Alaska Air Group Inc. ALK witnessed a 1.7% rise in traffic in the month of February from a year ago. Traffic – measured in revenue passenger miles (RPMs) – came in at 3.5 billion, up from 3.4 billion recorded in Feb 2016.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 1.2% to 4.4 billion. Meanwhile, the load factor or percentage of seats filled by passengers increased to 80.4% from 80.1% recorded in Feb 2016 as traffic growth exceeded capacity expansion.
At the end of the first two months of 2017, Alaska Air Group generated RPMs of 7.3 billion (up 4.3% year over year) and ASMs of 9.2 billion (up 4.5% year over year). Load factor stood at 79.2%, compared with 79.3% in the first two months of 2016.
Recently, Alaska Air Group was tentatively awarded slots by the U.S. Transportation Department connecting the U.S. and Mexico. In the event of the order being finalized, Seattle, WA-based Alaska Air Group will be able to operate flights between Mexico City’s busy Benito Juarez International Airport to San Francisco, Los Angeles and San Diego.
Flights connecting Mexico City to San Francisco and San Diego will operate once a day while the Mexico City and Los Angeles will be connected by two daily flights. Apart from Alaska Air Group, low-cost carriers like JetBlue Airways Corp. JBLU and Southwest Airlines Co. LUV have also been awarded slots.
Alaska Air Group, Inc. Price
Alaska Air Group, Inc. Price | Alaska Air Group, Inc. Quote
Zacks Rank & Key Pick
Alaska Air Group currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the airline space is Gol Linhas Aereas Inteligentes S.A. GOL with a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here. Shares of GOL Linhas have gained more than 44% over the last six months.
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Southwest Airlines Company (LUV): Free Stock Analysis Report
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