How Did Alaska Airlines Perform Operationally In October?

by Trefis Team
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Alaska Air Group
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Alaska Air Group (NYSE:ALK) witnessed a pretty exceptional operational performance in the month of October. The company recorded notable rises in most key metrics across the board. Alaska Air witnessed traffic growth at a mammoth 9.3% y-o-y, while growing its capacity by a solid 10.6% y-o-y. That said, Alaska recorded a 100 basis point decrease in its load factor, bringing the key metric to 83.8%.

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 October. Unlike previous months in the year, Virgin appeared to show greater improvement than Alaska this time around. Its capacity grew a significant 13.4% y-o-y, resulting in a similar increase in traffic growth at 13.4% y-o-y. As expected, the occupancy rate for the month was up by 60 bps, coming in at 85%.

On a consolidated basis, the Air Group’s capacity was up a remarkable 11.6% y-o-y, while traffic growth was recorded at 11% y-o-y higher in October 2017. That said, the occupancy rate decreased by 40 bps to 83.8%.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such 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 Airlines

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