How Did Alaska Airlines Perform Operationally In July?
In the month of July, Alaska Air (NYSE:ALK) saw all its key metrics improve across the board. Alaska witnessed traffic growth at an expected 7.8%. Additionally, the airline grew its capacity by a solid 7%. Further, Alaska recorded a 60 basis point increase in its load factor, coming in at around 87.8%.
Ever since the merger, the company has made it a point to report the key metrics for Virgin separately to ensure clarity among investors. In the table below, we discuss Virgin America’s operational performance for the month of July. Its capacity grew 3.2% y-o-y, resulting in a similar increase in traffic growth at 2.4% y-o-y. As expected, the occupancy rate for the month was down by 70 bps, coming in at 86.4%.
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On a consolidated basis, the Air Group’s capacity was up a significant 6.4% for the month and traffic growth continued to impress at a mighty 6.6% in July 2017. Furthermore, the occupancy rate improved by 20 bps to 87%. In addition, the company’s unit revenues are expected to remain positive in the third quarter, owing to the improvement in the macroeconomic conditions and general reduction of headwinds seen in 2016.
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