to fly on these routes. The new flights, once operational, will boost connectivity and aid the employees travelling between Western Washington and West Texas.
Alaska Air Group is scheduled to report third-quarter financial results on Oct 25. Investors interested in the Zacks Transportation sector can also keep an eye on Genesee & Wyoming Inc. GWR, C.H. Robinson Worldwide, Inc. CHRW and Atlas Air Worldwide Holdings, Inc. AAWW. Genesee & Wyoming and C.H. Robinson are scheduled to report third-quarter 2018 results on Oct 30. Atlas Air Worldwide will announce the same on Nov 1.
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Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
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