How Did Alaska Air Perform Operationally In August?
In the month of August 2016, the low cost carrier, Alaska Air, saw its capacity increase 10.3%. Including this month, so far in the year capacity is up as much as 11.5% for Alaska. This makes the low cost carrier the only player in the industry continuing to expand its capacity, even in the face of pressure on unit revenues. Alaska’s passenger traffic increased by 9%, while the occupancy rate was down slightly to 85.8%. Further, the carrier has received approval from the Department of Transportation to launch flights to Havana. This may lead to the airline seeing more traffic and using its capacity more efficiently in the future.
However, Alaska’s unit revenues are expected to remain in the negative territory. The management said that it expects PRASM to be -8% for the year ended 2016.
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- What’s In The Cards For Alaska Air’s Q2?
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See Our Complete Analysis For Alaska Air Here
Have more questions about Alaska Air (NYSE:ALK)? See the following links:
- Why Have We Revised Alaska Air’s Price Estimate To $69 Per Share?
- Alaska Air Reports Another Strong Quarter Backed By Rapid Capacity Growth And Lower Fuel Costs
- Alaska Air Q2’16 Earnings Preview: Capacity Growth, Fiscal Discipline To Support Earnings
- How Will The Virgin America Deal Impact Alaska Air’s Share Repurchase Program?
- 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
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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