How Did Alaska Air Perform Operationally In November?

Alaska Air Group (NYSE:ALK) witnessed better than expected operational performance in the month of November. Unlike many of its competitors, the company recorded notable rises in most key metrics across the board. Alaska Air witnessed traffic growth at a significant 6.7% y-o-y, while growing its capacity by a notable 7.7% y-o-y. That said, Alaska recorded a 80 basis point decrease in its load factor, bringing the key metric to 85%.

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 November. Unlike previous months in the year, Virgin appeared to show greater improvement than Alaska this time around. Its capacity grew a significant 9.9% y-o-y, resulting in a similar increase in traffic growth at 12.4% y-o-y. As expected, the occupancy rate for the month was up by 190 bps, coming in at 84%.

On a consolidated basis, the Air Group’s capacity was up a remarkable 7.7% y-o-y, while traffic growth was recorded at 6.7% y-o-y higher in November 2017. That said, the occupancy rate decreased by 10 bps to 85%.

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

View Interactive Institutional Research (Powered by Trefis):

Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap

More Trefis Research