How Did Alaska Air Perform Operationally In January?

by Trefis Team
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Alaska Air Group
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In the month of January, Alaska Air (NYSE:ALK) saw all its key metrics improve. Keeping with the company’s guidance to increase capacity by 6% in the first quarter of the year 2017, the carrier saw its capacity rise 6.4% in January. Alaska’s passenger traffic grew at 5.7% y-o-y, while the occupancy rate declined slightly to 79.3%. For the full year, traffic was up as much as 5.9%.

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Furthermore, Alaska Air completed its acquisition of Virgin America on December 14, 2016. In the table below, we discuss Virgin America’s operational performance for the month of January. Its capacity grew 11.9% y-o-y, resulting in a solid increase in traffic growth at 10.3% y-o-y. However, the occupancy rate for January was down 100 bps to 76.2% in January.

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On a consolidated basis, the Air Group’s capacity was up 7.6% for the month and traffic growth continued to impress at 6.9% in January 2017. However, the occupancy rate declined slightly. That said, the company’s unit revenues are expected to turn to positive as we head into the first quarter, owing to the improvement in the macroeconomic conditions and general recession of headwinds seen in 2016.

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

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