How Did Alaska Air Perform Operationally In August?

+15.70%
Upside
42.66
Market
49.36
Trefis
ALK: Alaska Air logo
ALK
Alaska Air

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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See Our Complete Analysis For Alaska Air Here

Have more questions about Alaska Air (NYSE:ALK)? See the following links:

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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