How Will The Virgin America Deal Impact Alaska Air’s Share Repurchase Program?
Much like its peers, Alaska Air had minted a lot of money due to the ongoing commodity slump. The sharp decline in crude oil prices resulted in a notable fall in the airline’s fuel costs, leading to huge cash flows over the last two years. As a result, the Seattle-based airline had repurchased a large amount of its shares to return value to its shareholders. Over the last two years, Alaska Air has repurchased more than 14.5 million shares for total value of $850 million. Further, the airline intended to continue to return value to its shareholders over the short term.
However, Alaska Air’s recent plans of acquiring Virgin America in an all cash deal of $2.6 billion have forced the airline to change its future share repurchase program. In order to fund this deal and the future integration of operations with Virgin America, the airline has decided to slow down its share repurchase program over the next couple of years. Below, we present the airline’s share buyback over the last three years and expected repurchase over the next few years.
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Have more questions about Alaska Air (NYSE:ALK)? See the following links:
- Will Alaska Air-Virgin America Face Antitrust Issues?
- How Will The Virgin America Merger Impact Alaska Air’s Cost Of Capital?
- How Will Alaska Air’s Market Share Change Post The Virgin America Deal?
- Why Is Alaska Air Acquiring Virgin America?
- How Will Alaska Air Benefit From The Virgin America Deal Operationally?
- How Will The Expected Return On The Alaska Air-Virgin America Merger Compare With The Previous Deals In The Sector?
- How Will The Virgin America Deal Alter Alaska Air’s Capital Structure?
- Has Alaska Air Paid A Fair Price For Acquiring Virgin America?
- Alaska Air’s Earnings Rise On The Back Of Rapid Capacity Growth And Lower Fuel Costs
- How Has Alaska Air Used Its Increased Cash Flows From Fuel Cost Savings?
- How Will Alaska Air’s EBITDA Be Impacted, If Crude Oil Prices Rebound To $100 Per Barrel By 2018?
- Capacity Expansions And Fuel Cost Savings Boost Alaska Air’s 2015 Results
- How Do Alaska Air’s Operational Statistics Compare With Its Peers?
- How Does Alaska Air’s Market Share (By Capacity) Compare With Its Peers?
- How Does Alaska Air’s Operating Margins Compare With Its Peers?
- How Much Will Alaska Air’s Revenue And EBITDA Grow In The Next 3 Years?
- How Has The Oil Slump Helped Alaska Air’s Operating Margins?
- How Has Alaska Air’s Revenue And EBITDA Composition Changed Over the Last Five Years?
- How Much Has Alaska Air’s Revenue & EBITDA Grown In The Last 5 Years?
- What Is Alaska Air’s Fundamental Value Based On Expected 2015 Results?
- What Constitutes Alaska Air’s Revenue And EBITDA?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Alaska Air Group
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