Alaska Air Group, Inc. (NYSE: ALK) revised its revenue per available seat mile (RASM) higher in a regulatory filing, which implies the company saw a "strong finish" to the first quarter.
Raymond James' Savanthi Syth maintains a Strong Buy rating on Alaska Air with an unchanged $80 price target.
Alaska Air revised its first quarter RASM guidance from a range of 11.97 -12.07 cents to a new range of 12.08-12.10 cents. Syth says based on the upward revision the company's first quarter EPS is tracking at 15 cents per share, which is above the consensus estimate of a 1-cent loss. The company saw good cost execution during the quarter despite notable weather issues in February.
The company's Hawaii operations remain in negative year-over-year RASM territory but its performance looks to be in-line with management's expectations, the analyst wrote in a note. In fact, Southwest Airlines Co (NYSE: LUV)'s entry into the region hasn't shown an incremental drag so far. In addition, intra-California pricing which was an issue in 2018 has now improved back to 2017's levels.
Alaska Air is finalizing a two-year focus on becoming a single airline after closing the acquisition of Virgin America in late 2016. The company is now in a better position to benefit from a significantly larger platform coupled with diminishing headwinds.
Alaska Air's stock was trading higher by around 1.4 percent at $60.56 per share.
Barclays Fastens Seat Belt for Earnings Growth For Spirit, But Sees Shorter Runway For JetBlue
Imperial Downgrades Delta And United Continental, Sees Clear Skies For Most Other US Airline Stocks
Latest Ratings for ALK
|Apr 2019||Credit Suisse||Maintains||Outperform||Outperform|
|Mar 2019||Imperial Capital||Downgrades||Outperform||In-Line|
View More Analyst Ratings for ALK
View the Latest Analyst Ratings
See more from Benzinga
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.