How Did Alaska Airlines Perform Operationally In April?

by Trefis Team
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Alaska Air Group
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In the month of April, Alaska Air (NYSE:ALK) saw all its key metrics improve. The company had previously announced that Q2 would be the best quarter for the airline in FY 2017 in terms of unit revenues, aided by maturing markets, stabilization of competitive capacity, and solid demand, owing to the placement of the Easter holidays.

In this respect, the carrier saw its capacity rise 6.1% in April. Alaska’s passenger traffic grew at 8.9% y-o-y, while the occupancy rate improved by almost 230 bps to 87.2%.

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Since the merger, Alaska Air has been reporting the key metrics for Virgin separately. In the table below, we discuss Virgin America’s operational performance for the month of April. Its capacity grew 0.8% y-o-y, resulting in a solid increase in traffic growth at 4.5% y-o-y. Additionally, the occupancy rate for the month was up a massive 310 bps to 87.2%.

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On a consolidated basis, the Air Group’s capacity was up 4.6% for the month and traffic growth continued to impress at a mighty 7.8% in April 2017. Furthermore, the occupancy rate improved by a mighty 250 bps. In addition, the company’s unit revenues are expected to remain positive in the second quarter, owing to the improvement in the macroeconomic conditions and general reduction of headwinds seen in 2016. Additionally, the placement of the Easter holiday definitely helped boost the metrics this time around.

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